Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

(In millions)									Netting
	Level 1		(a)	Level 2		(a)	Level 3		adjustment		(b)	Net balance
June 30, 2013
Assets
Investment securities
Debt
U.S. corporate	$	0		$	19,197		$	3,207	$	0		$	22,404
State and municipal		0			4,218			98		0			4,316
Residential mortgage-backed		0			2,025			91		0			2,116
Commercial mortgage-backed		0			2,990			5		0			2,995
Asset-backed(c)		0			641			5,346		0			5,987
Corporate ̶ non-U.S.		65			843			1,184		0			2,092
Government ̶ non-U.S.		1,416			834			38		0			2,288
U.S. government and federal agency		0			691			264		0			955
Retained interests		0			0			93		0			93
Equity
Available-for-sale		248			18			11		0			277
Trading		136			2			0		0			138
Derivatives(d)		0			7,660			180		(6,806)			1,034
Other(e)		0			0			438		0			438
Total	$	1,865		$	39,119		$	10,955	$	(6,806)		$	45,133

Liabilities
Derivatives	$	0		$	4,750		$	16	$	(3,934)		$	832
Other		0			22			0		0			22
Total	$	0		$	4,772		$	16	$	(3,934)		$	854

December 31, 2012
Assets
Investment securities
Debt
U.S. corporate	$	0		$	20,580		$	3,552	$	0		$	24,132
State and municipal		0			4,469			77		0			4,546
Residential mortgage-backed		0			2,162			100		0			2,262
Commercial mortgage-backed		0			3,088			6		0			3,094
Asset-backed(c)		0			715			5,023		0			5,738
Corporate ̶ non-U.S.		71			1,132			1,212		0			2,415
Government ̶ non-U.S.		702			1,019			42		0			1,763
U.S. government and federal agency		0			3,288			277		0			3,565
Retained interests		0			0			83		0			83
Equity
Available-for-sale		569			14			13		0			596
Trading		245			0			0		0			245
Derivatives(d)		0			10,934			280		(7,657)			3,557
Other(e)		0			0			432		0			432
Total	$	1,587		$	47,401		$	11,097	$	(7,657)		$	52,428

Liabilities
Derivatives	$	0		$	3,040		$	20	$	(2,908)		$	152
Other		0			23			0		0			23
Total	$	0		$	3,063		$	20	$	(2,908)		$	175

The fair value of securities transferred between Level 1 and Level 2 was $2 million in the six months ended June 30, 2013.
The netting of derivative receivables and payables (including the effects of any collateral posted or received) is permitted when a legally enforceable master netting agreement exists.
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 gain (loss) of $(14) million and $(15) million at June 30, 2013 and December 31, 2012, 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, 2013

																						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,
	2013		earnings		(a)	income		Purchases		Sales		Settlements		Level 3		(b)	Level 3		(b)	2013		2013		(c)

Investment securities
Debt
U.S. corporate	$	3,542	$	7		$	(4)	$	33	$	(341)	$	(45)	$	15		$	0		$	3,207	$	0
State and municipal		90		0			(4)		12		0		0		0			0			98		0
Residential
mortgage-backed		96		0			1		0		(2)		(4)		0			0			91		0
Commercial
mortgage-backed		6		0			0		0		0		(1)		0			0			5		0
Asset-backed		4,916		1			(66)		766		(1)		(263)		0			(7)			5,346		0
Corporate – non-U.S.		1,336		(91)			7		1		0		(25)		0			(44)			1,184		0
Government
– non-U.S.		41		0			(3)		0		0		0		0			0			38		0
U.S. government and
federal agency		264		0			0		0		0		0		0			0			264		0
Retained interests		91		2			6		2		0		(8)		0			0			93		0
Equity
Available-for-sale		11		0			0		0		0		0		0			0			11		0
Derivatives(d)(e)		170		(25)			1		(1)		0		(1)		26			0			170		(27)
Other		409		(100)			4		126		(1)		0		0			0			438		(92)
Total	$	10,972	$	(206)		$	(58)	$	939	$	(345)	$	(347)	$	41		$	(51)		$	10,945	$	(119)

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 $6 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, 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 Six Months Ended June 30, 2013

																						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,
	2013		earnings		(a)	income		Purchases		Sales		Settlements		Level 3		(b)	Level 3		(b)	2013		2013		(c)

