Reserves for Losses (Tables)

12 Months Ended

Dec. 31, 2016

Reserves For Losses Tables [Abstract]

Changes in the Card Member receivable reserve for losses

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

(Millions)		2016		2015			2014
Balance, January 1		$	114	$	94	$	76
	Provisions		145		160		194
	Other credits(a)		20		32		15
	Net write-offs(b)		(146)		(157)		(166)
	Other debits(c)(d)		(23)		(15)		(25)
Balance, December 31		$	110	$	114	$	94

• Primarily reserve balances applicable to new groups of Card Member receivables purchased from TRS and certain of its subsidiaries and participation interests from affiliates. New groups of Card Member receivables purchased totaled $5.4 billion, $5.8 billion and $3.4 billion for the years ended December 31, 2016, 2015 and 2014, respectively.
• Net of recoveries of $91 million, $100 million and $98 million for the years ended December 31, 2016, 2015 and 2014, respectively.
• Primarily reserve balances applicable to participation interests in Card Member receivables sold to an affiliate and, for 2014, reserves applicable to Card Member receivables sold to the joint ventures that issue American Express cards in certain countries (American Express joint ventures) following the termination of the agreements to purchase Card Member receivables in the third quarter of 2014. Sales of these participation interests and Card Member receivables totaled $5.7 billion, $2.6 billion and $3.2 billion for the years ended December 31, 2016, 2015 and 2014, respectively.
• 2015 includes the impact of the transfer of reserves relating to the HFS portfolio, which was not significant.

Changes in the Card Member loans reserve for losses

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

(Millions)		2016		2015		2014
Balance, January 1		$	4	$	3	$	4
	Provisions		6		5		8
	Net write-offs(a)		(5)		(4)		(4)
	Other debits(b)		―		―		(5)
Balance, December 31		$	5	$	4	$	3

• Net of recoveries of $1 million for both the years ended December 31, 2016 and 2015, and $4 million for the year ended December 31, 2014.
• Primarily reserve balances applicable to sales of Card Member loans to the American Express joint ventures following the termination of the agreements to purchase Card Member loans in the third quarter of 2014. Card Member loans sold totaled nil for boththe years ended December 31, 2016and 2015, and $0.2 billion for the year ended December 31, 2014.