Investment in Affiliates

6 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investment in Affiliates

Investment in Affiliates

Segment results include the Company’s proportionate share of income from affiliates, which consist of unconsolidated investments accounted for under the equity method of accounting. The most significant of these affiliates are related to the Company’s merchant bank alliance programs.

As of June 30, 2016, the Company had two unconsolidated significant subsidiaries that were not required to be consolidated, but represent more than 20% of the Company’s pretax income. One of the subsidiaries became significant during the second quarter of 2016. Summarized financial information for the affiliates is presented below for the periods presented:

	Three months ended   June 30,				Six months ended   June 30,
(in millions)	2016		2015		2016		2015
Net operating revenues	$	299	$	294	$	580	$	563
Operating expenses	127		128		256		249
Operating income	$	172	$	166	$	324	$	314
Net income	$	172	$	166	$	324	$	315
FDC equity earnings	58		53		112		99