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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported) February 15, 2011
AMERICAN EXPRESS
RECEIVABLES
FINANCING
CORPORATION V LLC
on behalf of
RECEIVABLES
FINANCING
CORPORATION V LLC
on behalf of
AMERICAN EXPRESS
ISSUANCE TRUST
ISSUANCE TRUST
(as Originator of the American Express Issuance Trust)
(Exact Name of registrant as Specified in Charter)
Delaware | 333-158295 333-158295-01 |
20-2007139 | ||
(State or Other Jurisdiction of | (Commission File Number) | (I.R.S. Employer | ||
Incorporation or Organization) | Identification Number) | |||
200 Vesey Street
Mail Stop 01-31-12
New York, New York 10285
(212) 640-2000
(Address, Including Zip Code, and Telephone Number,
Including Area Code, of Registrants Principal Executive Offices)
N/A
(Former Name or Former Address, if Changed Since Last
Report)
Mail Stop 01-31-12
New York, New York 10285
(212) 640-2000
(Address, Including Zip Code, and Telephone Number,
Including Area Code, of Registrants Principal Executive Offices)
N/A
(Former Name or Former Address, if Changed Since Last
Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions.
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
TABLE OF CONTENTS
Item 8.01. Other Events | ||||||||
SIGNATURES |
Table of Contents
INFORMATION TO BE INCLUDED IN THE REPORT
Item 8.01. Other Events.
The following information relates to the charge card receivables owned by American Express
Issuance Trust and the related charge card accounts. Some of the terms used herein are used as
defined in the Glossary of Terms at the end of this report.
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The Total
Portfolio
General
The Total Portfolio consists of two segments of accounts, each
of which has individual yield, loss, delinquency and payment
rate characteristics: (i) the Consumer and Small Business
Segment, consisting of consumer and small business charge
accounts, and (ii) the Commercial Segment, consisting of
commercial charge accounts. We refer to each of the Consumer and
Small Business Segment and the Commercial Segment individually
as a Segment and collectively as the
Segments. The accounts constituting each Segment are
owned by one or more of TRS, Centurion and FSB and, in the
future, may be owned by any of their affiliates. As of
December 31, 2010, 74.62% of the receivables in the Total
Portfolio arose in accounts in the Consumer and Small Business
Segment and 25.38% of receivables in the Total Portfolio arose
in accounts in the Commercial Segment. There is no limitation on
the percentage of the Total Portfolio comprised by any Segment
and, as a result, the composition of the Total Portfolio has
changed, and will continue to change, over time.
The initial accounts in the Trust Portfolio were selected
from the Total Portfolio based upon the eligibility criteria
specified in the receivables purchase agreements and the
transfer and servicing agreement applied with respect to the
accounts as of their selection date. Subject only to these
criteria and any applicable regulatory guidelines, the account
owners have the discretion to select the accounts in any Segment
of the Total Portfolio for addition to the issuance trust. The
account owners have in the past considered product type and tenure, and may
in the future consider similar and additional factors in determining the accounts to be added to the
Trust Portfolio. Additional Accounts will consist of
Eligible Accounts from the Total Portfolio which may or may not
currently be in existence and which may have been originated
using different credit criteria from those used in originating
the accounts already included in the Trust Portfolio.
Consequently, yield, loss, delinquency and payment rate
experience with respect to the initial accounts and the
Additional Accounts may be different from the historical
experience of the Total Portfolio or any Segment thereof.
Set forth below is certain information with respect to each
Segment of the Total Portfolio. The accounts in a Segment
included in the Trust Portfolio may not be representative
of that entire Segment. Consequently, yield, loss, delinquency
and payment rate experience with respect to the accounts in the
Trust Portfolio may be different from that set forth below
for any Segment of the Total Portfolio.
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Loss and
Delinquency Experience
The following tables set forth the loss and delinquency
experience for the Consumer and Small Business Segment and the
Commercial Segment for each of the periods shown. The consumer
charge accounts included in the Consumer and Small Business
Segment are owned by Centurion and FSB and, in the future, may
be owned by any of their affiliates. The small business charge
accounts included in the Consumer and Small Business Segment are
owned by FSB and, in the future, may be owned by any of its
affiliates. All of the accounts in the Commercial Segment are
owned by TRS and, in the future, may be owned by any of its
affiliates. There is no limitation on the number of accounts
owned by any account owner in any Segment and, as a result, the
composition of the account ownership of the accounts in any
Segment has changed, and will continue to change, over time. The receivables in an account owned
by TRS, Centurion or FSB generally will be charged off no later than
the date on which such account becomes six contractual payments
past due (i.e., approximately 180 days delinquent).
The following tables report charge-offs in accordance with the
applicable account owners charge-off policies as described
above. The loss and delinquency rates at any time reflect, among
other factors, the quality of the accounts in each Segment, the
average seasoning of the accounts in each Segment, the success
of the account owners collection efforts and general
economic conditions.
During the last several years, TRS has transitioned all of its
active consumer and small business charge accounts from an
account servicing platform in which receivables are generally
charged off after they have been approximately 330 days
delinquent to an account servicing platform in which receivables
are generally charged off no later than the date on which such
account becomes approximately 180 days delinquent. Similarly,
in January 2010, the charge-off policy for all of TRS active commercial charge accounts was changed from a policy under which receivables are generally charged off after they have been
approximately 330 days delinquent to a policy under which receivables are
generally charged off no later than the date on which such account becomes approximately 180
days delinquent. In each case, the transition resulted
in the reclassification of receivables that had been
outstanding for more than 180 days, as of the date of the respective transition, from delinquent status
to charged-off status.
In general, the loss experience for the receivables arising in
small business charge accounts included in the Consumer and
Small Business Segment has been higher than the loss experience
for the receivables arising in consumer charge accounts included
in the Consumer and Small Business Segment. As of the year ended December 31, 2010,
57.41% of the receivables in the Consumer and Small Business
Segment arose in consumer charge accounts and 42.59% of the
receivables in the Consumer and Small Business Segment arose in
small business charge accounts. There is, however, no limitation
on the percentage of the Consumer and Small Business Segment
comprised by consumer charge accounts or small business charge
accounts. As a result, in addition to the factors described
above, the relative percentage of receivables of each of these
two types of accounts within the Consumer and Small Business
Segment will cause the loss experience for the Consumer and
Small Business Segment to change over time.
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The following tables set forth the loss experience for the
Consumer and Small Business Segment and the Commercial Segment
for each indicated period. Total gross charge-offs include
charge-offs of receivables and fees, and do not include the
amount of any reductions in receivables due to a rebate, refund,
error, fraudulent charge or other miscellaneous adjustment.
Recoveries are collections received in respect of charged-off
accounts in the applicable Segment during the period indicated
in the following tables. Total net charge-offs are an amount
equal to total gross charge-offs minus total recoveries, each
for the applicable period. Average receivables outstanding for
each indicated period is the average of the month-end
receivables balances for that period. We cannot provide any
assurance that the loss experience for the receivables in any
Segment in the future will be similar to the historical
experience set forth below.
Loss
Experience of the Consumer and Small Business Segment
Total Portfolio
(Dollars in Thousands)
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Average Receivables Outstanding |
$ | 16,373,987 | $ | 15,146,355 | $ | 17,737,836 | $ | 18,501,059 | $ | 17,639,255 | ||||||||||
Total Gross Charge-Offs |
$ | 514,089 | $ | 935,314 | $ | 1,065,618 | $ | 929,795 | $ | 708,885 | ||||||||||
Total Recoveries |
210,668 | 241,856 | 211,808 | 203,662 | 169,781 | |||||||||||||||
Total Net Charge-Offs |
$ | 303,421 | $ | 693,457 | $ | 853,810 | $ | 726,133 | $ | 539,105 | ||||||||||
Total Gross Charge-Offs as a Percentage of
Average Receivables Outstanding |
3.14 | % | 6.18 | % | 6.01 | % | 5.03 | % | 4.02 | % | ||||||||||
Total Recoveries as a Percentage of
Average Receivables Outstanding |
1.29 | 1.60 | 1.19 | 1.10 | 0.96 | |||||||||||||||
Total Net Charge-Offs as a Percentage of
Average Receivables Outstanding |
1.85 | % | 4.58 | % | 4.81 | % | 3.92 | % | 3.06 | % | ||||||||||
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Loss
Experience of the Commercial Segment
Total Portfolio
(Dollars in Thousands)
Year Ended December 31, | ||||||||||||||||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Average Receivables Outstanding |
$ | 6,300,405 | $ | 5,574,509 | $ | 7,064,448 | $ | 6,972,130 | $ | 6,461,098 | ||||||||||
Total Gross Charge-Offs |
$ | 143,162 | $ | 165,944 | $ | 130,730 | $ | 97,528 | $ | 72,361 | ||||||||||
Total Recoveries |
48,347 | 32,613 | 27,213 | 21,790 | 21,990 | |||||||||||||||
Total Net Charge-Offs |
$ | 94,815 | $ | 133,331 | $ | 103,518 | $ | 75,737 | $ | 50,370 | ||||||||||
Total Gross Charge-Offs as a Percentage of
Average Receivables Outstanding |
2.27 | % | 2.98 | % | 1.85 | % | 1.40 | % | 1.12 | % | ||||||||||
Total Recoveries as a Percentage of
Average Receivables Outstanding |
0.77 | 0.59 | 0.39 | 0.31 | 0.34 | |||||||||||||||
Total Net Charge-Offs as a Percentage of
Average Receivables Outstanding |
1.50 | % | 2.39 | % | 1.47 | % | 1.09 | % | 0.78 | % | ||||||||||
(1) | As discussed above, in January 2010, the charge-off policy for all of TRS active commercial charge accounts was changed from a policy under which receivables are generally charged off after they have been approximately 330 days delinquent to a policy under which receivables are generally charged off after they have been approximately 180 days delinquent, resulting in the reclassification of receivables that had been outstanding for more than 180 days from delinquent status to charged-off status. |
The following tables set forth the delinquency experience for
the Consumer and Small Business Segment and the Commercial
Segment for each indicated period. The average receivables
delinquent is the average of the month-end delinquent amounts,
while the average receivables outstanding is the average of
month-end receivables balances, each for the applicable period.
