Discover 2011 Annual Report Download - page 122

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110
The following table provides changes in the Company’s allowance for loan losses for the years ended November 30,
2011, 2010 and 2009 (dollars in thousands):
Balance at beginning of period
Additions:
Addition to allowance related to securitized receivables(1)
Provision for loan losses
Deductions:
Charge-offs related to loans sold
Charge-offs:
Discover card
Discover business card
Total credit card loans
Personal loans
Federal student loans
Private student loans
Other
Total other consumer loans
Total charge-offs
Recoveries:
Discover card
Discover business card
Total credit card loans
Personal loans
Private student loans
Other
Total other consumer loans
Total recoveries
Net charge-offs
Balance at end of period
For the Year Ended November 30,
2011
$ 3,304,118
—
1,013,350
—
(2,594,169)
(21,154)
(2,615,323)
(69,273)
—
(7,931)
(1,315)
(78,519)
(2,693,842)
575,838
3,642
579,480
1,985
101
4
2,090
581,570
(2,112,272)
$ 2,205,196
2010
$ 1,757,899
2,144,461
3,206,705
(25,342)
(4,094,236)
(59,986)
(4,154,222)
(92,351)
(719)
(2,783)
(1,018)
(96,871)
(4,251,093)
466,548
3,549
470,097
1,307
38
46
1,391
471,488
(3,779,605)
$ 3,304,118
2009
$ 1,374,585
—
2,362,405
—
(2,034,458)
(62,115)
(2,096,573)
(68,590)
—
(468)
(22)
(69,080)
(2,165,653)
184,383
1,233
185,616
906
2
38
946
186,562
(1,979,091)
$ 1,757,899
(1) On December 1, 2009, upon adoption of FASB Statements No. 166 and 167, the Company recorded an additional $2.1 billion allowance for loan losses
related to newly consolidated and reclassified credit card loan receivables.
Net charge-offs of principal are recorded against the allowance for loan losses, as shown in the table above. Information
regarding net charge-offs of interest and fee revenues on credit card and other consumer loans is as follows (dollars in
thousands):
Interest and fees accrued subsequently charged off, net of recoveries
(recorded as a reduction of interest income)(2)
Fees accrued subsequently charged off, net of recoveries
(recorded as a reduction to other income)(2)
For the Year Ended November 30,
2011(1)
$ 588,737
$ 106,443
2010(1)
$ 934,077
$ 272,805
2009
$ 465,283
$ 176,662
(1) The amounts at November 30, 2011 and 2010 include securitized loans as a result of the consolidation of the securitization trusts upon adoption of
Statement No. 167 on December 1, 2009. See Note 2: Change in Accounting Principle for more information.
(2) Beginning in 2011, net charge-offs of interest and fees include amounts related to other consumer loans. Prior to 2011 such amounts were not included.
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