|
Commitments, Contingencies and Guarantees (Tables)
|
3 Months Ended |
|
Mar. 31, 2015
|
| Guarantor Obligations [Line Items] |
|
| Schedule of Lease Commitments |
The Company leases various office space and equipment under capital and non-cancelable operating leases, which expire at various dates through 2028. At the end of the current period, future minimum payments on leases with original terms in excess of one year consist of the following (dollars in millions): | | | | | | | | | | Capitalized Leases | | Operating Leases | 2015 | $ | 1 |
| | $ | 12 |
| 2016 | — |
| | 16 |
| 2017 | — |
| | 14 |
| 2018 | — |
| | 12 |
| 2019 | — |
| | 10 |
| Thereafter | — |
| | 44 |
| Total minimum lease payments | 1 |
| | $ | 108 |
| Less: Amount representing interest | — |
| | | Present value of net minimum lease payments | $ | 1 |
| | | | | | |
|
| Schedule of Settlement Withholdings and Escrow Deposits |
The table below provides information regarding settlement withholdings and escrow deposits, which are recorded in interest-bearing deposit accounts and accrued expenses and other liabilities on the Company’s condensed consolidated statements of financial condition (dollars in millions): | | | | | | | | | | March 31,
2015 | | December 31,
2014 | Settlement withholdings and escrow deposits | $ | 21 |
| | $ | 16 |
| | | | |
|
| Counterparty Settlement Guarantees [Member] |
|
| Guarantor Obligations [Line Items] |
|
| Schedule of Maximum Potential Counterparty Exposures Related to Settlement Guarantees and Merchant Chargeback Guarantee |
While the Company has some contractual remedies to offset these counterparty settlement exposures (such as letters of credit or pledged deposits), in the event that all licensees and/or issuers were to become unable to settle their transactions, the Company estimates its maximum potential counterparty exposures to these settlement guarantees, based on historical transaction volume, would be as follows (dollars in millions): | | | | | | March 31,
2015 | Diners Club: | | Merchant guarantee | $ | 107 |
| PULSE: | | ATM guarantee | $ | 1 |
| | |
|
| Merchant Chargeback Guarantees [Member] |
|
| Guarantor Obligations [Line Items] |
|
| Schedule of Maximum Potential Counterparty Exposures Related to Settlement Guarantees and Merchant Chargeback Guarantee |
The table below summarizes certain information regarding merchant chargeback guarantees (in millions): | | | | | | | | | | For the Three Months Ended March 31, | | 2015 | | 2014 | Aggregate sales transaction volume(1) | $ | 29,498 |
| | $ | 28,154 |
| | | | |
| | (1) | Represents period transactions processed on the Discover Network for which a potential liability exists that, in aggregate, can differ from credit card sales volume. |
|