The TRS, Centurion and FSB account servicing platform utilizes a
max aging protocol such that to the extent any
receivable in an account is delinquent, the entire account
balance will be characterized as delinquent and all receivables
in the account will be classified in the period shown in the
table below that includes the most aged receivable in the
account. We cannot provide any assurance that the delinquency
experience for the receivables in any Segment in the future will
be similar to the historical experience set forth below.
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Average
Receivables Delinquent as a Percentage of the Consumer and Small
Business Segment
Total Portfolio
(Dollars in Thousands)
Total Portfolio
(Dollars in Thousands)
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||
Percentage of | Percentage of | Percentage of | Percentage of | Percentage of | ||||||||||||||||||||||||||||||||||||
Dollar | Average Receivables |
Dollar | Average Receivables |
Dollar | Average Receivables |
Dollar | Average Receivables |
Dollar | Average Receivables |
|||||||||||||||||||||||||||||||
Amount | Outstanding | Amount | Outstanding | Amount | Outstanding | Amount | Outstanding | Amount | Outstanding | |||||||||||||||||||||||||||||||
Average Receivables Outstanding |
$ | 16,373,987 | 100.00 | % | $ | 15,146,355 | 100.00 | % | $ | 17,737,836 | 100.00 | % | $ | 18,501,059 | 100.00 | % | $ | 17,639,255 | 100.00 | % | ||||||||||||||||||||
Average Receivables Delinquent: |
||||||||||||||||||||||||||||||||||||||||
31 to 60 Days |
$ | 104,670 | 0.64 | % | $ | 131,309 | 0.87 | % | $ | 244,689 | 1.38 | % | $ | 308,409 | 1.67 | % | $ | 325,985 | 1.85 | % | ||||||||||||||||||||
61 to 90 Days |
56,174 | 0.34 | 86,912 | 0.57 | 127,410 | 0.72 | 131,537 | 0.71 | 122,518 | 0.69 | ||||||||||||||||||||||||||||||
91 or More Days |
130,690 | 0.80 | 229,227 | 1.51 | 279,163 | 1.57 | 297,202 | 1.61 | 318,254 | 1.80 | ||||||||||||||||||||||||||||||
Total |
$ | 291,534 | 1.78 | % | $ | 447,448 | 2.95 | % | $ | 651,262 | 3.67 | % | $ | 737,147 | 3.98 | % | $ | 766,757 | 4.35 | % | ||||||||||||||||||||
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Average
Receivables Delinquent as a Percentage of the Commercial
Segment
Total Portfolio
(Dollars in Thousands)
Total Portfolio
(Dollars in Thousands)
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2010(1) | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||
Percentage | Percentage | Percentage | Percentage | Percentage | ||||||||||||||||||||||||||||||||||||
of Average | of Average | of Average | of Average | of Average | ||||||||||||||||||||||||||||||||||||
Dollar | Receivables | Dollar | Receivables | Dollar | Receivables | Dollar | Receivables | Dollar | Receivables | |||||||||||||||||||||||||||||||
Amount | Outstanding | Amount | Outstanding | Amount | Outstanding | Amount | Outstanding | Amount | Outstanding | |||||||||||||||||||||||||||||||
Average Receivables Outstanding |
$ | 6,300,405 | 100.00 | % | $ | 5,574,509 | 100.00 | % | $ | 7,064,448 | 100.00 | % | $ | 6,972,130 | 100.00 | % | $ | 6,461,098 | 100.00 | % | ||||||||||||||||||||
Average Receivables Delinquent: |
||||||||||||||||||||||||||||||||||||||||
31 to 60 Days |
$ | 79,825 | 1.27 | % | $ | 75,768 | 1.36 | % | $ | 138,193 | 1.96 | % | $ | 162,032 | 2.32 | % | $ | 151,502 | 2.34 | % | ||||||||||||||||||||
61 to 90 Days |
19,265 | 0.31 | 20,690 | 0.37 | 33,366 | 0.47 | 34,268 | 0.49 | 30,978 | 0.48 | ||||||||||||||||||||||||||||||
91 or More Days |
19,507 | 0.31 | 73,609 | 1.32 | 81,299 | 1.15 | 68,273 | 0.98 | 57,557 | 0.89 | ||||||||||||||||||||||||||||||
Total |
$ | 118,597 | 1.88 | % | $ | 170,067 | 3.05 | % | $ | 252,858 | 3.58 | % | $ | 264,573 | 3.79 | % | $ | 240,037 | 3.72 | % | ||||||||||||||||||||
(1) | As discussed above, in January 2010, the charge-off policy for all of TRS active commercial charge accounts was changed from a policy under which receivables are generally charged off after they have been approximately 330 days delinquent to a policy under which receivables are generally charged off after they have been approximately 180 days delinquent, resulting in the reclassification of receivables that had been outstanding for more than 180 days from delinquent status to charged-off status. |
The actual loss and delinquency experience of any Segment will
vary month to month due to variations in accountholder charge
and payment behavior, as well as the product mix within each
segment.
Revenue
Experience
Receivables generated under the accounts in the Total Portfolio,
consisting of amounts charged by accountholders for merchandise
and services, annual membership fees and certain other
administrative fees billed to accountholders on the accounts,
generally are not subject to monthly finance charge assessments.
As a
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result, in order to provide yield to the issuance trust with
respect to those receivables, pursuant to the transfer and
servicing agreement, on any Date of Processing, the receivables
existing and arising in all or a specified portion of the
accounts in the Trust Portfolio equal to the product of the
Discount Option Percentage and the receivables for that Date of
Processing are deemed to be Discount Option Receivables and
treated as finance charge receivables and collections received
with respect to such receivables are treated as Finance Charge
Collections. The remainder of such receivables are treated as
principal receivables and collections received with respect to
such receivables are treated as Principal Collections.
The exercise of the discount option by the transferor results in
a larger amount of finance charge receivables and a smaller
amount of principal receivables, thereby reducing the likelihood
that an early amortization event will occur with respect to the
issuance trusts series of notes due to insufficient
Finance Charge Collections, but increasing the likelihood that
the transferor will be required to transfer additional assets to
the issuance trust. There is no guarantee that any account
owner, the transferor or their affiliates would be able, or have
enough receivables, to transfer to the issuance trust or the
related master trusts or other securitization special purpose
entities, or would be able to transfer additional collateral
certificates to the issuance trust. This could result in an
early amortization event with respect to the issuance
trusts series of notes and an acceleration of or reduction
in payments on such notes.
The dollar amounts representing Finance Charge Collections in
the tables below for the Consumer and Small Business Segment and
the Commercial Segment have been derived by applying a Discount
Option Percentage of 3% (which is, as of the date of this report
the Discount Option Percentage under the transfer and servicing
agreement) to historical monthly collections of receivables
(excluding recoveries on charged-off receivables) in the
accounts for each period shown. The average receivables
outstanding for each indicated period is the average of the
month-end receivables balances for that period. There can be no
assurance that the revenues for any Segment in the future will
be similar to the historical experience of each Segment set
forth below.
Revenue
Experience of the Consumer and Small Business Segment
Total Portfolio
(Dollars in Thousands)
Total Portfolio
(Dollars in Thousands)
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Average Receivables Outstanding |
$ | 16,373,987 | $ | 15,146,355 | $ | 17,737,836 | $ | 18,501,059 | $ | 17,639,255 | ||||||||||
Finance Charge Collections |
$ | 5,712,948 | $ | 5,275,854 | $ | 5,932,127 | $ | 5,839,292 | $ | 5,563,147 | ||||||||||
Finance Charge Collections as a
Percentage of Average Receivables Outstanding |
34.89 | % | 34.83 | % | 33.44 | % | 31.56 | % | 31.54 | % |
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Revenue
Experience of the Commercial Segment
Total Portfolio
(Dollars in Thousands)
Total Portfolio
(Dollars in Thousands)
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Average Receivables Outstanding |
$ | 6,300,405 | $ | 5,574,509 | $ | 7,064,448 | $ | 6,972,130 | $ | 6,461,098 | ||||||||||
Finance Charge Collections |
$ | 2,351,462 | $ | 2,017,252 | $ | 2,411,323 | $ | 2,276,725 | $ | 2,065,895 | ||||||||||
Finance Charge Collections as a
Percentage of Average Receivables
Outstanding |
37.32 | % | 36.19 | % | 34.13 | % | 32.65 | % | 31.97 | % |
The actual revenue experience of any Segment will vary month to
month due to variations in accountholder charge and payment
behavior. Pursuant to the transfer and servicing agreement, the
transferor has the ability to change the Discount Option
Percentage, subject to the satisfaction of certain conditions,
including satisfaction of the Rating Agency Condition. The
transferor may not change the Discount Option Percentage if an
early amortization event has occurred and is continuing or if,
as a result of that change, the transferor reasonably expects
that an early amortization event would occur.
Payment
Rates
The accounts are designed for use as a method of payment for the
purchase of merchandise and services and account balances
generally are due in full each month. Therefore, accounts
generally cannot be used by accountholders for the purpose of
financing these purchases. In contrast to revolving credit plan
products which do not require payment in full each month, the
general requirement that account balances be paid in full each
month creates a high monthly payment rate and, therefore,
account balances turn over rapidly relative to charge volume.
The following tables set forth the highest and lowest
accountholder monthly payment rates for the Consumer and Small
Business Segment and the Commercial Segment during any month in
the period shown and the average accountholder monthly payment
rates for all months during each period shown, calculated as the
percentage equivalent of a fraction. The monthly payment rates
are calculated as the amount of payments from accountholders
(excluding recoveries on charged-off receivables) received
during the applicable month divided by the aggregate amount of
receivables outstanding as of the beginning of the applicable
month. The actual monthly payment rate experience of any Segment
will vary month to month due to variations in accountholder
charge and payment behavior.
