S-1/A Table of Contrail The majority of the TeleCheck business involves the guarantee of checks received by merchants. If the chock is returned. TeleCheck is required to purchase the cheek from the merchant at its face value and pursue collection from the check writer. A provision for estimated chock returns. net of anticipated recoveries, is nxorded at the transaction inception basal on recent history. The following table presents the accrued warranty and =oven balances: As of December 31, (In nillIons) 2014 2013 Accrued warranty balances $ 9 $ 9 Accrued recovery balances 25 27 We establish an incremental liability (and deferred revenue) for the fair value of the check guarantee. The liability is relieved and revenue is recognized when the check clears, is presented to TeleCheck, or the guarantee period expires. The majority of the guarantees arc settled within 30 days. The incremental liability was approximately $1 million as of December 31. 2014 and 2013. The following table details the check guarantees of TeleCheck. Year ended December 31, 2014 2013 2012 Aggregate face value of guaranteed checks (in billions) S 36 S 39 $ 43 Aggregate amount of checks presented for warranty (in millions) 253 285 319 Warranty losses net of recoveries (in millions) 67 66 76 The maximum potential future payments wider the guarantees were estimated by us to be approximately $1.2 billion as of December 31, 2014 which represented an estimate of the total uncleared checks at that time. Income taxes. The determination of our provision for income taxes requires management's judgment in the use of estimates and the interpretation and application of complex tax laws. Judgment is also required in acct sing the timing and amounts of deductible and taxable items. We establish contingency reserves for material. known tax exposures relating to deductions. transactions, and other matters involving some uncertainty as to the proper tax treatment of the it