Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

(In millions)									Netting
	Level 1		(a)	Level 2		(a)	Level 3		adjustment		(b)	Net balance
June 30, 2012
Assets
Investment securities
Debt
U.S. corporate	$	0		$	21,298		$	3,372	$	0		$	24,670
State and municipal		0			3,688			81		0			3,769
Residential mortgage-backed		0			2,340			97		0			2,437
Commercial mortgage-backed		0			3,051			0		0			3,051
Asset-backed(c)		0			825			4,304		0			5,129
Corporate - non-U.S.		72			1,129			1,363		0			2,564
Government - non-U.S.		874			974			51		0			1,899
U.S. government and federal agency		0			3,241			261		0			3,502
Retained interests		0			0			31		0			31
Equity
Available-for-sale		566			14			14		0			594
Trading		260			0			0		0			260
Derivatives(d)		0			12,265			148		(6,653)			5,760
Other(e)		0			0			409		0			409
Total	$	1,772		$	48,825		$	10,131	$	(6,653)		$	54,075

Liabilities
Derivatives	$	0		$	4,217		$	14	$	(3,516)		$	715
Other		0			23			0		0			23
Total	$	0		$	4,240		$	14	$	(3,516)		$	738

December 31, 2011
Assets
Investment securities
Debt
U.S. corporate	$	0		$	20,535		$	3,235	$	0		$	23,770
State and municipal		0			3,157			77		0			3,234
Residential mortgage-backed		0			2,568			41		0			2,609
Commercial mortgage-backed		0			2,824			4		0			2,828
Asset-backed(c)		0			930			4,040		0			4,970
Corporate - non-U.S.		71			1,058			1,204		0			2,333
Government - non-U.S.		1,003			1,444			84		0			2,531
U.S. government and federal agency		0			3,805			253		0			4,058
Retained interests		0			0			35		0			35
Equity
Available-for-sale		715			18			17		0			750
Trading		241			0			0		0			241
Derivatives(d)		0			14,830			160		(5,319)			9,671
Other(e)		0			0			388		0			388
Total	$	2,030		$	51,169		$	9,538	$	(5,319)		$	57,418

Liabilities
Derivatives	$	0		$	4,503		$	20	$	(4,025)		$	498
Other		0			25			0		0			25
Total	$	0		$	4,528		$	20	$	(4,025)		$	523

There were no securities transferred between Level 1 and Level 2 during the six months ended June 30, 2012.
The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists and when collateral is posted to us.
Includes investments in our CLL business in asset-backed securities collateralized by senior secured loans of high-quality, middle-market companies in a variety of industries.
The fair value of derivatives included an adjustment for non-performance risk. The cumulative adjustment was a loss of $22 million and $11 million at June 30, 2012 and December 31, 2011, respectively. See Note 11 for additional information on the composition of our derivative portfolio.
Included private equity investments and loans designated under the fair value option.

Changes in level 3 instruments

Changes in Level 3 Instruments for the Three Months Ended June 30, 2012

																						Net
(In millions)																						change in
						Net realized/																unrealized
			Net			unrealized																gains
			realized/			gains (losses)																(losses)
			unrealized			included in																relating to
			gains			accumulated																instruments
	Balance at		(losses)			other								Transfers			Transfers			Balance at		still held at
	April 1,		included in			comprehensive								into			out of			June 30,		June 30,
	2012		earnings		(a)	income		Purchases		Sales		Settlements		Level 3		(b)	Level 3		(b)	2012		2012		(c)

Investment securities
Debt
U.S. corporate	$	3,251	$	33		$	(71)	$	119	$	(40)	$	(31)	$	116		$	(5)		$	3,372	$	0
State and municipal		79		0			1		1		0		0		0			0			81		0
Residential
mortgage-backed		107		0			0		0		0		(2)		1			(9)			97		0
Commercial
mortgage-backed		1		0			0		0		(1)		0		0			0			0		0
Asset-backed		4,404		7			(89)		57		(75)		0		0			0			4,304		0
Corporate – non-U.S.		1,249		(3)			(63)		306		0		(52)		9			(83)			1,363		0
Government
– non-U.S.		52		0			0		13		(1)		(13)		0			0			51		0
U.S. government and
federal agency		260		0			1		0		0		0		0			0			261		0
Retained interests		34		0			(4)		4		(2)		(1)		0			0			31		0
Equity
Available-for-sale		15		0			(1)		3		(4)		1		0			0			14		0
Derivatives(d)(e)		117		21			(2)		20		(3)		(13)		0			(4)			136		30
Other		390		2			(13)		34		(4)		0		0			0			409		(1)
Total	$	9,959	$	60		$	(241)	$	557	$	(130)	$	(111)	$	126		$	(101)		$	10,119	$	29

Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Condensed Statement of Earnings.
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
Represented the amount of unrealized gains or losses for the period included in earnings.
Represented derivative assets net of derivative liabilities and included cash accruals of $2 million not reflected in the fair value hierarchy table.
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 11.

