Guarantees

6 Months Ended

Jun. 30, 2016

Guarantees [Abstract]

Guarantees

11. Guarantees

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

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 or indemnifications. The Company’s initial recognition of these instruments is at fair value. In addition, the Company establishes reserves when a loss is probable and the amount can be reasonablyestimated.

The following table provides information related to such guarantees and indemnifications as of June 30, 2016 and December 31, 2015:

	Maximum potential
	undiscounted future
	payments(a)				Related liability(b)
	(Billions)				(Millions)
Type of Guarantee	2016		2015		2016		2015
Return and Merchant Protection	$	44	$	42	$	41	$	49
Other(c)		6		6		44		37
Total	$	50	$	48	$	85	$	86

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