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71
Delinquencies
Delinquencies are an indicator of credit quality at a point in time. Loan balances are considered delinquent when
contractual payments on the loan become 30 days past due. Information related to loans 90 days or more delinquent and
accruing interest is provided in Note 6: Loan Receivables to our consolidated financial statements.
The following table presents the amounts and delinquency rates of key loan portfolio segments that are 30 and 90 days or
more delinquent, loan receivables that are not accruing interest, regardless of delinquency and restructured loans (dollars in
thousands):
Loans 30 days
delinquent or more:
Credit card loans
Personal loans
Private student loans
(excluding PCI
loans(1))
Loans 90 days
delinquent or more:
Credit card loans
Personal loans
Private student
loans (excluding
PCI loans(1))
Loans not accruing
interest
Restructured loans
Credit card loans
(3)(4)
Personal loans
Private student loans
(excluding PCI
loans(1))
For the Years Ended November 30,
2011
$
$1,116,851
$ 22,966
$ 13,065
$ 559,674
$ 7,362
$ 2,992
$ 207,138
$1,216,738
$ 7,635
$ 5,439
%
2.39%
0.87%
0.63%
1.20%
0.28%
0.14%
0.40%
2.61%
0.29%
0.26%
2010
$
$1,831,119
$ 29,486
$ 5,030
$ 958,216
$ 10,670
$ 1,408
$ 325,900
$ 305,344
$—
$—
%
4.06%
1.57%
0.50%
2.12%
0.57%
0.14%
0.68%
0.68%
—%
—%
2009
(Non-GAAP
As-Adjusted2)
$
$ 2,656,689
$ 30,210
$ 491
$ 1,393,474
$ 9,839
$97
$ 438,278
$ 218,182
$—
$—
%
5.60%
2.17%
0.13%
2.94%
0.71%
0.03%
0.86%
0.46%
—%
—%
2008
(Non-GAAP
As-Adjusted2)
$
$2,316,523
$ 10,859
$37
$1,102,566
$ 2,582
$—
$ 366,508
$—
$—
$—
%
4.66%
1.06%
0.09%
2.22%
0.25%
—%
0.72%
—%
—%
—%
2007
(Non-GAAP
As-Adjusted2)
$
$1,719,522
$ 466
$19
$ 804,414
$ 110
$9
$ 256,694
$—
$—
$—
%
3.59%
0.28%
1.05%
1.68%
0.07%
0.51%
0.53%
—%
—%
—%
(1) Excludes PCI loans which are accounted for on a pooled basis. Since a pool is accounted for as a single asset with a single composite interest rate and aggregate expectation
of cash flows, the past-due status of a pool, or that of the individual loans within a pool, is not meaningful. Because we are recognizing interest income on a pool of loans, it is
all considered to be performing.
(2) Information related to credit card loan receivables for years prior to 2010 is presented on a non-GAAP as-adjusted basis. No adjustments have been made for personal loan or
private student loan receivables. See reconciliation in “ - Reconciliations of GAAP to Non-GAAP As-Adjusted Data.”
(3) Restructured loans include $37.9 million, $35.0 million and $9.7 million for the years ended November 30, 2011, 2010 and 2009, respectively, that are also included in loans
over 90 days delinquent or more.
(4) Data not available for the years ended November 30, 2008 and 2007.
Both credit card and personal loan receivables delinquency rates at November 30, 2011 have generally declined as
compared to November 30, 2010 due to continued improvement in customer financial performance, which has resulted in
improvements in both over 30-day and over 90-day delinquency balances. The decline is also attributable to proactive
customer account management. The rate for over 30-day delinquency balances increased for private student loan balances due
to the seasoning of our loan portfolio for the year ended November 30, 2011 as compared to the same period in 2010. The rate
for over 90-day delinquency balances for private student loan balances was flat for the year ended November 30, 2011 as
compared to 2010. Loan receivables not accruing interest at November 30, 2011 decreased compared to the prior year
primarily as a result of a decrease in the number of bankruptcies. Restructured credit card loans at November 30, 2011
increased to $1.2 billion from $305.3 million at November 30, 2010 because we began accounting for credit card loans
modified through temporary hardship and external programs as troubled debt restructurings during 2011.
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