Bread Financial (BFH) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 26, 2017
Document and Entity Information
Entity Registrant Name	ALLIANCE DATA SYSTEMS CORP
Entity Central Index Key	1,101,215
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		55,248,667
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 3,326	$ 1,859.2
Trade receivables, less allowance for doubtful accounts ($9.0 and $4.5 at September 30, 2017 and December 31, 2016, respectively)	769.3	797.2
Credit card and loan receivables:
Credit card receivables – restricted for securitization investors	11,304.4	11,437.1
Other credit card and loan receivables	5,135.4	5,106.8
Total credit card and loan receivables	16,439.8	16,543.9
Allowance for loan loss	(1,033.8)	(948)
Credit card and loan receivables, net	15,406	15,595.9
Credit card and loan receivables held for sale	888.7	417.3
Inventories, net	257.1	271.3
Other current assets	746	324
Redemption settlement assets, restricted	576.2	324.4
Total current assets	21,969.3	19,589.3
Property and equipment, net	615.1	586
Deferred tax asset, net	22.9	20.1
Intangible assets, net	813.4	1,003.3
Goodwill	3,873.4	3,800.7
Other non-current assets	600	514.7
Total assets	27,894.1	25,514.1
LIABILITIES AND EQUITY
Accounts payable	529.8	568.3
Accrued expenses	335.4	346.8
Current portion of deposits	5,823.5	4,673
Current portion of non-recourse borrowings of consolidated securitization entities	1,933.5	1,639
Current portion of long-term and other debt	538.5	814.5
Other current liabilities	384.7	399.8
Deferred revenue	847	788.1
Total current liabilities	10,392.4	9,229.5
Deferred revenue	119.3	143.4
Deferred tax liability, net	254.8	334.8
Deposits	4,550.5	3,718.9
Non-recourse borrowings of consolidated securitization entities	4,932.6	5,316.4
Long-term and other debt	5,704.1	4,786.9
Other liabilities	346.8	326
Total liabilities	26,300.5	23,855.9
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; authorized, 200.0 shares; issued, 112.7 shares and 112.5 shares at September 30, 2017 and December 31, 2016, respectively	1.1	1.1
Additional paid-in capital	3,080.5	3,046.1
Treasury stock, at cost, 57.4 shares and 55.1 shares at September 30, 2017 and December 31, 2016, respectively	(5,272.5)	(4,733.1)
Retained earnings	3,924.7	3,494.8
Accumulated other comprehensive loss	(140.2)	(150.7)
Total stockholders’ equity	1,593.6	1,658.2
Total liabilities and equity	$ 27,894.1	$ 25,514.1

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Trade receivables, allowance for doubtful accounts (in dollars)	$ 9	$ 4.5
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	200	200
Common stock, issued shares	112.7	112.5
Treasury stock, shares	57.4	55.1

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Services	$ 650.3	$ 634.4	$ 1,888.3	$ 1,828.7
Redemption	210	296.3	645.4	836.6
Finance charges, net	1,052.1	954.9	3,079.5	2,645.2
Total revenue	1,912.4	1,885.6	5,613.2	5,310.5
Operating expenses
Cost of operations (exclusive of depreciation and amortization disclosed separately below)	1,066.5	1,045.6	3,123.1	3,077.6
Provision for loan loss	204.7	251.3	807.9	651
General and administrative	38	41	124.9	111.4
Depreciation and other amortization	46.7	42.6	136.6	123.5
Amortization of purchased intangibles	77.6	84.1	237.9	261.2
Total operating expenses	1,433.5	1,464.6	4,430.4	4,224.7
Operating income	478.9	421	1,182.8	1,085.8
Interest expense
Securitization funding costs	38.2	31.1	109.9	91.5
Interest expense on deposits	33.2	22.6	87.9	60
Interest expense on long-term and other debt, net	73.9	54.6	210.2	159.3
Total interest expense, net	145.3	108.3	408	310.8
Income before income tax	333.6	312.7	774.8	775
Provision for income taxes	100.4	105.2	257.4	268
Net income	233.2	207.5	517.4	507
Less: Net income attributable to non-controlling interest				1.8
Net income attributable to common stockholders	$ 233.2	$ 207.5	$ 517.4	$ 505.2
Net income attributable to common stockholders per share:
Basic (in dollars per share) (Note 2)	$ 4.21	$ 3.56	$ 9.27	$ 7.15
Diluted (in dollars per share) (Note 2)	$ 4.20	$ 3.55	$ 9.23	$ 7.12
Weighted average shares:
Basic (in shares) (Note 2)	55.4	58.3	55.8	59
Diluted (in shares) (Note 2)	55.6	58.4	56	59.2
Dividends declared per share:	$ 0.52		$ 1.56

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 233.2	$ 207.5	$ 517.4	$ 507
Other comprehensive income (loss):
Unrealized gain (loss) on securities available-for-sale	(3)	0.2	(5)	5.3
Tax benefit (expense)	(0.1)		(0.2)	(1.4)
Unrealized gain (loss) on securities available-for-sale, net of tax	(3.1)	0.2	(5.2)	3.9
Unrealized gain (loss) on cash flow hedges	0.8	(0.8)	(0.4)	(2.6)
Tax benefit (expense)	(0.2)	0.2	0.1	0.7
Unrealized gain (loss) on cash flow hedges, net of tax	0.6	(0.6)	(0.3)	(1.9)
Unrealized gain (loss) on net investment hedges	(19.4)	(4.1)	(63.1)	(11.4)
Tax benefit (expense)	7.4		23.7
Unrealized gain (loss) on net investment hedge, net of tax	(12)	(4.1)	(39.4)	(11.4)
Foreign currency translation adjustments	15.9	5.1	55.4	16.1
Other comprehensive income (loss), net of tax	1.4	0.6	10.5	6.7
Total comprehensive income, net of tax	234.6	208.1	527.9	513.7
Less: Comprehensive income attributable to non-controlling interest				1.2
Comprehensive income attributable to common stockholders	$ 234.6	$ 208.1	$ 527.9	$ 512.5

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 517.4	$ 507
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	374.5	384.7
Deferred income taxes	(62.5)	(57)
Provision for loan loss	807.9	651
Non-cash stock compensation	63.5	59.5
Amortization of deferred financing costs	32.3	25.3
Change in deferred revenue	(35.5)	(114.1)
Change in other operating assets and liabilities, net of acquisitions	(20.7)	(212.2)
Originations of credit card and loan receivables held for sale	(6,012.8)	(5,182.7)
Sales of credit card and loan receivables held for sale	6,011.5	5,186.6
Other	104	106.7
Net cash provided by operating activities	1,779.6	1,354.8
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in redemption settlement assets	(222.1)	55.4
Change in restricted cash	(418.5)	(126.8)
Change in credit card and loan receivables	(1,174.7)	(1,048.8)
Purchase of credit card portfolios		(903.4)
Proceeds from sale of credit card portfolios		5.9
Capital expenditures	(176.6)	(158.3)
Purchases of other investments	(80.2)	(13.6)
Maturities/sales of other investments	38.2	38.6
Other	(4.2)	(0.6)
Net cash used in investing activities	(2,038.1)	(2,151.6)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under debt agreements	6,439.6	3,086.5
Repayments of borrowings	(5,903.8)	(2,305)
Issuances of deposits	4,062.7	3,727.5
Repayments of deposits	(2,075)	(1,714.4)
Non-recourse borrowings of consolidated securitization entities	2,455	2,567.5
Repayments/maturities of non-recourse borrowings of consolidated securitization entities	(2,545)	(3,150)
Acquisition of non-controlling interest		(360.7)
Payment of deferred financing costs	(53.4)	(20.7)
Dividends paid	(86.8)
Purchase of treasury shares	(553.7)	(692.8)
Other	(16.5)	(13.1)
Net cash provided by financing activities	1,723.1	1,124.8
Effect of exchange rate changes on cash and cash equivalents	2.2	4.5
Change in cash and cash equivalents	1,466.8	332.5
Cash and cash equivalents at beginning of period	1,859.2	1,168
Cash and cash equivalents at end of period	3,326	1,500.5
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	382.2	287.2
Income taxes paid, net	$ 282	$ 342.7

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by Alliance Data Systems Corporation (“ADSC” or, including its consolidated subsidiaries and variable interest entities (“VIEs”), the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on February 27, 2017. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation in accordance with GAAP. Specifically, beginning in the first quarter of 2017, the Company combined its transaction, marketing services and other revenue to the financial statement line item caption “Services,” as all of these items represent revenue from services. These reclassifications had no effect on previously reported total revenue or net income. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Companies may adopt ASU 2014-09 using a full retrospective approach or report the cumulative effect as of the date of adoption. On July 9, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and to permit early adoption of the standard, but not before the original effective date of December 15, 2016. ASU 2014-09 does not apply to financial instruments and other contractual rights or obligations (for example, interest income and late fees from credit card and loan receivables), and therefore, the Company’s finance charges, net will not be affected by the adoption of the standard. Management has substantially completed its initial evaluation of the impact of these updates on its consolidated financial statements and based on the evaluation of the Company's current contracts and the related revenue streams and performance obligations, most will be recorded consistently under both the current and new standard. Management is in the process of evaluating how best to apply the necessary changes, quantifying whether any of the changes have a material impact on the timing of revenue recognition, and analyzing changes to disclosure requirements. The assessment is expected to be completed by the end of 2017. The Company plans to adopt the standard on January 1, 2018 using a modified retrospective method. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires that equity investments be measured at fair value with changes in fair value recognized in net income. For equity investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. Additionally, ASU 2016-01 requires entities that elect the fair value option for financial liabilities to recognize changes in fair value related to instrument-specific credit risk in other comprehensive income. Finally, entities must assess valuation allowances for deferred tax assets related to available-for-sale debt securities in combination with their other deferred tax assets. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact that adoption of ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” that replaces existing lease guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new guidance will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The new standard is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. The Company is evaluating the impact that adoption of ASU 2016-02 will have on its consolidated financial statements and expects there will be an increase in assets and liabilities on its consolidated balance sheets at adoption due to the recording of right-of-use assets and corresponding lease liabilities. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires entities to utilize a financial instrument impairment model that is based on expected losses over the life of the exposure rather than a model based on an incurred loss approach to establish an allowance. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance. In addition, ASU 2016-13 modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted beginning after December 15, 2018. The Company is evaluating the impact that adoption of ASU 2016-13 will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 will make eight targeted changes to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated statements of cash flows. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash.” ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company plans to adopt this standard on January 1, 2018, resulting in changes to its consolidated statements of cash flows to include restricted cash amounts in the beginning-of-period and end-of-period cash and cash equivalents totals. In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 expands and refines the hedge accounting model for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements, and makes certain targeted improvements to simplify the application of hedge accounting guidance related to the assessment of hedge effectiveness. ASU 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact that adoption of ASU 2017-12 will have on its consolidated financial statements. Recently Adopted Accounting Standards In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory." ASU 2015-11 changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company prospectively adopted this standard as of January 1, 2017. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies certain aspects of share-based transactions, including income tax consequences, forfeitures, classification of awards as either equity or liabilities and classification in the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard as of January 1, 2017. The adoption of this standard did not have a material impact on the Company’s provision for income taxes or diluted earnings per share for the three and nine months ended September 30, 2017. The Company’s retrospective adoption of the presentation requirements for cash flows related to employee taxes paid for withheld shares resulted in an increase in cash flows from operating activities of $25.8 million and a decrease in cash flows from financing activities of $25.8 million for the nine months ended September 30, 2016. The Company prospectively adopted the presentation requirements for cash flows related to excess tax benefits, and prior period amounts were not adjusted. Further, the Company elected to continue to estimate forfeitures at each grant date.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2017
EARNINGS PER SHARE
EARNINGS PER SHARE	2. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net income per share for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (In millions except per share amounts) Numerator: Net income attributable to common stockholders $ 233.2 $ 207.5 $ 517.4 $ 505.2 Less: Accretion of redeemable non-controlling interest — — — 83.5 Net income attributable to common stockholders after accretion of redeemable non-controlling interest $ 233.2 $ 207.5 $ 517.4 $ 421.7 Denominator: Weighted average shares, basic 55.4 58.3 55.8 59.0 Weighted average effect of dilutive securities: Net effect of dilutive stock options and unvested restricted stock 0.2 0.1 0.2 0.2 Denominator for diluted calculation 55.6 58.4 56.0 59.2 Net income attributable to common stockholders per share: Basic $ 4.21 $ 3.56 $ 9.27 $ 7.15 Diluted $ 4.20 $ 3.55 $ 9.23 $ 7.12 For the nine months ended September 30, 2016, the Company adjusted the carrying amount of the redeemable non-controlling interest by $83.5 million to the redemption value. Effective April 1, 2016, the Company acquired the remaining 20% interest in BrandLoyalty to bring its ownership percentage to 100%. For the three and nine months ended September 30, 2017 and 2016, a de minimis amount of restricted stock units was excluded from each calculation of weighted average dilutive common shares as the effect would have been anti-dilutive.

