Reserves for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2020

Reserves for Losses [Abstract]

Changes in the Financing 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
Balance, January 1(a)	$	15	$	167	$	145
Provisions(b)	224		216		243
Net write-offs(c)	(177)		(229)		(238)
Other adjustments(d)	8		8		17
Balance, December 31	$	70	$	162	$	167

(a)For the year ended December 31, 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 $82 million, $125 million, and $119 million for the years ended December 31, 2020, 2019 and 2018, respectively.

(d)For the year ended December 31, 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. For the years ended December 31, 2019 and 2018, primarily includes reserve balances related to new groups of, and participation interests in, Card Member receivables purchased from affiliates, totaling $2.7 billion and $9.8 billion, respectively, and participation interests in Card Member receivables sold to an affiliate totaling $1.1 billion and $6.2 billion, respectively. For all the years presented, also includes foreign currency translation adjustments.

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

(Millions)	2020		2019		2018
Balance, January 1(a)	$	17	$	5	$	5
Provisions(b)	18		14		6
Net write-offs(c)	(15)		(9)		(6)
Balance, December 31	$	20	$	10	$	5

(a)For the year ended December 31, 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 $2.0 million, $1.6 million, and $1.8 million for the year ended December 31, 2020, 2019 and 2018, respectively.