$301 million, which management believes to be adequate based on actual experience. The company has no collateral or other recourse provisions related to these guarantees. Expenses relating to claims under these guarantees did not exceed $60 million in 2002. The company, through its AEB operating segment, provides various guarantees to its customers in the ordinary course of busi- ness, including financial letters of credit, performance guarantees and financial guarantees, among others. Generally, guaran- tees range in term from three months to one year. AEB receives a fee related to most of these guarantees, many of which help to facilitate customer cross-border transactions. Virtually all of these guarantees are collateralized or supported by other types of recourse provisions (i.e., pledged assets, primarily comprised of cash and time deposits, and counter-guarantees). The following table provides information related to such guarantees as of December 31, 2002; such information is also reflected in Note 10. The following table discloses fair value information for financial instruments. Certain items, such as life insurance obligations, employee benefit obligations and investments accounted for under the equity method are excluded. The fair values of financial instruments are estimates based upon market conditions and perceived risks at December 31, 2002 and 2001 and require man- agement judgment. These figures may not be indicative of their future fair values. Note 12 FAIR VALUES OF FINANCIAL INSTRUMENTS December 31, (Millions) 2002 2001 Carrying Value Fair Value Carrying Value Fair Value Financial Assets Assets for which carrying values approximate fair values $ 64,855 $ 64,855 $ 67,404 $ 67,404 Investments $ 53,638 $ 54,062 $ 46,488 $ 46,659 Loans $ 28,398  $ 28,478 $ 26,789 $ 25,441 Financial Liabilities Liabilities for which carrying values approximate fair values $ 59,600 $ 59,600 $ 65,190 $ 65,190 Fixed annuity reserves $ 21,911 $ 21,283 $ 18,139 $ 17,672 Investment certificate reserves $ 8,647 $ 8,673 $ 8,205 $ 8,223 Long-term debt $ 16,308 $ 16,571 $ 7,788 $ 7,851 Separate account liabilities $ 19,392 $ 18,539 $ 24,280 $ 23,717 Financial Assets The carrying and fair values of off-balance sheet financial instruments discussed in Note 10 are not material as of December 31, 2002 and 2001. See Note 2 for carrying and fair value information regarding investments. The following methods were used to estimate the fair values of financial assets and financial liabilities: Assets for which carrying values approximate fair values include cash and cash equivalents, accounts receivable and accrued interest, separate account assets, certain other assets and derivative financial instruments. Generally, investments are carried at fair value on the Consolidated Balance Sheets. Gains and losses are recognized in the results of operations upon disposition of the securities. In addition, losses are recognized when management determines that a decline in value is other-than-temporary. I 73 AXP I NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Millions) Maximum amount  of undiscounted Amount of related Type of Guarantee future payments liability at 12/31/02 Financial letters of credit $ 249 $ 0.2 Performance guarantees 124 0.2 Financial guarantees 553 0.1 Total $ 926 $ 0.5