CREDIT CARD AND LOAN RECEIVABLE

CREDIT CARD AND LOAN RECEIVABLES	9 Months Ended
	Sep. 30, 2017
CREDIT CARD AND LOAN RECEIVABLES
CREDIT CARD AND LOAN RECEIVABLES	3. CREDIT CARD AND LOAN RECEIVABLES The Company’s credit card and loan receivables are the only portfolio segment or class of financing receivables. Quantitative information about the components of credit card and loan receivables is presented in the table below: September 30, December 31, 2017 2016 (In millions) Principal receivables $ 15,581.6 $ 15,754.0 Billed and accrued finance charges 785.9 708.6 Other 72.3 81.3 Total credit card and loan receivables 16,439.8 16,543.9 Less: Credit card receivables – restricted for securitization investors 11,304.4 11,437.1 Other credit card and loan receivables $ 5,135.4 $ 5,106.8 Allowance for Loan Loss The Company maintains an allowance for loan loss at a level that is appropriate to absorb probable losses inherent in credit card and loan receivables. The allowance for loan loss covers forecasted uncollectible principal as well as unpaid interest and fees. The allowance for loan loss is evaluated monthly for appropriateness. In estimating the allowance for principal loan losses, management utilizes a migration analysis of delinquent and current credit card and loan receivables. Migration analysis is a technique used to estimate the likelihood that a credit card or loan receivable will progress through the various stages of delinquency and to charge-off. The allowance is maintained through an adjustment to the provision for loan loss. Charge-offs of principal amounts, net of recoveries are deducted from the allowance. In estimating the allowance for uncollectible unpaid interest and fees, the Company utilizes historical charge-off trends, analyzing actual charge-offs for the prior three months. The allowance is maintained through an adjustment to finance charges, net. In evaluating the allowance for loan loss for both principal and unpaid interest and fees, management also considers factors that may impact loan loss experience, including seasoning and growth, account collection strategies, economic conditions, bankruptcy filings, policy changes, payment rates and forecasting uncertainties. The following table presents the Company’s allowance for loan loss for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In millions) Balance at beginning of period $ 1,069.3 $ 782.6 $ 948.0 $ 741.6 Provision for loan loss 204.7 251.3 807.9 651.0 Allowance associated with credit card and loan receivables transferred to held for sale (20.6) — (20.6) (15.0) Change in estimate for uncollectible unpaid interest and fees — 5.0 10.0 10.0 Recoveries 44.3 73.6 146.1 183.5 Principal charge-offs (263.9) (238.1) (857.6) (696.7) Balance at end of period $ 1,033.8 $ 874.4 $ 1,033.8 $ 874.4 Net charge-offs include the principal amount of losses from credit cardholders unwilling or unable to pay their account balances, as well as bankrupt and deceased credit cardholders, less recoveries and exclude charged-off interest, fees and fraud losses. Charged‑off interest and fees reduce finance charges, net while fraud losses are recorded as an expense. Credit card and loan receivables, including unpaid interest and fees, are charged-off in the month during which an account becomes 180 days contractually past due, except in the case of customer bankruptcies or death. Credit card and loan receivables, including unpaid interest and fees, associated with customer bankruptcies or death are charged-off in each month subsequent to 60 days after the receipt of notification of the bankruptcy or death, but in any case, not later than the 180-day contractual time frame. The Company records the actual charge-offs for unpaid interest and fees as a reduction to finance charges, net. Actual charge-offs for unpaid interest and fees were $152.2 million and $126.4 million for the three months ended September 30, 2017 and 2016, respectively, and $469.6 million and $355.2 million for the nine months ended September 30, 2017 and 2016, respectively. Delinquencies A credit card account is contractually delinquent if the Company does not receive the minimum payment by the specified due date on the cardholder’s statement. It is the Company’s policy to continue to accrue interest and fee income on all credit card accounts beyond 90 days, except in limited circumstances, until the credit card account balance and all related interest and other fees are paid or charged-off, typically at 180 days delinquent. When an account becomes delinquent, a message is printed on the credit cardholder’s billing statement requesting payment. After an account becomes 30 days past due, a proprietary collection scoring algorithm automatically scores the risk of the account becoming further delinquent. The collection system then recommends a collection strategy for the past due account based on the collection score and account balance and dictates the contact schedule and collections priority for the account. If the Company is unable to make a collection after exhausting all in-house collection efforts, the Company may engage collection agencies and outside attorneys to continue those efforts. The following table presents the delinquency trends of the Company’s credit card and loan receivables portfolio: September 30, % of December 31, % of 2017 Total 2016 Total (In millions, except percentages) Receivables outstanding - principal $ 15,581.6 100.0 % $ 15,754.0 100.0 % Principal receivables balances contractually delinquent: 31 to 60 days 269.9 1.7 % 249.8 1.6 % 61 to 90 days 186.9 1.2 169.3 1.1 91 or more days 389.5 2.5 337.8 2.1 Total $ 846.3 5.4 % $ 756.9 4.8 % Modified Credit Card Receivables The Company holds certain credit card receivables for which the terms have been modified. The Company’s modified credit card receivables include credit card receivables for which temporary hardship concessions have been granted and credit card receivables in permanent workout programs. These modified credit card receivables include concessions consisting primarily of a reduced minimum payment and an interest rate reduction. The temporary programs’ concessions remain in place for a period no longer than twelve months, while the permanent programs remain in place through the payoff of the credit card receivables if the credit cardholder complies with the terms of the program. These concessions do not include the forgiveness of unpaid principal, but may involve the reversal of certain unpaid interest or fee assessments. In the case of the temporary programs, at the end of the concession period, credit card receivable terms revert to standard rates. These arrangements are automatically terminated if the customer fails to make payments in accordance with the terms of the program, at which time their account reverts back to its original terms. Credit card receivables for which temporary hardship and permanent concessions were granted are each considered troubled debt restructurings and are collectively evaluated for impairment. Modified credit card receivables are evaluated at their present value with impairment measured as the difference between the credit card receivable balance and the discounted present value of cash flows expected to be collected. Consistent with the Company’s measurement of impairment of modified credit card receivables on a pooled basis, the discount rate used for credit card receivables is the average current annual percentage rate the Company applies to non-impaired credit card receivables, which approximates what would have been applied to the pool of modified credit card receivables prior to impairment. In assessing the appropriate allowance for loan loss, these modified credit card receivables are included in the general pool of credit card receivables with the allowance determined under the contingent loss model of Accounting Standards Codification (“ASC”) 450-20, “Loss Contingencies.” If the Company applied accounting under ASC 310-40, “Troubled Debt Restructurings by Creditors,” to the modified credit card receivables in these programs, there would not be a material difference in the allowance for loan loss. The Company had $242.7 million and $216.5 million, respectively, as a recorded investment in impaired credit card receivables with an associated allowance for loan loss of $54.5 million and $46.4 million, respectively, as of September 30, 2017 and December 31, 2016. These modified credit card receivables represented less than 2% of the Company’s total credit card receivables as of both September 30, 2017 and December 31, 2016. The average recorded investment in impaired credit card receivables was $233.6 million and $196.1 million for the three months ended September 30, 2017 and 2016, respectively, and $222.3 million and $185.8 million for the nine months ended September 30, 2017 and 2016, respectively. Interest income on these modified credit card receivables is accounted for in the same manner as other accruing credit card receivables. Cash collections on these modified credit card receivables are allocated according to the same payment hierarchy methodology applied to credit card receivables that are not in such programs. The Company recognized $5.0 million and $4.8 million for the three months ended September 30, 2017 and 2016, respectively, and $14.5 million and $13.9 million for the nine months ended September 30, 2017 and 2016, respectively, in interest income associated with modified credit card receivables during the period that such credit card receivables were impaired. The following tables provide information on credit card receivables that are considered troubled debt restructurings as described above, which entered into a modification program during the specified periods: Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Pre-modification Post-modification Pre-modification Post-modification Number of Outstanding Outstanding Number of Outstanding Outstanding Restructurings Balance Balance Restructurings Balance Balance (Dollars in millions) Troubled debt restructurings – credit card receivables 53,305 $ 67.2 $ 67.1 146,177 $ 186.8 $ 186.6 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Pre-modification Post-modification Pre-modification Post-modification Number of Outstanding Outstanding Number of Outstanding Outstanding Restructurings Balance Balance Restructurings Balance Balance (Dollars in millions) Troubled debt restructurings – credit card receivables 53,041 $ 63.8 $ 63.7 151,069 $ 180.9 $ 180.7 The tables below summarize troubled debt restructurings that have defaulted in the specified periods where the default occurred within 12 months of their modification date: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Number of Outstanding Number of Outstanding Restructurings Balance Restructurings Balance (Dollars in millions) Troubled debt restructurings that subsequently defaulted – credit card receivables 24,267 $ 29.4 74,948 $ 91.0 Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Number of Outstanding Number of Outstanding Restructurings Balance Restructurings Balance (Dollars in millions) Troubled debt restructurings that subsequently defaulted – credit card receivables 27,606 $ 31.3 75,828 $ 84.1 Age of Credit Card and Loan Receivable Accounts The following tables set forth, as of September 30, 2017 and December 31, 2016, the number of active credit card and loan receivable accounts with balances and the related principal balances outstanding, based upon the age of the active credit card and loan receivable accounts from origination: September 30, 2017 Percentage of Number of Percentage of Principal Principal Active Accounts Active Accounts Receivables Receivables Age of Accounts Since Origination with Balances with Balances Outstanding Outstanding (In millions, except percentages) 0-12 Months 6.5 27.7 % $ 3,434.5 22.0 % 13-24 Months 3.8 16.4 2,572.5 16.5 25-36 Months 2.9 12.5 2,255.4 14.5 37-48 Months 2.0 8.4 1,553.0 10.0 49-60 Months 1.5 6.2 1,135.9 7.3 Over 60 Months 6.7 28.8 4,630.3 29.7 Total 23.4 100.0 % $ 15,581.6 100.0 % December 31, 2016 Percentage of Number of Percentage of Principal Principal Active Accounts Active Accounts Receivables Receivables Age of Accounts Since Origination with Balances with Balances Outstanding Outstanding (In millions, except percentages) 0-12 Months 7.3 28.5 % $ 3,896.9 24.8 % 13-24 Months 4.1 15.8 2,618.2 16.6 25-36 Months 3.0 11.6 2,050.8 13.0 37-48 Months 2.0 8.0 1,436.8 9.1 49-60 Months 1.5 5.9 1,021.7 6.5 Over 60 Months 7.7 30.2 4,729.6 30.0 Total 25.6 100.0 % $ 15,754.0 100.0 % Credit Quality The Company uses proprietary scoring models developed specifically for the purpose of monitoring the Company’s obligor credit quality. The proprietary scoring models are used as a tool in the underwriting process and for making credit decisions. The proprietary scoring models are based on historical data and require various assumptions about future performance. Information regarding customer performance is factored into these proprietary scoring models to determine the probability of an account becoming 91 or more days past due at any time within the next 12 months. Obligor credit quality is monitored at least monthly during the life of an account. The following table reflects composition of the Company’s credit card and loan receivables by obligor credit quality as of September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Percentage of Percentage of Total Principal Principal Total Principal Principal Probability of an Account Becoming 91 or More Days Past Receivables Receivables Receivables Receivables Due or Becoming Charged-off (within the next 12 months) Outstanding Outstanding Outstanding Outstanding (In millions, except percentages) No Score $ 120.2 0.8 % $ 183.8 1.2 % 27.1% and higher 1,296.3 8.3 1,168.0 7.4 17.1% - 27.0% 799.8 5.1 761.1 4.8 12.6% - 17.0% 1,052.3 6.7 820.9 5.2 3.7% - 12.5% 6,601.5 42.4 5,770.8 36.6 1.9% - 3.6% 2,741.3 17.6 3,444.9 21.9 Lower than 1.9% 2,970.2 19.1 3,604.5 22.9 Total $ 15,581.6 100.0 % $ 15,754.0 100.0 % Transfer of Financial Assets The Company originates loans under an agreement with one of its clients, and after origination, these loan receivables are sold to the client at par value plus accrued interest. These transfers qualify for sale treatment as they meet the conditions established in ASC 860-10, “Transfers and Servicing.” Following the sale, the client owns the loan receivables, bears the risk of loss in the event of loan defaults and is responsible for all servicing functions related to the loan receivables. The loan receivables originated by the Company that have not yet been sold to the client were $69.6 million and $67.6 million at September 30, 2017 and December 31, 2016, respectively, and are included in credit card and loan receivables held for sale in the Company’s unaudited condensed consolidated balance sheets and carried at the lower of cost or fair value. The carrying value of these loan receivables approximates fair value due to the short duration between the date of origination and sale. Originations and sales of these loan receivables held for sale are reflected as operating activities in the Company’s unaudited condensed consolidated statements of cash flows. Upon the client’s purchase of the originated loan receivables, the Company is obligated to purchase a participating interest in a pool of loan receivables that includes the loan receivables originated by the Company. Such interest participates on a pro rata basis in the cash flows of the underlying pool of loan receivables, including principal repayments, finance charges, losses and recoveries. The Company bears the risk of loss related to its participation interest in this pool. During the nine months ended September 30, 2017 and 2016, the Company purchased $300.5 million and $259.2 million, respectively of loan receivables under these agreements. The total outstanding balance of these loan receivables was $315.7 million and $282.6 million as of September 30, 2017 and December 31, 2016, respectively, and was included in other credit card and loan receivables in the Company’s unaudited condensed consolidated balance sheets. Portfolios Held for Sale The Company has certain credit card portfolios held for sale, which are carried at the lower of cost or fair value, of $819.1 million and $349.7 million as of September 30, 2017 and December 31, 2016, respectively. In the third quarter of 2017, the Company transferred five credit card portfolios totaling approximately $532.5 million into credit card and loan receivables held for sale. The portfolios were transferred at the net carrying amount, inclusive of the related reserves for losses of $20.6 million, as the fair value was estimated to be greater than the net carrying amount, and such amount will be the measurement basis until the sale of the portfolios. Portfolio Acquisitions During the nine months ended September 30, 2016, the Company acquired four credit card portfolios for approximately $903.4 million, which consisted of approximately $823.1 million of credit card receivables, $87.7 million of intangible assets and a rewards liability of $7.4 million. Securitized Credit Card Receivables The Company regularly securitizes its credit card receivables through its credit card securitization trusts, consisting of World Financial Network Credit Card Master Trust, World Financial Network Credit Card Master Note Trust (“Master Trust I”) and World Financial Network Credit Card Master Trust III (“Master Trust III”) (collectively, the “WFN Trusts”), and World Financial Capital Credit Card Master Note Trust (the “WFC Trust”). The Company continues to own and service the accounts that generate credit card receivables held by the WFN Trusts and the WFC Trust. In its capacity as a servicer, each of the respective banks earns a fee from the WFN Trusts and the WFC Trust to service and administer the credit card receivables, collect payments and charge-off uncollectible receivables. These fees are eliminated and therefore are not reflected in the Company’s unaudited condensed consolidated statements of income for the three and nine months ended September 30, 2017 and 2016. The WFN Trusts and the WFC Trust are VIEs and the assets of these consolidated VIEs include certain credit card receivables that are restricted to settle the obligations of those entities and are not expected to be available to the Company or its creditors. The liabilities of the consolidated VIEs include non-recourse secured borrowings and other liabilities for which creditors or beneficial interest holders do not have recourse to the general credit of the Company. The tables below present quantitative information about the components of total securitized credit card receivables, delinquencies and net charge-offs: September 30, December 31, 2017 2016 (In millions) Total credit card receivables – restricted for securitization investors $ 11,304.4 $ 11,437.1 Principal amount of credit card receivables – restricted for securitization investors, 91 days or more past due $ 268.7 $ 236.5 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In millions) Net charge-offs of securitized principal $ 179.9 $ 134.6 $ 542.3 $ 423.7

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2017
INVENTORIES, NET
INVENTORIES, NET	4. INVENTORIES, NET Inventories, net of $257.1 million and $271.3 million at September 30, 2017 and December 31, 2016, respectively, primarily consist of finished goods to be utilized as rewards in the Company’s loyalty programs. Inventories, net are stated at the lower of cost and net realizable value and valued primarily on a first-in-first-out basis. The Company records valuation adjustments to its inventories if the cost of inventory exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future market conditions and an analysis of historical experience.

OTHER INVESTMENTS

OTHER INVESTMENTS	9 Months Ended
	Sep. 30, 2017
OTHER INVESTMENTS
OTHER INVESTMENTS	5. OTHER INVESTMENTS Other investments consist of marketable securities and U.S. Treasury bonds and are included in other current assets and other non-current assets in the Company’s unaudited condensed consolidated balance sheets. The principal components of other investments, which are carried at fair value, are as follows: September 30, 2017 December 31, 2016 Amortized Unrealized Unrealized Amortized Unrealized Unrealized Cost Gains Losses Fair Value Cost Gains Losses Fair Value (In millions) Marketable securities $ 190.7 $ 0.4 $ (1.8) $ 189.3 $ 124.5 $ 0.2 $ (2.4) $ 122.3 U.S. Treasury bonds 50.0 0.1 — 50.1 75.0 0.3 — 75.3 Total $ 240.7 $ 0.5 $ (1.8) $ 239.4 $ 199.5 $ 0.5 $ (2.4) $ 197.6 The following tables show the unrealized losses and fair value for those investments that were in an unrealized loss position as of September 30, 2017 and December 31, 2016, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: September 30, 2017 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (In millions) Marketable securities $ 111.1 $ (0.9) $ 41.2 $ (0.9) $ 152.3 $ (1.8) Total $ 111.1 $ (0.9) $ 41.2 $ (0.9) $ 152.3 $ (1.8) December 31, 2016 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (In millions) Marketable securities $ 75.3 $ (2.0) $ 12.4 $ (0.4) $ 87.7 $ (2.4) Total $ 75.3 $ (2.0) $ 12.4 $ (0.4) $ 87.7 $ (2.4) The amortized cost and estimated fair value of the marketable securities and U.S. Treasury bonds at September 30, 2017 by contractual maturity are as follows: Amortized Cost Fair Value (In millions) Due in one year or less $ 39.2 $ 39.1 Due after one year through five years 28.0 28.1 Due after five years through ten years — — Due after ten years 173.5 172.2 Total $ 240.7 $ 239.4 Market values were determined for each individual security in the investment portfolio. When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the security’s issuer, and the Company’s intent to sell the security and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company typically invests in highly-rated securities with low probabilities of default and has the intent and ability to hold the investments until maturity. As of September 30, 2017, the Company does not consider the investments to be other-than-temporarily impaired. There were no realized gains or losses from the sale of investment securities for the three and nine months ended September 30, 2017 and 2016.

REDEMPTION SETTLEMENT ASSETS

REDEMPTION SETTLEMENT ASSETS	9 Months Ended
	Sep. 30, 2017
REDEMPTION SETTLEMENT ASSETS
REDEMPTION SETTLEMENT ASSETS	6. REDEMPTION SETTLEMENT ASSETS Redemption settlement assets consist of restricted cash and securities available-for-sale and are designated for settling redemptions by collectors of the AIR MILES ® Reward Program in Canada under certain contractual relationships with sponsors of the AIR MILES Reward Program. The principal components of redemption settlement assets, which are carried at fair value, are as follows: September 30, 2017 December 31, 2016 Amortized Unrealized Unrealized Amortized Unrealized Unrealized Cost Gains Losses Fair Value Cost Gains Losses Fair Value (In millions) Restricted cash $ 71.5 $ — $ — $ 71.5 $ 58.1 $ — $ — $ 58.1 Mutual funds 27.7 — (0.2) 27.5 25.7 — (0.2) 25.5 Corporate bonds 483.0 — (5.8) 477.2 241.0 0.4 (0.6) 240.8 Total $ 582.2 $ — $ (6.0) $ 576.2 $ 324.8 $ 0.4 $ (0.8) $ 324.4 The following tables show the unrealized losses and fair value for those investments that were in an unrealized loss position as of September 30, 2017 and December 31, 2016, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: September 30, 2017 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (In millions) Mutual funds $ 27.5 $ (0.2) $ — $ — $ 27.5 $ (0.2) Corporate bonds 454.2 (5.2) 19.8 (0.6) 474.0 (5.8) Total $ 481.7 $ (5.4) $ 19.8 $ (0.6) $ 501.5 $ (6.0) December 31, 2016 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (In millions) Mutual funds $ 25.5 $ (0.2) $ — $ — $ 25.5 $ (0.2) Corporate bonds 111.2 (0.6) — — 111.2 (0.6) Total $ 136.7 $ (0.8) $ — $ — $ 136.7 $ (0.8) The amortized cost and estimated fair value of the securities at September 30, 2017 by contractual maturity are as follows: Amortized Estimated Cost Fair Value (In millions) Due in one year or less $ 97.7 $ 97.4 Due after one year through five years 413.0 407.3 Total $ 510.7 $ 504.7 Market values were determined for each individual security in the investment portfolio. When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the security’s issuer, and the Company’s intent to sell the security and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company typically invests in highly-rated securities with low probabilities of default and has the intent and ability to hold the investments until maturity. As of September 30, 2017, the Company does not consider the investments to be other-than-temporarily impaired. There were no realized gains or losses from the sale of investment securities for the three months ended September 30, 2017, and realized gains or losses from the sale of investment securities for the nine months ended September 30, 2017 were de minimis. There were no realized gains or losses from the sale of investment securities for the three and nine months ended September 30, 2016.

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	9 Months Ended
	Sep. 30, 2017
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL	7. INTANGIBLE ASSETS AND GOODWILL Intangible Assets Intangible assets consist of the following: September 30, 2017 Gross Accumulated Assets Amortization Net Amortization Life and Method (In millions) Finite Lived Assets Customer contracts and lists $ 1,147.0 $ (590.7) $ 556.3 3-12 years—straight line Premium on purchased credit card portfolios 271.8 (135.8) 136.0 3-13 years—straight line Customer database 63.6 (59.6) 4.0 3 years—straight line Collector database 56.1 (53.9) 2.2 5 years—straight line Publisher networks 140.2 (77.5) 62.7 5-7 years—straight line Tradenames 76.8 (45.2) 31.6 8-15 years—straight line Purchased data lists 11.2 (6.1) 5.1 1-5 years—straight line, accelerated Favorable lease 6.0 (2.9) 3.1 6-10 years—straight line $ 1,772.7 $ (971.7) $ 801.0 Indefinite Lived Assets Tradenames 12.4 — 12.4 Indefinite life Total intangible assets $ 1,785.1 $ (971.7) $ 813.4 December 31, 2016 Gross Accumulated Assets Amortization Net Amortization Life and Method (In millions) Finite Lived Assets Customer contracts and lists $ 1,108.6 $ (451.8) $ 656.8 3-12 years—straight line Premium on purchased credit card portfolios 357.3 (172.3) 185.0 3-13 years—straight line Customer databases 63.6 (43.7) 19.9 3 years—straight line Collector database 52.1 (49.7) 2.4 30 years—15% declining balance Publisher networks 140.2 (56.8) 83.4 5-7 years—straight line Tradenames 83.5 (49.4) 34.1 3-15 years—straight line Purchased data lists 11.6 (6.2) 5.4 1-5 years—straight line, accelerated Favorable lease 6.9 (3.0) 3.9 3-10 years—straight line $ 1,823.8 $ (832.9) $ 990.9 Indefinite Lived Assets Tradenames 12.4 — 12.4 Indefinite life Total intangible assets $ 1,836.2 $ (832.9) $ 1,003.3 The estimated amortization expense related to intangible assets for the next five years and thereafter is as follows: For the Years Ending December 31, (In millions) 2017 (excluding the nine months ended September 30, 2017) $ 65.9 2018 241.1 2019 192.6 2020 128.9 2021 76.6 Thereafter 95.9 Goodwill The changes in the carrying amount of goodwill are as follows: LoyaltyOne ® Epsilon ® Card Services Corporate/ Other Total (In millions) Balance at January 1, 2016 $ 663.5 $ 2,888.9 $ 261.7 $ — $ 3,814.1 Goodwill acquired during year — — — — — Effects of foreign currency translation (10.2) (3.2) — — (13.4) Balance at December 31, 2016 $ 653.3 $ 2,885.7 $ 261.7 $ — $ 3,800.7 Goodwill acquired during year — — — — — Effects of foreign currency translation 71.2 1.5 — — 72.7 Balance at September 30, 2017 $ 724.5 $ 2,887.2 $ 261.7 $ — $ 3,873.4