Accountholder
Monthly Payment Rates of the
Consumer and Small Business Segment
Consumer and Small Business Segment
Total Portfolio
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Lowest Month |
92.80 | % | 91.46 | % | 86.65 | % | 83.85 | % | 86.24 | % | ||||||||||
Highest Month |
101.08 | % | 100.81 | % | 94.57 | % | 90.91 | % | 90.86 | % | ||||||||||
Monthly Average |
97.68 | % | 96.75 | % | 91.48 | % | 87.85 | % | 88.59 | % |
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Accountholder
Monthly Payment Rates of the
Commercial Segment
Commercial Segment
Total Portfolio
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Lowest Month |
95.26 | % | 91.51 | % | 88.59 | % | 86.70 | % | 84.92 | % | ||||||||||
Highest Month |
110.29 | % | 106.27 | % | 97.58 | % | 96.81 | % | 93.01 | % | ||||||||||
Monthly Average |
104.50 | % | 100.09 | % | 93.52 | % | 91.45 | % | 89.54 | % |
The
Trust Portfolio
General
The primary assets of the issuance trust consist of receivables
generated from time to time in a portfolio, referred to as the
Trust Portfolio, of designated accounts in the Consumer and
Small Business Segment and designated accounts in the Commercial
Segment. Receivables arising in designated accounts in the
Commercial Segment were first included in the Trust Portfolio in
January 2009. As of December 31, 2010, 93.84% of the
receivables in the Trust Portfolio arose in accounts in the
Consumer and Small Business Segment and 6.16% of receivables in
the Trust Portfolio arose in accounts in the Commercial Segment.
There is, however, no limitation on the percentage of the
Trust Portfolio comprised by any Segment and, as a result,
the composition of the Trust Portfolio can and will change
over time. The receivables consist of finance charge
receivables, which are Discount Option Receivables, and
principal receivables, which are all other receivables.
Loss and
Delinquency Experience
The following tables set forth the loss and delinquency
experience for the Trust Portfolio for each of the periods
shown. The loss and delinquency rates at any time reflect, among
other factors, the quality of the Trust Portfolio, the
average seasoning of the accounts, the success of the account
owners collection efforts and general economic conditions.
As of December 31, 2010, 77.28% of the receivables in the Trust
Portfolio arose in consumer charge accounts, 16.56% of the
receivables in the Trust Portfolio arose in small business
charge accounts and 6.16% of the receivables in the Trust
Portfolio arose in commercial accounts. There is, however, no
limitation on the percentage of the Trust Portfolio comprised by
consumer charge accounts, small business charge accounts or
commercial charge accounts. As a result, in addition to the
factors described above, the relative percentage of receivables
of each of these two types of accounts within the Trust
Portfolio will cause the loss and delinquency experience for the
Trust Portfolio to change over time.
The following table sets forth the loss experience for the
Trust Portfolio for each indicated period. Total gross
charge-offs include charge-offs of principal receivables only,
and do not include any charge-offs of finance charge receivables
or the amount of any reductions in receivables due to a rebate,
refund, error, fraudulent charge or other miscellaneous
adjustment. If finance charge receivables that have been
charged-off were included in total gross charge-offs, total
gross charge-offs would be higher as an absolute number and as a
percentage of the average
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principal receivables outstanding during the periods indicated.
Recoveries are collections received in respect of charged-off
accounts in the Trust Portfolio during the period indicated
in the following table. Total net charge-offs are an amount
equal to total gross charge-offs minus total recoveries, each
for the applicable period. Average principal receivables
outstanding for each indicated period is the average of the
month-end principal receivables balances for that period. We
cannot provide any assurance that the loss experience for the
receivables in the Trust Portfolio in the future will be
similar to the historical experience set forth below.
Historical data for total gross charge-offs as reported with
respect to the Trust Portfolio in the table below
(i) unlike the calculation of total gross charge-offs in
the Loss Experience of the Consumer and Small Business
Segment and the Loss Experience of the
Commercial Segment tables under The Total
Portfolio Loss and Delinquency Experience,
does not include charge-offs of finance charge receivables
and (ii) is calculated using the average principal
receivables outstanding instead of the average receivables
outstanding. Similarly, historical data for net charge-offs as
reported with respect to the Trust Portfolio in the table
below is calculated using the average principal receivables
instead of the average receivables outstanding. As a result,
there are limitations to any comparison of the historical data
presented with respect to the Trust Portfolio in the table
below and the historical data presented with respect to each
Segment of the Total Portfolio in such other tables.
Loss
Experience of the Trust Portfolio
(Dollars in Thousands)
(Dollars in Thousands)
Year Ended December 31, | ||||||||||||||||||||
2010(1) | 2009 | 2008(2) | 2007(2) | 2006(2) | ||||||||||||||||
Average Principal Receivables Outstanding |
$ | 7,252,334 | $ | 7,149,394 | $ | 7,196,229 | $ | 7,922,079 | $ | 8,201,212 | ||||||||||
Total Gross Charge-Offs |
$ | 165,780 | $ | 277,288 | $ | 277,121 | $ | 277,945 | $ | 243,227 | ||||||||||
Total Recoveries |
71,717 | 77,984 | 72,248 | 75,118 | 77,733 | |||||||||||||||
Total Net Charge-Offs |
$ | 94,063 | $ | 199,305 | $ | 204,873 | $ | 202,827 | $ | 165,494 | ||||||||||
Total Gross Charge-Offs as a Percentage of
Average Principal Receivables Outstanding |
2.29 | % | 3.88 | % | 3.85 | % | 3.51 | % | 2.97 | % | ||||||||||
Total Recoveries as a Percentage of
Average Principal Receivables Outstanding |
0.99 | 1.09 | 1.00 | 0.95 | 0.95 | |||||||||||||||
Total Net Charge-Offs as a Percentage of
Average Principal Receivables Outstanding |
1.30 | % | 2.79 | % | 2.85 | % | 2.56 | % | 2.02 | % | ||||||||||
Number of Accounts Experiencing a Loss |
188,081 | 251,779 | 201,759 | 204,692 | 187,297 | |||||||||||||||
Number of Accounts Experiencing a Recovery(3) |
179,422 | 162,693 | 186,306 | 240,816 | 276,274 | |||||||||||||||
Average Net Loss per Account Experiencing a
Loss(4) |
$ | 0.50 | $ | 0.79 | $ | 1.02 | $ | 0.99 | $ | 0.88 |
(1) | As discussed above in The Total Portfolio Loss and Delinquency Experience, in January 2010, the charge-off policy for all of TRS active commercial charge accounts was changed from a policy under which receivables are generally charged off after they have been approximately 330 days delinquent to a policy under which receivables are generally charged off after they have been approximately 180 days delinquent, resulting in the reclassification of receivables that had been outstanding for more than 180 days from delinquent status to charged-off status. | |
(2) | Prior to January 2009, the Trust Portfolio did not include any receivables arising in commercial charge accounts. | |
(3) | Calculated by totaling the number of accounts experiencing a recovery in each of the months during the indicated period. Therefore, an account that has experienced a recovery in multiple months during the indicated period will be counted more than once. | |
(4) | Calculated as Net Charge-Offs divided by Number of Accounts Experiencing a Loss. |
10
Table of Contents
The following tables set forth the delinquency experience for
the Trust Portfolio for each indicated period. With respect
to the Average Receivables Delinquent as a Percentage
of the Trust Portfolio table below, the average
receivables delinquent is the average of the month-end
delinquent amounts, while the average receivables outstanding is
the average of month-end receivables balances, each for the
applicable period. With respect to the Average Number
of Delinquent Accounts as a Percentage of the
Trust Portfolio table below, the average number
of delinquent accounts is the average of the month-end
delinquent accounts, while the average number of outstanding
accounts is the average of month-end accounts, each for the
applicable period. We cannot provide any assurance that the
delinquency experience for the receivables in the
Trust Portfolio in the future will be similar to the
historical experience set forth below.
