Discover 2011 Annual Report Download - page 123
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111
The following table provides additional detail of the Company’s allowance for loan losses and recorded investment in its
loan portfolio (which excludes loans held for sale) by impairment methodology (dollars in thousands):
At November 30, 2011
Allowance for loans evaluated for impairment as:
Collectively evaluated for impairment(1)
Troubled debt restructurings(2)
Purchased credit-impaired(3)
Total allowance for loan losses
Recorded investment in loans evaluated for
impairment as:
Collectively evaluated for impairment(1)
Troubled debt restructurings(2)
Purchased credit-impaired(3)
Total recorded investment
At November 30, 2010
Allowance for loans evaluated for impairment as:
Collectively evaluated for impairment(1)
Troubled debt restructurings(2)
Purchased credit-impaired(3)
Total allowance for loan losses
Recorded investment in loans evaluated for
impairment as:
Collectively evaluated for impairment(1)
Troubled debt restructurings(2)
Purchased credit-impaired(3)
Total recorded investment
Credit Card
$ 1,865,797
204,364
—
$ 2,070,161
$ 45,421,887
1,216,738
—
$ 46,638,625
$ 3,095,046
113,842
—
$ 3,208,888
$ 44,851,650
305,344
—
$ 45,156,994
Personal
Loans
$ 81,838
237
—
$ 82,075
$ 2,640,416
7,635
—
$ 2,648,051
$ 76,087
—
—
$ 76,087
$ 1,877,633
—
—
$ 1,877,633
Student
Loans
$ 52,601
139
—
$ 52,740
$ 2,063,562
5,439
5,250,388
$ 7,319,389
$ 18,569
—
—
$ 18,569
$ 999,322
—
—
$ 999,322
Other
Loans
$ 220
—
—
$ 220
$ 16,690
—
—
$ 16,690
$ 574
—
—
$ 574
$ 14,363
—
—
$ 14,363
Total
$ 2,000,456
204,740
—
$ 2,205,196
$ 50,142,555
1,229,812
5,250,388
$ 56,622,755
$ 3,190,276
113,842
—
$ 3,304,118
$ 47,742,968
305,344
—
$ 48,048,312
(1) Represents loans evaluated for impairment in accordance with ASC 450-20, Loss Contingencies.
(2) Represents loans evaluated for impairment in accordance with ASC 310-10, Receivables, which consists of modified loans accounted for as troubled
debt restructurings. The unpaid principal balance of credit card loans was $1.0 billion at November 30, 2011. All loans accounted for as troubled debt
restructurings have a related allowance for loan losses. In the first quarter 2011, the Company began accounting for credit card loans modified through
temporary hardship and external programs as troubled debt restructurings. In the fourth quarter 2011, the Company began accounting for certain private
student loans where the borrower had been granted a second forbearance and personal loans in permanent programs as troubled debt restructurings. The
impact on the total allowance for loan losses as a result of these changes was not material.
(3) Represents loans evaluated for impairment in accordance with ASC 310-30, Receivables-Loans and Debt Securities Acquired with Deteriorated Credit
Quality.
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