Investment securities
Debt
U.S. corporate	$	3,552	$	(251)		$	214	$	94	$	(347)	$	(90)	$	108		$	(73)		$	3,207	$	0
State and municipal		77		0			(4)		16		0		(1)		10			0			98		0
Residential
mortgage-backed		100		0			(2)		0		(2)		(5)		0			0			91		0
Commercial
mortgage-backed		6		0			0		0		0		(1)		0			0			5		0
Asset-backed		5,023		2			(68)		910		(1)		(525)		12			(7)			5,346		0
Corporate – non-U.S.		1,212		(83)			20		127		(3)		(60)		15			(44)			1,184		0
Government
– non-U.S.		42		0			(4)		0		0		0		0			0			38		0
U.S. government and
federal agency		277		0			(13)		0		0		0		0			0			264		0
Retained interests		83		5			16		2		0		(13)		0			0			93		0
Equity
Available-for-sale		13		0			0		0		0		0		0			(2)			11		0
Derivatives(d)(e)		262		(63)			1		(2)		0		(54)		26			0			170		(34)
Other		432		(102)			4		159		(55)		0		0			0			438		(93)
Total	$	11,079	$	(492)		$	164	$	1,306	$	(408)	$	(749)	$	171		$	(126)		$	10,945	$	(127)

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 $6 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.

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, 2013				December 31, 2012
(In millions)	Level 2		Level 3		Level 2		Level 3

Financing receivables and loans held for sale	$	260	$	2,658	$	366	$	4,094
Cost and equity method investments(a)		13		778		8		313
Long-lived assets, including real estate		908		2,284		702		2,182
Total	$	1,181	$	5,720	$	1,076	$	6,589

Includes the fair value of private equity and real estate funds included in Level 3 of $22 million and $84 million at June 30, 2013 and December 31, 2012, 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)	2013		2012		2013		2012

Financing receivables and loans held for sale	$	(102)	$	(105)	$	(212)	$	(211)
Cost and equity method investments(a)		(157)		(38)		(220)		(58)
Long-lived assets, including real estate(b)		(253)		(106)		(593)		(245)
Total	$	(512)	$	(249)	$	(1,025)	$	(514)

Includes fair value adjustments associated with private equity and real estate funds of $(2) million and $(1) million in the three months ended June 30, 2013 and 2012, respectively, and $(5) million and $(2) million in the six months ended June 30, 2013 and 2012, respectively.
Includes impairments related to real estate equity properties and investments recorded in operating and administrative expenses of $(51) million and $(6) million in the three months ended June 30, 2013 and 2012, respectively, and $(274) million and $(56) million in the six months ended June 30, 2013 and 2012, respectively.

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

					Range
	Fair value at		Valuation	Unobservable	(weighted
(Dollars in millions)	June 30, 2013		technique	inputs	average)

Recurring fair value measurements

Investment securities

Debt

U.S. corporate	$	1,308	Income approach	Discount rate(a)	1.5%-38.0% (13.8%)

Asset-backed		5,293	Income approach	Discount rate(a)	2.3%-10.5% (4.8%)

Corporate ̶ non-U.S.		872	Income approach	Discount rate(a)	4.2%-33.4% (15.4%)

Other financial assets		270	Income approach	Weighted average	9.1%-9.2% (9.2%)
				cost of capital

		162	Income approach	Discount rate(a)	3.7%-5.2% (4.3%)

Non-recurring fair value measurements

Financing receivables and loans held for sale	$	1,890	Income approach	Capitalization rate(b)	5.4%-16.7% (8%)

		94	Business enterprise	EBITDA multiple	4.3X-7.0X (5.3X)
			value

Cost and equity method investments		282	Income approach	Discount rate(a)	11.5% (11.5%)

		85	Income approach	Discount for lack	5.7%-5.9% (5.8%)
				of marketability

		20	Income approach	Capitalization rate(b)	7.7%-10.6% (10.2%)

Long-lived assets, including real estate		1,360	Income approach	Capitalization rate(b)	5.4%-14.5% (7.9%)

					Range
	Fair value at		Valuation	Unobservable	(weighted
	December 31, 2012		technique	inputs	average)
Recurring fair value measurements

Investment securities

Debt

U.S. corporate	$	1,652	Income approach	Discount rate(a)	1.3%-29.9% (11.1%)

Asset-backed		4,977	Income approach	Discount rate(a)	2.1%-13.1% (3.8%)

Corporate ̶ non-U.S.		865	Income approach	Discount rate(a)	1.5%-25.0% (13.2%)

Other financial assets		360	Income approach	Weighted average	8.7%-10.2% (8.7%)
				cost of capital

		65	Income approach	Discount rate(a)	4.0%-4.7% (4.4%)

Non-recurring fair value measurements

Financing receivables and loans held for sale	$	2,633	Income approach	Capitalization rate(b)	3.8%-14.0% (8%)

		202	Business enterprise	EBITDA multiple	2.0X-6.0X (4.8X)
			value

Cost and equity method investments		72	Income approach	Capitalization rate(b)	9.2%-12.8% (12%)

Long-lived assets, including real estate		985	Income approach	Capitalization rate(b)	4.8%-14.6% (7.3%)

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 that 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 (loss), 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, issues, 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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