Average
Receivables Delinquent as a Percentage of the
Trust Portfolio
(Dollars in Thousands)
(Dollars in Thousands)
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2010(1) | 2009 | 2008(2) | 2007(2) | 2006(2) | ||||||||||||||||||||||||||||||||||||
Percentage of | Percentage of | Percentage of | Percentage of | Percentage of | ||||||||||||||||||||||||||||||||||||
Dollar | Average Receivables |
Dollar | Average Receivables |
Dollar | Average Receivables |
Dollar | Average Receivables |
Dollar | Average Receivables |
|||||||||||||||||||||||||||||||
Amount | Outstanding | Amount | Outstanding | Amount | Outstanding | Amount | Outstanding | Amount | Outstanding | |||||||||||||||||||||||||||||||
Average Receivables Outstanding |
$ | 7,476,633 | 100.00 | % | $ | 7,370,509 | 100.00 | % | $ | 7,418,793 | 100.00 | % | $ | 8,167,092 | 100.00 | % | $ | 8,454,857 | 100.00 | % | ||||||||||||||||||||
Average Receivables Delinquent: |
||||||||||||||||||||||||||||||||||||||||
31 to 60 Days |
$ | 50,030 | 0.67 | % | $ | 61,366 | 0.83 | % | $ | 97,584 | 1.32 | % | $ | 137,241 | 1.68 | % | $ | 160,004 | 1.89 | % | ||||||||||||||||||||
61 to 90 Days |
19,270 | 0.26 | 29,625 | 0.40 | 37,335 | 0.50 | 42,371 | 0.52 | 45,803 | 0.54 | ||||||||||||||||||||||||||||||
91 to 120 Days |
15,559 | 0.21 | 25,701 | 0.35 | 28,245 | 0.38 | 28,767 | 0.35 | 30,375 | 0.36 | ||||||||||||||||||||||||||||||
121 to 150 Days |
13,749 | 0.18 | 23,412 | 0.32 | 24,150 | 0.33 | 23,459 | 0.29 | 24,638 | 0.29 | ||||||||||||||||||||||||||||||
151 to 180 Days |
12,005 | 0.16 | 21,668 | 0.29 | 21,528 | 0.29 | 20,850 | 0.26 | 21,789 | 0.26 | ||||||||||||||||||||||||||||||
181 to 210 Days |
33 | * | 857 | 0.01 | 81 | 0.00 | 4,719 | 0.06 | 12,033 | 0.14 | ||||||||||||||||||||||||||||||
211 to 240 Days |
27 | * | 770 | 0.01 | 27 | 0.00 | 4,918 | 0.06 | 11,237 | 0.13 | ||||||||||||||||||||||||||||||
241 to 270 Days |
8 | * | 625 | 0.01 | 4 | 0.00 | 5,199 | 0.06 | 10,176 | 0.12 | ||||||||||||||||||||||||||||||
271 to 300 Days |
7 | * | 410 | 0.01 | 4 | 0.00 | 5,040 | 0.06 | 8,994 | 0.11 | ||||||||||||||||||||||||||||||
301 or More Days |
145 | * | 122 | * | 8 | 0.00 | 4,458 | 0.05 | 7,534 | 0.09 | ||||||||||||||||||||||||||||||
Total |
$ | 110,833 | 1.48 | % | $ | 164,556 | 2.23 | % | $ | 208,967 | 2.82 | % | $ | 277,020 | 3.39 | % | $ | 332,583 | 3.93 | % | ||||||||||||||||||||
(1) | As discussed above in The Total Portfolio Loss and Delinquency Experience, in January 2010, the charge-off policy for all of TRS active commercial charge accounts was changed from a policy under which receivables are generally charged off after they have been approximately 330 days delinquent to a policy under which receivables are generally charged off after they have been approximately 180 days delinquent, resulting in the reclassification of receivables that had been outstanding for more than 180 days from delinquent status to charged-off status. | |
(2) | Prior to January 2009, the Trust Portfolio did not include any receivables arising in commercial charge accounts. | |
* | Indicates a number that is greater than zero but less than 0.005%. |
11
Table of Contents
Average
Number of Accounts Delinquent as a Percentage of the
Trust Portfolio
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2010(1) | 2009 | 2008(2) | 2007(2) | 2006(2) | ||||||||||||||||||||||||||||||||||||
Percentage of | Percentage of | Percentage of | Percentage of | Percentage of | ||||||||||||||||||||||||||||||||||||
Number of | Total Number | Number of | Total Number | Number of | Total Number | Number of | Total Number | Number of | Total Number | |||||||||||||||||||||||||||||||
Accounts | of Accounts | Accounts | of Accounts | Accounts | of Accounts | Accounts | of Accounts | Accounts | of Accounts | |||||||||||||||||||||||||||||||
Average Number of Accounts Outstanding |
6,595,810 | 100.00 | % | 6,721,288 | 100.00 | % | 6,432,416 | 100.00 | % | 6,941,678 | 100.00 | % | 7,351,882 | 100.00 | % | |||||||||||||||||||||||||
Average Number of Accounts Delinquent: |
||||||||||||||||||||||||||||||||||||||||
31 to 60 Days |
22,976 | 0.35 | % | 29,588 | 0.44 | % | 36,695 | 0.57 | % | 45,299 | 0.65 | % | 65,071 | 0.89 | % | |||||||||||||||||||||||||
61 to 90 Days |
8,820 | 0.13 | 13,984 | 0.21 | 14,062 | 0.22 | 15,648 | 0.23 | 23,158 | 0.31 | ||||||||||||||||||||||||||||||
91 to 120 Days |
6,549 | 0.10 | 10,949 | 0.16 | 9,616 | 0.15 | 9,564 | 0.14 | 13,575 | 0.18 | ||||||||||||||||||||||||||||||
121 to 150 Days |
5,654 | 0.09 | 9,018 | 0.13 | 7,181 | 0.11 | 6,545 | 0.09 | 9,419 | 0.13 | ||||||||||||||||||||||||||||||
151 to 180 Days |
4,987 | 0.08 | 7,592 | 0.11 | 5,789 | 0.09 | 5,280 | 0.08 | 7,746 | 0.11 | ||||||||||||||||||||||||||||||
181 to 210 Days |
75 | * | 150 | * | 10 | * | 1,155 | 0.02 | 3,018 | 0.04 | ||||||||||||||||||||||||||||||
211 to 240 Days |
66 | * | 120 | * | 6 | * | 1,170 | 0.02 | 2,666 | 0.04 | ||||||||||||||||||||||||||||||
241 to 270 Days |
55 | * | 91 | * | 4 | * | 1,163 | 0.02 | 2,376 | 0.03 | ||||||||||||||||||||||||||||||
271 to 300 Days |
50 | * | 66 | * | 5 | * | 1,128 | 0.02 | 2,070 | 0.03 | ||||||||||||||||||||||||||||||
301 or More Days |
1,143 | 0.02 | 1,020 | 0.02 | 896 | 0.01 | 3,438 | 0.05 | 4,593 | 0.06 | ||||||||||||||||||||||||||||||
Total |
50,376 | 0.76 | % | 72,577 | 1.08 | % | 74,263 | 1.15 | % | 90,390 | 1.30 | % | 133,692 | 1.82 | % | |||||||||||||||||||||||||
(1) | As discussed above in The Total Portfolio Loss and Delinquency Experience, in January 2010, the charge-off policy for all of TRS active commercial charge accounts was changed from a policy under which receivables are generally charged off after they have been approximately 330 days delinquent to a policy under which receivables are generally charged off after they have been approximately 180 days delinquent, resulting in the reclassification of receivables that had been outstanding for more than 180 days from delinquent status to charged-off status. | |
(2) | Prior to January 2009, the Trust Portfolio did not include any receivables arising in commercial charge accounts. | |
* | Indicates a number that is greater than zero but less than 0.005%. |
Revenue
Experience
The following table sets forth the revenue experience for the
Trust Portfolio for each indicated period. Finance Charge
Collections consist entirely of Discount Option Receivables.
Revenue experience from finance charge collections results from
dividing finance charge collections by the average principal
receivables outstanding. The average principal receivables
outstanding for each indicated period is the average of the
month-end principal receivables balances for that period.
Historical data for the revenue experience as reported with
respect to the Trust Portfolio in the table below is
calculated using the average principal receivables outstanding
instead of the average receivables outstanding. As a result,
there are limitations to any comparison of the historical data
presented with respect to the Trust Portfolio in the table
below and the historical data presented with respect to each
Segment of the Total Portfolio in the Revenue
Experience of the Consumer and Small Business Segment
and Revenue Experience of the Commercial
Segment tables under The Total
Portfolio Revenue Experience.
Revenue
Experience of the Trust Portfolio
(Dollars in Thousands)
(Dollars in Thousands)
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008(1) | 2007(1) | 2006(1) | ||||||||||||||||
Average Principal Receivables Outstanding |
$ | 7,252,334 | $ | 7,149,394 | $ | 7,196,229 | $ | 7,922,079 | $ | 8,201,212 | ||||||||||
Finance Charge Collections |
$ | 2,501,064 | $ | 2,476,753 | $ | 2,434,414 | $ | 2,556,406 | $ | 2,650,401 | ||||||||||
Finance Charge Collections as a
Percentage of Average Principal Receivables Outstanding |
34.49 | % | 34.64 | % | 33.83 | % | 32.27 | % | 32.32 | % |
(1) | Prior to January 2009, the Trust Portfolio did not include any receivables arising in commercial charge accounts. |
12
Table of Contents
Principal
Payment Rates
The following table sets forth the highest and lowest
accountholder monthly principal payment rates for the
Trust Portfolio during any month in the period shown and
the average accountholder monthly principal payment rates for
all months during each period shown, calculated as the
percentage equivalent of a fraction. The accounts are designed
for use as a method of payment for the purchase of merchandise
and services and account balances generally are due in full each
month. Therefore, accounts generally cannot be used by
accountholders for the purpose of financing these purchases. In
contrast to revolving credit plan products which do not require
payment in full each month, the general requirement that account
balances be paid in full each month creates a high monthly
payment rate and, therefore, account balances turn over rapidly
relative to charge volume.
Historical data for the monthly principal payment rate as
reported with respect to the Trust Portfolio in the table
below (i) unlike the calculation of monthly payment rate in
the Accountholder Monthly Payment Rates the Consumer
and Small Business Segment and the
Accountholder Monthly Payment Rates of the Commercial
Segment tables under The Total
Portfolio Payment Rates, includes
collections of principal receivables only and (ii) is
calculated using that months opening principal receivables
balance. As a result, there are limitations to any comparison of
the historical data presented with respect to the
Trust Portfolio in the table below and the historical data
presented with respect to each Segment of the Total Portfolio in
such other tables.
Accountholder
Monthly Principal Payment Rates of the
Trust Portfolio
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008(1) | 2007(1) | 2006(1) | ||||||||||||||||
Lowest Month |
88.73 | % | 89.35 | % | 85.47 | % | 82.82 | % | 81.26 | % | ||||||||||
Highest Month |
95.61 | % | 95.88 | % | 91.69 | % | 89.35 | % | 89.55 | % | ||||||||||
Monthly Average |
92.85 | % | 93.17 | % | 89.25 | % | 86.54 | % | 86.86 | % |
(1) | Prior to January 2009, the Trust Portfolio did not include any receivables arising in commercial charge accounts. |
13
Table of Contents
The
Receivables
As of December 31, 2010, the receivables in the accounts
included in the Trust Portfolio totaled $8,192,379,530
comprised of $7,946,608,144 of principal receivables and
$245,771,386 of finance charge receivables.
The following tables, together with the paragraph under
Composition by Geographic
Distribution, summarize the Trust Portfolio by
various criteria as of December 31, 2010. As described under
The Trust Portfolio General,
receivables arising in commercial charge accounts were first
included in the Trust Portfolio in January 2009. Because the
future composition of the Trust Portfolio may change over time,
these tables are not necessarily indicative of the composition
of the Trust Portfolio at any specific time in the future.