DEBT

DEBT	9 Months Ended
	Sep. 30, 2017
DEBT
DEBT	8. DEBT Debt consists of the following: September 30, December 31, Description 2017 2016 Maturity Interest Rate (Dollars in millions) Long-term and other debt: 2017 revolving line of credit $ 225.0 $ — June 2022 (1) 2017 term loans 3,033.5 — June 2022 (1) 2013 revolving line of credit — 235.0 — — 2013 term loans — 2,837.3 — — BrandLoyalty credit agreement 207.7 254.3 June 2020 (2) Senior notes due 2017 400.0 400.0 December 2017 5.250% Senior notes due 2020 500.0 500.0 April 2020 6.375% Senior notes due 2021 500.0 500.0 November 2021 5.875% Senior notes due 2022 600.0 600.0 August 2022 5.375% Senior notes due 2022 (€400.0 million) 472.6 — March 2022 4.500% Senior notes due 2023 (€300.0 million) 354.4 315.5 November 2023 5.250% Capital lease obligations and other debt 9.7 6.0 Various – January 2019 – June 2021 2.24% to 3.72% Total long-term and other debt 6,302.9 5,648.1 Less: Unamortized discount and debt issuance costs 60.3 46.7 Less: Current portion 538.5 814.5 Long-term portion $ 5,704.1 $ 4,786.9 Deposits: Certificates of deposit $ 7,200.3 $ 5,937.9 Various – Oct 2017 – Oct 2022 0.88% to 2.80% Money market deposits 3,199.5 2,474.3 On demand (3) Total deposits 10,399.8 8,412.2 Less: Unamortized discount and debt issuance costs 25.8 20.3 Less: Current portion 5,823.5 4,673.0 Long-term portion $ 4,550.5 $ 3,718.9 Non-recourse borrowings of consolidated securitization entities: Fixed rate asset-backed term note securities $ 4,437.5 $ 4,262.5 Various – Oct 2017 – June 2021 1.44% to 4.55% Floating rate asset-backed term note securities 360.0 360.0 April 2018 (4) Conduit asset-backed securities 2,080.0 2,345.0 Various – April 2018 – Nov 2018 (5) Total non-recourse borrowings of consolidated securitization entities 6,877.5 6,967.5 Less: Unamortized discount and debt issuance costs 11.4 12.1 Less: Current portion 1,933.5 1,639.0 Long-term portion $ 4,932.6 $ 5,316.4 (1) The interest rate is based upon the London Interbank Offered Rate (“LIBOR”) plus an applicable margin. At September 30, 2017, the weighted average interest rate was 3.23% and 3.24% for the revolving line of credit and term loans, respectively. (2) The interest rate is based upon the Euro Interbank Offered Rate plus an applicable margin. At September 30, 2017, the weighted average interest rate was 1.10% and 1.65% for the BrandLoyalty revolving line of credit and term loans, respectively. (3) The interest rates are based on the Federal Funds rate plus an applicable margin. At September 30, 2017, the interest rates ranged from 1.26% to 2.37%. (4) The interest rate is based upon LIBOR plus an applicable margin. At September 30, 2017, the interest rate was 1.71%. (5) The interest rate is based upon LIBOR or the asset-backed commercial paper costs of each individual conduit provider plus an applicable margin. At September 30, 2017, the interest rates ranged from 2.26% to 2.46%. At September 30, 2017, the Company was in compliance with its financial covenants. Long-term and Other Debt Credit Agreement In June 2017, the Company, as borrower, and ADS Alliance Data Systems, Inc., ADS Foreign Holdings, Inc., Alliance Data Foreign Holdings, Inc., Aspen Marketing Services, LLC, Commission Junction LLC, Conversant LLC, Epsilon Data Management, LLC, Comenity LLC and Comenity Servicing LLC, as guarantors, entered into a credit agreement with various agents and lenders dated June 14, 2017 (the “2017 Credit Agreement”), replacing in its entirety the Company’s credit agreement dated July 10, 2013 (the “2013 Credit Agreement”), which was concurrently terminated, and amended the 2017 Credit Agreement on June 16, 2017 to increase the total amount of the borrowings. At September 30, 2017 , the 2017 Credit Agreement, as amended, provided for a $3,052.6 million term loan (the “2017 Term Loan”), subject to certain principal repayments, and a $1,572.4 million revolving credit facility (the “2017 Credit Facility”) with a U.S. $65.0 million sublimit for Canadian dollar borrowings and a $65.0 million sublimit for swing line loans. The 2017 Credit Agreement includes an uncommitted accordion feature of up to $750.0 million in the aggregate allowing for future incremental borrowings, subject to certain conditions. Total availability under the 2017 Credit Facility at September 30, 2017 was $1,347.4 million. The loans under the 2017 Credit Agreement are scheduled to mature on June 14, 2022. The 2017 Term Loan provides for aggregate principal payments of 2.5% of the initial term loan amount in each of the first and second year and 5% of the initial term loan amount in each of the third, fourth, and fifth year, payable in equal quarterly installments beginning on September 30, 2017. The 2017 Credit Agreement is unsecured. The 2017 Credit Agreement contains the usual and customary negative covenants for transactions of this type, including, but not limited to, restrictions on the Company’s ability and in certain instances, its subsidiaries’ ability to consolidate or merge; substantially change the nature of its business; sell, lease, or otherwise transfer any substantial part of its assets; create or incur indebtedness; create liens; and make acquisitions. The negative covenants are subject to certain exceptions as specified in the 2017 Credit Agreement. The 2017 Credit Agreement also requires the Company to satisfy certain financial covenants, including a maximum total leverage ratio and a minimum ratio of consolidated operating EBITDA to consolidated interest expense, each as determined in accordance with the 2017 Credit Agreement. The 2017 Credit Agreement also includes customary events of default. BrandLoyalty Credit Agreement As of September 30, 2017, amounts outstanding under the revolving lines of credit and the term loans under the BrandLoyalty Credit Agreement were €23.3 million and €152.5 million ($27.5 million and $180.2 million), respectively. The entire €23.3 million ($27.5 million) outstanding under the revolving lines of credit was uncommitted. Senior Notes due 2022 (€400.0 million) In March 2017, the Company issued and sold €400.0 million aggregate principal amount of 4.500% senior notes due March 15, 2022 (the “Notes”). Interest is payable semiannually in arrears, on March 15 and September 15 of each year, beginning on September 15, 2017. The Notes are governed by an indenture dated as of March 14, 2017. The indenture incudes usual and customary negative covenants and events of default for transactions of these types. The Notes are unsecured and are guaranteed on a senior unsecured basis by certain of the Company’s existing and future domestic subsidiaries that guarantee the 2017 Credit Agreement. The Company may redeem some or all of the Notes at any time at a redemption price equal to 100% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date and the applicable premium specified in the indenture. Prior to March 15, 2019, the applicable premium is a "make-whole" amount; on or after such date, the applicable premium is specified in a table in the indenture. In addition, upon the occurrence of certain kinds of changes of control, the Company must offer to purchase the Notes at 101% of their principal amount, plus accrued and unpaid interest to the date of purchase. In addition, at any time prior to March 15, 2019, the Company may, with an amount equal to the net cash proceeds of one or more qualified equity offerings, as defined in the indenture, redeem up to 35% of the aggregate principal amount of the outstanding Notes at a redemption price equal to 104.500% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date, provided that such redemption occurs within 90 days following the closing of such qualified equity offering. Non-Recourse Borrowings of Consolidated Securitization Entities Asset-Backed Term Notes In May 2017, $389.6 million of Series 2015-C asset-backed term notes, $89.6 million of which were retained by the Company and eliminated from the Company’s unaudited condensed consolidated balance sheets, matured and were repaid. In May 2017, Master Trust I issued $450.7 million of Series 2017-A asset-backed term notes, which mature in May 2020. The offering consisted of $400.0 million of Class A notes with a fixed interest rate of 2.12% per year and $50.7 million of notes that were retained by the Company and eliminated from the Company’s unaudited condensed consolidated balance sheets. In July 2017, $433.3 million of Series 2012-B asset-backed term notes, $108.3 million of which were retained by the Company and eliminated from the Company’s unaudited condensed consolidated balance sheets, matured and were repaid. In August 2017, Master Trust I issued $444.7 million of Series 2017-B asset-backed term notes, which mature in August 2019. The offering consisted of $400.0 million of Class A notes with a fixed interest rate of 1.98% per year and $44.7 million of notes that were retained by the Company and eliminated from the Company’s unaudited condensed consolidated balance sheets. In October 2017, $427.6 million of Series 2014-C asset-backed term notes, $102.6 million of which were retained by the Company and eliminated from the Company’s unaudited condensed consolidated balance sheets, matured and were repaid. As of September 30, 2017, the Company collected $415.6 million of principal payments made by its credit cardholders during the accumulation period for the repayment of the Series 2014-C notes. The cash is restricted to the securitization investors and is reflected in other current assets in the Company’s unaudited condensed consolidated balance sheet as of September 30, 2017. Conduit Facilities The Company has access to committed undrawn capacity through three conduit facilities to support the funding of its credit card receivables through Master Trust I, Master Trust III and the WFC Trust. In April 2017, Master Trust III renewed its 2009-VFC1 conduit facility, increasing the capacity from $900.0 million to $925.0 million and extending the maturity to April 2018. As of September 30, 2017, total capacity under the conduit facilities was $2.9 billion, of which $2.1 billion had been drawn and was included in non-recourse borrowings of consolidated securitization entities in the unaudited condensed consolidated balance sheets.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2017
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	9. DERIVATIVE INSTRUMENTS The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in interest rates and foreign currency exchange rates. The Company was not a party to any interest rate derivative instruments at September 30, 2017 or December 31, 2016. The Company limits its exposure on derivatives by entering into contracts with institutions that are established dealers who maintain certain minimum credit criteria established by the Company. At September 30, 2017, the Company does not maintain any derivative instruments subject to master agreements that would require the Company to post collateral or that contain any credit-risk related contingent features. The Company enters into foreign currency derivatives to reduce the volatility of the Company’s cash flows resulting from changes in foreign currency exchange rates associated with certain inventory transactions, some of which are designated as cash flow hedges. The Company generally hedges foreign currency exchange rate risks for periods of 12 months or less. As of September 30, 2017, the maximum term over which the Company is hedging its exposure to the variability of future cash flows associated with certain inventory transactions is 12 months. Certain foreign currency exchange forward contracts are not designated as hedges as they do not meet the specific hedge accounting requirements of ASC 815, “Derivatives and Hedging.” Changes in the fair value of the derivative instruments not designated as hedging instruments are recorded in the unaudited condensed consolidated statements of income as they occur. Gains and losses on derivatives not designated as hedging instruments are included in other operating activities in the unaudited condensed consolidated statements of cash flows for all periods presented. The following tables present the fair values of the derivative instruments included within the Company’s unaudited condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016: September 30, 2017 Notional Amount Fair Value Balance Sheet Location Maturity (In millions) Designated as hedging instruments: Foreign currency exchange hedges $ 11.3 $ 0.4 Other current assets November 2017 to September 2018 Foreign currency exchange hedges $ 13.4 $ 0.5 Other current liabilities October 2017 to March 2018 Not designated as hedging instruments: Foreign currency exchange forward contracts $ 165.4 $ 13.4 Other current assets February 2018 Foreign currency exchange forward contract $ 66.4 $ 4.1 Other current liabilities March 2018 December 31, 2016 Notional Amount Fair Value Balance Sheet Location Maturity (In millions) Designated as hedging instruments: Foreign currency exchange hedges $ 34.4 $ 1.2 Other current assets January 2017 to August 2017 Foreign currency exchange hedges $ 27.6 $ 0.9 Other current liabilities January 2017 to August 2017 Derivatives Designated as Hedging Instruments Gains of $0.6 million and losses of $0.3 million, net of tax, were recognized in other comprehensive income for the three and nine months ended September 30, 2017, respectively, related to foreign currency exchange hedges designated as effective. Changes in the fair value of these hedges, excluding any ineffective portion are recorded in other comprehensive income (loss) until the hedged transactions affect net income. The ineffective portion of these cash flow hedges impacts net income when ineffectiveness occurs. For each of the three and nine months ended September 30, 2017, de minimis gains, net of tax, were reclassified from accumulated other comprehensive income into net income (cost of operations), and a de minimis amount of ineffectiveness was recorded. At September 30, 2017, $0.1 million is expected to be reclassified from accumulated other comprehensive income into net income in the coming 12 months. Losses of $0.6 million and $1.9 million, net of tax, were recognized in other comprehensive income for the three and nine months ended September 30, 2016, respectively, related to foreign currency exchange hedges designated as effective. For the three and nine months ended September 30, 2016, gains of $0.3 million and losses of $0.3 million, respectively, net of tax, were reclassified from accumulated other comprehensive income into net income (cost of operations) and $0.1 million of ineffectiveness was recorded for each of the three and nine months ended September 30, 2016. Derivatives Not Designated as Hedging Instruments For the three and nine months ended September 30, 2017, gains of $2.9 million and $9.3 million, respectively, related to foreign currency exchange forward contracts not designated as hedging instruments were recognized in general and administrative expense in the Company’s unaudited condensed consolidated statements of income. For the nine months ended September 30, 2016, losses of $0.1 million related to foreign currency exchange forward contracts not designated as hedging instruments were recognized in general and administrative expense in the Company’s unaudited condensed consolidated statements of income. There were no gains or losses recognized on derivatives not designated as hedging instruments for the three months ended September 30, 2016. Net Investment Hedges In November 2015, the Company designated its Euro-denominated Senior Notes due 2023 ( €300.0 million) as a net investment hedge of its investment in BrandLoyalty, which has a functional currency of the Euro, in order to reduce the volatility in stockholders’ equity caused by the changes in foreign currency exchange rates of the Euro with respect to the U.S. dollar. Additionally, in March 2017, the Company designated €200.0 million of its Euro-denominated Senior Notes due 2022 ( €400.0 million) as a net investment hedge of its investment in BrandLoyalty. The change in fair value of the net investment hedges due to remeasurement of the effective portion is recorded in other comprehensive income (loss). The ineffective portion of this hedging instrument impacts net income when the ineffectiveness occurs. For the three and nine months ended September 30, 2017, losses of $12.0 million and $39.4 million, net of tax, respectively, were recognized in other comprehensive income and no ineffectiveness was recorded on the net investment hedges. For the three and nine months ended September 30, 2016, losses of $4.1 million and $11.4 million, net of tax, respectively, were recognized in other comprehensive income and no ineffectiveness was recorded on the net investment hedges.

DEFERRED REVENUE

DEFERRED REVENUE	9 Months Ended
	Sep. 30, 2017
DEFERRED REVENUE
DEFERRED REVENUE	10. DEFERRED REVENUE The AIR MILES Reward Program collects fees from its sponsors based on the number of AIR MILES reward miles issued and, in limited circumstances, the number of AIR MILES reward miles redeemed. Because management has determined that the earnings process is not complete at the time an AIR MILES reward mile is issued, the recognition of redemption and service revenue is deferred. A reconciliation of deferred revenue for the AIR MILES Reward Program is as follows: Deferred Revenue Service Redemption Total (In millions) Balance at December 31, 2016 $ 297.7 $ 633.8 $ 931.5 Cash proceeds 135.0 251.6 386.6 Revenue recognized (170.2) (253.1) (423.3) Other — 1.1 1.1 Effects of foreign currency translation 21.4 49.0 70.4 Balance at September 30, 2017 $ 283.9 $ 682.4 $ 966.3 Amounts recognized in the consolidated balance sheets: Current liabilities $ 164.6 $ 682.4 $ 847.0 Non-current liabilities $ 119.3 $ — $ 119.3

