Discover 2015 Annual Report Download - page 120

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-104-
Credit Quality Indicators
The Company regularly reviews its collection experience (including delinquencies and net charge-offs) in
determining its allowance for loan losses.
Information related to the delinquent and non-accruing loans in the Company’s loan portfolio is shown below by
each class of loan receivables except for mortgage loans held for sale and PCI student loans, which is shown under the
heading “— Purchased Credit-Impaired Loans” (dollars in millions):
30-89 Days
Delinquent
90 or
More Days
Delinquent Total Past
Due
90 or
More Days
Delinquent
and
Accruing Total
Non-accruing(1)
At December 31, 2015
Credit card loans(2) .......................................................... $ 505 $ 490 $ 995 $ 422 $ 198
Other loans
Personal loans(3) ........................................................... 34 15 49 13 6
Private student loans (excluding PCI)(4) ............................ 84 24 108 25 —
Other ......................................................................... — 1 1 — 20
Total other loans (excluding PCI) ............................... 118 40 158 38 26
Total loan receivables (excluding PCI) .................... $ 623 $ 530 $ 1,153 $ 460 $ 224
At December 31, 2014
Credit card loans(2) .......................................................... $ 491 $ 480 $ 971 $ 442 $ 157
Other loans
Personal loans(3) ........................................................... 29 11 40 10 5
Private student loans (excluding PCI)(4) ............................ 62 25 87 25 —
Other ......................................................................... 1 1 2 — 21
Total other loans (excluding PCI) ............................... 92 37 129 35 26
Total loan receivables (excluding PCI) .................... $ 583 $ 517 $ 1,100 $ 477 $ 183
(1) The Company estimates that the gross interest income that would have been recorded in accordance with the original terms of non-accruing credit card loans was
$30 million, $27 million and $29 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Company does not separately track the
amount of gross interest income that would have been recorded in accordance with the original terms of loans. This amount was estimated based on customers'
current balances and most recent interest rates.
(2) Credit card loans that are 90 or more days delinquent and accruing interest include $42 million and $43 million of loans accounted for as troubled debt
restructurings at December 31, 2015 and 2014, respectively.
(3) Personal loans that are 90 or more days delinquent and accruing interest include $4 million and $3 million of loans accounted for as troubled debt restructurings at
both December 31, 2015 and 2014, respectively.
(4) Private student loans that are 90 or more days delinquent and accruing interest include $3 million and $5 million of loans accounted for as troubled debt
restructurings at December 31, 2015 and 2014, respectively.