Other assets

9 Months Ended

Sep. 30, 2021

The following table provides the components of other assets presented on the consolidated balance sheet.


Other assets	Sept. 30, 2021		Dec. 31, 2020
(in millions)
Corporate/bank-owned life insurance	$	5,349	$	5,301
Accounts receivable	4,187		3,619
Fails to deliver	3,531		1,371
Software	1,999		1,884
Prepaid pension assets	1,683		1,556
Equity in a joint venture and other investments	1,409		1,259
Qualified affordable housing project investments	1,104		1,145
Renewable energy investments	1,066		1,206
Income taxes receivable	610		599
Assets of consolidated investment management funds	505		487
Prepaid expense	488		477
Federal Reserve Bank stock	470		479
Seed capital	255		215
Fair value of hedging derivatives	238		19
Other (a)	1,904		1,338
Total other assets	$	24,798	$	20,955

(a) At Sept. 30, 2021 and Dec. 31, 2020, other assets include $7 million and $7 million, respectively, of Federal Home Loan Bank stock, at cost.

Non-readily marketable equity securities

Non-readily marketable equity securities do not have readily determinable fair values. These investments are valued using a measurement alternative where the

investments are carried at cost, less any impairment, and plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The observable price changes are recorded in investment and other income on the consolidated income statement. Our non-readily marketable equity securities totaled $212 million at Sept. 30, 2021 and $129 million at Dec. 31, 2020 and are included in equity in a joint venture and other investments in the table above.

The following table presents the adjustments on the non-readily marketable equity securities.


Adjustments on non-readily marketable equity securities											Life-to-date
(in millions)	3Q21		2Q21		3Q20		YTD21		YTD20		Life-to-date
Upward adjustments	$	55	$	6	$	4	$	61	$	10	$	114
Downward adjustments	—		—		—		—		—		(4)
Net adjustments	$	55	$	6	$	4	$	61	$	10	$	110

Qualified affordable housing project investments

We invest in affordable housing projects primarily to satisfy the Company’s requirements under the Community Reinvestment Act. Our total investment in qualified affordable housing projects totaled $1.1 billion at Sept. 30, 2021 and Dec. 31, 2020. Commitments to fund future investments in qualified affordable housing projects totaled $480 million at Sept. 30, 2021 and $514 million at Dec. 31, 2020 and are recorded in other liabilities on the consolidated balance sheet. A summary of the commitments to

fund future investments is as follows: 2021 – $77 million; 2022 – $163 million; 2023 – $162 million; 2024 – $58 million; 2025 – $2 million; and 2026 and thereafter – $18 million.

Tax credits and other tax benefits recognized were $38 million in the third quarter of 2021, $38 million in the second quarter of 2021, $35 million in the third quarter of 2020, $114 million in the first nine months of 2021 and $111 million in the first nine months of 2020.

Amortization expense included in the provision for income taxes was $32 million in the third quarter of 2021, $32 million in the second quarter of 2021, $30 million in the third quarter of 2020, $96 million in the first nine months of 2021 and $92 million in the first nine months of 2020.

Investments valued using net asset value (“NAV”) per share

In our Investment and Wealth Management business, we make seed capital investments in certain funds we manage. We also hold private equity investments, primarily small business investment companies (“SBICs”), which are compliant with the Volcker Rule, and certain other corporate investments. Seed capital, private equity and other corporate investments are included in other assets on the consolidated balance sheet. The fair value of certain of these investments was estimated using the NAV per share for our ownership interest in the funds.

The table below presents information on our investments valued using NAV.


Investments valued using NAV	Sept. 30, 2021					Dec. 31, 2020
(in millions)	Fair value		Unfunded commitments			Fair value		Unfunded commitments
Seed capital (a)	$	59		$	25	$	52		$	22
Private equity investments (b)	114			61		102			52
Other (c)	46			—		47			—
Total	$	219		$	86	$	201		$	74

(a) Primarily includes leveraged loans and structured credit funds, which are generally not redeemable. Distributions from such investments will be received as the underlying investments in the funds, which have lives of three to 11 years at both Sept. 30, 2021 and Dec. 31, 2020, are liquidated.

(b) Private equity investments primarily include Volcker Rule-compliant investments in SBICs that invest in various sectors of the economy. Private equity investments do not have redemption rights. Distributions from such investments will be received as the underlying investments in the private equity investments, which have a life of 10 years, are liquidated.

(c) Primarily includes investments in funds that relate to deferred compensation arrangements with employees. Investments in funds can be redeemed on a monthly to quarterly basis with redemption notice periods of up to 95 days.