NOTE 11
Other Liabilities
The following is a summary of other liabilities as of December 31:
| (Millions) | 2013 | 2012 | ||||
| Membership Rewards liability | $ | 6,151 | $ | 5,832 | ||
| Employee-related liabilities(a) | 2,227 | 2,224 | ||||
| Rebate and reward accruals(b) | 2,210 | 2,079 | ||||
| Deferred card and other fees, net | 1,314 | 1,286 | ||||
| Book overdraft balances | 442 | 532 | ||||
| Other(c) | 4,566 | 5,604 | ||||
| Total | $ | 16,910 | $ | 17,557 | ||
Membership Rewards
The Membership Rewards program allows enrolled Card Members to earn points that can be redeemed for a broad range of rewards including travel, entertainment, retail certificates and merchandise. The Company records a balance sheet liability that represents management's best estimate of the cost of points earned that are expected to be redeemed. An ultimate redemption rate and weighted average cost per point are key factors used to approximate Membership Rewards liability. Management uses statistical and actuarial models to estimate ultimate redemption rates based on redemption trends, current enrollee redemption behavior, card product type, enrollment tenure, card spend levels and credit attributes. The weighted-average cost per point is determined using actual redemptions during the previous 12 months, adjusted as appropriate for certain changes in redemption costs that are not representative of future cost expectations.
The expense for Membership Rewards points is included in marketing, promotion, rewards and Card Member services expenses. The Company periodically evaluates its liability estimation process and assumptions based on developments in redemption patterns, cost per point redeemed, partner contract changes and other factors.
Deferred Card and Other Fees, Net
The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations as of December 31 was as follows:
| (Millions) | 2013 | 2012 | |||||
| Deferred card and other fees(a) | $ | 1,609 | $ | 1,566 | |||
| Deferred direct acquisition costs | (164) | (154) | |||||
| Reserves for membership cancellations | (131) | (126) | |||||
| Deferred card and other fees, net | $ | 1,314 | $ | 1,286 | |||