Changes in Level 3 Instruments for the Three Months Ended June 30, 2011

																						Net
(In millions)																						change in
						Net realized/																unrealized
			Net			unrealized																gains
			realized/			gains (losses)																(losses)
			unrealized			included in																relating to
			gains			accumulated																instruments
	Balance at		(losses)			other								Transfers			Transfers			Balance at		still held at
	April 1,		included in			comprehensive								into			out of			June 30,		June 30,
	2011		earnings		(a)	income		Purchases		Sales		Settlements		Level 3		(b)	Level 3		(b)	2011		2011		(c)

Investment securities
Debt
U.S. corporate	$	3,119	$	14		$	3	$	30	$	(41)	$	(29)	$	0		$	0		$	3,096	$	0
State and municipal		210		0			0		0		0		(1)		0			0			209		0
Residential
mortgage-backed		118		0			(2)		1		0		0		0			(72)			45		0
Commercial
mortgage-backed		11		0			1		(1)		0		0		0			(4)			7		0
Asset-backed		2,826		(3)			(19)		409		(43)		(1)		0			(37)			3,132		0
Corporate – non-U.S.		1,479		(1)			28		0		0		(31)		62			0			1,537		0
Government
– non-U.S.		162		(16)			8		13		0		0		107			0			274		0
U.S. government and
federal agency		201		0			23		0		0		0		0			0			224		0
Retained interests		52		1			(4)		0		(2)		(2)		0			0			45		0
Equity
Available-for-sale		21		0			1		0		0		0		0			0			22		0
Derivatives(d)(e)		75		37			0		1		0		(2)		0			0			111		12
Other		472		3			11		114		0		(5)		0			0			595		1
Total	$	8,746	$	35		$	50	$	567	$	(86)	$	(71)	$	169		$	(113)		$	9,297	$	13

Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Condensed Statement of Earnings.
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
Represented the amount of unrealized gains or losses for the period included in earnings.
Represented derivative assets net of derivative liabilities and included cash accruals of $1 million not reflected in the fair value hierarchy table.
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 11.

Changes in Level 3 Instruments for the Six Months Ended June 30, 2012

																						Net
(In millions)																						change in
						Net realized/																unrealized
			Net			unrealized																gains
			realized/			gains (losses)																(losses)
			unrealized			included in																relating to
			gains			accumulated																instruments
	Balance at		(losses)			other								Transfers			Transfers			Balance at		still held at
	January 1,		included in			comprehensive								into			out of			June 30,		June 30,
	2012		earnings		(a)	income		Purchases		Sales		Settlements		Level 3		(b)	Level 3		(b)	2012		2012		(c)

Investment securities
Debt
U.S. corporate	$	3,235	$	59		$	(34)	$	132	$	(71)	$	(47)	$	116		$	(18)		$	3,372	$	0
State and municipal		77		0			3		1		0		0		0			0			81		0
Residential
mortgage-backed		41		(3)			3		0		0		(3)		69			(10)			97		0
Commercial
mortgage-backed		4		0			0		0		(1)		0		0			(3)			0		0
Asset-backed		4,040		3			(47)		398		(106)		0		16			0			4,304		0
Corporate – non-U.S.		1,204		(12)			(3)		316		0		(78)		23			(87)			1,363		0
Government
– non-U.S.		84		(34)			35		65		(72)		(27)		0			0			51		0
U.S. government and
federal agency		253		0			8		0		0		0		0			0			261		0
Retained interests		35		0			(8)		9		(3)		(2)		0			0			31		0
Equity
Available-for-sale		17		0			(2)		3		(4)		0		0			0			14		0
Derivatives(d)(e)		141		(4)			(1)		20		(3)		(13)		0			(4)			136		1
Other		388		4			(13)		34		(4)		0		0			0			409		1
Total	$	9,519	$	13		$	(59)	$	978	$	(264)	$	(170)	$	224		$	(122)		$	10,119	$	2

Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Condensed Statement of Earnings.
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
Represented the amount of unrealized gains or losses for the period included in earnings.
Represented derivative assets net of derivative liabilities and included cash accruals of $2 million not reflected in the fair value hierarchy table.
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 11.

