Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Estimated fair value of assets and liabilities


	June 30, 2012						December 31, 2011
			Assets (liabilities)						Assets (liabilities)
	Notional		Carrying		Estimated		Notional		Carrying		Estimated
(In millions)	amount		amount (net)		fair value		amount		amount (net)		fair value
Assets
Loans		(a)	$	238,676	$	239,561		(a)	$	250,999	$	251,433
Other commercial mortgages		(a)		1,510		1,556		(a)		1,494		1,537
Loans held for sale		(a)		903		914		(a)		496		497
Other financial instruments(c)		(a)		1,928		2,449		(a)		2,071		2,534
Liabilities
Borrowings and bank
deposits(b)(d)		(a)		(417,973)		(430,221)		(a)		(443,097)		(449,403)
Investment contract benefits		(a)		(3,411)		(4,192)		(a)		(3,493)		(4,240)
Guaranteed investment contracts		(a)		(1,805)		(1,840)		(a)		(4,226)		(4,266)
Insurance - credit life(e)	$	2,065		(108)		(92)	$	1,944	$	(106)		(88)

These financial instruments do not have notional amounts.
See Note 6.
Principally cost method investments.
Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at June 30, 2012 and December 31, 2011 would have been reduced by $7,700 million and $9,051 million, respectively.
Net of reinsurance of $2,000 million at both June 30, 2012 and December 31, 2011.

Loan commitments

	Notional amount at
	June 30,		December 31,
(In millions)	2012		2011

Ordinary course of business lending commitments(a)	$	3,101	$	3,756
Unused revolving credit lines(b)
Commercial(c)		17,116		18,757
Consumer - principally credit cards		258,648		257,646

Excluded investment commitments of $2,204 million and $2,064 million as of June 30, 2012 and December 31, 2011, respectively.
Excluded inventory financing arrangements, which may be withdrawn at our option, of $12,315 million and $12,354 million as of June 30, 2012 and December 31, 2011, respectively.
Included commitments of $12,705 million and $14,057 million as of June 30, 2012 and December 31, 2011, respectively, associated with secured financing arrangements that could have increased to a maximum of $15,330 million and $17,344 million at June 30, 2012 and December 31, 2011, respectively, based on asset volume under the arrangement.

Fair value of derivatives by contract type

	June 30, 2012				December 31, 2011
	Fair value				Fair value
(In millions)	Assets		Liabilities		Assets		Liabilities

Derivatives accounted for as hedges
Interest rate contracts	$	8,824	$	995	$	9,445	$	1,049
Currency exchange contracts		2,095		1,717		3,720		2,239
Other contracts		0		0		0		0
		10,919		2,712		13,165		3,288

Derivatives not accounted for as hedges
Interest rate contracts		319		188		314		241
Currency exchange contracts		1,112		1,315		1,440		972
Other contracts		63		16		71		22
		1,494		1,519		1,825		1,235

Netting adjustments(a)		(2,922)		(2,900)		(3,009)		(2,998)

Cash collateral(b)(c)		(3,731)		(616)		(2,310)		(1,027)

Total	$	5,760	$	715	$	9,671	$	498

Derivatives are classified in the captions “Other assets” and “Other liabilities” in our financial statements.

The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts included fair value adjustments related to our own and counterparty non-performance risk. At June 30, 2012 and December 31, 2011, the cumulative adjustment for non-performance risk was a loss of $22 million and $11 million, respectively.
Excludes excess cash collateral received of $265 million and $579 million at June 30, 2012 and December 31, 2011, respectively. Excludes excess cash collateral posted of $6 million at June 30, 2012.
Excludes securities pledged to us as collateral of $7,178 million and $10,346 million at June 30, 2012 and December 31, 2011, respectively. Includes excess securities collateral of $1,060 million at June 30, 2012.

Fair value hedges

	Three months ended June 30,
		2012				2011
(In millions)		Gain (loss)		Gain (loss)		Gain (loss)		Gain (loss)
		on hedging		on hedged		on hedging		on hedged
		derivatives		items		derivatives		items

Interest rate contracts	$	2,232	$	(2,312)	$	1,341	$	(1,466)
Currency exchange contracts		(164)		162		15		(20)

Fair value hedges resulted in $(82) million and $(130) million of ineffectiveness in the three months ended June 30, 2012 and 2011, respectively. In both the three months ended June 30, 2012 and 2011, there were insignificant amounts excluded from the assessment of effectiveness.

	Six months ended June 30,
		2012				2011
(In millions)		Gain (loss)		Gain (loss)		Gain (loss)		Gain (loss)
		on hedging		on hedged		on hedging		on hedged
		derivatives		items		derivatives		items

Interest rate contracts	$	785	$	(962)	$	(390)	$	195
Currency exchange contracts		(212)		202		39		(47)

Fair value hedges resulted in $(187) million and $(203) million of ineffectiveness in the six months ended June 30, 2012 and 2011, respectively. In both the six months ended June 30, 2012 and 2011, there were insignificant amounts excluded from the assessment of effectiveness.

Cash flow hedges

					Gain (loss) reclassified
	Gain (loss) recognized in AOCI				from AOCI into earnings
	for the three months ended June 30,				for the three months ended June 30,
	2012		2011		2012		2011
(In millions)

Cash flow hedges
Interest rate contracts	$	(52)	$	(141)	$	(124)	$	(220)
Currency exchange contracts		(489)		485		(410)		445
Commodity contracts		0		0		0		11
Total	$	(541)	$	344	$	(534)	$	236

					Gain (loss) reclassified
	Gain (loss) recognized in AOCI				from AOCI into earnings
	for the six months ended June 30,				for the six months ended June 30,
	2012		2011		2012		2011
(In millions)

Cash flow hedges
Interest rate contracts	$	(79)	$	(117)	$	(264)	$	(476)
Currency exchange contracts		(347)		662		(336)		864
Commodity contracts		0		0		0		0
Total	$	(426)	$	545	$	(600)	$	388

The total pre-tax amount in AOCI related to cash flow hedges of forecasted transactions was a $1,187 million loss at June 30, 2012. We expect to transfer $487 million to earnings as an expense in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. In both the three and six months ended June 30, 2012 and 2011, we recognized insignificant gains and losses, respectively, related to hedged forecasted transactions and firm commitments that did not occur by the end of the originally specified period. At June 30, 2012 and 2011, the maximum term of derivative instruments that hedge forecasted transactions was 20 years and 21 years, respectively.

Net investment hedges

	Gain (loss) recognized				Gain (loss) reclassified
	in CTA for the				from CTA for the
	three months ended June 30,				three months ended June 30,
(In millions)	2012		2011		2012		2011

Net investment hedges
Currency exchange contracts	$	1,853	$	(2,605)	$	(2)	$	(360)

	Gain (loss) recognized				Gain (loss) reclassified
	in CTA for the				from CTA for the
	six months ended June 30,				six months ended June 30,
(In millions)	2012		2011		2012		2011

Net investment hedges
Currency exchange contracts	$	351	$	(3,406)	$	(12)	$	(698)