Guarantees

9 Months Ended

Sep. 30, 2014

Guarantees [Abstract]

Guarantees

10. Guarantees

The Company provides Card Member protection plans that cover losses associated with purchased products, as well as certain other guarantees in the ordinary course of business.

In relation to its maximum potential undiscounted future payments as shown in the table that follows, to date the Company has not experienced any significant losses related to guarantees. The Company’s initial recognition of guarantees is at fair value. In addition, the Company establishes reserves when a loss is probable and the amount can be reasonably estimated.

The following table provides information related to such guarantees as of September 30, 2014 and December 31, 2013:

	Maximum potential
	undiscounted future
	payments(a)				Related liability(b)
	(Billions)				(Millions)
Type of Guarantee	2014		2013		2014		2013
Card and travel operations(c)	$	44	$	44	$	43	$	88
Other(d)		1		1		71		73
Total	$	45	$	45	$	114	$	161

• Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed parties. The maximum potential undiscounted future payments for Merchant Protection are measured using management’s best estimate of maximum exposure based on all eligible claims in relation to annual billed business volumes.
• Included in other liabilities on the Company’s Consolidated Balance Sheets.
• Primarily includes Return Protection and Merchant Protection.
• Primarily includes guarantees related to the Company’s business dispositions, real estate and joint ventures.