Composition
by Account Balance
Trust Portfolio
Trust Portfolio
Percentage |
Percentage |
|||||||||||||||
of Total |
of Total |
|||||||||||||||
Number of |
Number of |
Receivables |
Receivables |
|||||||||||||
Account Balance Range
|
Accounts | Accounts | Outstanding | Outstanding | ||||||||||||
Credit Balance
|
78,286 | 1.21 | % | $ | (41,797,245 | ) | (0.51 | )% | ||||||||
Zero Balance
|
3,223,355 | 49.63 | 0 | 0.00 | ||||||||||||
$0.01 to $1,000
|
1,806,719 | 27.82 | 613,616,525 | 7.49 | ||||||||||||
$1,000.01 to $5,000
|
1,031,630 | 15.88 | 2,350,707,730 | 28.69 | ||||||||||||
$5,000.01 to $10,000
|
204,449 | 3.15 | 1,419,228,932 | 17.32 | ||||||||||||
$10,000.01 to $15,000
|
65,385 | 1.01 | 793,042,333 | 9.68 | ||||||||||||
$15,000.01 to $20,000
|
29,672 | 0.46 | 510,343,658 | 6.23 | ||||||||||||
$20,000.01 to $30,000
|
25,643 | 0.39 | 620,735,402 | 7.58 | ||||||||||||
$30,000.01 to $40,000
|
10,877 | 0.17 | 374,020,898 | 4.57 | ||||||||||||
$40,000.01 to $50,000
|
5,764 | 0.09 | 256,545,954 | 3.13 | ||||||||||||
$50,000.01 or More
|
12,631 | 0.19 | 1,295,935,342 | 15.82 | ||||||||||||
Total
|
6,494,411 | 100.00 | % | $ | 8,192,379,530 | 100.00 | % | |||||||||
The average account balance as of December 31, 2010 was $1,261
for all accounts and $2,505 for all accounts other than accounts
with a zero balance as of that date.
Composition
by Period of Delinquency
Trust Portfolio
Trust Portfolio
Percentage | Percentage | |||||||||||||||
of Total | of Total | |||||||||||||||
Period of Delinquency | Number of | Number of | Receivables | Receivables | ||||||||||||
(Days Contractually Delinquent) | Accounts | Accounts | Outstanding | Outstanding | ||||||||||||
Current to 30 Days |
6,450,592 | 99.33 | % | $ | 8,088,914,586 | 98.74 | % | |||||||||
31 to 60 Days |
20,178 | 0.31 | 46,187,344 | 0.56 | ||||||||||||
61 to 90 Days |
7,748 | 0.12 | 18,143,263 | 0.22 | ||||||||||||
91 to 120 Days |
5,786 | 0.09 | 14,679,884 | 0.18 | ||||||||||||
121 to 150 Days |
4,749 | 0.07 | 13,442,385 | 0.16 | ||||||||||||
151 to 180 Days |
3,874 | 0.06 | 10,721,156 | 0.13 | ||||||||||||
181 to 210 Days |
67 | * | 17,229 | * | ||||||||||||
211 to 240 Days |
61 | * | 151,065 | * | ||||||||||||
241 to 270 Days |
65 | * | 12,469 | * | ||||||||||||
271 to 300 Days |
48 | * | 1,280 | * | ||||||||||||
301 or More Days |
1,243 | 0.02 | 108,869 | * | ||||||||||||
Total |
6,494,411 | 100.00 | % | $ | 8,192,379,530 | 100.00 | % | |||||||||
* Indicates a number that is greater than zero but less than 0.005%
14
Table of Contents
Composition
by Account Age
Trust Portfolio
Trust Portfolio
Percentage | Percentage | |||||||||||||||
of Total | of Total | |||||||||||||||
Number of | Number of | Receivables | Receivables | |||||||||||||
Account Age(1) | Accounts | Accounts | Outstanding | Outstanding | ||||||||||||
Not More than 11
Months |
0 | 0.00 | % | $ | 0 | 0.00 | % | |||||||||
12 Months to 17
Months |
0 | 0.00 | 0 | 0.00 | ||||||||||||
18 Months to 23
Months |
0 | 0.00 | 0 | 0.00 | ||||||||||||
24 Months to 35
Months |
51,945 | 0.80 | 67,148,296 | 0.82 | ||||||||||||
36 Months to 47
Months |
50,896 | 0.78 | 117,121,119 | 1.43 | ||||||||||||
48 Months to 59
Months |
62,635 | 0.96 | 57,951,077 | 0.71 | ||||||||||||
60 Months to 71
Months |
67,145 | 1.03 | 104,090,436 | 1.27 | ||||||||||||
72 Months or
More |
6,261,790 | 96.42 | 7,846,068,603 | 95.77 | ||||||||||||
Total |
6,494,411 | 100.00 | % | $ | 8,192,379,530 | 100.00 | % | |||||||||
(1) | For purposes of this table, the age of an account is rounded down to the nearest whole month. For example, the age of an account that has been in existence for eleven months and twenty days would be rounded down to eleven months, and that account would be included in the Not More than 11 Months age range. |
Composition
by Geographic Distribution
Trust Portfolio
Trust Portfolio
As of December 31, 2010, approximately 15.68%, 13.23%, 9.17%,
8.83% and 7.48% of the receivables related to accountholders
having billing addresses in New York, California, Texas, Florida
and New Jersey, respectively. Not more than 4% of the
receivables relate to accountholders having billing addresses in
any other single state.
Composition
by Standardized Credit Score
Trust Portfolio
Trust Portfolio
The following table sets forth the composition of the consumer
and small business accounts included in the trust portfolio by
FICO®**
score ranges. To the extent available, FICO scores are obtained
at origination and monthly thereafter. A FICO score is a
measurement determined by Fair Isaac Corporation using
information collected by the major credit bureaus to assess
consumer credit risk. FICO risk scores rank-order consumers
according to the likelihood that their credit obligations will
be paid in accordance with the terms of their accounts. Although
Fair Isaac Corporation discloses only limited information about
the variables it uses to assess credit risk, those variables
likely include, but are not limited to, debt level, credit
history, payment patterns (including delinquency experience),
and level of utilization of available credit. FICO scores of an
individual may change over time, depending on the conduct of the
individual, including the individuals usage of his or her
available credit, and changes in credit score technology used by
Fair Isaac Corporation.
FICO scores are based on independent, third-party information,
the accuracy of which we cannot verify. The account owners do
not use standardized credit scores, such as a FICO score, alone
to determine the amount of charges that should be approved on a
charge card account. Rather, a FICO score is only one of many
factors used by TRS, Centurion and FSB, as account owners, to
assess an individuals credit and default risk. In
connection with their underwriting and authorization decisions,
the account owners use proprietary scoring models, which they
generally have found to be more accurate predictors of credit
and default risk than any single standardized credit score such
as FICO. The use of proprietary models also enables an account
owner to extend credit to an accountholder with a lower FICO
score without changing that account owners risk tolerance
than would be the case if that account owner relied solely on
FICO. The FICO scores presented below should not be used alone
as a method of forecasting whether accountholders will make
payments in accordance with the terms of their accounts.
References to Receivables Outstanding in the
following table include both finance charge receivables and
** FICO®
is a federally registered servicemark of Fair, Isaac &
Company.
15
Table of Contents
principal receivables. Because the future composition of the
Trust Portfolio may change over time, this table is not
necessarily indicative of the composition of the
Trust Portfolio at any specific time in the future.
Composition
by Standardized Credit Score(1)(2)
Trust Portfolio
Trust Portfolio
Percentage of |
||||||||
Receivables |
Total Receivables |
|||||||
FICO Score Range
|
Outstanding | Outstanding | ||||||
Less than 560
|
$ | 41,602,951 | 0.51 | % | ||||
560-659
|
487,653,153 | 5.95 | ||||||
660-699
|
734,681,787 | 8.97 | ||||||
700-759
|
2,137,799,994 | 26.09 | ||||||
760 & above
|
4,443,301,856 | 54.24 | ||||||
Refreshed FICO Unavailable(3)
|
347,339,789 | 4.24 | ||||||
Total
|
$ | 8,192,379,530 | 100.00 | % | ||||
(1) | Standardized Credit Score defined as the FICO score in the most recent Monthly Period. | |
(2) | In May and June of 2010, American Express began using FICO scores based on a new version of the model developed by Fair Isaac Corporation to assess credit scores for the accounts included in the trust portfolio. Although the new version does result in different FICO scores for certain of the accounts in the trust portfolio when compared to the FICO scores from the prior version, the change in the average FICO score for the accounts has been insignificant. | |
(3) | As discussed above under The Trust Portfolio General, receivables arising in designated accounts in the Commercial Segment were first included in the Trust Portfolio in January 2009. A substantial portion of the commercial charge accounts in the Commercial Segment do not have associated FICO scores. The inclusion in the Trust Portfolio of receivables arising in commercial charge accounts without associated FICO scores has contributed to an increase in the amount of receivables in the Trust Portfolio for which refreshed FICO scores are unavailable. |
16
Table of Contents
Static
Pool Information
The following tables present charge-off, delinquency, payment
rate and revenue experience of the two segments of accounts in
the Total Portfolio: (i) the Consumer and Small Business
Segment, consisting of consumer and small business charge
accounts and (ii) the Commercial Segment, consisting of
commercial charge accounts. Data is presented in separate
increments based on the year of origination of the accounts,
each an Origination Period. Data is presented for
accounts that were originated in 2001 or thereafter. For both
Segments, data for accounts originated prior to 2001 is not
presented since such data is not available and could not be
obtained without unreasonable effort or expense. As of
December 31, 2010, the accounts reflected in the following
tables for the Consumer and Small Business Segment had
receivables outstanding that were approximately 51.32% of the
total receivables outstanding at such date in the total Consumer
and Small Business Segment of the Total Portfolio. As of
December 31, 2010, the accounts reflected in the following
tables for the Commercial Segment had receivables outstanding
that were approximately 88.85% of the total receivables
outstanding at such date in the total Commercial Segment of the
Total Portfolio. N/A in some of the following tables
refers to data that is not available.
To the extent any information contained in this report is deemed
to form a part of any prospectus supplement, the related
prospectus or the related registration statement, all static
pool information regarding the performance of receivables for
periods prior to January 1, 2006 will not form a part of
such prospectus supplement, prospectus or registration statement.
As used in the tables, the date of origination of an account is
generally the date the account became effective. The account
aging shows activity through the indicated age of the account
(e.g., 0-12 months,
13-24 months),
which is referred to in this report as the performance
period. In the following tables, shaded data (or, in the
case of the delinquency tables, the yellow- and green-colored
data) is based on a full 12 months of activity for all
accounts in the applicable Origination Period and, therefore,
will not change in future disclosures. The data that is not
shaded (or, in the case of the delinquency tables, the data that
is colored blue) will change in future disclosures and, in some
cases, will reflect activity in an account for less than 12 full
months, depending on when the account is originated and when the
data for that disclosure is generated.
