Reserves For Losses (Tables)

9 Months Ended

Sep. 30, 2012

Reserves For Losses Tables [Abstract]

Changes in the cardmember receivable reserve for losses

The following table presents changes in the cardmember receivables reserve for losses for thenine months endedSeptember 30:

(Millions)			2012		2011
Balance, January 1			$	438	$	386
Additions:
	Provisions(a)			434		404
	Other(b)			97		129
		Total provision		531		533
Deductions:
	Net write-offs(c)			(487)		(406)
	Other(d)			(73)		(125)
Balance, September 30			$	409	$	388

• Provisions forprincipal (resulting from authorized transactions) and fee reserve components.
• Provisions for unauthorized transactions.
• Consists of principal (resulting from authorized transactions) and fee components, less recoveries of $292 million and $255 million for the nine months endedSeptember 30,2012 and 2011, respectively.
• Includes net write-offs resulting from unauthorized transactions of $(100) million and $(123) million for the nine months endedSeptember 30, 2012 and 2011, respectively; foreign currency translation adjustments of $4 million and nil for the nine months endedSeptember 30, 2012 and 2011, respectively;cardmember bankruptcy reserves of $18 million and nil for the nine months endedSeptember 30, 2012 and 2011, respectively; and other items of $5 million and $(2) million for the nine months endedSeptember 30, 2012 and 2011, respectively. Cardmember bankruptcy reserves were classified as other liabilities in prior periods.

Cardmember receivables and related reserves evaluated separately and collectively for impairment

The following table presents cardmember receivables evaluated individually and collectively for impairment and related reserves as of September 30, 2012 and December 31, 2011:

(Millions)	2012		2011
Cardmember receivables evaluated individually for impairment(a)	$	119	$	174
Related reserves (a)	$	80	$	118
Cardmember receivables evaluated collectively for impairment	$	42,200	$	40,716
Related reserves	$	329	$	320

• Represents receivables modified in a TDR and related reserves.Refer to the Impaired Loans and Receivables discussion in Note 3 for further information.

Changes in the cardmember loans reserve for losses

The following table presents changes in the cardmember loans reserve for losses for the nine months endedSeptember 30:

(Millions)			2012		2011
Balance, January 1			$	1,874	$	3,646
Additions:
	Provisions(a)			669		23
	Other(b)			84		81
		Total provision		753		104
Deductions:
	Net write-offs:
		Principal(c)		(970)		(1,375)
		Interest and fees(c)		(121)		(159)
	Other(d)			(77)		(77)
Balance, September 30			$	1,459	$	2,139

• Provisions for principal (resulting from authorized transactions), interest and fee reservescomponents.
• Provisions for unauthorized transactions.
• Consists of principal write-offs (resulting from authorized transactions), less recoveries of $382million and$444millionfor the nine months endedSeptember 30, 2012 and 2011, respectively. Recoveries of interest and fees were de minimis.
• Includes net write-offs for unauthorized transactions of $(84) million and $(76) million for the nine months ended September 30, 2012 and 2011, respectively; foreign currency translation adjustments of $10 million and $(1) million for the nine months ended September 30, 2012 and 2011, respectively;cardmember bankruptcy reserves of $4 million and nil for the nine months ended September 30, 2012 and 2011, respectively;and other items of $(7)million and nil for the nine months ended September 30, 2012 and 2011, respectively. Cardmember bankruptcy reserves were classified as other liabilities in prior periods.

Cardmember loans and related reserves evaluated separately and collectively for impairment

The following table presents cardmember loans evaluated individually and collectively for impairment and related reserves as of September 30, 2012 and December 31, 2011:

(Millions)	2012		2011
Cardmember loans evaluated individually for impairment(a)	$	673	$	744
Related reserves (a)	$	151	$	176
Cardmember loans evaluated collectively for impairment(b)	$	61,077	$	61,877
Related reserves (b)	$	1,308	$	1,698

• Represents loans modified in a TDR and related reserves. Refer to the Impaired Loans and Receivables discussion in Note 3 for further information.
• Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans and related reserves. The reserves include the results of analytical models that are specific to individual pools of loans and reserves for external environmental factors that apply to loans in geographic markets that are collectively evaluated for impairment and are not specific to any individual pool of loans.