Discover 2015 Annual Report Download - page 125

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-109-
Additional information about modified loans classified as troubled debt restructurings is shown below (dollars in
millions):
Average
recorded
investment in
loans
Interest income
recognized
during period
loans were
impaired(1)
Gross interest
income that
would have
been recorded
with original
terms(2)
For the Year Ended December 31, 2015
Credit card loans
Modified credit card loans(3) ....................................................................................... $ 261 $ 47 $ 3
Internal programs ...................................................................................................... $ 450 $ 12 $ 61
External programs ..................................................................................................... $ 307 $ 23 $ 11
Personal loans ............................................................................................................... $ 62 $ 7 $ 2
Private student loans ...................................................................................................... $ 43 $ 3 N/A
For the Year Ended December 31, 2014
Credit card loans
Modified credit card loans(3) ....................................................................................... $ 252 $ 45 $ 3
Internal programs ...................................................................................................... $ 452 $ 12 $ 61
External programs ..................................................................................................... $ 365 $ 27 $ 13
Personal loans ............................................................................................................... $ 48 $ 5 $ 1
Private student loans ...................................................................................................... $ 32 $ 3 N/A
For the Year Ended December 31, 2013
Credit card loans
Modified credit card loans(3) ....................................................................................... $ 269 $ 49 $ 3
Internal programs ...................................................................................................... $ 468 $ 9 $ 66
External programs ..................................................................................................... $ 463 $ 36 $ 11
Personal loans ............................................................................................................... $ 26 $ 3 $ 1
Private student loans ...................................................................................................... $ 22 $ 2 N/A
(1) The Company does not separately track interest income on loans in modification programs. Amounts shown are estimated by applying an average interest rate to the
average loans in the various modification programs.
(2) The Company does not separately track the amount of gross interest income that would have been recorded if the loans in modification programs had not been
restructured and interest had instead been recorded in accordance with the original terms. Amounts shown are estimated by applying the difference between the
average interest rate earned on non-impaired credit card loans and the average interest rate earned on loans in the modification programs to the average loans in
the modification programs.
(3) This balance is considered impaired, but is excluded from the internal and external program amounts reflected in this table. Represents credit card loans that were
modified in troubled debt restructurings, but are no longer enrolled in troubled debt restructuring program due to noncompliance with the terms of the modification
or successful completion of a program.
In order to evaluate the primary financial effects that resulted from credit card loans entering into a loan
modification program during the years ended December 31, 2015, 2014 and 2013, the Company quantified the
amount by which interest and fees were reduced during the periods. During the years ended December 31, 2015,
2014 and 2013, the Company forgave approximately $44 million, $42 million and $40 million, respectively, of interest
and fees as a result of accounts entering into a credit card loan modification program.