For Monthly Periods ending after January 1, 2006, the
method for reporting account activity for the Total Portfolio
was changed. For any Monthly Period ending prior to
January 1, 2006, account activity for the Total Portfolio
is based on the activity that occurred within each such account
during the related monthly billing cycle. We refer to data
concerning account activity presented on this basis as old
methodology data. Old methodology data, therefore, is
based on account activity ending on different days throughout a
Monthly Period.
For any Monthly Period ending after January 1, 2006,
reported account activity for the Total Portfolio is based on
the activity that occurred within each such account during such
Monthly Period. We refer to data concerning account activity
presented on this basis as new methodology data. New
methodology data, therefore, is based on account activity ending
on the last day of a Monthly Period.
Accordingly, for any Monthly Period ending prior to
January 1, 2006, the reported delinquency status of a
particular account for any Monthly Period is determined on the
last day of such accounts billing cycle, while, for any
Monthly Period ending after January 1, 2006, the reported
delinquency status of all accounts for any Monthly Period is
determined on the last day of such Monthly Period. Therefore,
under the new methodology, if an amount that is past due as of
the last day of the related accounts billing cycle has
been paid in full on or prior to the last day of the related
Monthly Period, then such account will not be reported as
delinquent for such Monthly Period.
Also as a result of the
transition from the old methodology to the new methodology, data
for the Monthly Period ended December 24, 2005 does not
include account activity for those days subsequent to each such
accounts monthly billing cycle end date and prior to and
including December 24, 2005.
This methodology change has reduced delinquencies reported for
the Total Portfolio for Monthly Periods ending after
January 1, 2006 as compared with delinquencies reported for
Monthly Periods prior to that date and, therefore, we can offer
no assurance as to how delinquencies reported prior to
January 1, 2006 compare to delinquencies reported after
January 1, 2006, and we caution investors to compare data
only within the pre-January 1, 2006 period (during which
data is presented consistently under the old methodology) or
within the post-January 1, 2006 period (during which data is presented
consistently under the new methodology) and not across such
periods.
Because the Trust Portfolio is only a portion of the Total
Portfolio, the actual performance of the receivables in the
Trust Portfolio may be different from the performance
reflected in the tables below. There can be no assurance that
the performance of receivables in the future will be similar to
the historical experience set forth below.
17
Table of Contents
Gross
Charge-Off Rates
Total gross charge-offs for any Origination Period include
charge-offs of principal and certain fees, but do not include
the amount of any reductions in receivables due to a rebate,
refund, error, fraudulent charge or other miscellaneous
adjustment. The gross charge-off rate, which is an annualized
percentage, results from dividing total gross charge-offs by the
average month-end receivables for each month in the applicable
performance period, which is referred to in this report as the
average receivables outstanding.
Gross
Charge-Off Rate of the
Consumer and Small Business Segment
Total Portfolio
As of Date: December 31, 2010
0-12 |
13-24 |
25-36 |
37-48 |
49-60 |
>=61 |
|||||||||||||||||||
Origination Year
|
Months | Months | Months | Months | Months | Months | ||||||||||||||||||
2010 Origination
|
1.15 | % | ||||||||||||||||||||||
2009 Origination
|
3.00 | % | 3.99 | % | ||||||||||||||||||||
2008 Origination
|
6.79 | % | 8.30 | % | 4.41 | % | ||||||||||||||||||
2007 Origination
|
7.33 | % | 14.25 | % | 7.91 | % | 4.42 | % | ||||||||||||||||
2006 Origination
|
7.96 | % | 14.35 | % | 12.03 | % | 7.12 | % | 4.47 | % | ||||||||||||||
2005 Origination
|
8.47 | % | 11.90 | % | 10.27 | % | 10.32 | % | 6.42 | % | 3.95 | % | ||||||||||||
2004 Origination
|
6.67 | % | 10.94 | % | 7.62 | % | 8.07 | % | 8.38 | % | 4.96 | % | ||||||||||||
2003 Origination
|
4.68 | % | 10.91 | % | 6.87 | % | 6.12 | % | 7.44 | % | 6.01 | % | ||||||||||||
2002 Origination
|
2.09 | % | 8.24 | % | 5.35 | % | 3.95 | % | 4.02 | % | 4.84 | % | ||||||||||||
2001 Origination
|
1.70 | % | 14.84 | % | 8.65 | % | 5.69 | % | 4.40 | % | 4.92 | % |
18
Table of Contents
Gross
Charge-Off Rate of the
Commercial Segment
Total Portfolio
Commercial Segment
Total Portfolio
As of Date: December 31, 2010
0-12 |
13-24 |
25-36 |
37-48 |
49-60 |
>=61 |
|||||||||||||||||||
Origination Year
|
Months | Months | Months | Months | Months | Months | ||||||||||||||||||
2010 Origination |
0.75 | % | ||||||||||||||||||||||
2009 Origination |
1.49 | % | 1.96 | % | ||||||||||||||||||||
2008 Origination |
0.79 | % | 4.77 | % | 1.87 | % | ||||||||||||||||||
2007 Origination |
0.54 | % | 4.71 | % | 3.87 | % | 1.52 | % | ||||||||||||||||
2006 Origination |
0.20 | % | 3.67 | % | 3.93 | % | 3.53 | % | 1.80 | % | ||||||||||||||
2005 Origination |
0.42 | % | 3.33 | % | 2.45 | % | 2.85 | % | 2.83 | % | 1.32 | % | ||||||||||||
2004 Origination |
1.70 | % | 4.25 | % | 1.81 | % | 1.57 | % | 2.19 | % | 2.06 | % | ||||||||||||
2003 Origination |
0.46 | % | 4.78 | % | 2.01 | % | 1.61 | % | 1.26 | % | 3.08 | % | ||||||||||||
2002 Origination |
0.38 | % | 4.00 | % | 1.71 | % | 1.46 | % | 0.75 | % | 2.85 | % | ||||||||||||
2001 Origination |
0.67 | % | 3.50 | % | 1.45 | % | 1.01 | % | 0.59 | % | 0.79 | % |
19
Table of Contents
Net
Charge-Off Rates
Total net charge-offs for any Origination Period are an amount
equal to total gross charge-offs minus total recoveries. The net
charge-off rate, which is an annualized percentage, results from
dividing total net charge-offs by the average receivables
outstanding.
Net
Charge-Off Rate of the
Consumer and Small Business Segment
Total Portfolio
Consumer and Small Business Segment
Total Portfolio
As of Date: December 31, 2010
0-12 | 13-24 | 25-36 | 37-48 | 49-60 | >=61 | |||||||||||||||||||
Origination Year |
Months | Months | Months | Months | Months | Months | ||||||||||||||||||
2010 Origination |
1.11 | % | ||||||||||||||||||||||
2009 Origination |
2.86 | % | 3.01 | % | ||||||||||||||||||||
2008 Origination |
6.53 | % | 6.28 | % | 2.66 | % | ||||||||||||||||||
2007 Origination |
7.14 | % | 12.27 | % | 5.36 | % | 2.48 | % | ||||||||||||||||
2006 Origination |
7.61 | % | 12.33 | % | 9.40 | % | 4.46 | % | 2.54 | % | ||||||||||||||
2005 Origination |
8.05 | % | 9.64 | % | 7.95 | % | 7.90 | % | 3.99 | % | 2.21 | % | ||||||||||||
2004 Origination |
6.41 | % | 9.20 | % | 5.65 | % | 6.10 | % | 6.39 | % | 3.00 | % | ||||||||||||
2003 Origination |
4.54 | % | 9.80 | % | 5.46 | % | 4.65 | % | 5.68 | % | 4.26 | % | ||||||||||||
2002 Origination |
2.03 | % | 7.59 | % | 4.51 | % | 3.09 | % | 3.05 | % | 3.50 | % | ||||||||||||
2001 Origination |
1.67 | % | 14.06 | % | 7.42 | % | 4.41 | % | 3.33 | % | 3.51 | % |
20
Table of Contents
Net
Charge-Off Rate of the
Commercial Segment
Total Portfolio
Commercial Segment
Total Portfolio
As of Date: December 31, 2010
0-12 | 13-24 | 25-36 | 37-48 | 49-60 | >=61 | |||||||||||||||||||
Origination Year |
Months | Months | Months | Months | Months | Months | ||||||||||||||||||
2010 Origination |
0.65 | % | ||||||||||||||||||||||
2009 Origination |
1.33 | % | 1.31 | % | ||||||||||||||||||||
2008 Origination |
0.77 | % | 4.10 | % | 1.06 | % | ||||||||||||||||||
2007 Origination |
0.52 | % | 4.28 | % | 2.91 | % | 0.49 | % | ||||||||||||||||
2006 Origination |
0.18 | % | 3.25 | % | 3.24 | % | 2.49 | % | 0.75 | % | ||||||||||||||
2005 Origination |
0.40 | % | 3.00 | % | 1.91 | % | 2.16 | % | 1.94 | % | 0.08 | % | ||||||||||||
2004 Origination |
1.67 | % | 3.92 | % | 1.22 | % | 0.98 | % | 1.74 | % | 1.27 | % | ||||||||||||
2003 Origination |
0.43 | % | 4.37 | % | 1.25 | % | 1.00 | % | 0.83 | % | 2.44 | % | ||||||||||||
2002 Origination |
0.33 | % | 3.66 | % | 1.19 | % | 0.99 | % | 0.38 | % | 2.15 | % | ||||||||||||
2001 Origination |
0.48 | % | 3.06 | % | 0.91 | % | 0.54 | % | 0.25 | % | 0.44 | % |
21
Table of Contents
30 Days+
Delinquency Rates
The 30 Days+ Delinquency Rate (i.e., accounts 31 days or
more delinquent) is the result of dividing the average of the
month-end delinquent amounts for each month in the applicable
performance period by the average receivables outstanding.