Changes in Level 3 Instruments for the Six Months Ended June 30, 2011

																						Net
(In millions)																						change in
						Net realized/																unrealized
			Net			unrealized																gains
			realized/			gains (losses)																(losses)
			unrealized			included in																relating to
			gains			accumulated																instruments
	Balance at		(losses)			other								Transfers			Transfers			Balance at		still held at
	January 1,		included in			comprehensive								into			out of			June 30,		June 30,
	2011		earnings		(a)	income		Purchases		Sales		Settlements		Level 3		(b)	Level 3		(b)	2011		2011		(c)

Investment securities
Debt
U.S. corporate	$	3,198	$	101		$	(20)	$	75	$	(155)	$	(103)	$	0		$	0		$	3,096	$	0
State and municipal		225		0			(5)		4		0		(4)		0			(11)			209		0
Residential
mortgage-backed		66		0			1		2		(4)		(1)		71			(90)			45		0
Commercial
mortgage-backed		49		0			1		6		0		0		3			(52)			7		0
Asset-backed		2,540		0			55		780		(152)		(11)		1			(81)			3,132		0
Corporate – non-U.S.		1,486		(28)			82		12		(28)		(60)		73			0			1,537		0
Government
– non-U.S.		156		(16)			14		13		0		0		107			0			274		0
U.S. government and
federal agency		210		0			14		0		0		0		0			0			224		0
Retained interests		39		(18)			30		0		(3)		(3)		0			0			45		0
Equity
Available-for-sale		24		0			0		0		0		0		1			(3)			22		0
Derivatives(d)(e)		227		55			4		5		0		(186)		0			6			111		32
Other		450		3			28		119		0		(5)		0			0			595		1
Total	$	8,670	$	97		$	204	$	1,016	$	(342)	$	(373)	$	256		$	(231)		$	9,297	$	33

Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Condensed Statement of Earnings.
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
Represented the amount of unrealized gains or losses for the period included in earnings.
Represented derivative assets net of derivative liabilities and included cash accruals of $1 million not reflected in the fair value hierarchy table.
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 11.

Non-recurring fair value amounts (as measured at the time of the adjustment) for those assets remeasured to fair value on a non-recurring basis


	Remeasured during				Remeasured during
	the six months ended				the year ended
	June 30, 2012				December 31, 2011
(In millions)	Level 2		Level 3		Level 2		Level 3

Financing receivables and loans held for sale	$	171	$	2,731	$	158	$	5,159
Cost and equity method investments(a)		0		266		0		402
Long-lived assets, including real estate		326		2,014		1,343		3,254
Total	$	497	$	5,011	$	1,501	$	8,815

Includes the fair value of private equity and real estate funds included in Level 3 of $57 million and $123 million at June 30, 2012 and December 31, 2011, respectively.

Significant Unobservable Inputs Used For Level Three Recurring And Nonrecurring Measurements [Table Text Block]


	Three months ended June 30,				Six months ended June 30,
(In millions)	2012		2011		2012		2011

Financing receivables and loans held for sale	$	(105)	$	(263)	$	(211)	$	(570)
Cost and equity method investments(a)		(38)		(127)		(58)		(174)
Long-lived assets, including real estate(b)		(107)		(342)		(247)		(861)
Total	$	(250)	$	(732)	$	(516)	$	(1,605)

Includes fair value adjustments associated with private equity and real estate funds of $(1) million and $ (8) million in the three months ended June 30, 2012 and 2011, respectively, and $(2) million and $ (13) million in the six months ended June 30, 2012 and 2011, respectively.
Includes impairments related to real estate equity properties and investments recorded in operating and administrative expenses of $6 million and $339 million in the three months ended June 30, 2012 and 2011, respectively, and $56 million and $776 million in the six months ended June 30, 2012 and 2011, respectively.

Fair value adjustments to assets measured on a non-recurring basis


	Fair value at					Range
	June 30,		Valuation	Unobservable		(weighted
(Dollars in millions)	2012		technique	inputs		average)

Recurring fair value measurements

Investment securities

Debt

U.S. corporate	$	1,547	Income approach	Discount rate	(a)	2.0%-24.9% (10.6%)

Asset-backed		4,259	Income approach	Discount rate	(a)	1.6%-13.3% (4.2%)

Corporate Non-U.S.		912	Income approach	Discount rate	(a)	1.3%-30.2% (8.3%)

Other financial assets		367	Market comparables	Weighted average		7.6X-8.3X (8.3X)
				cost of capital
Non-recurring fair value measurements

Financing receivables and loans held for sale	$	1,828	Income approach	Capitalization rate	(b)	5.4%-11.5% (8.2%)

Cost and equity method investments		119	Income approach	Capitalization rate	(b)	7.0%-9.3% (8.3%)

Long-lived assets, including real estate		441	Income approach	Capitalization rate	(b)	4.8%-11.0% (7.4%)

Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value.
Represents the rate of return on net operating income which is considered acceptable for an investor and is used to determine a property's capitalized value. An increase in the capitalization rate would result in a decrease in the fair value.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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