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Net charge-offs of principal are recorded against the allowance for loan losses, as shown in the preceding table.
Information regarding net charge-offs of interest and fee revenues on credit card and other loans is as follows (dollars
in millions):
For the Years Ended December 31,
2015 2014 2013
Interest and fees accrued subsequently charged off, net of recoveries (recorded as a reduction of
interest income) .................................................................................................................. $ 278 $ 283 $ 280
Fees accrued subsequently charged off, net of recoveries
(recorded as a reduction to other income) ............................................................................ $ 71 $ 69 $ 59
The following tables provide additional detail of the Company’s allowance for loan losses and recorded
investment in its loan portfolio by impairment methodology (dollars in millions):
Credit
Card Personal Loans Student Loans(1) Other Loans(2) Total
At December 31, 2015
Allowance for loans evaluated for impairment as
Collectively evaluated for impairment in accordance with ASC 450-20 .... $ 1,394 $ 140 $ 92 $ 1 $ 1,627
Evaluated for impairment in accordance with ASC 310-10-35(3)(4)............ 160 15 15 16 206
Acquired with deteriorated credit quality, evaluated in accordance with
ASC 310-30 ..................................................................................... — — 36 — 36
Total allowance for loan losses ......................................................... $ 1,554 $ 155 $ 143 $ 17 $ 1,869
Recorded investment in loans evaluated for impairment as
Collectively evaluated for impairment in accordance with ASC 450-20 .... $ 56,877 $ 5,422 $ 5,599 $ 179 $ 68,077
Evaluated for impairment in accordance with ASC 310-10-35(3)(4)............ 1,019 68 48 57 1,192
Acquired with deteriorated credit quality, evaluated in accordance with
ASC 310-30 ..................................................................................... — — 3,116 — 3,116
Total recorded investment ................................................................. $ 57,896 $ 5,490 $ 8,763 $ 236 $ 72,385
At December 31, 2014
Allowance for loans evaluated for impairment as
Collectively evaluated for impairment in accordance with ASC 450-20 .... $ 1,314 $ 114 $ 96 $ 1 $ 1,525
Evaluated for impairment in accordance with ASC 310-10-35(3)(4)............ 160 6 11 16 193
Acquired with deteriorated credit quality, evaluated in accordance with
ASC 310-30 ..................................................................................... — — 28 — 28
Total allowance for loan losses ......................................................... $ 1,474 $ 120 $ 135 $ 17 $ 1,746
Recorded investment in loans evaluated for impairment as
Collectively evaluated for impairment in accordance with ASC 450-20 .... $ 55,091 $ 4,952 $ 4,812 $ 142 $ 64,997
Evaluated for impairment in accordance with ASC 310-10-35(3)(4)............ 1,037 55 38 60 1,190
Acquired with deteriorated credit quality, evaluated in accordance with
ASC 310-30 ..................................................................................... — — 3,660 — 3,660
Total recorded investment ................................................................. $ 56,128 $ 5,007 $ 8,510 $ 202 $ 69,847
(1) Includes both PCI and non-PCI private student loans.
(2) Excludes mortgage loans held for sale. Certain other loans, including non-performing Diners Club licensee loans, are individually evaluated for impairment.
(3) Loan receivables evaluated for impairment in accordance with Accounting Standards Codification ("ASC") 310-10-35 include credit card loans, personal loans and
student loans collectively evaluated for impairment in accordance with ASC Subtopic 310-40, Receivables, which consists of modified loans accounted for as
troubled debt restructurings. Other loans are individually evaluated for impairment and generally do not represent troubled debt restructurings.
(4) The unpaid principal balance of credit card loans was $869 million and $878 million at December 31, 2015 and 2014 respectively. The unpaid principal balance
of personal loans was $67 million and $54 million at December 31, 2015 and 2014, respectively. The unpaid principal balance of student loans was $47 million
and $37 million at December 31, 2015 and 2014, respectively. All loans accounted for as troubled debt restructurings have a related allowance for loan losses.