30 Days+
Delinquency Rate of the
Consumer and Small Business Segment
Total Portfolio(1)
Consumer and Small Business Segment
Total Portfolio(1)
As of Date: December 31, 2010
0-12 |
13-24 |
25-36 |
37-48 |
49-60 |
>=61 |
|||||||||||||||||||
Origination Year
|
Months | Months | Months | Months | Months | Months | ||||||||||||||||||
2010 Origination
|
1.72 | % | ||||||||||||||||||||||
2009 Origination
|
2.21 | % | 2.16 | % | ||||||||||||||||||||
2008 Origination
|
4.86 | % | 3.58 | % | 2.38 | % | ||||||||||||||||||
2007 Origination
|
5.73 | % | 6.26 | % | 3.49 | % | 2.33 | % | ||||||||||||||||
2006 Origination
|
6.93 | % | 7.23 | % | 5.67 | % | 3.22 | % | 2.37 | % | ||||||||||||||
2005 Origination
|
7.55 | % | 7.25 | % | 5.98 | % | 5.25 | % | 3.00 | % | 2.13 | % | ||||||||||||
2004 Origination
|
7.45 | % | 7.99 | % | 5.73 | % | 4.77 | % | 4.23 | % | 2.39 | % | ||||||||||||
2003 Origination
|
8.35 | % | 8.75 | % | 7.12 | % | 5.22 | % | 4.55 | % | 3.05 | % | ||||||||||||
2002 Origination
|
5.83 | % | 7.11 | % | 5.95 | % | 5.09 | % | 4.03 | % | 2.83 | % | ||||||||||||
2001 Origination
|
9.11 | % | 11.06 | % | 7.92 | % | 6.35 | % | 5.67 | % | 3.38 | % |
(1) | As discussed in Static Pool Information in this report, for Monthly Periods ending after January 1, 2006, the method for reporting account activity for the Total Portfolio was changed and, as a result, delinquencies reported for the Total Portfolio for Monthly Periods ending after January 1, 2006 (as compared with delinquencies reported for Monthly Periods ending prior to that date) are lower. |
Data presented in each performance period in this delinquency table is color-coded based on the Monthly Periods during which the underlying account activity occurred. | ||
Delinquency data relating exclusively to Monthly
Periods ending prior to January 1, 2006, during which data
was collected consistently under the old methodology, appears in
the yellow-colored performance periods.
|
22
Table of Contents
Delinquency data relating exclusively to Monthly
Periods ending after January 1, 2006, during which data was
collected consistently under the new methodology, appears in the
blue-colored performance periods.
|
||
Delinquency data relating to a combination of
Monthly Periods ending both prior to and after January 1,
2006, during which, as to each account, data was collected to
varying degrees under the old methodology and the new
methodology (depending on when the account is originated
relative to the period covered by the applicable performance
period), appears in the green-colored performance periods.
|
||
We can offer no assurance as to how delinquencies reported in the yellow-colored performance periods compare to delinquencies reported in the blue-colored performance periods, and we caution investors to compare data only within performance periods of the same color-coding and not across performance periods of different color-coding. |
23
Table of Contents
30 Days+
Delinquency Rate of the
Commercial Segment
Total Portfolio(1)
Commercial Segment
Total Portfolio(1)
As of Date: December 31, 2010
0-12 |
13-24 |
25-36 |
37-48 |
49-60 |
>=61 |
|||||||||||||||||||
Origination Year
|
Months | Months | Months | Months | Months | Months | ||||||||||||||||||
2010 Origination
|
1.66 | % | ||||||||||||||||||||||
2009 Origination
|
1.99 | % | 2.03 | % | ||||||||||||||||||||
2008 Origination
|
3.51 | % | 2.72 | % | 1.83 | % | ||||||||||||||||||
2007 Origination
|
3.86 | % | 4.93 | % | 2.50 | % | 1.72 | % | ||||||||||||||||
2006 Origination
|
4.18 | % | 5.23 | % | 4.39 | % | 2.60 | % | 1.83 | % | ||||||||||||||
2005 Origination
|
5.68 | % | 4.93 | % | 3.95 | % | 3.92 | % | 2.40 | % | 1.73 | % | ||||||||||||
2004 Origination
|
8.62 | % | 7.52 | % | 4.14 | % | 3.74 | % | 3.40 | % | 2.01 | % | ||||||||||||
2003 Origination
|
8.14 | % | 10.41 | % | 6.74 | % | 3.87 | % | 3.46 | % | 2.94 | % | ||||||||||||
2002 Origination
|
7.92 | % | 8.62 | % | 7.88 | % | 5.74 | % | 3.22 | % | 3.08 | % | ||||||||||||
2001 Origination
|
8.84 | % | 9.40 | % | 7.69 | % | 7.35 | % | 5.36 | % | 2.53 | % |
(1) | As discussed in Static Pool Information in this report, for Monthly Periods ending after January 1, 2006, the method for reporting account activity for the Total Portfolio was changed and, as a result, delinquencies reported for the Total Portfolio for Monthly Periods ending after January 1, 2006 (as compared with delinquencies reported for Monthly Periods ending prior to that date) are lower. |
Data presented in each performance period in this delinquency table is color-coded based on the Monthly Periods during which the underlying account activity occurred. | ||
Delinquency data relating exclusively to Monthly
Periods ending prior to January 1, 2006, during which data
was collected consistently under the old methodology, appears in
the yellow-colored performance periods.
|
||
Delinquency data relating exclusively to Monthly
Periods ending after January 1, 2006, during which data was
collected consistently under the new methodology, appears in the
blue-colored performance periods.
|
24
Table of Contents
Delinquency data relating to a combination of
Monthly Periods ending both prior to and after January 1,
2006, during which, as to each account, data was collected to
varying degrees under the old methodology and the new
methodology (depending on when the account is originated
relative to the period covered by the applicable performance
period), appears in the green-colored performance periods.
|
||
We can offer no assurance as to how delinquencies reported in the yellow-colored performance periods compare to delinquencies reported in the blue-colored performance periods, and we caution investors to compare data only within performance periods of the same color-coding and not across performance periods of different color-coding. |
25
Table of Contents
Monthly
Payment Rates
The monthly payment rate results from dividing total collections
received (excluding recoveries on charged-off receivables)
during each month by that months opening total receivables
balance.
Accountholder
Monthly Payment Rates of the
Consumer and Small Business Segment
Total Portfolio
Consumer and Small Business Segment
Total Portfolio
As of Date: December 31, 2010
0-12 | 13-24 | 25-36 | 37-48 | 49-60 | >=61 | |||||||||||||||||||
Origination Year | Months | Months | Months | Months | Months | Months | ||||||||||||||||||
2010 Origination |
123.03 | % | ||||||||||||||||||||||
2009 Origination |
118.40 | % | 109.05 | % | ||||||||||||||||||||
2008 Origination |
111.84 | % | 111.94 | % | 113.69 | % | ||||||||||||||||||
2007 Origination |
103.18 | % | 102.20 | % | 106.99 | % | 104.50 | % | ||||||||||||||||
2006 Origination |
93.86 | % | 90.62 | % | 95.02 | % | 98.70 | % | 98.97 | % | ||||||||||||||
2005 Origination |
90.55 | % | 87.63 | % | 88.60 | % | 93.13 | % | 97.09 | % | 97.08 | % | ||||||||||||
2004 Origination |
91.38 | % | 87.59 | % | 87.96 | % | 89.50 | % | 93.53 | % | 97.39 | % | ||||||||||||
2003 Origination |
88.98 | % | 88.67 | % | 87.35 | % | 86.61 | % | 87.74 | % | 93.75 | % | ||||||||||||
2002 Origination |
90.53 | % | 90.14 | % | 91.41 | % | 90.00 | % | 88.95 | % | 94.68 | % | ||||||||||||
2001 Origination |
84.88 | % | 84.16 | % | 88.28 | % | 90.68 | % | 88.55 | % | 91.65 | % |
26
Table of Contents
Accountholder
Monthly Payment Rates of the
Commercial Segment
Total Portfolio
Commercial Segment
Total Portfolio
As of Date: December 31, 2010
0-12 |
13-24 |
25-36 |
37-48 |
49-60 |
>=61 |
|||||||||||||||||||
Origination Year
|
Months | Months | Months | Months | Months | Months | ||||||||||||||||||
2010 Origination
|
112.76 | % | ||||||||||||||||||||||
2009 Origination
|
107.55 | % | 109.06 | % | ||||||||||||||||||||
2008 Origination
|
100.18 | % | 104.02 | % | 106.39 | % | ||||||||||||||||||
2007 Origination
|
92.74 | % | 94.12 | % | 101.06 | % | 104.36 | % | ||||||||||||||||
2006 Origination
|
91.74 | % | 92.72 | % | 96.52 | % | 102.35 | % | 105.81 | % | ||||||||||||||
2005 Origination
|
89.93 | % | 90.39 | % | 92.81 | % | 96.84 | % | 104.24 | % | 109.21 | % | ||||||||||||
2004 Origination
|
89.17 | % | 90.46 | % | 91.44 | % | 92.54 | % | 95.40 | % | 101.48 | % | ||||||||||||
2003 Origination
|
87.26 | % | 87.83 | % | 89.78 | % | 90.40 | % | 92.64 | % | 97.03 | % | ||||||||||||
2002 Origination
|
84.34 | % | 87.24 | % | 90.04 | % | 90.57 | % | 90.47 | % | 95.82 | % | ||||||||||||
2001 Origination
|
80.69 | % | 86.06 | % | 89.61 | % | 90.98 | % | 89.34 | % | 95.70 | % |
27
Table of Contents
Revenue
Experience
The percentages set forth in the tables below, which are
annualized percentages, result from dividing finance charge
collections by the average receivables outstanding. Finance
charge collections include discount option receivables.
