Other assets

6 Months Ended

Jun. 30, 2022

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


Other assets	June 30, 2022		Dec. 31, 2021
(in millions)
Corporate/bank-owned life insurance	$	5,380	$	5,359
Fails to deliver	5,037		1,561
Accounts receivable	4,199		4,178
Software	2,147		2,096
Prepaid pension assets	1,996		1,946
Qualified affordable housing project investments	1,258		1,153
Renewable energy investments	944		1,027
Equity method investments	850		939
Prepaid expense	756		476
Other equity investments (a)	622		449
Income taxes receivable	577		538
Fair value of hedging derivatives	525		206
Federal Reserve Bank stock	476		472
Seed capital (b)	374		357
Assets of consolidated investment management funds	196		462
Other (c)	2,272		1,190
Total other assets	$	27,609	$	22,409

(a) Includes strategic equity, private equity and other investments.

(b) Includes investments in BNY Mellon funds which hedge deferred incentive awards.

(c) At June 30, 2022 and Dec. 31, 2021, other assets include $6 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 revenue on the consolidated income statement. Our non-readily marketable equity securities totaled $424 million at June 30, 2022 and $264 million at Dec. 31, 2021 and are included in other equity 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)	2Q22		1Q22		2Q21		YTD22		YTD21		Life-to-date
Upward adjustments	$	76	$	46	$	6	$	122	$	6	$	280
Downward adjustments	(7)		—		—		(7)		—		(11)
Net adjustments	$	69	$	46	$	6	$	115	$	6	$	269

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 $1.3 billion at June 30, 2022 and $1.2 billion at Dec. 31, 2021. Commitments to fund future investments in qualified affordable housing projects totaled $623 million at June 30, 2022 and $543 million at Dec. 31,

2021 and are recorded in other liabilities on the consolidated balance sheet. A summary of the commitments to fund future investments is as follows: remainder of 2022 – $150 million; 2023 – $205 million; 2024 – $125 million; 2025 – $90 million; 2026 – $21 million; and 2027 and thereafter – $32 million.

Tax credits and other tax benefits recognized were $38 million in the second quarter of 2022, $38 million in the first quarter of 2022, $38 million in the second quarter of 2021, $76 million in the first six months of 2022 and $76 million in the first six months of 2021.

Amortization expense included in the provision for income taxes was $33 million in the second quarter of 2022, $32 million in the first quarter of 2022, $32 million in the second quarter of 2021, $65 million in the first six months of 2022 and $64 million in the first six months of 2021.

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

In our Investment and Wealth Management business segment, 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	June 30, 2022					Dec. 31, 2021
(in millions)	Fair value		Unfunded commitments			Fair value		Unfunded commitments
Seed capital (a)(b)	$	90		$	19	$	101		$	21
Private equity investments (c)	129			62		113			61
Other	4			—		4			—
Total	$	223		$	81	$	218		$	82

(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 June 30, 2022 and Dec. 31, 2021, are liquidated.

(b) Includes investments in funds that relate to deferred compensation arrangements with employees.

(c) 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.