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2017
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	11. STOCKHOLDERS’ EQUITY Stock Repurchase Program On January 1, 2017, the Company’s Board of Directors authorized a stock repurchase program to acquire up to $500.0 million of the Company’s outstanding common stock from January 1, 2017 through December 31, 2017. The stock repurchase program is subject to any restrictions pursuant to the terms of the Company’s credit agreements, indentures, and applicable securities laws or otherwise. On January 30, 2017, under the authorization of the existing 2017 repurchase program, the Company entered into a $350.0 million fixed dollar accelerated share repurchase program agreement (“ASR Agreement”), with an investment bank counterparty. Pursuant to the ASR Agreement, the Company received an initial delivery of 1.4 million shares of its common stock on February 6, 2017. The final settlement was based upon the volume weighted average price of its common stock, purchased by the counterparty during the period, less a specified discount, subject to a collar with a specified forward cap price and forward cap floor. The final settlement was on April 17, 2017 and resulted in the delivery of an additional 0.1 million shares. As a result of this transaction, the Company purchased a total of 1.5 million shares of its common stock at a settlement price per share of $238.34. On July 25, 2017, the Company's Board of Directors authorized an increase to the stock repurchase program originally approved on January 1, 2017 to acquire an additional $500.0 million of the Company’s outstanding common stock through July 31, 2018, for a total authorization of $1.0 billion. For the nine months ended September 30, 2017 , the Company acquired a total of 2.3 million shares of its common stock for $553.7 million, including those amounts under the ASR Agreement. As of September 30, 2017, the Company had $446.3 million remaining under the stock repurchase program. Stock Compensation Expense Total stock-based compensation expense recognized in the Company’s unaudited condensed consolidated statements of income for the three and nine months ended September 30, 2017 and 2016 is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In millions) Cost of operations $ 13.6 $ 13.2 $ 42.3 $ 43.6 General and administrative 4.7 4.8 21.2 15.9 Total $ 18.3 $ 18.0 $ 63.5 $ 59.5 During the nine months ended September 30, 2017 , the Company awarded 106,015 service-based restricted stock units with a weighted average grant date fair value per share of $233.17 as determined on the date of grant. Service-based restricted stock units typically vest ratably over three years provided that the participant is employed by the Company on each such vesting date. During the nine months ended September 30, 2017 , the Company awarded 267,171 performance-based restricted stock units with a weighted average grant date fair value per share of $230.57 as determined on the date of grant with pre-defined vesting criteria that permit a range from 0% to 150% to be earned. If the performance targets are met, the restrictions will lapse with respect to 33% of the award on February 15, 2018, an additional 33% of the award on February 15, 2019 and the final 34% of the award on February 18, 2020, provided that the participant is employed by the Company on each such vesting date. Additionally during the nine months ended September 30, 2017 , the Company awarded 15,140 performance-based restricted stock units with a weighted average grant date fair value per share of $230.57 as determined on the date of grant with pre-defined vesting criteria that permit a range from 0% to 150% to be earned. If the performance targets are met, the restrictions will lapse with respect to 50% of the award on February 15, 2018 and the remaining 50% of the award on February 15, 2019, provided that the participant is employed by the Company on each such vesting date. During the nine months ended September 30, 2017 , the Company also awarded 28,172 restricted stock units with a market-based condition subject to pre-defined vesting criteria that permit a range from 0% to 175% to be earned. The fair market value of these awards is $199.19 and was estimated utilizing Monte Carlo simulations of the Company’s stock price correlation, projected dividend yields, expected volatility and risk-free rate over two-year time horizons matching the performance period. Upon determination of the market condition, the restrictions will lapse with respect to the entire award on February 15, 2019, provided that the participant is employed by the Company on such vesting date. Dividends On January 26, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $0.52 per share on the Company’s common stock to stockholders of record at the close of business on February 15, 2017, resulting in a dividend payment of $29.0 million on March 17, 2017. On April 20, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $0.52 per share on the Company’s common stock, payable to stockholders of record at the close of business on May 15, 2017, resulting in a dividend payment of $29.0 million on June 19, 2017. On July 20, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $0.52 per share on the Company’s common stock, payable to stockholders of record at the close of business on August 14, 2017, resulting in a dividend payment of $28.8 million on September 19, 2017. On October 19, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $0.52 per share on our common stock, payable on December 19, 2017, to stockholders of record at the close of business on November 14, 2017.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in each component of accumulated other comprehensive income (loss), net of tax effects, are as follows: Net Unrealized Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Three Months Ended September 30, 2017 on Securities Flow Hedges Investment Hedges Adjustments (1) Income (Loss) (In millions) Balance at June 30, 2017 $ (3.7) $ (0.5) $ (23.3) $ (114.1) $ (141.6) Changes in other comprehensive income (loss) before reclassifications (3.1) 0.6 (12.0) 15.9 1.4 Amounts reclassified from other comprehensive income (loss) — — — — — Changes in other comprehensive income (loss) (3.1) 0.6 (12.0) 15.9 1.4 Balance at September 30, 2017 $ (6.8) $ 0.1 $ (35.3) $ (98.2) $ (140.2) Net Unrealized Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Three Months Ended September 30, 2016 on Securities Flow Hedges Investment Hedge Adjustments (1) Income (Loss) (In millions) Balance at June 30, 2016 $ 3.6 $ — $ (11.1) $ (123.7) $ (131.2) Changes in other comprehensive income (loss) before reclassifications 0.2 (0.7) (4.1) 5.1 0.5 Amounts reclassified from other comprehensive income (loss) — 0.1 — — 0.1 Changes in other comprehensive income (loss) 0.2 (0.6) (4.1) 5.1 0.6 Balance at September 30, 2016 $ 3.8 $ (0.6) $ (15.2) $ (118.6) $ (130.6) Net Unrealized Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Nine Months Ended September 30, 2017 on Securities Flow Hedges Investment Hedges Adjustments (1) Income (Loss) (In millions) Balance at December 31, 2016 $ (1.6) $ 0.4 $ 4.1 $ (153.6) $ (150.7) Changes in other comprehensive income (loss) before reclassifications (5.2) (0.3) (39.4) 55.4 10.5 Amounts reclassified from other comprehensive income (loss) — — — — — Changes in other comprehensive income (loss) (5.2) (0.3) (39.4) 55.4 10.5 Balance at September 30, 2017 $ (6.8) $ 0.1 $ (35.3) $ (98.2) $ (140.2) Net Unrealized Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Nine Months Ended September 30, 2016 on Securities Flow Hedges Investment Hedge Adjustments (1) Income (Loss) (In millions) Balance at December 31, 2015 $ (0.1) $ 1.3 $ (3.8) $ (134.7) $ (137.3) Changes in other comprehensive income (loss) before reclassifications 3.9 (2.6) (11.4) 16.1 6.0 Amounts reclassified from other comprehensive income (loss) — 0.7 — — 0.7 Changes in other comprehensive income (loss) 3.9 (1.9) (11.4) 16.1 6.7 Balance at September 30, 2016 $ 3.8 $ (0.6) $ (15.2) $ (118.6) $ (130.6) (1) Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2017
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS	13. FINANCIAL INSTRUMENTS In accordance with ASC 825, “Financial Instruments,” the Company is required to disclose the fair value of financial instruments for which it is practical to estimate fair value. To obtain fair values, observable market prices are used if available. In some instances, observable market prices are not readily available and fair value is determined using present value or other techniques appropriate for a particular financial instrument. These techniques involve judgment and as a result are not necessarily indicative of the amounts the Company would realize in a current market exchange. The use of different assumptions or estimation techniques may have a material effect on the estimated fair value amounts. Fair Value of Financial Instruments — The estimated fair values of the Company’s financial instruments are as follows: September 30, 2017 December 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value (In millions) Financial assets Credit card and loan receivables, net $ 15,406.0 $ 16,214.2 $ 15,595.9 $ 16,423.2 Credit card and loan receivables held for sale 888.7 959.5 417.3 428.7 Redemption settlement assets, restricted 576.2 576.2 324.4 324.4 Other investments 239.4 239.4 197.6 197.6 Derivative instruments 13.8 13.8 1.2 1.2 Financial liabilities Derivative instruments 4.6 4.6 0.9 0.9 Deposits 10,374.0 10,415.9 8,391.9 8,432.2 Non-recourse borrowings of consolidated securitization entities 6,866.1 6,885.7 6,955.4 6,973.8 Long-term and other debt 6,242.6 6,392.0 5,601.4 5,641.0 The following techniques and assumptions were used by the Company in estimating fair values of financial instruments as disclosed herein: Credit card and loan receivables, net — The Company utilizes a discounted cash flow model using unobservable inputs, including estimated yields (interest and fee income), loss rates, payment rates and discount rates to estimate the fair value measurement of the credit card and loan receivables . Credit card and loan receivables held for sale — The fair value of credit card portfolios held for sale is based on significant unobservable inputs, including forecasted yields and net loss estimates . Loan receivables held for sale are recorded at the lower of cost or fair value, and their carrying amount approximates fair value due to the short duration of the holding period of the loan receivables prior to sale. Redemption settlement assets, restricted — Redemption settlement assets, restricted are recorded at fair value based on quoted market prices for the same or similar securities. Other investments — Other investments consist of marketable securities and U.S. Treasury bonds and are included in other current assets and other non-current assets in the unaudited condensed consolidated balance sheets. Other investments are recorded at fair value based on quoted market prices for the same or similar securities. Deposits — The fair value is estimated based on the current observable market rates available to the Company for similar deposits with similar remaining maturities. Non-recourse borrowings of consolidated securitization entities — The fair value is estimated based on the current observable market rates available to the Company for similar debt instruments with similar remaining maturities or quoted market prices for the same transaction. Long-term and other debt — The fair value is estimated based on the current observable market rates available to the Company for similar debt instruments with similar remaining maturities or quoted market prices for the same transaction. Derivative instruments — The Company’s foreign currency cash flow hedges are recorded at fair value based on a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflected the contractual terms of the derivatives, including the period to maturity, and used observable market-based inputs. The fair value of the foreign currency forward contracts is estimated based on published quotations of spot foreign currency rates and forward points which are converted into implied foreign currency rates. Financial Assets and Financial Liabilities Fair Value Hierarchy ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:  Level 1, defined as observable inputs such as quoted prices in active markets;  Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and  Level 3, defined as unobservable inputs where little or no market data exists, therefore requiring an entity to develop its own assumptions. Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. The use of different techniques to determine fair value of these financial instruments could result in different estimates of fair value at the reporting date. The following tables provide information for the assets and liabilities carried at fair value measured on a recurring basis as of September 30, 2017 and December 31, 2016: Fair Value Measurements at September 30, 2017 Using Balance at September 30, 2017 Level 1 Level 2 Level 3 (In millions) Mutual funds (1) $ 27.5 $ 27.5 $ — $ — Corporate bonds (1) 477.2 — 477.2 — Marketable securities (2) 189.3 10.1 179.2 — U.S. Treasury bonds (2) 50.1 50.1 — — Derivative instruments (3) 13.8 — 13.8 — Total assets measured at fair value $ 757.9 $ 87.7 $ 670.2 $ — Derivative instruments (3) $ 4.6 $ — $ 4.6 $ — Total liabilities measured at fair value $ 4.6 $ — $ 4.6 $ — Fair Value Measurements at December 31, 2016 Using Balance at December 31, 2016 Level 1 Level 2 Level 3 (In millions) Mutual funds (1) $ 25.5 $ 25.5 $ — $ Corporate bonds (1) 240.8 — 240.8 — Marketable securities (2) 122.3 5.0 117.3 — U.S. Treasury bonds (2) 75.3 75.3 — — Derivative instruments (3) 1.2 — 1.2 — Total assets measured at fair value $ 465.1 $ 105.8 $ 359.3 $ — Derivative instruments (3) $ 0.9 $ — $ 0.9 $ — Total liabilities measured at fair value $ 0.9 $ — $ 0.9 $ — (1) Amounts are included in redemption settlement assets in the unaudited condensed consolidated balance sheets. (2) Amounts are included in other current assets and other non-current assets in the unaudited condensed consolidated balance sheets. (3) Amounts are included in other current assets and other current liabilities in the unaudited condensed consolidated balance sheets. There were no transfers between Levels 1 and 2 within the fair value hierarchy for the three and nine months ended September 30, 2017 and 2016, respectively. Financial Instruments Disclosed but Not Carried at Fair Value The following tables provide assets and liabilities disclosed but not carried at fair value as of September 30, 2017 and December 31, 2016: Fair Value Measurements at September 30, 2017 Total Level 1 Level 2 Level 3 (In millions) Financial assets: Credit card and loan receivables, net $ 16,214.2 $ — $ — $ 16,214.2 Credit card and loan receivables held for sale 959.5 — — 959.5 Total $ 17,173.7 $ — $ — $ 17,173.7 Financial liabilities: Deposits $ 10,415.9 $ — $ 10,415.9 $ — Non-recourse borrowings of consolidated securitization entities 6,885.7 — 6,885.7 — Long-term and other debt 6,392.0 — 6,392.0 — Total $ 23,693.6 $ — $ 23,693.6 $ — Fair Value Measurements at December 31, 2016 Total Level 1 Level 2 Level 3 (In millions) Financial assets: Credit card and loan receivables, net $ 16,423.2 $ — $ — $ 16,423.2 Credit card and loan receivables held for sale 428.7 — — 428.7 Total $ 16,851.9 $ — $ — $ 16,851.9 Financial liabilities: Deposits $ 8,432.2 $ — $ 8,432.2 $ — Non-recourse borrowings of consolidated securitization entities 6,973.8 — 6,973.8 — Long-term and other debt 5,641.0 — 5,641.0 — Total $ 21,047.0 $ — $ 21,047.0 $ —

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2017
INCOME TAXES
INCOME TAXES	14. INCOME TAXES For the three and nine months ended September 30, 2017, the Company utilized an effective tax rate of 30.1% and 33.2%, respectively, to calculate its provision for income taxes. For the three and nine months ended September 30, 2016, the Company utilized an effective tax rate of 33.6% and 34.6%, respectively. The effective tax rate for the three and nine months ended September 30, 2017 reflects additional stock-based compensation deductions and generation of foreign tax credits.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2017
SEGMENT INFORMATION
SEGMENT INFORMATION	15. SEGMENT INFORMATION Operating segments are defined by ASC 280, “Segment Reporting,” as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the President and Chief Executive Officer. The operating segments are reviewed separately because each operating segment represents a strategic business unit that generally offers different products. The Company operates in the following reportable segments: LoyaltyOne, Epsilon, and Card Services. Segment operations consist of the following: · LoyaltyOne provides coalition and short-term loyalty programs through the Company’s Canadian AIR MILES Reward Program and BrandLoyalty; · Epsilon provides end-to-end, integrated marketing solutions that leverage rich data, analytics, creativity and technology to help clients more effectively acquire, retain and grow relationships with their customers; and · Card Services provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company’s private label and co-brand credit card programs. Corporate and other immaterial businesses are reported collectively as an “all other” category labeled “Corporate/Other.” Income taxes are not allocated to the segments in the computation of segment operating profit for internal evaluation purposes and have also been included in “Corporate/Other.” Corporate/ Three Months Ended September 30, 2017 LoyaltyOne Epsilon Card Services Other Eliminations Total (In millions) Revenues $ 305.2 $ 558.7 $ 1,055.4 $ — $ (6.9) $ 1,912.4 Income (loss) before income taxes $ 35.7 $ 38.6 $ 371.4 $ (112.1) $ — $ 333.6 Interest expense, net 1.7 0.1 71.4 72.1 — 145.3 Operating income (loss) 37.4 38.7 442.8 (40.0) — 478.9 Depreciation and amortization 21.4 77.9 22.9 2.1 — 124.3 Stock compensation expense 2.2 8.4 3.0 4.7 — 18.3 Adjusted EBITDA (1) 61.0 125.0 468.7 (33.2) — 621.5 Less: Securitization funding costs — — 38.2 — — 38.2 Less: Interest expense on deposits — — 33.2 — — 33.2 Less: Adjusted EBITDA attributable to non- controlling interest — — — — — — Adjusted EBITDA, net (1) $ 61.0 $ 125.0 $ 397.3 $ (33.2) $ — $ 550.1 Corporate/ Three Months Ended September 30, 2016 LoyaltyOne Epsilon Card Services Other Eliminations Total (In millions) Revenues $ 383.8 $ 543.2 $ 965.8 $ 0.1 $ (7.3) $ 1,885.6 Income (loss) before income taxes $ 56.4 $ 48.2 $ 304.4 $ (96.3) $ — $ 312.7 Interest expense, net 1.3 — 53.7 53.3 — 108.3 Operating income (loss) 57.7 48.2 358.1 (43.0) — 421.0 Depreciation and amortization 22.1 79.5 23.0 2.1 — 126.7 Stock compensation expense 2.5 7.1 3.5 4.9 — 18.0 Adjusted EBITDA (1) 82.3 134.8 384.6 (36.0) — 565.7 Less: Securitization funding costs — — 31.1 — — 31.1 Less: Interest expense on deposits — — 22.6 — — 22.6 Less: Adjusted EBITDA attributable to non-controlling interest — — — — — — Adjusted EBITDA, net (1) $ 82.3 $ 134.8 $ 330.9 $ (36.0) $ — $ 512.0 Corporate/ Nine Months Ended September 30, 2017 LoyaltyOne Epsilon Card Services Other Eliminations Total (In millions) Revenues $ 918.3 $ 1,631.8 $ 3,083.6 $ — $ (20.5) $ 5,613.2 Income (loss) before income taxes $ 105.6 $ 56.9 $ 949.3 $ (337.0) $ — $ 774.8 Interest expense, net 3.8 0.2 197.8 206.2 — 408.0 Operating income (loss) 109.4 57.1 1,147.1 (130.8) — 1,182.8 Depreciation and amortization 60.1 233.7 74.8 5.9 — 374.5 Stock compensation expense 6.9 26.0 9.4 21.2 — 63.5 Adjusted EBITDA (1) 176.4 316.8 1,231.3 (103.7) — 1,620.8 Less: Securitization funding costs — — 109.9 — — 109.9 Less: Interest expense on deposits — — 87.9 — — 87.9 Less: Adjusted EBITDA attributable to non- controlling interest — — — — — — Adjusted EBITDA, net (1) $ 176.4 $ 316.8 $ 1,033.5 $ (103.7) $ — $ 1,423.0 Corporate/ Nine Months Ended September 30, 2016 LoyaltyOne Epsilon Card Services Other Eliminations Total (In millions) Revenues $ 1,090.7 $ 1,555.3 $ 2,687.1 $ 0.2 $ (22.8) $ 5,310.5 Income (loss) before income taxes $ 165.6 $ 46.5 $ 838.6 $ (275.7) $ — $ 775.0 Interest expense, net 2.0 — 151.5 157.3 — 310.8 Operating income (loss) 167.6 46.5 990.1 (118.4) — 1,085.8 Depreciation and amortization 65.5 246.6 65.4 7.2 — 384.7 Stock compensation expense 7.7 25.1 10.9 15.8 — 59.5 Adjusted EBITDA (1) 240.8 318.2 1,066.4 (95.4) — 1,530.0 Less: Securitization funding costs — — 91.5 — — 91.5 Less: Interest expense on deposits — — 60.0 — — 60.0 Less: Adjusted EBITDA attributable to non- controlling interest 5.5 — — — — 5.5 Adjusted EBITDA, net (1) $ 235.3 $ 318.2 $ 914.9 $ (95.4) $ — $ 1,373.0 (1) Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on GAAP plus stock compensation expense, provision for income taxes, interest expense, net, depreciation and other amortization and amortization of purchased intangibles. Adjusted EBITDA, net is also a non-GAAP financial measure equal to adjusted EBITDA less securitization funding costs, interest expense on deposits and adjusted EBITDA attributable to the non-controlling interest. Adjusted EBITDA and adjusted EBITDA, net are presented in accordance with ASC 280 as they are the primary performance metrics utilized to assess performance of the segments.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Recently Issued and Adopted Accounting Standards	Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Companies may adopt ASU 2014-09 using a full retrospective approach or report the cumulative effect as of the date of adoption. On July 9, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and to permit early adoption of the standard, but not before the original effective date of December 15, 2016. ASU 2014-09 does not apply to financial instruments and other contractual rights or obligations (for example, interest income and late fees from credit card and loan receivables), and therefore, the Company’s finance charges, net will not be affected by the adoption of the standard. Management has substantially completed its initial evaluation of the impact of these updates on its consolidated financial statements and based on the evaluation of the Company's current contracts and the related revenue streams and performance obligations, most will be recorded consistently under both the current and new standard. Management is in the process of evaluating how best to apply the necessary changes, quantifying whether any of the changes have a material impact on the timing of revenue recognition, and analyzing changes to disclosure requirements. The assessment is expected to be completed by the end of 2017. The Company plans to adopt the standard on January 1, 2018 using a modified retrospective method. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires that equity investments be measured at fair value with changes in fair value recognized in net income. For equity investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. Additionally, ASU 2016-01 requires entities that elect the fair value option for financial liabilities to recognize changes in fair value related to instrument-specific credit risk in other comprehensive income. Finally, entities must assess valuation allowances for deferred tax assets related to available-for-sale debt securities in combination with their other deferred tax assets. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact that adoption of ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” that replaces existing lease guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new guidance will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The new standard is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. The Company is evaluating the impact that adoption of ASU 2016-02 will have on its consolidated financial statements and expects there will be an increase in assets and liabilities on its consolidated balance sheets at adoption due to the recording of right-of-use assets and corresponding lease liabilities. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires entities to utilize a financial instrument impairment model that is based on expected losses over the life of the exposure rather than a model based on an incurred loss approach to establish an allowance. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance. In addition, ASU 2016-13 modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted beginning after December 15, 2018. The Company is evaluating the impact that adoption of ASU 2016-13 will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 will make eight targeted changes to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated statements of cash flows. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash.” ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company plans to adopt this standard on January 1, 2018, resulting in changes to its consolidated statements of cash flows to include restricted cash amounts in the beginning-of-period and end-of-period cash and cash equivalents totals. In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 expands and refines the hedge accounting model for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements, and makes certain targeted improvements to simplify the application of hedge accounting guidance related to the assessment of hedge effectiveness. ASU 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact that adoption of ASU 2017-12 will have on its consolidated financial statements. Recently Adopted Accounting Standards In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory." ASU 2015-11 changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company prospectively adopted this standard as of January 1, 2017. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies certain aspects of share-based transactions, including income tax consequences, forfeitures, classification of awards as either equity or liabilities and classification in the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard as of January 1, 2017. The adoption of this standard did not have a material impact on the Company’s provision for income taxes or diluted earnings per share for the three and nine months ended September 30, 2017. The Company’s retrospective adoption of the presentation requirements for cash flows related to employee taxes paid for withheld shares resulted in an increase in cash flows from operating activities of $25.8 million and a decrease in cash flows from financing activities of $25.8 million for the nine months ended September 30, 2016. The Company prospectively adopted the presentation requirements for cash flows related to excess tax benefits, and prior period amounts were not adjusted. Further, the Company elected to continue to estimate forfeitures at each grant date.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2017
EARNINGS PER SHARE
Schedule of computation of basic and diluted net income per share	Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (In millions except per share amounts) Numerator: Net income attributable to common stockholders $ 233.2 $ 207.5 $ 517.4 $ 505.2 Less: Accretion of redeemable non-controlling interest — — — 83.5 Net income attributable to common stockholders after accretion of redeemable non-controlling interest $ 233.2 $ 207.5 $ 517.4 $ 421.7 Denominator: Weighted average shares, basic 55.4 58.3 55.8 59.0 Weighted average effect of dilutive securities: Net effect of dilutive stock options and unvested restricted stock 0.2 0.1 0.2 0.2 Denominator for diluted calculation 55.6 58.4 56.0 59.2 Net income attributable to common stockholders per share: Basic $ 4.21 $ 3.56 $ 9.27 $ 7.15 Diluted $ 4.20 $ 3.55 $ 9.23 $ 7.12

