
3.	CASH AND MONEY MARKET INVESTMENTS

Effective January 1, 2013, we adopted ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which limited the scope of ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. This new guidance under ASC 210, Balance Sheet, applies to the offsetting of derivatives (including bifurcated embedded derivatives), repurchase agreements and reverse repurchase (or resell) agreements, and securities borrowing and lending transactions. To provide convergence with disclosures under International Financial Reporting Standards (“IFRS”), the new guidance requires entities to present both gross and net information about these financial instruments, including those subject to a master netting arrangement. The change in disclosure is required on a retrospective basis for all prior periods presented.

Security resell and repurchase agreements are offset in the balance sheet according to master netting agreements. Derivative instruments may be offset under their master netting agreements; however, for accounting purposes, we present these items on a gross basis in the Company’s balance sheet. See Note 6 for further information regarding derivative instruments.

Gross and net information for selected financial instruments in the balance sheet is as follows:



	September 30, 2013
(In thousands)							Gross amounts not offset in the balance sheet
Description	Gross amounts recognized		Gross amounts offset in the balance sheet		Net amounts presented in the balance sheet		Financial instruments			Cash collateral received/pledged			Net amount

Assets:
Federal funds sold and security resell agreements	$	209,070	$	—	$	209,070	$	—		$	—		$	209,070
Derivatives (included in other assets)	55,568		—		55,568		(8,282		)	—			47,286
	$	264,638	$	—	$	264,638	$	(8,282	)	$	—		$	256,356

Liabilities:
Federal funds purchased and security repurchase agreements	$	252,591	$	—	$	252,591	$	—		$	—		$	252,591
Derivatives (included in other liabilities)	59,914		—		59,914		(8,282		)	(37,232		)	14,400
	$	312,505	$	—	$	312,505	$	(8,282	)	$	(37,232	)	$	266,991



	December 31, 2012
(In thousands)								Gross amounts not offset in the balance sheet
Description	Gross amounts recognized		Gross amounts offset in the balance sheet			Net amounts presented in the balance sheet		Financial instruments			Cash collateral received/pledged			Net amount

Assets:
Federal funds sold and security resell agreements	$	3,675,354	$	(900,000	)	$	2,775,354	$	—		$	—		$	2,775,354
Derivatives (included in other assets)	81,810		—			81,810		(409		)	—			81,401
	$	3,757,164	$	(900,000	)	$	2,857,164	$	(409	)	$	—		$	2,856,755

Liabilities:
Federal funds purchased and security repurchase agreements	$	1,220,478	$	(900,000	)	$	320,478	$	—		$	—		$	320,478
Derivatives (included in other liabilities)	89,100		—			89,100		(409		)	(81,683		)	7,008
	$	1,309,578	$	(900,000	)	$	409,578	$	(409	)	$	(81,683	)	$	327,486