Reserves for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Changes in the Card Member loans reserve for credit losses

The following table presents changes in the Card Member loans reserve for credit losses for the years ended December 31:

(Millions)	2020		2019		2018
Beginning Balance(a)	$	4,027	$	2,134	$	1,706
Provisions(b)	3,453		2,462		2,266
Net write-offs (c)
Principal	(1,795)		(1,860)		(1,539)
Interest and fees	(375)		(375)		(304)
Other(d)	34		22		5
Ending Balance	$	5,344	$	2,383	$	2,134

(a)For the year ended December 31, 2020, beginning balance includes an increase of $1,643 million as of January 1, 2020, related to the adoption of the CECL methodology.

(b)Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(c)Principal write-offs are presented less recoveries of $568 million, $525 million and $444 million for the years ended December 31, 2020, 2019 and 2018, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(134) million, $(79) million and $(33) million for the years ended December 31, 2020, 2019 and 2018, respectively.

(d)Primarily includes foreign currency translation adjustments of $35 million, $4 million and $(11) million for the years ended December 31, 2020, 2019 and 2018, respectively.

Changes in the Card Member receivable reserve for credit losses

The following table presents changes in the Card Member receivables reserve for credit losses for the years ended December 31:

(Millions)	2020		2019		2018
Beginning Balance(a)	$	126	$	573	$	521
Provisions(b)	1,015		963		937
Net write-offs(c)	(881)		(900)		(859)
Other(d)	7		(17)		(26)
Ending Balance	$	267	$	619	$	573

(a)For the year ended December 31, 2020, beginning balance includes a decrease of $493 million as of January 1, 2020, related to the adoption of the CECL methodology.

(b)Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(c)Net write-offs are presented less recoveries of $386 million, $374 million and $367 million for the years ended December 31, 2020, 2019 and 2018, respectively. Amounts include net recoveries (write-offs) from TDRs of $(47) million, $(16) million and nil, for the years ended December 31, 2020, 2019 and 2018, respectively.

(d)Primarily includes foreign currency translation adjustments of $5 million, nil and $(6) million for the years ended December 31, 2020, 2019 and 2018, respectively.