CREDIT CARD AND LOAN RECEIVAB24

CREDIT CARD AND LOAN RECEIVABLES (Tables)	9 Months Ended
	Sep. 30, 2017
CREDIT CARD AND LOAN RECEIVABLES
Schedule of components of total credit card and loan receivables	September 30, December 31, 2017 2016 (In millions) Principal receivables $ 15,581.6 $ 15,754.0 Billed and accrued finance charges 785.9 708.6 Other 72.3 81.3 Total credit card and loan receivables 16,439.8 16,543.9 Less: Credit card receivables – restricted for securitization investors 11,304.4 11,437.1 Other credit card and loan receivables $ 5,135.4 $ 5,106.8
Schedule of Company's allowance for loan loss	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In millions) Balance at beginning of period $ 1,069.3 $ 782.6 $ 948.0 $ 741.6 Provision for loan loss 204.7 251.3 807.9 651.0 Allowance associated with credit card and loan receivables transferred to held for sale (20.6) — (20.6) (15.0) Change in estimate for uncollectible unpaid interest and fees — 5.0 10.0 10.0 Recoveries 44.3 73.6 146.1 183.5 Principal charge-offs (263.9) (238.1) (857.6) (696.7) Balance at end of period $ 1,033.8 $ 874.4 $ 1,033.8 $ 874.4
Schedule of delinquency trends of the Company's credit card and loan receivables portfolio	September 30, % of December 31, % of 2017 Total 2016 Total (In millions, except percentages) Receivables outstanding - principal $ 15,581.6 100.0 % $ 15,754.0 100.0 % Principal receivables balances contractually delinquent: 31 to 60 days 269.9 1.7 % 249.8 1.6 % 61 to 90 days 186.9 1.2 169.3 1.1 91 or more days 389.5 2.5 337.8 2.1 Total $ 846.3 5.4 % $ 756.9 4.8 %
Schedule of information on credit card and loan receivables that are considered troubled debt restructurings, which entered into a modification program	Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Pre-modification Post-modification Pre-modification Post-modification Number of Outstanding Outstanding Number of Outstanding Outstanding Restructurings Balance Balance Restructurings Balance Balance (Dollars in millions) Troubled debt restructurings – credit card receivables 53,305 $ 67.2 $ 67.1 146,177 $ 186.8 $ 186.6 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Pre-modification Post-modification Pre-modification Post-modification Number of Outstanding Outstanding Number of Outstanding Outstanding Restructurings Balance Balance Restructurings Balance Balance (Dollars in millions) Troubled debt restructurings – credit card receivables 53,041 $ 63.8 $ 63.7 151,069 $ 180.9 $ 180.7 The tables below summarize troubled debt restructurings that have defaulted in the specified periods where the default occurred within 12 months of their modification date: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Number of Outstanding Number of Outstanding Restructurings Balance Restructurings Balance (Dollars in millions) Troubled debt restructurings that subsequently defaulted – credit card receivables 24,267 $ 29.4 74,948 $ 91.0 Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Number of Outstanding Number of Outstanding Restructurings Balance Restructurings Balance (Dollars in millions) Troubled debt restructurings that subsequently defaulted – credit card receivables 27,606 $ 31.3 75,828 $ 84.1
Schedule of number of active credit card and loan accounts with balances and the related principal balances outstanding, based upon the age of the active credit card accounts from origination	September 30, 2017 Percentage of Number of Percentage of Principal Principal Active Accounts Active Accounts Receivables Receivables Age of Accounts Since Origination with Balances with Balances Outstanding Outstanding (In millions, except percentages) 0-12 Months 6.5 27.7 % $ 3,434.5 22.0 % 13-24 Months 3.8 16.4 2,572.5 16.5 25-36 Months 2.9 12.5 2,255.4 14.5 37-48 Months 2.0 8.4 1,553.0 10.0 49-60 Months 1.5 6.2 1,135.9 7.3 Over 60 Months 6.7 28.8 4,630.3 29.7 Total 23.4 100.0 % $ 15,581.6 100.0 % December 31, 2016 Percentage of Number of Percentage of Principal Principal Active Accounts Active Accounts Receivables Receivables Age of Accounts Since Origination with Balances with Balances Outstanding Outstanding (In millions, except percentages) 0-12 Months 7.3 28.5 % $ 3,896.9 24.8 % 13-24 Months 4.1 15.8 2,618.2 16.6 25-36 Months 3.0 11.6 2,050.8 13.0 37-48 Months 2.0 8.0 1,436.8 9.1 49-60 Months 1.5 5.9 1,021.7 6.5 Over 60 Months 7.7 30.2 4,729.6 30.0 Total 25.6 100.0 % $ 15,754.0 100.0 %
Schedule of composition of obligor credit quality	September 30, 2017 December 31, 2016 Percentage of Percentage of Total Principal Principal Total Principal Principal Probability of an Account Becoming 91 or More Days Past Receivables Receivables Receivables Receivables Due or Becoming Charged-off (within the next 12 months) Outstanding Outstanding Outstanding Outstanding (In millions, except percentages) No Score $ 120.2 0.8 % $ 183.8 1.2 % 27.1% and higher 1,296.3 8.3 1,168.0 7.4 17.1% - 27.0% 799.8 5.1 761.1 4.8 12.6% - 17.0% 1,052.3 6.7 820.9 5.2 3.7% - 12.5% 6,601.5 42.4 5,770.8 36.6 1.9% - 3.6% 2,741.3 17.6 3,444.9 21.9 Lower than 1.9% 2,970.2 19.1 3,604.5 22.9 Total $ 15,581.6 100.0 % $ 15,754.0 100.0 %
Schedule of securitized credit card receivables, delinquencies and net charge-offs	September 30, December 31, 2017 2016 (In millions) Total credit card receivables – restricted for securitization investors $ 11,304.4 $ 11,437.1 Principal amount of credit card receivables – restricted for securitization investors, 91 days or more past due $ 268.7 $ 236.5 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In millions) Net charge-offs of securitized principal $ 179.9 $ 134.6 $ 542.3 $ 423.7

OTHER INVESTMENTS (Tables)

OTHER INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
OTHER INVESTMENTS
Schedule of principal components of other investments, which are carried at fair value	September 30, 2017 December 31, 2016 Amortized Unrealized Unrealized Amortized Unrealized Unrealized Cost Gains Losses Fair Value Cost Gains Losses Fair Value (In millions) Marketable securities $ 190.7 $ 0.4 $ (1.8) $ 189.3 $ 124.5 $ 0.2 $ (2.4) $ 122.3 U.S. Treasury bonds 50.0 0.1 — 50.1 75.0 0.3 — 75.3 Total $ 240.7 $ 0.5 $ (1.8) $ 239.4 $ 199.5 $ 0.5 $ (2.4) $ 197.6
Schedule of unrealized losses and fair value for investments that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position	September 30, 2017 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (In millions) Marketable securities $ 111.1 $ (0.9) $ 41.2 $ (0.9) $ 152.3 $ (1.8) Total $ 111.1 $ (0.9) $ 41.2 $ (0.9) $ 152.3 $ (1.8) December 31, 2016 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (In millions) Marketable securities $ 75.3 $ (2.0) $ 12.4 $ (0.4) $ 87.7 $ (2.4) Total $ 75.3 $ (2.0) $ 12.4 $ (0.4) $ 87.7 $ (2.4)
Schedule of securities by contractual maturity date	Amortized Cost Fair Value (In millions) Due in one year or less $ 39.2 $ 39.1 Due after one year through five years 28.0 28.1 Due after five years through ten years — — Due after ten years 173.5 172.2 Total $ 240.7 $ 239.4

REDEMPTION SETTLEMENT ASSETS (T

REDEMPTION SETTLEMENT ASSETS (Tables)	9 Months Ended
	Sep. 30, 2017
REDEMPTION SETTLEMENT ASSETS
Schedule of redemption settlement assets	September 30, 2017 December 31, 2016 Amortized Unrealized Unrealized Amortized Unrealized Unrealized Cost Gains Losses Fair Value Cost Gains Losses Fair Value (In millions) Restricted cash $ 71.5 $ — $ — $ 71.5 $ 58.1 $ — $ — $ 58.1 Mutual funds 27.7 — (0.2) 27.5 25.7 — (0.2) 25.5 Corporate bonds 483.0 — (5.8) 477.2 241.0 0.4 (0.6) 240.8 Total $ 582.2 $ — $ (6.0) $ 576.2 $ 324.8 $ 0.4 $ (0.8) $ 324.4
Schedule of unrealized losses and fair value for investments that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position	September 30, 2017 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (In millions) Mutual funds $ 27.5 $ (0.2) $ — $ — $ 27.5 $ (0.2) Corporate bonds 454.2 (5.2) 19.8 (0.6) 474.0 (5.8) Total $ 481.7 $ (5.4) $ 19.8 $ (0.6) $ 501.5 $ (6.0) December 31, 2016 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (In millions) Mutual funds $ 25.5 $ (0.2) $ — $ — $ 25.5 $ (0.2) Corporate bonds 111.2 (0.6) — — 111.2 (0.6) Total $ 136.7 $ (0.8) $ — $ — $ 136.7 $ (0.8)
Schedule of redemption settlement assets by contractual maturity date	Amortized Estimated Cost Fair Value (In millions) Due in one year or less $ 97.7 $ 97.4 Due after one year through five years 413.0 407.3 Total $ 510.7 $ 504.7

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2017
INTANGIBLE ASSETS AND GOODWILL
Schedule of intangible assets	September 30, 2017 Gross Accumulated Assets Amortization Net Amortization Life and Method (In millions) Finite Lived Assets Customer contracts and lists $ 1,147.0 $ (590.7) $ 556.3 3-12 years—straight line Premium on purchased credit card portfolios 271.8 (135.8) 136.0 3-13 years—straight line Customer database 63.6 (59.6) 4.0 3 years—straight line Collector database 56.1 (53.9) 2.2 5 years—straight line Publisher networks 140.2 (77.5) 62.7 5-7 years—straight line Tradenames 76.8 (45.2) 31.6 8-15 years—straight line Purchased data lists 11.2 (6.1) 5.1 1-5 years—straight line, accelerated Favorable lease 6.0 (2.9) 3.1 6-10 years—straight line $ 1,772.7 $ (971.7) $ 801.0 Indefinite Lived Assets Tradenames 12.4 — 12.4 Indefinite life Total intangible assets $ 1,785.1 $ (971.7) $ 813.4 December 31, 2016 Gross Accumulated Assets Amortization Net Amortization Life and Method (In millions) Finite Lived Assets Customer contracts and lists $ 1,108.6 $ (451.8) $ 656.8 3-12 years—straight line Premium on purchased credit card portfolios 357.3 (172.3) 185.0 3-13 years—straight line Customer databases 63.6 (43.7) 19.9 3 years—straight line Collector database 52.1 (49.7) 2.4 30 years—15% declining balance Publisher networks 140.2 (56.8) 83.4 5-7 years—straight line Tradenames 83.5 (49.4) 34.1 3-15 years—straight line Purchased data lists 11.6 (6.2) 5.4 1-5 years—straight line, accelerated Favorable lease 6.9 (3.0) 3.9 3-10 years—straight line $ 1,823.8 $ (832.9) $ 990.9 Indefinite Lived Assets Tradenames 12.4 — 12.4 Indefinite life Total intangible assets $ 1,836.2 $ (832.9) $ 1,003.3
Schedule of estimated amortization expense related to intangible assets	For the Years Ending December 31, (In millions) 2017 (excluding the nine months ended September 30, 2017) $ 65.9 2018 241.1 2019 192.6 2020 128.9 2021 76.6 Thereafter 95.9
Schedule of changes in carrying amount of goodwill	LoyaltyOne ® Epsilon ® Card Services Corporate/ Other Total (In millions) Balance at January 1, 2016 $ 663.5 $ 2,888.9 $ 261.7 $ — $ 3,814.1 Goodwill acquired during year — — — — — Effects of foreign currency translation (10.2) (3.2) — — (13.4) Balance at December 31, 2016 $ 653.3 $ 2,885.7 $ 261.7 $ — $ 3,800.7 Goodwill acquired during year — — — — — Effects of foreign currency translation 71.2 1.5 — — 72.7 Balance at September 30, 2017 $ 724.5 $ 2,887.2 $ 261.7 $ — $ 3,873.4

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2017
DEBT
Schedule of debt	September 30, December 31, Description 2017 2016 Maturity Interest Rate (Dollars in millions) Long-term and other debt: 2017 revolving line of credit $ 225.0 $ — June 2022 (1) 2017 term loans 3,033.5 — June 2022 (1) 2013 revolving line of credit — 235.0 — — 2013 term loans — 2,837.3 — — BrandLoyalty credit agreement 207.7 254.3 June 2020 (2) Senior notes due 2017 400.0 400.0 December 2017 5.250% Senior notes due 2020 500.0 500.0 April 2020 6.375% Senior notes due 2021 500.0 500.0 November 2021 5.875% Senior notes due 2022 600.0 600.0 August 2022 5.375% Senior notes due 2022 (€400.0 million) 472.6 — March 2022 4.500% Senior notes due 2023 (€300.0 million) 354.4 315.5 November 2023 5.250% Capital lease obligations and other debt 9.7 6.0 Various – January 2019 – June 2021 2.24% to 3.72% Total long-term and other debt 6,302.9 5,648.1 Less: Unamortized discount and debt issuance costs 60.3 46.7 Less: Current portion 538.5 814.5 Long-term portion $ 5,704.1 $ 4,786.9 Deposits: Certificates of deposit $ 7,200.3 $ 5,937.9 Various – Oct 2017 – Oct 2022 0.88% to 2.80% Money market deposits 3,199.5 2,474.3 On demand (3) Total deposits 10,399.8 8,412.2 Less: Unamortized discount and debt issuance costs 25.8 20.3 Less: Current portion 5,823.5 4,673.0 Long-term portion $ 4,550.5 $ 3,718.9 Non-recourse borrowings of consolidated securitization entities: Fixed rate asset-backed term note securities $ 4,437.5 $ 4,262.5 Various – Oct 2017 – June 2021 1.44% to 4.55% Floating rate asset-backed term note securities 360.0 360.0 April 2018 (4) Conduit asset-backed securities 2,080.0 2,345.0 Various – April 2018 – Nov 2018 (5) Total non-recourse borrowings of consolidated securitization entities 6,877.5 6,967.5 Less: Unamortized discount and debt issuance costs 11.4 12.1 Less: Current portion 1,933.5 1,639.0 Long-term portion $ 4,932.6 $ 5,316.4 (1) The interest rate is based upon the London Interbank Offered Rate (“LIBOR”) plus an applicable margin. At September 30, 2017, the weighted average interest rate was 3.23% and 3.24% for the revolving line of credit and term loans, respectively. (2) The interest rate is based upon the Euro Interbank Offered Rate plus an applicable margin. At September 30, 2017, the weighted average interest rate was 1.10% and 1.65% for the BrandLoyalty revolving line of credit and term loans, respectively. (3) The interest rates are based on the Federal Funds rate plus an applicable margin. At September 30, 2017, the interest rates ranged from 1.26% to 2.37%. (4) The interest rate is based upon LIBOR plus an applicable margin. At September 30, 2017, the interest rate was 1.71%. (5) The interest rate is based upon LIBOR or the asset-backed commercial paper costs of each individual conduit provider plus an applicable margin. At September 30, 2017, the interest rates ranged from 2.26% to 2.46%.

