Reserves for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2020

Reserves for Credit Losses [Abstract]

Changes in Card Member Receivable Reserve for Credit Losses

The following table presents changes in the Card Member receivables reserve for credit losses for the three and nine months ended September 30:

(Millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Beginning Balance (a)	$	184	$	172	$	15	$	167
Provisions (b)	(16)		52		248		160
Net write-offs (c)	(59)		(55)		(160)		(166)
Other adjustments (d)	1		(1)		7		7
Ending Balance	$	110	$	168	$	110	$	168

(a)For the nine months ended September 30, 2020, beginning balance includes a decrease of $147 million as of January 1, 2020, related to the adoption of the CECL methodology.

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

(c)Net of recoveries of $21 million and $30 million for the three months ended September 30, 2020 and 2019, respectively and $59 million and $94 million for the nine months ended September 30, 2020 and 2019, respectively.

(d)For the three months ended September 30, 2020 and 2019, primarily includes foreign currency translation adjustments. For the nine months ended September 30, 2020, primarily includes reserve adjustments related to the removal of U.S. Consumer and Small Business Card Member receivables of $7.2 billion from the Charge Trust and for the nine months ended September 30, 2019, primarily includes reserve balances related to new groups of, and participation interests in, Card Member receivables purchased from affiliates, totaling $2.7 billion and participation interests in Card Member receivables sold to an affiliate totaling $1.1 billion.

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 three and nine months ended September 30:

(Millions)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Beginning Balance (a)	$	23	$	7	$	17	$	5
Provisions (b)	4		4		16		10
Net write-offs (c)	(5)		(3)		(11)		(7)
Ending Balance	$	22	$	8	$	22	$	8

(a)For the nine months ended September 30, 2020, beginning balance includes an increase of $7 million as of January 1, 2020, related to the adoption of the CECL methodology.

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

(c)Net of recoveries of $0.6 million and $0.5 million for the three months ended September 30, 2020 and 2019, respectively and $2.0 million and $1.0 million for the nine months ended September 30, 2020 and 2019, respectively.