Revenue
Experience of the
Consumer and Small Business Segment
Total Portfolio
Consumer and Small Business Segment
Total Portfolio
As of Date: December 31, 2010
0-12 | 13-24 | 25-36 | 37-48 | 49-60 | >=61 | |||||||||||||||||||
Origination Year |
Months | Months | Months | Months | Months | Months | ||||||||||||||||||
2010 Origination |
35.91 | % | ||||||||||||||||||||||
2009 Origination |
38.31 | % | 38.51 | % | ||||||||||||||||||||
2008 Origination |
36.62 | % | 39.95 | % | 40.23 | % | ||||||||||||||||||
2007 Origination |
33.78 | % | 37.35 | % | 38.23 | % | 36.94 | % | ||||||||||||||||
2006 Origination |
30.44 | % | 32.80 | % | 34.76 | % | 35.34 | % | 35.02 | % | ||||||||||||||
2005 Origination |
29.67 | % | 31.59 | % | 32.06 | % | 34.07 | % | 34.80 | % | 34.46 | % | ||||||||||||
2004 Origination |
29.41 | % | 31.62 | % | 31.67 | % | 32.41 | % | 34.19 | % | 34.75 | % | ||||||||||||
2003 Origination |
28.78 | % | 31.70 | % | 31.47 | % | 31.15 | % | 31.68 | % | 33.81 | % | ||||||||||||
2002 Origination |
29.39 | % | 32.37 | % | 32.73 | % | 32.40 | % | 32.04 | % | 34.13 | % | ||||||||||||
2001 Origination |
27.52 | % | 30.29 | % | 31.70 | % | 32.46 | % | 31.82 | % | 33.01 | % | ||||||||||||
28
Table of Contents
Revenue
Experience of the
Commercial Segment
Total Portfolio
Commercial Segment
Total Portfolio
As of Date: December 31, 2010
0-12 |
13-24 |
25-36 |
37-48 |
49-60 |
>=61 |
|||||||||||||||||||
Origination Year
|
Months | Months | Months | Months | Months | Months | ||||||||||||||||||
2010 Origination
|
33.98 | % | ||||||||||||||||||||||
2009 Origination
|
34.99 | % | 39.62 | % | ||||||||||||||||||||
2008 Origination
|
33.10 | % | 37.60 | % | 38.60 | % | ||||||||||||||||||
2007 Origination
|
30.40 | % | 35.06 | % | 36.77 | % | 38.26 | % | ||||||||||||||||
2006 Origination
|
30.03 | % | 33.93 | % | 36.16 | % | 37.17 | % | 38.60 | % | ||||||||||||||
2005 Origination
|
29.45 | % | 32.99 | % | 34.05 | % | 36.30 | % | 37.84 | % | 39.98 | % | ||||||||||||
2004 Origination
|
29.08 | % | 32.96 | % | 33.35 | % | 33.81 | % | 35.70 | % | 36.67 | % | ||||||||||||
2003 Origination
|
28.48 | % | 31.99 | % | 32.64 | % | 32.95 | % | 33.83 | % | 35.69 | % | ||||||||||||
2002 Origination
|
27.64 | % | 31.89 | % | 32.93 | % | 32.90 | % | 33.02 | % | 35.13 | % | ||||||||||||
2001 Origination
|
26.55 | % | 31.61 | % | 32.68 | % | 33.20 | % | 32.51 | % | 35.10 | % |
29
Table of Contents
Glossary
of Terms
Additional Accounts means any Eligible
Accounts designated to be included in the Portfolio of the
issuance trust and whose receivables are transferred to the
issuance trust.
Centurion means American Express Centurion
Bank, a Utah bank.
Commercial Segment has the meaning described
in The Total Portfolio General in
this report.
Consumer and Small Business Segment has the
meaning described in The Total Portfolio
General in this report.
Date of Processing means, for any transaction
or receipt of collections, the Business Day after such
transaction or receipt is first output, in written form pursuant
to the servicers usual and customary data processing
procedures, from the servicers computer file of accounts
comparable to the accounts in the issuing entitys
Portfolio (regardless of the effective date of recordation).
Defaulted Receivables means, for any Monthly
Period, principal receivables that were charged off as
uncollectible in such Monthly Period in accordance with the
account guidelines and the applicable servicers customary
and usual servicing procedures for servicing receivables
comparable to the receivables. For purposes of this definition,
a principal receivable in any account becomes a Defaulted
Receivable on the Date of Processing it is recorded as
charged-off on such servicers computer file of accounts.
Discount Option Percentage has the meaning
specified in Sources of Funds to Pay the Notes
Discount Option in this prospectus.
Discount Option Receivables means on any Date
of Processing occurring in any Monthly Period following the
Monthly Period in which a discount option date occurs, the
product of (a) the Discount Option Percentage and
(b) Receivables received on such Date of Processing.
Eligible Accounts means a charge account
established pursuant to an account agreement and owned by an
account owner and its successors and permitted assigns which, as
of the respective selection date, is a charge account:
| in existence and maintained by an account owner or such successors or assigns; | |
| is payable in United States dollars; | |
| has not been identified by the servicer in its computer files as cancelled due to a related accountholders bankruptcy or insolvency; | |
| has not been sold or pledged to any other party except for any other account owner that has entered into a receivables purchase agreement or the transferor; | |
| does not have receivables which have been sold or pledged to any other party other than American Express Credit Corporation pursuant to the applicable receivables purchase agreement or the transferor; | |
| has an accountholder who has provided as his or her most recent billing address an address located in the United States, its territories or possessions or a United States military address (provided, however, that, at any time, up to 3% of the aggregate amount of receivables may have accountholders who have provided as their most recent billing addresses, addresses outside of such jurisdictions); | |
| has not been identified as an account with respect to which the related card has been lost or stolen (if such account is a charge card account); and | |
| does not have receivables that are Defaulted Receivables and does not have any receivables that have been identified by the servicer as having been incurred as a result of fraudulent use of any related charge card. |
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Eligible Accounts may include accounts, the receivables of which
have been written off or which have been identified by the
servicer in its computer files as cancelled due to a related
accountholders bankruptcy or insolvency, in each case as
of the applicable selection date; provided that:
| the balance of all receivables included in such accounts is reflected on the books and records of the related account owner (and is treated for purposes of the transfer and servicing agreement) as zero, and | |
| charging privileges with respect to all such accounts have been canceled in accordance with the account guidelines. |
Finance Charge Collections means, for any
Monthly Period, the sum of:
| with respect to receivables included in the issuance trust, collections of finance charge receivables (including collections received with respect to Discount Option Receivables, if any, for such Monthly Period) received by the servicer on behalf of the issuing entity; | |
| with respect to a collateral certificate included in the issuance trust, collections of finance charge receivables allocable to the holder of that collateral certificate under the applicable securitization agreements for the related master trust or other securitization special purpose entity for such Monthly Period; | |
| any amounts received by the issuer to be treated as Finance Charge Collections with respect to such series, class or tranche as described in the related prospectus supplement for such Monthly Period; and | |
| the amount of investment earnings (net of losses and investment expenses), if any, on amounts in deposit in the collection account, the overconcentration account and the excess funding account for such Monthly Period. |
If so specified in the related prospectus supplement, Finance
Charge Collections for any Monthly Period will include the
issuer rate fee amount, if any, paid to the issuing entity with
respect to such Monthly Period (to the extent received by the
issuing entity and deposited into the collection account).
FSB means American Express Bank, FSB, a
federal savings bank.
Monthly Period means the period beginning at
the opening of business on the second day following the last day
of the seventh billing cycle (of one of the account receivable
platforms) of the second preceding calendar month and ending at
the close of business on the day following the last day of the
seventh billing cycle (of such account receivable platform) of
the immediately following month. The last day of each such
seventh monthly billing cycle generally occurs between the
twenty-first (21st) day and the twenty-fifth (25th) day of each
month. Therefore, the number of days in a Monthly Period
generally may vary from a calendar month by up to four days.
Origination Period has the meaning described
in Static Pool Information in this report.
Portfolio means (i) with respect to the
issuing entity, certain accounts selected from a portfolio of
accounts owned by TRS, Centurion, FSB or any of their affiliates
and included in the issuance trust based on the eligibility
criteria specified in the transfer and servicing agreement and
(ii) with respect to any master trust or other
securitization special purpose entity which has issued a
collateral certificate included in the issuance trust, certain
accounts selected from a portfolio of accounts owned by TRS,
Centurion, FSB or any of their affiliates and included in that
master trust or other securitization special purpose entity
based on the eligibility criteria specified in the applicable
trust agreement or pooling and servicing agreement.
Principal Collections means, with respect to
any Monthly Period,
| with respect to receivables, collections other than those designated as Finance Charge Collections on designated accounts for such Monthly Period; | |
| with respect to a collateral certificate, collections of principal receivables allocable to the holder of that collateral certificate under the applicable securitization agreements for the related master trust or other securitization special purpose entity for such Monthly Period; and |
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| the amount of funds withdrawn from the excess funding account for such Monthly Period which are required to be deposited into the collection account and treated as Principal Collections during an accumulation period or an amortization period pursuant to the transfer and servicing agreement. |
Rating Agency Condition means, with respect
to any action, that each rating agency that has rated any
outstanding series, class or tranche of notes notifies the
transferor, the servicer, the owner trustee and the indenture
trustee in writing that such action will not result in a
reduction in or withdrawal of the then-existing rating of any
outstanding series, class or tranche of notes with respect to
which it is a rating agency or, with respect to any outstanding
series, class or tranche of notes not rated by any rating
agency, as specified in the related indenture supplement.
Segment has the meaning described in
The Total Portfolio General in
this report.
Total Portfolio means the portfolio of
consumer, small business and commercial charge accounts owned by
TRS, Centurion, FSB or any of their affiliates from which the
accounts designated to be included in the Trust Portfolio
are selected.
TRS means American Express Travel Related
Services Company, Inc., a New York corporation.
Trust Portfolio means the initial
accounts and any Additional Accounts selected from the Total
Portfolio to have their receivables included in the issuance
trust based on the eligibility criteria specified in the
receivables purchase agreements and the transfer and servicing
agreement.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the
registrants have duly caused this report to be signed on their behalf by the undersigned hereunto
duly authorized.
American Express Receivables Financing
Corporation V LLC, as originator of the Trust and Co-Registrant and as Transferor on behalf of the Trust as Co-Registrant |
||||||
By: | /s/ Anderson Y. Lee | |||||
Name: | ||||||
Title: | Vice President and Treasurer |