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
DERIVATIVE INSTRUMENTS
Schedule of fair value of derivative instruments	September 30, 2017 Notional Amount Fair Value Balance Sheet Location Maturity (In millions) Designated as hedging instruments: Foreign currency exchange hedges $ 11.3 $ 0.4 Other current assets November 2017 to September 2018 Foreign currency exchange hedges $ 13.4 $ 0.5 Other current liabilities October 2017 to March 2018 Not designated as hedging instruments: Foreign currency exchange forward contracts $ 165.4 $ 13.4 Other current assets February 2018 Foreign currency exchange forward contract $ 66.4 $ 4.1 Other current liabilities March 2018 December 31, 2016 Notional Amount Fair Value Balance Sheet Location Maturity (In millions) Designated as hedging instruments: Foreign currency exchange hedges $ 34.4 $ 1.2 Other current assets January 2017 to August 2017 Foreign currency exchange hedges $ 27.6 $ 0.9 Other current liabilities January 2017 to August 2017

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	9 Months Ended
	Sep. 30, 2017
DEFERRED REVENUE
Schedule of reconciliation of deferred revenue for the AIR MILES Reward Program	Deferred Revenue Service Redemption Total (In millions) Balance at December 31, 2016 $ 297.7 $ 633.8 $ 931.5 Cash proceeds 135.0 251.6 386.6 Revenue recognized (170.2) (253.1) (423.3) Other — 1.1 1.1 Effects of foreign currency translation 21.4 49.0 70.4 Balance at September 30, 2017 $ 283.9 $ 682.4 $ 966.3 Amounts recognized in the consolidated balance sheets: Current liabilities $ 164.6 $ 682.4 $ 847.0 Non-current liabilities $ 119.3 $ — $ 119.3

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2017
STOCKHOLDERS' EQUITY
Schedule of stock-based compensation expense	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In millions) Cost of operations $ 13.6 $ 13.2 $ 42.3 $ 43.6 General and administrative 4.7 4.8 21.2 15.9 Total $ 18.3 $ 18.0 $ 63.5 $ 59.5

ACCUMULATED OTHER COMPREHENSI32

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
Schedule of changes in each component of accumulated comprehensive income (loss), net of tax effects	Net Unrealized Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Three Months Ended September 30, 2017 on Securities Flow Hedges Investment Hedges Adjustments (1) Income (Loss) (In millions) Balance at June 30, 2017 $ (3.7) $ (0.5) $ (23.3) $ (114.1) $ (141.6) Changes in other comprehensive income (loss) before reclassifications (3.1) 0.6 (12.0) 15.9 1.4 Amounts reclassified from other comprehensive income (loss) — — — — — Changes in other comprehensive income (loss) (3.1) 0.6 (12.0) 15.9 1.4 Balance at September 30, 2017 $ (6.8) $ 0.1 $ (35.3) $ (98.2) $ (140.2) Net Unrealized Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Three Months Ended September 30, 2016 on Securities Flow Hedges Investment Hedge Adjustments (1) Income (Loss) (In millions) Balance at June 30, 2016 $ 3.6 $ — $ (11.1) $ (123.7) $ (131.2) Changes in other comprehensive income (loss) before reclassifications 0.2 (0.7) (4.1) 5.1 0.5 Amounts reclassified from other comprehensive income (loss) — 0.1 — — 0.1 Changes in other comprehensive income (loss) 0.2 (0.6) (4.1) 5.1 0.6 Balance at September 30, 2016 $ 3.8 $ (0.6) $ (15.2) $ (118.6) $ (130.6) Net Unrealized Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Nine Months Ended September 30, 2017 on Securities Flow Hedges Investment Hedges Adjustments (1) Income (Loss) (In millions) Balance at December 31, 2016 $ (1.6) $ 0.4 $ 4.1 $ (153.6) $ (150.7) Changes in other comprehensive income (loss) before reclassifications (5.2) (0.3) (39.4) 55.4 10.5 Amounts reclassified from other comprehensive income (loss) — — — — — Changes in other comprehensive income (loss) (5.2) (0.3) (39.4) 55.4 10.5 Balance at September 30, 2017 $ (6.8) $ 0.1 $ (35.3) $ (98.2) $ (140.2) Net Unrealized Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Nine Months Ended September 30, 2016 on Securities Flow Hedges Investment Hedge Adjustments (1) Income (Loss) (In millions) Balance at December 31, 2015 $ (0.1) $ 1.3 $ (3.8) $ (134.7) $ (137.3) Changes in other comprehensive income (loss) before reclassifications 3.9 (2.6) (11.4) 16.1 6.0 Amounts reclassified from other comprehensive income (loss) — 0.7 — — 0.7 Changes in other comprehensive income (loss) 3.9 (1.9) (11.4) 16.1 6.7 Balance at September 30, 2016 $ 3.8 $ (0.6) $ (15.2) $ (118.6) $ (130.6) Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates.

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
FINANCIAL INSTRUMENTS
Schedule of estimated fair value of Company's financial instruments	September 30, 2017 December 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value (In millions) Financial assets Credit card and loan receivables, net $ 15,406.0 $ 16,214.2 $ 15,595.9 $ 16,423.2 Credit card and loan receivables held for sale 888.7 959.5 417.3 428.7 Redemption settlement assets, restricted 576.2 576.2 324.4 324.4 Other investments 239.4 239.4 197.6 197.6 Derivative instruments 13.8 13.8 1.2 1.2 Financial liabilities Derivative instruments 4.6 4.6 0.9 0.9 Deposits 10,374.0 10,415.9 8,391.9 8,432.2 Non-recourse borrowings of consolidated securitization entities 6,866.1 6,885.7 6,955.4 6,973.8 Long-term and other debt 6,242.6 6,392.0 5,601.4 5,641.0
Schedule of assets and liabilities carried at fair value measured on recurring basis	Fair Value Measurements at September 30, 2017 Using Balance at September 30, 2017 Level 1 Level 2 Level 3 (In millions) Mutual funds (1) $ 27.5 $ 27.5 $ — $ — Corporate bonds (1) 477.2 — 477.2 — Marketable securities (2) 189.3 10.1 179.2 — U.S. Treasury bonds (2) 50.1 50.1 — — Derivative instruments (3) 13.8 — 13.8 — Total assets measured at fair value $ 757.9 $ 87.7 $ 670.2 $ — Derivative instruments (3) $ 4.6 $ — $ 4.6 $ — Total liabilities measured at fair value $ 4.6 $ — $ 4.6 $ — Fair Value Measurements at December 31, 2016 Using Balance at December 31, 2016 Level 1 Level 2 Level 3 (In millions) Mutual funds (1) $ 25.5 $ 25.5 $ — $ Corporate bonds (1) 240.8 — 240.8 — Marketable securities (2) 122.3 5.0 117.3 — U.S. Treasury bonds (2) 75.3 75.3 — — Derivative instruments (3) 1.2 — 1.2 — Total assets measured at fair value $ 465.1 $ 105.8 $ 359.3 $ — Derivative instruments (3) $ 0.9 $ — $ 0.9 $ — Total liabilities measured at fair value $ 0.9 $ — $ 0.9 $ — (1) Amounts are included in redemption settlement assets in the unaudited condensed consolidated balance sheets. (2) Amounts are included in other current assets and other non-current assets in the unaudited condensed consolidated balance sheets. (3) Amounts are included in other current assets and other current liabilities in the unaudited condensed consolidated balance sheets.
Schedule of assets and liabilities disclosed but not carried at fair value	Fair Value Measurements at September 30, 2017 Total Level 1 Level 2 Level 3 (In millions) Financial assets: Credit card and loan receivables, net $ 16,214.2 $ — $ — $ 16,214.2 Credit card and loan receivables held for sale 959.5 — — 959.5 Total $ 17,173.7 $ — $ — $ 17,173.7 Financial liabilities: Deposits $ 10,415.9 $ — $ 10,415.9 $ — Non-recourse borrowings of consolidated securitization entities 6,885.7 — 6,885.7 — Long-term and other debt 6,392.0 — 6,392.0 — Total $ 23,693.6 $ — $ 23,693.6 $ — Fair Value Measurements at December 31, 2016 Total Level 1 Level 2 Level 3 (In millions) Financial assets: Credit card and loan receivables, net $ 16,423.2 $ — $ — $ 16,423.2 Credit card and loan receivables held for sale 428.7 — — 428.7 Total $ 16,851.9 $ — $ — $ 16,851.9 Financial liabilities: Deposits $ 8,432.2 $ — $ 8,432.2 $ — Non-recourse borrowings of consolidated securitization entities 6,973.8 — 6,973.8 — Long-term and other debt 5,641.0 — 5,641.0 — Total $ 21,047.0 $ — $ 21,047.0 $ —

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2017
SEGMENT INFORMATION
Schedule of segment information	Corporate/ Three Months Ended September 30, 2017 LoyaltyOne Epsilon Card Services Other Eliminations Total (In millions) Revenues $ 305.2 $ 558.7 $ 1,055.4 $ — $ (6.9) $ 1,912.4 Income (loss) before income taxes $ 35.7 $ 38.6 $ 371.4 $ (112.1) $ — $ 333.6 Interest expense, net 1.7 0.1 71.4 72.1 — 145.3 Operating income (loss) 37.4 38.7 442.8 (40.0) — 478.9 Depreciation and amortization 21.4 77.9 22.9 2.1 — 124.3 Stock compensation expense 2.2 8.4 3.0 4.7 — 18.3 Adjusted EBITDA (1) 61.0 125.0 468.7 (33.2) — 621.5 Less: Securitization funding costs — — 38.2 — — 38.2 Less: Interest expense on deposits — — 33.2 — — 33.2 Less: Adjusted EBITDA attributable to non- controlling interest — — — — — — Adjusted EBITDA, net (1) $ 61.0 $ 125.0 $ 397.3 $ (33.2) $ — $ 550.1 Corporate/ Three Months Ended September 30, 2016 LoyaltyOne Epsilon Card Services Other Eliminations Total (In millions) Revenues $ 383.8 $ 543.2 $ 965.8 $ 0.1 $ (7.3) $ 1,885.6 Income (loss) before income taxes $ 56.4 $ 48.2 $ 304.4 $ (96.3) $ — $ 312.7 Interest expense, net 1.3 — 53.7 53.3 — 108.3 Operating income (loss) 57.7 48.2 358.1 (43.0) — 421.0 Depreciation and amortization 22.1 79.5 23.0 2.1 — 126.7 Stock compensation expense 2.5 7.1 3.5 4.9 — 18.0 Adjusted EBITDA (1) 82.3 134.8 384.6 (36.0) — 565.7 Less: Securitization funding costs — — 31.1 — — 31.1 Less: Interest expense on deposits — — 22.6 — — 22.6 Less: Adjusted EBITDA attributable to non-controlling interest — — — — — — Adjusted EBITDA, net (1) $ 82.3 $ 134.8 $ 330.9 $ (36.0) $ — $ 512.0 Corporate/ Nine Months Ended September 30, 2017 LoyaltyOne Epsilon Card Services Other Eliminations Total (In millions) Revenues $ 918.3 $ 1,631.8 $ 3,083.6 $ — $ (20.5) $ 5,613.2 Income (loss) before income taxes $ 105.6 $ 56.9 $ 949.3 $ (337.0) $ — $ 774.8 Interest expense, net 3.8 0.2 197.8 206.2 — 408.0 Operating income (loss) 109.4 57.1 1,147.1 (130.8) — 1,182.8 Depreciation and amortization 60.1 233.7 74.8 5.9 — 374.5 Stock compensation expense 6.9 26.0 9.4 21.2 — 63.5 Adjusted EBITDA (1) 176.4 316.8 1,231.3 (103.7) — 1,620.8 Less: Securitization funding costs — — 109.9 — — 109.9 Less: Interest expense on deposits — — 87.9 — — 87.9 Less: Adjusted EBITDA attributable to non- controlling interest — — — — — — Adjusted EBITDA, net (1) $ 176.4 $ 316.8 $ 1,033.5 $ (103.7) $ — $ 1,423.0 Corporate/ Nine Months Ended September 30, 2016 LoyaltyOne Epsilon Card Services Other Eliminations Total (In millions) Revenues $ 1,090.7 $ 1,555.3 $ 2,687.1 $ 0.2 $ (22.8) $ 5,310.5 Income (loss) before income taxes $ 165.6 $ 46.5 $ 838.6 $ (275.7) $ — $ 775.0 Interest expense, net 2.0 — 151.5 157.3 — 310.8 Operating income (loss) 167.6 46.5 990.1 (118.4) — 1,085.8 Depreciation and amortization 65.5 246.6 65.4 7.2 — 384.7 Stock compensation expense 7.7 25.1 10.9 15.8 — 59.5 Adjusted EBITDA (1) 240.8 318.2 1,066.4 (95.4) — 1,530.0 Less: Securitization funding costs — — 91.5 — — 91.5 Less: Interest expense on deposits — — 60.0 — — 60.0 Less: Adjusted EBITDA attributable to non- controlling interest 5.5 — — — — 5.5 Adjusted EBITDA, net (1) $ 235.3 $ 318.2 $ 914.9 $ (95.4) $ — $ 1,373.0 Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on GAAP plus stock compensation expense, provision for income taxes, interest expense, net, depreciation and other amortization and amortization of purchased intangibles. Adjusted EBITDA, net is also a non-GAAP financial measure equal to adjusted EBITDA less securitization funding costs, interest expense on deposits and adjusted EBITDA attributable to the non-controlling interest. Adjusted EBITDA and adjusted EBITDA, net are presented in accordance with ASC 280 as they are the primary performance metrics utilized to assess performance of the segments.

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Recently Issued Accounting Standards
Cash flows from operating activities	$ 1,779.6	$ 1,354.8
Cash flows from financing activities	$ 1,723.1	1,124.8
Accounting Standards Update 2016-09 [Member] | Adjustment for New Accounting Pronouncement
Recently Issued Accounting Standards
Cash flows from operating activities		25.8
Cash flows from financing activities		$ (25.8)

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Apr. 01, 2016
Numerator:
Net income attributable to common stockholders	$ 233.2	$ 207.5	$ 517.4	$ 505.2
Less: Accretion of redeemable non-controlling interest				83.5
Net income attributable to common stockholders after accretion of redeemable non-controlling interest	$ 233.2	$ 207.5	$ 517.4	$ 421.7
Denominator:
Weighted average shares, basic	55.4	58.3	55.8	59
Weighted average effect of dilutive securities:
Net effect of dilutive stock options and unvested restricted stock (in shares)	0.2	0.1	0.2	0.2
Denominator for diluted calculations (in shares)	55.6	58.4	56	59.2
Net income attributable to common stockholders per share:
Basic (in dollars per share)	$ 4.21	$ 3.56	$ 9.27	$ 7.15
Diluted (in dollars per share)	$ 4.20	$ 3.55	$ 9.23	$ 7.12
Brand Loyalty
Net income attributable to common stockholders per share:
Ownership interest acquired (as a percent)					20.00%
Ownership percentage					100.00%

CREDIT CARD AND LOAN RECEIVAB37

CREDIT CARD AND LOAN RECEIVABLES - Allowance for Loan Loss and Delinquencies (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
CREDIT CARD AND LOAN RECEIVABLES
Principal receivables	$ 15,581.6		$ 15,581.6		$ 15,754
Billed and accrued finance charges	785.9		785.9		708.6
Other credit card receivables	72.3		72.3		81.3
Total credit card and loan receivables	16,439.8		16,439.8		16,543.9
Less: Credit card receivables - restricted for securitization investors	11,304.4		11,304.4		11,437.1
Other credit card and loan receivables	5,135.4		$ 5,135.4		5,106.8
Allowance for Loan Loss
The period over which the Company analyzes actual charge-offs			3 months
Balance at beginning of period	1,069.3	$ 782.6	$ 948	$ 741.6
Provision for loan loss	204.7	251.3	807.9	651
Allowance associated with credit card and loan receivables transferred to held for sale	(20.6)		(20.6)	(15)
Change in estimate for uncollectible unpaid interest and fees		5	10	10
Recoveries	44.3	73.6	146.1	183.5
Principal charge-offs	(263.9)	(238.1)	(857.6)	(696.7)
Balance at end of period	1,033.8	874.4	$ 1,033.8	874.4
Number of days a loan is contractually past due before resulting in charge-off			180 days
Number of days after notification of creditor's bankruptcy or death when an account is charged-off			60 days
Actual charge-offs for unpaid interest and fees	152.2	126.4	$ 469.6	355.2
Period beyond which interest and fee income accrue on credit card accounts			90 days
Period for which interest and fee income accrue until balance, interest and fees paid or charged off			180 days
Period an account becomes past due before a proprietary collection scoring algorithm automatically scores the risk of an account becoming further delinquent			30 days
Credit card and loan receivables portfolio delinquency trend
Receivables outstanding - principal	15,581.6		$ 15,581.6		15,754
Principal receivables balances contractually delinquent:
31 to 60 days	269.9		269.9		249.8
61 to 90 days	186.9		186.9		169.3
91 or more days	389.5		389.5		337.8
Total	$ 846.3		$ 846.3		$ 756.9
Percentage Principal receivables balances contractually delinquent :
Receivables outstanding - principal (as a percent)	100.00%		100.00%		100.00%
Principal receivables balances contractually delinquent:
31 to 60 days (as a percent)	1.70%		1.70%		1.60%
61 to 90 days (as a percent)	1.20%		1.20%		1.10%
91 or more days (as a percent)	2.50%		2.50%		2.10%
Total (as a percent)	5.40%		5.40%		4.80%
Modified Credit Card Receivables
Maximum period of time temporary programs' concessions remain in place			12 months
Impaired credit card and loan receivables	$ 242.7		$ 242.7		$ 216.5
Allowance for loan loss on impaired credit card receivables	$ 54.5		$ 54.5		$ 46.4
Maximum percentage of credit card receivables to total portfolio	2.00%		2.00%		2.00%
Average recorded investment in impaired credit card receivables	$ 233.6	196.1	$ 222.3	185.8
Interest income on modified credit card receivables	$ 5	$ 4.8	$ 14.5	$ 13.9

CREDIT CARD AND LOAN RECEIVAB38

CREDIT CARD AND LOAN RECEIVABLES - Troubled Debt Restructurings (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)item	Sep. 30, 2016USD ($)item	Sep. 30, 2017USD ($)item	Sep. 30, 2016USD ($)item
Troubled debt restructurings - credit card receivables
Modifications related to troubled debt restructurings within credit card and loan receivables
Number of Restructurings | item	53,305	53,041	146,177	151,069
Pre-modification Outstanding Balance	$ 67.2	$ 63.8	$ 186.8	$ 180.9
Post-modification Outstanding Balance	$ 67.1	$ 63.7	$ 186.6	$ 180.7
Troubled debt restructurings that subsequently defaulted - credit card receivables
Modifications related to troubled debt restructurings within credit card and loan receivables
Number of Restructurings | item	24,267	27,606	74,948	75,828
Outstanding Balance	$ 29.4	$ 31.3	$ 91	$ 84.1

CREDIT CARD AND LOAN RECEIVAB39

CREDIT CARD AND LOAN RECEIVABLES Age of Credit Card and Loan Receivable Accounts (Details) item in Millions, $ in Millions	Sep. 30, 2017USD ($)item	Dec. 31, 2016USD ($)item
Age of Accounts Since Origination
Number of Active Accounts with Balances | item	23.4	25.6
Percentage of Active Accounts with Balances	100.00%	100.00%
Principal Receivables Outstanding | $	$ 15,581.6	$ 15,754
Percentage of Principal Receivables Outstanding	100.00%	100.00%
0-12 Months
Age of Accounts Since Origination
Number of Active Accounts with Balances | item	6.5	7.3
Percentage of Active Accounts with Balances	27.70%	28.50%
Principal Receivables Outstanding | $	$ 3,434.5	$ 3,896.9
Percentage of Principal Receivables Outstanding	22.00%	24.80%
13-24 Months
Age of Accounts Since Origination
Number of Active Accounts with Balances | item	3.8	4.1
Percentage of Active Accounts with Balances	16.40%	15.80%
Principal Receivables Outstanding | $	$ 2,572.5	$ 2,618.2
Percentage of Principal Receivables Outstanding	16.50%	16.60%
25-36 Months
Age of Accounts Since Origination
Number of Active Accounts with Balances | item	2.9	3
Percentage of Active Accounts with Balances	12.50%	11.60%
Principal Receivables Outstanding | $	$ 2,255.4	$ 2,050.8
Percentage of Principal Receivables Outstanding	14.50%	13.00%
37-48 Months
Age of Accounts Since Origination
Number of Active Accounts with Balances | item	2	2
Percentage of Active Accounts with Balances	8.40%	8.00%
Principal Receivables Outstanding | $	$ 1,553	$ 1,436.8
Percentage of Principal Receivables Outstanding	10.00%	9.10%
49-60 Months
Age of Accounts Since Origination
Number of Active Accounts with Balances | item	1.5	1.5
Percentage of Active Accounts with Balances	6.20%	5.90%
Principal Receivables Outstanding | $	$ 1,135.9	$ 1,021.7
Percentage of Principal Receivables Outstanding	7.30%	6.50%
Over 60 Months
Age of Accounts Since Origination
Number of Active Accounts with Balances | item	6.7	7.7
Percentage of Active Accounts with Balances	28.80%	30.20%
Principal Receivables Outstanding | $	$ 4,630.3	$ 4,729.6
Percentage of Principal Receivables Outstanding	29.70%	30.00%

CREDIT CARD AND LOAN RECEIVAB40

CREDIT CARD AND LOAN RECEIVABLES Credit Quality (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Principal Receivables Outstanding	$ 15,581.6		$ 15,754
Percentage of Principal Receivables Outstanding	100.00%		100.00%
Transfer of Financial Assets
Loan receivables originated that have not yet been sold to the client	$ 69.6		$ 67.6
Purchase of loan receivables generated in the program	300.5	$ 259.2
Program receivables	315.7		282.6
No Score
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Principal Receivables Outstanding	$ 120.2		$ 183.8
Percentage of Principal Receivables Outstanding	0.80%		1.20%
27.1% and higher
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Principal Receivables Outstanding	$ 1,296.3		$ 1,168
Percentage of Principal Receivables Outstanding	8.30%		7.40%
17.1% - 27.0%
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Principal Receivables Outstanding	$ 799.8		$ 761.1
Percentage of Principal Receivables Outstanding	5.10%		4.80%
12.6% - 17.0%
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Principal Receivables Outstanding	$ 1,052.3		$ 820.9
Percentage of Principal Receivables Outstanding	6.70%		5.20%
3.7% - 12.5%
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Principal Receivables Outstanding	$ 6,601.5		$ 5,770.8
Percentage of Principal Receivables Outstanding	42.40%		36.60%
1.9% - 3.6%
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Principal Receivables Outstanding	$ 2,741.3		$ 3,444.9
Percentage of Principal Receivables Outstanding	17.60%		21.90%
Lower than 1.9%
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Principal Receivables Outstanding	$ 2,970.2		$ 3,604.5
Percentage of Principal Receivables Outstanding	19.10%		22.90%

CREDIT CARD AND LOAN RECEIVAB41

CREDIT CARD AND LOAN RECEIVABLES Securitized Credit Card Receivables (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)item	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)item	Dec. 31, 2016USD ($)
Portfolio Held For Sale
Carrying value of the credit card portfolios held for sale	$ 819.1		$ 819.1		$ 349.7
Number of credit card portfolios transferred to held for sale | item	5
Carrying value of the credit card portfolios transferred to held for sale	$ 532.5
Reserves for losses of the credit card portfolios transferred to held for sale	20.6		20.6	$ 15
Sale of credit card portfolios				$ 5.9
Portfolio Acquisitions
Number of credit card portfolios acquired | item				4
Purchase price of credit card portfolio		$ 903.4		$ 903.4
Purchase price of credit card receivables portfolio, credit card receivables		823.1		823.1
Purchase price of credit card receivables portfolio, intangible assets		87.7		87.7
Purchase price of credit card receivables portfolio, assumed customer liabilities		7.4		7.4
Securitized Credit Card Receivables
Total credit card receivables - restricted for securitization investors	11,304.4		11,304.4		11,437.1
Principal amount of credit card receivables - restricted for securitization investors, 91 days or more past due	268.7		268.7		$ 236.5
Net charge-offs of securitized principal	$ 179.9	$ 134.6	$ 542.3	$ 423.7

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
INVENTORIES, NET
Inventories	$ 257.1	$ 271.3

OTHER INVESTMENTS (Details)

OTHER INVESTMENTS (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Marketable securities
Amortized Cost	$ 190.7		$ 124.5
Unrealized Gains	0.4		0.2
Unrealized Losses	(1.8)		(2.4)
Fair Value	189.3		122.3
U.S. Treasury bonds
Amortized Cost	50		75
Unrealized Gains	0.1		0.3
Fair Value	50.1		75.3
Other Investments, Total
Amortized Cost	240.7		199.5
Unrealized Gains	0.5		0.5
Unrealized Losses	(1.8)		(2.4)
Fair Value	239.4		197.6
Fair Value, Marketable securities
Less than 12 months	111.1		75.3
12 Months or Greater	41.2		12.4
Total	152.3		87.7
Unrealized Losses, Marketable securities
Less than 12 months	(0.9)		(2)
12 Months or Greater	(0.9)		(0.4)
Total	(1.8)		$ (2.4)
Amortized Cost
Due in one year or less	39.2
Due after one year through five years	28
Due after ten years	173.5
Total	240.7
Fair Value
Due in one year or less	39.1
Due after one year through five years	28.1
Due after ten years	172.2
Fair Value	239.4
Realized gains or losses
Realized gains or losses from the sale of investment securities	$ 0	$ 0

REDEMPTION SETTLEMENT ASSETS (D

REDEMPTION SETTLEMENT ASSETS (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	$ 582.2		$ 324.8
Unrealized Gains			0.4
Unrealized Losses	(6)		(0.8)
Fair Value	576.2		324.4
Fair Value
Less than 12 months	481.7		136.7
12 Months or Greater	19.8
Total	501.5		136.7
Unrealized Losses
Less than 12 months	(5.4)		(0.8)
12 Months or Greater	(0.6)
Total	(6)		(0.8)
Amortized cost of the redemption settlement assets by contractual maturity
Due in one year or less	97.7
Due after one year through five years	413
Total	510.7
Estimated fair value of the redemption settlement assets by contractual maturity
Due in one year or less	97.4
Due after one year through five years	407.3
Total	504.7
Realized gains or losses from the sale of investment securities	0	$ 0
Restricted cash
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	71.5		58.1
Fair Value	71.5		58.1
Mutual funds
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	27.7		25.7
Unrealized Losses	(0.2)		(0.2)
Fair Value	27.5		25.5
Fair Value
Less than 12 months	27.5		25.5
Total	27.5		25.5
Unrealized Losses
Less than 12 months	(0.2)		(0.2)
Total	(0.2)		(0.2)
Corporate bonds
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	483		241
Unrealized Gains			0.4
Unrealized Losses	(5.8)		(0.6)
Fair Value	477.2		240.8
Fair Value
Less than 12 months	454.2		111.2
12 Months or Greater	19.8
Total	474		111.2
Unrealized Losses
Less than 12 months	(5.2)		(0.6)
12 Months or Greater	(0.6)
Total	$ (5.8)		$ (0.6)

INTANGIBLE ASSETS AND GOODWIL45

INTANGIBLE ASSETS AND GOODWILL Finite Lived Assets and Indefinite Lived Assets (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 1,772.7	$ 1,823.8
Accumulated Amortization	(971.7)	(832.9)
Finite lived assets, net	801	990.9
Total Intangible Assets
Gross Assets	1,785.1	1,836.2
Accumulated Amortization	(971.7)	(832.9)
Net	813.4	1,003.3
Tradenames
Indefinite Lived Assets
Indefinite lived assets	12.4	12.4
Customer contracts and lists
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	1,147	1,108.6
Accumulated Amortization	(590.7)	(451.8)
Finite lived assets, net	556.3	656.8
Total Intangible Assets
Accumulated Amortization	$ (590.7)	$ (451.8)
Customer contracts and lists | Minimum
Amortization Life and Method
Useful life	3 years	3 years
Customer contracts and lists | Maximum
Amortization Life and Method
Useful life	12 years	12 years
Premium on purchased credit card portfolios
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 271.8	$ 357.3
Accumulated Amortization	(135.8)	(172.3)
Finite lived assets, net	136	185
Total Intangible Assets
Accumulated Amortization	$ (135.8)	$ (172.3)
Premium on purchased credit card portfolios | Minimum
Amortization Life and Method
Useful life	3 years	3 years
Premium on purchased credit card portfolios | Maximum
Amortization Life and Method
Useful life	13 years	13 years
Customer databases
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 63.6	$ 63.6
Accumulated Amortization	(59.6)	(43.7)
Finite lived assets, net	$ 4	$ 19.9
Amortization Life and Method
Useful life	3 years	3 years
Total Intangible Assets
Accumulated Amortization	$ (59.6)	$ (43.7)
Collector database
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	56.1	52.1
Accumulated Amortization	(53.9)	(49.7)
Finite lived assets, net	$ 2.2	$ 2.4
Amortization Life and Method
Useful life	5 years	30 years
Declining balance (as a percent)		15.00%
Total Intangible Assets
Accumulated Amortization	$ (53.9)	$ (49.7)
Publisher networks
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	140.2	140.2
Accumulated Amortization	(77.5)	(56.8)
Finite lived assets, net	62.7	83.4
Total Intangible Assets
Accumulated Amortization	$ (77.5)	$ (56.8)
Publisher networks | Minimum
Amortization Life and Method
Useful life	5 years	5 years
Publisher networks | Maximum
Amortization Life and Method
Useful life	7 years	7 years
Tradenames
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 76.8	$ 83.5
Accumulated Amortization	(45.2)	(49.4)
Finite lived assets, net	31.6	34.1
Total Intangible Assets
Accumulated Amortization	$ (45.2)	$ (49.4)
Tradenames | Minimum
Amortization Life and Method
Useful life	8 years	3 years
Tradenames | Maximum
Amortization Life and Method
Useful life	15 years	15 years
Purchased data lists
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 11.2	$ 11.6
Accumulated Amortization	(6.1)	(6.2)
Finite lived assets, net	5.1	5.4
Total Intangible Assets
Accumulated Amortization	$ (6.1)	$ (6.2)
Purchased data lists | Minimum
Amortization Life and Method
Useful life	1 year	1 year
Purchased data lists | Maximum
Amortization Life and Method
Useful life	5 years	5 years
Favorable lease
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 6	$ 6.9
Accumulated Amortization	(2.9)	(3)
Finite lived assets, net	3.1	3.9
Total Intangible Assets
Accumulated Amortization	$ (2.9)	$ (3)
Favorable lease | Minimum
Amortization Life and Method
Useful life	6 years	3 years
Favorable lease | Maximum
Amortization Life and Method
Useful life	10 years	10 years

INTANGIBLE ASSETS AND GOODWIL46

INTANGIBLE ASSETS AND GOODWILL Maturity Schedule (Details) $ in Millions	Sep. 30, 2017USD ($)
Estimated amortization expense related to intangible assets for the next five years and thereafter
2017 (excluding the nine months ended September 30, 2017)	$ 65.9
2,018	241.1
2,019	192.6
2,020	128.9
2,021	76.6
Thereafter	$ 95.9

INTANGIBLE ASSETS AND GOODWIL47

INTANGIBLE ASSETS AND GOODWILL Goodwill Information (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Goodwill
Beginning Balance	$ 3,800.7	$ 3,814.1
Effects of foreign currency translation	72.7	(13.4)
Ending Balance	3,873.4	3,800.7
LoyaltyOne
Goodwill
Beginning Balance	653.3	663.5
Effects of foreign currency translation	71.2	(10.2)
Ending Balance	724.5	653.3
Epsilon
Goodwill
Beginning Balance	2,885.7	2,888.9
Effects of foreign currency translation	1.5	(3.2)
Ending Balance	2,887.2	2,885.7
Card Services
Goodwill
Beginning Balance	261.7	261.7
Ending Balance	$ 261.7	$ 261.7

DEBT (Details)

DEBT (Details) € in Millions, $ in Millions	1 Months Ended						9 Months Ended
	Oct. 31, 2017USD ($)	Aug. 31, 2017USD ($)	Jul. 31, 2017USD ($)	Jun. 30, 2017USD ($)	May 31, 2017USD ($)	Mar. 31, 2017EUR (€)	Sep. 30, 2017EUR (€)item	Sep. 30, 2017USD ($)	Sep. 30, 2017USD ($)item	Apr. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Debt
Less: Current portion									$ 538.5			$ 814.5
Long-term and other debt									5,704.1			4,786.9
Less: Current portion									5,823.5			4,673
Long-term portion									4,550.5			3,718.9
Less: Current portion									1,933.5			1,639
Long-term portion									$ 4,932.6			5,316.4
Number of conduit facilities | item							3		3
Brand Loyalty
Debt
Line of credit amount outstanding							€ 23.3		$ 27.5
Uncommitted revolving credit facility | Brand Loyalty
Debt
Maximum borrowing capacity | €							23.3
Line of credit amount outstanding									27.5
Term loans | Brand Loyalty
Debt
Amount borrowed							€ 152.5	$ 180.2
Series 2015-C asset backed term notes
Debt
Retained amount of subordinated class of notes					$ 89.6
Repayment amount					389.6
Series 2017-A asset backed term notes | Master Trust I
Debt
Principal amount of debt					$ 450.7
Series 2017-B asset backed term notes | Master Trust I
Debt
Principal amount of debt		$ 444.7
Series 2012-B asset backed term notes
Debt
Retained amount of subordinated class of notes			$ 108.3
Repayment amount			$ 433.3
Series 2014 C asset backed term notes
Debt
Retained amount of subordinated class of notes	$ 102.6
Principal payments collected during accumulation period								$ 415.6
Repayment amount	427.6
Class A notes | Master Trust I
Debt
Interest Rate (as a percent)		1.98%			2.12%
Principal amount of debt		$ 400			$ 400
Retained amount of subordinated class of notes		$ 44.7			$ 50.7
Total deposits
Debt
Deposits									10,399.8			8,412.2
Less: Unamortized debt issuance costs									25.8			20.3
Less: Current portion									5,823.5			4,673
Long-term portion									4,550.5			3,718.9
Certificates of deposit
Debt
Deposits									7,200.3			5,937.9
Money market deposits
Debt
Money market deposits									3,199.5			2,474.3
Non-recourse borrowings of consolidated securitization entities
Debt
Less: Unamortized debt issuance costs									11.4			12.1
Total non-recourse borrowings of consolidated securitization entities									6,877.5			6,967.5
Less: Current portion									1,933.5			1,639
Long-term portion									4,932.6			5,316.4
Fixed rate asset-backed term note securities
Debt
Total non-recourse borrowings of consolidated securitization entities									$ 4,437.5			4,262.5
Floating rate asset-backed term note securities
Debt
Interest Rate (as a percent)							1.71%		1.71%
Total non-recourse borrowings of consolidated securitization entities									$ 360			360
Conduit asset-backed securities
Debt
Total non-recourse borrowings of consolidated securitization entities									2,080			2,345
Maximum borrowing capacity									2,900
Line of credit amount outstanding									2,100
Conduit facility under Master Trust III
Debt
Maximum borrowing capacity									925	$ 925	$ 900
Conduit facility under Master Trust III | Subsequent event
Debt
Maximum borrowing capacity	$ 1,680
Long-term and other debt
Debt
Total long-term and other debt									6,302.9			5,648.1
Less: Unamortized discount and debt issuance costs									60.3			46.7
Less: Current portion									538.5			814.5
Long-term and other debt									5,704.1			4,786.9
2013 revolving line of credit
Debt
Total long-term and other debt									0			235
2013 Term Loans
Debt
Total long-term and other debt									0			2,837.3
Senior Notes due 2017
Debt
Total long-term and other debt									$ 400			400
Interest Rate (as a percent)							5.25%		5.25%
Senior Notes Due 2020
Debt
Total long-term and other debt									$ 500			500
Interest Rate (as a percent)							6.375%		6.375%
Senior Notes Due 2021
Debt
Total long-term and other debt									$ 500			500
Interest Rate (as a percent)							5.875%		5.875%
Senior Notes Due August 2022
Debt
Total long-term and other debt									$ 600			600
Interest Rate (as a percent)							5.375%		5.375%
Senior Notes Due March 2022
Debt
Total long-term and other debt									$ 472.6
Interest Rate (as a percent)						4.50%	4.50%		4.50%		4.50%
Principal amount of debt | €						€ 400
Redemption price (as a percent)						100.00%
Redemption price for occurrence of change of control (as a percent)						101.00%
Senior Notes Due March 2022 | Prior to March 15, 2019
Debt
Percentage of principal amount that can be redeemed upon occurrence of equity offering						35.00%
Redemption price for occurrence of qualified equity offering (as a percent)						104.50%
Maximum number of days allowed for redemption following equity offering						90 days
Senior Notes Due 2023
Debt
Total long-term and other debt									$ 354.4			315.5
Interest Rate (as a percent)							5.25%		5.25%
Principal amount of debt | €						€ 300
2017 Credit Agreement
Debt
Total availability under Credit Facility									$ 1,347.4
2017 revolving line of credit
Debt
Total long-term and other debt									$ 225
Maximum borrowing capacity				$ 1,572.4
2017 revolving line of credit | LIBOR
Debt
Weighted average interest rate (as a percent)							3.23%		3.23%
2017 Credit Agreement, U.S. sublimit for Canadian Dollar Borrowings
Debt
Maximum borrowing capacity				65
2017 Credit Agreement, sublimit for swing line loans
Debt
Maximum borrowing capacity				65
2017 Credit Agreement, uncommitted accordion feature
Debt
Maximum borrowing capacity				$ 750
2017 Term Loans
Debt
Total long-term and other debt									$ 3,033.5
Aggregate principal payments as a percentage of the initial term loan amount in each of the first and second year payable in equal quarterly installments				2.50%
Aggregate principal payments as a percentage of the initial term loan amount in each of the third, fourth and fifth year of the term loan equal quarterly installments				5.00%
Principal amount of debt									$ 3,052.6
2017 Term Loans | LIBOR
Debt
Weighted average interest rate (as a percent)							3.24%		3.24%
Capital lease obligations and other debt
Debt
Total long-term and other debt									$ 9.7			6
BrandLoyalty credit facility
Debt
Total long-term and other debt									$ 207.7			$ 254.3
Weighted average interest rate (as a percent)							1.10%		1.10%
BrandLoyalty term loans
Debt
Weighted average interest rate (as a percent)							1.65%		1.65%
Minimum | Certificates of deposit
Debt
Interest Rate (as a percent)							0.88%		0.88%
Minimum | Money market deposits
Debt
Interest Rate (as a percent)							1.26%		1.26%
Minimum | Fixed rate asset-backed term note securities
Debt
Interest Rate (as a percent)							1.44%		1.44%
Minimum | Conduit asset-backed securities
Debt
Interest Rate (as a percent)							2.26%		2.26%
Minimum | Capital lease obligations and other debt
Debt
Interest Rate (as a percent)							2.24%		2.24%
Maximum | Certificates of deposit
Debt
Interest Rate (as a percent)							2.80%		2.80%
Maximum | Money market deposits
Debt
Interest Rate (as a percent)							2.37%		2.37%
Maximum | Fixed rate asset-backed term note securities
Debt
Interest Rate (as a percent)							4.55%		4.55%
Maximum | Conduit asset-backed securities
Debt
Interest Rate (as a percent)							2.46%		2.46%
Maximum | Capital lease obligations and other debt
Debt
Interest Rate (as a percent)							3.72%		3.72%

DERIVATIVE INSTRUMENTS Designat

DERIVATIVE INSTRUMENTS Designated and Not Designated Instruments (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Notional amount, fair value and classification of the company's outstanding derivative contracts
Maximum length of time, foreign currency cash flow hedge	12 months
Maximum length of time hedged in cash flow hedge	12 months
Designated as hedging instrument | Foreign currency exchange hedges | Other current assets
Notional amount, fair value and classification of the company's outstanding derivative contracts
Notional Amount	$ 11.3	$ 34.4
Fair Value	0.4	1.2
Designated as hedging instrument | Foreign currency exchange hedges | Other current liabilities
Notional amount, fair value and classification of the company's outstanding derivative contracts
Notional Amount	13.4	27.6
Fair Value	0.5	$ 0.9
Not designated as hedging instrument | Foreign currency exchange forward contracts | Other current assets
Notional amount, fair value and classification of the company's outstanding derivative contracts
Notional Amount	165.4
Fair Value	13.4
Not designated as hedging instrument | Foreign currency exchange forward contracts | Other current liabilities
Notional amount, fair value and classification of the company's outstanding derivative contracts
Notional Amount	66.4
Fair Value	$ 4.1

DERIVATIVE INSTRUMENTS Activity

DERIVATIVE INSTRUMENTS Activity and Location of Outstanding Derivatives (Details) € in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Mar. 31, 2017EUR (€)	Nov. 30, 2015EUR (€)
Activity related to company's outstanding derivative contracts and location
Unrealized gain (loss) on net investment hedges	$ (12)	$ (4.1)	$ (39.4)	$ (11.4)
Gains (losses) related to foreign exchange hedges designated as effective	0.6	(0.6)	(0.3)	(1.9)
Amount expected to be reclassified in the coming 12 months			0.1
Senior Notes Due 2023
Activity related to company's outstanding derivative contracts and location
Principal amount of debt | €					€ 300
Senior Notes Due March 2022
Activity related to company's outstanding derivative contracts and location
Principal amount of debt | €					400
Net investment hedge
Activity related to company's outstanding derivative contracts and location
Ineffectiveness recorded	0	0	0	0
Gains (losses) on derivative instruments	(12)	(4.1)	(39.4)	(11.4)
Net investment hedge | Senior Notes Due 2023
Activity related to company's outstanding derivative contracts and location
Hedged amount | €						€ 300
Net investment hedge | Senior Notes Due March 2022
Activity related to company's outstanding derivative contracts and location
Hedged amount | €					€ 200
Foreign currency exchange forward contracts | General and administrative
Activity related to company's outstanding derivative contracts and location
Gains (losses) on derivative instruments	2.9	0	9.3	(0.1)
Foreign currency exchange hedges
Activity related to company's outstanding derivative contracts and location
Gains (losses) related to foreign exchange hedges designated as effective	$ 0.6	(0.6)	$ (0.3)	(1.9)
Reclassifications out of accumulated other comprehensive income (loss) into net income		0.3		(0.3)
Ineffectiveness recorded		$ 0.1		$ 0.1

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Movement in deferred revenue
Beginning balance	$ 931.5
Cash proceeds	386.6
Revenue recognized	(423.3)
Other	1.1
Effects of foreign currency translation	70.4
Ending balance	966.3
Amounts recognized in the consolidated balance sheets:
Current liabilities	847	$ 788.1
Non-current liabilities	119.3	$ 143.4
Service
Movement in deferred revenue
Beginning balance	297.7
Cash proceeds	135
Revenue recognized	(170.2)
Other	0
Effects of foreign currency translation	21.4
Ending balance	283.9
Amounts recognized in the consolidated balance sheets:
Current liabilities	164.6
Non-current liabilities	119.3
Redemption
Movement in deferred revenue
Beginning balance	633.8
Cash proceeds	251.6
Revenue recognized	(253.1)
Other	1.1
Effects of foreign currency translation	49
Ending balance	682.4
Amounts recognized in the consolidated balance sheets:
Current liabilities	682.4
Non-current liabilities	$ 0

STOCKHOLDERS' EQUITY Stock Repu

STOCKHOLDERS' EQUITY Stock Repurchase Programs (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Jul. 25, 2017	Apr. 17, 2017	Feb. 06, 2017	Apr. 17, 2017	Sep. 30, 2017	Jan. 30, 2017	Jan. 01, 2017
Stock Repurchase Programs
Amount of company's outstanding common stock authorized to be repurchased	$ 1,000						$ 500
Increase to authorized amount under stock repurchase program	$ 500
Number of shares repurchased		0.1	1.4	1.5	2.3
Total cost of shares repurchased					$ 553.7
Unused balance under stock repurchase program					$ 446.3
Accelerated share repurchase agreement						$ 350
Final price paid per share				$ 238.34

STOCKHOLDERS' EQUITY Stock Comp

STOCKHOLDERS' EQUITY Stock Compensation Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense	$ 18.3	$ 18	$ 63.5	$ 59.5
Cost of operations.
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense	13.6	13.2	42.3	43.6
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense	$ 4.7	$ 4.8	$ 21.2	$ 15.9

STOCKHOLDERS' EQUITY Restricted

STOCKHOLDERS' EQUITY Restricted Stock Unit Awards and Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 19, 2017	Sep. 19, 2017	Jul. 20, 2017	Jun. 19, 2017	Apr. 20, 2017	Mar. 17, 2017	Jan. 26, 2017	Sep. 30, 2017	Sep. 30, 2017
Stock Compensation Plans
Dividends declared per share	$ 0.52		$ 0.52		$ 0.52		$ 0.52	$ 0.52	$ 1.56
Dividends paid		$ 28.8		$ 29		$ 29			$ 86.8
Performance-based restricted stock unit awards | Awards with final restrictions lapsing February 2020
Stock Compensation Plans
Shares granted									267,171
Weighted average grant-date fair value (in dollars per share)								230.57	$ 230.57
Percentage of stock units for which restrictions lapse in February 2018									33.00%
Percentage of stock units for which restrictions lapse in February 2019									33.00%
Percentage of stock units for which restrictions lapse on February 2020									34.00%
Performance-based restricted stock unit awards | Awards with final restrictions lapsing February 2019
Stock Compensation Plans
Shares granted									15,140
Weighted average grant-date fair value (in dollars per share)								230.57	$ 230.57
Percentage of stock units for which restrictions lapse in February 2018									50.00%
Percentage of stock units for which restrictions lapse in February 2019									50.00%
Performance-based restricted stock unit awards | Minimum | Awards with final restrictions lapsing February 2020
Stock Compensation Plans
Percentage of stock units to vest									0.00%
Performance-based restricted stock unit awards | Minimum | Awards with final restrictions lapsing February 2019
Stock Compensation Plans
Percentage of stock units to vest									0.00%
Performance-based restricted stock unit awards | Maximum | Awards with final restrictions lapsing February 2020
Stock Compensation Plans
Percentage of stock units to vest									150.00%
Performance-based restricted stock unit awards | Maximum | Awards with final restrictions lapsing February 2019
Stock Compensation Plans
Percentage of stock units to vest									150.00%
Service-based restricted stock unit awards
Stock Compensation Plans
Shares granted									106,015
Weighted average grant-date fair value (in dollars per share)								233.17	$ 233.17
Award vesting period									3 years
Market-based restricted stock unit awards
Stock Compensation Plans
Shares granted									28,172
Weighted average grant-date fair value (in dollars per share)								$ 199.19	$ 199.19
Award vesting period									2 years
Market-based restricted stock unit awards | Minimum
Stock Compensation Plans
Percentage of stock units to vest									0.00%
Market-based restricted stock unit awards | Maximum
Stock Compensation Plans
Percentage of stock units to vest									175.00%

ACCUMULATED OTHER COMPREHENSI55

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income
Balance at the beginning of the period			$ (150.7)
Changes in other comprehensive income (loss)	$ 1.4	$ 0.6	10.5	$ 6.7
Balance at the end of the period	(140.2)		(140.2)
Net Unrealized Gains (Losses) on Securities
Accumulated Other Comprehensive Income
Balance at the beginning of the period	(3.7)	3.6	(1.6)	(0.1)
Changes in other comprehensive income (loss) before reclassifications	(3.1)	0.2	(5.2)	3.9
Changes in other comprehensive income (loss)	(3.1)	0.2	(5.2)	3.9
Balance at the end of the period	(6.8)	3.8	(6.8)	3.8
Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income
Balance at the beginning of the period	(0.5)		0.4	1.3
Changes in other comprehensive income (loss) before reclassifications	0.6	(0.7)	(0.3)	(2.6)
Amounts reclassified from other comprehensive income (loss)		0.1		0.7
Changes in other comprehensive income (loss)	0.6	(0.6)	(0.3)	(1.9)
Balance at the end of the period	0.1	(0.6)	0.1	(0.6)
Unrealized Gains (Losses) on Net Investment Hedges
Accumulated Other Comprehensive Income
Balance at the beginning of the period	(23.3)	(11.1)	4.1	(3.8)
Changes in other comprehensive income (loss) before reclassifications	(12)	(4.1)	(39.4)	(11.4)
Changes in other comprehensive income (loss)	(12)	(4.1)	(39.4)	(11.4)
Balance at the end of the period	(35.3)	(15.2)	(35.3)	(15.2)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income
Balance at the beginning of the period	(114.1)	(123.7)	(153.6)	(134.7)
Changes in other comprehensive income (loss) before reclassifications	15.9	5.1	55.4	16.1
Changes in other comprehensive income (loss)	15.9	5.1	55.4	16.1
Balance at the end of the period	(98.2)	(118.6)	(98.2)	(118.6)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income
Balance at the beginning of the period	(141.6)	(131.2)	(150.7)	(137.3)
Changes in other comprehensive income (loss) before reclassifications	1.4	0.5	10.5	6
Amounts reclassified from other comprehensive income (loss)		0.1		0.7
Changes in other comprehensive income (loss)	1.4	0.6	10.5	6.7
Balance at the end of the period	$ (140.2)	$ (130.6)	$ (140.2)	$ (130.6)

FINANCIAL INSTRUMENTS Fair Valu

FINANCIAL INSTRUMENTS Fair Value of Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financial assets
Credit card and loan receivables, net	$ 15,406	$ 15,595.9
Credit card and loan receivables held for sale	888.7	417.3
Redemption settlement assets, restricted	576.2	324.4
Other investments	239.4	197.6
Financial liabilities
Deposits	10,415.9	8,432.2
Non-recourse borrowings of consolidated securitization entities	6,885.7	6,973.8
Long-term and other debt	6,392	5,641
Carrying Amount
Financial assets
Credit card and loan receivables, net	15,406	15,595.9
Credit card and loan receivables held for sale	888.7	417.3
Redemption settlement assets, restricted	576.2	324.4
Other investments	239.4	197.6
Derivative instruments	13.8	1.2
Financial liabilities
Derivative instruments	4.6	0.9
Deposits	10,374	8,391.9
Non-recourse borrowings of consolidated securitization entities	6,866.1	6,955.4
Long-term and other debt	6,242.6	5,601.4
Fair Value.
Financial assets
Credit card and loan receivables, net	16,214.2	16,423.2
Credit card and loan receivables held for sale	959.5	428.7
Redemption settlement assets, restricted	576.2	324.4
Other investments	239.4	197.6
Derivative instruments	13.8	1.2
Financial liabilities
Derivative instruments	4.6	0.9
Deposits	10,415.9	8,432.2
Non-recourse borrowings of consolidated securitization entities	6,885.7	6,973.8
Long-term and other debt	$ 6,392	$ 5,641

FINANCIAL INSTRUMENTS Fair Va57

FINANCIAL INSTRUMENTS Fair Value Level Disclosure (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Assets disclosed at fair value
Marketable securities	$ 189.3	$ 122.3
U.S. Treasury bonds	50.1	75.3
Total assets measured at fair value	17,173.7	16,851.9
Liabilities disclosed at fair value
Total liabilities measured at fair value	23,693.6	21,047
Level 2
Liabilities disclosed at fair value
Total liabilities measured at fair value	23,693.6	21,047
Level 3
Assets disclosed at fair value
Total assets measured at fair value	17,173.7	16,851.9
Recurring
Assets disclosed at fair value
Mutual funds	27.5	25.5
Corporate bonds	477.2	240.8
Marketable securities	189.3	122.3
U.S. Treasury bonds	50.1	75.3
Derivative instruments	13.8	1.2
Total assets measured at fair value	757.9	465.1
Liabilities disclosed at fair value
Derivative instruments	4.6	0.9
Total liabilities measured at fair value	4.6	0.9
Recurring | Level 1
Assets disclosed at fair value
Mutual funds	27.5	25.5
Marketable securities	10.1	5
U.S. Treasury bonds	50.1	75.3
Total assets measured at fair value	87.7	105.8
Recurring | Level 2
Assets disclosed at fair value
Corporate bonds	477.2	240.8
Marketable securities	179.2	117.3
Derivative instruments	13.8	1.2
Total assets measured at fair value	670.2	359.3
Liabilities disclosed at fair value
Derivative instruments	4.6	0.9
Total liabilities measured at fair value	$ 4.6	$ 0.9

FINANCIAL INSTRUMENTS Significa

FINANCIAL INSTRUMENTS Significant Unobservable Input Information (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016
Changes in fair value of the Company's asset and liability measured on a recurring basis using significant unobservable inputs (Level 3)
Fair value assets amount transfer from level 1 to level 2	$ 0	$ 0
Fair value assets amount transfer from level 2 to level 1	0	0
Fair value liabilities amount transfer from level 1 to level 2	0	0
Fair value liabilities amount transfer from level 2 to level 1	$ 0	$ 0

FINANCIAL INSTRUMENTS Assets an

FINANCIAL INSTRUMENTS Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financial assets
Credit card and loan receivables, net	$ 16,214.2	$ 16,423.2
Credit card and loan receivables held for sale	959.5	428.7
Total assets measured at fair value	17,173.7	16,851.9
Financial liabilities
Deposits	10,415.9	8,432.2
Non-recourse borrowings of consolidated securitization entities	6,885.7	6,973.8
Long-term and other debt	6,392	5,641
Total liabilities measured at fair value	23,693.6	21,047
Level 2
Financial liabilities
Deposits	10,415.9	8,432.2
Non-recourse borrowings of consolidated securitization entities	6,885.7	6,973.8
Long-term and other debt	6,392	5,641
Total liabilities measured at fair value	23,693.6	21,047
Level 3
Financial assets
Credit card and loan receivables, net	16,214.2	16,423.2
Credit card and loan receivables held for sale	959.5	428.7
Total assets measured at fair value	$ 17,173.7	$ 16,851.9

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
INCOME TAXES
Effective tax rate utilized (as a percent)	30.10%	33.60%	33.20%	34.60%

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment information
Revenues	$ 1,912.4	$ 1,885.6	$ 5,613.2	$ 5,310.5
Income (loss) before income taxes	333.6	312.7	774.8	775
Interest expense, net	145.3	108.3	408	310.8
Operating income (loss)	478.9	421	1,182.8	1,085.8
Depreciation and amortization	124.3	126.7	374.5	384.7
Stock compensation expense	18.3	18	63.5	59.5
Adjusted EBITDA	621.5	565.7	1,620.8	1,530
Less: Securitization funding costs	38.2	31.1	109.9	91.5
Less: Interest expense on deposits	33.2	22.6	87.9	60
Less: Adjusted EBITDA attributable to non-controlling interest				5.5
Adjusted EBITDA, net	550.1	512	1,423	1,373
Operating segment | LoyaltyOne
Segment information
Revenues	305.2	383.8	918.3	1,090.7
Income (loss) before income taxes	35.7	56.4	105.6	165.6
Interest expense, net	1.7	1.3	3.8	2
Operating income (loss)	37.4	57.7	109.4	167.6
Depreciation and amortization	21.4	22.1	60.1	65.5
Stock compensation expense	2.2	2.5	6.9	7.7
Adjusted EBITDA	61	82.3	176.4	240.8
Less: Adjusted EBITDA attributable to non-controlling interest				5.5
Adjusted EBITDA, net	61	82.3	176.4	235.3
Operating segment | Epsilon
Segment information
Revenues	558.7	543.2	1,631.8	1,555.3
Income (loss) before income taxes	38.6	48.2	56.9	46.5
Interest expense, net	0.1		0.2
Operating income (loss)	38.7	48.2	57.1	46.5
Depreciation and amortization	77.9	79.5	233.7	246.6
Stock compensation expense	8.4	7.1	26	25.1
Adjusted EBITDA	125	134.8	316.8	318.2
Adjusted EBITDA, net	125	134.8	316.8	318.2
Operating segment | Card Services
Segment information
Revenues	1,055.4	965.8	3,083.6	2,687.1
Income (loss) before income taxes	371.4	304.4	949.3	838.6
Interest expense, net	71.4	53.7	197.8	151.5
Operating income (loss)	442.8	358.1	1,147.1	990.1
Depreciation and amortization	22.9	23	74.8	65.4
Stock compensation expense	3	3.5	9.4	10.9
Adjusted EBITDA	468.7	384.6	1,231.3	1,066.4
Less: Securitization funding costs	38.2	31.1	109.9	91.5
Less: Interest expense on deposits	33.2	22.6	87.9	60
Adjusted EBITDA, net	397.3	330.9	1,033.5	914.9
Corporate/Other
Segment information
Revenues		0.1		0.2
Income (loss) before income taxes	(112.1)	(96.3)	(337)	(275.7)
Interest expense, net	72.1	53.3	206.2	157.3
Operating income (loss)	(40)	(43)	(130.8)	(118.4)
Depreciation and amortization	2.1	2.1	5.9	7.2
Stock compensation expense	4.7	4.9	21.2	15.8
Adjusted EBITDA	(33.2)	(36)	(103.7)	(95.4)
Adjusted EBITDA, net	(33.2)	(36)	(103.7)	(95.4)
Eliminations
Segment information
Revenues	$ (6.9)	$ (7.3)	$ (20.5)	$ (22.8)

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Millions	1 Months Ended
	Oct. 31, 2017USD ($)item	Sep. 30, 2017USD ($)	Apr. 30, 2017USD ($)	Mar. 31, 2017USD ($)
Subsequent event | Signet
Subsequent Events
Preliminary consideration	$ 960.2
Number of employees | item	250
Conduit facility under Master Trust III
Subsequent Events
Maximum borrowing capacity		$ 925	$ 925	$ 900
Conduit facility under Master Trust III | Subsequent event
Subsequent Events
Maximum borrowing capacity	$ 1,680