The following tables provide information on the Company’s netting adjustments, and items not offset in the Consolidated Balance Sheet but available for offset in the event of default:


	Gross Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
(Dollars in Millions)	Gross Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts Presented in the Consolidated Balance Sheet		Financial Instruments (a)			Collateral Received (b)			Net Amount
March 31, 2013
Derivative assets (c)	$	1,596	$	(515	)	$	1,081	$	(27	)	$	–		$	1,054
Reverse repurchase agreements		44		–			44		(31	)		(13	)		–
Securities borrowed		628		–			628		–			(609	)		19

Total	$	2,268	$	(515	)	$	1,753	$	(58	)	$	(622	)	$	1,073
December 31, 2012
Derivative assets (c)	$	1,546	$	(418	)	$	1,128	$	(31	)	$	–		$	1,097
Reverse repurchase agreements		363		–			363		(44	)		(319	)		–
Securities borrowed		368		–			368		–			(356	)		12

Total	$	2,277	$	(418	)	$	1,859	$	(75	)	$	(675	)	$	1,109

(a)

For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default.

(b)

Includes the fair value of securities received by the Company from the counterparty. These securities are not included in the Consolidated Balance Sheet unless the counterparty defaults.

(c)

Excludes $160 million and $260 million of derivative assets not subject to netting arrangements at March 31, 2013 and December 31, 2012, respectively.


	Gross Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
(Dollars in Millions)	Gross Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts Presented in the Consolidated Balance Sheet		Financial Instruments (a)			Collateral Pledged (b)			Net Amount
March 31, 2013
Derivative liabilities (c)	$	2,131	$	(1,472	)	$	659	$	(27	)	$	–		$	632
Repurchase agreements		2,392		–			2,392		(31	)		(2,361	)		–
Securities loaned		–		–			–		–			–			–

Total	$	4,523	$	(1,472	)	$	3,051	$	(58	)	$	(2,361	)	$	632
December 31, 2012
Derivative liabilities (c)	$	2,178	$	(1,549	)	$	629	$	(31	)	$	–		$	598
Repurchase agreements		3,389		–			3,389		(44	)		(3,345	)		–
Securities loaned		–		–			–		–			–			–

Total	$	5,567	$	(1,549	)	$	4,018	$	(75	)	$	(3,345	)	$	598

(a)

For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default.

(b)

Includes the fair value of securities pledged by the Company to the counterparty. These securities are included in the Consolidated Balance Sheet unless the Company defaults.

(c)

Excludes $8 million and $5 million of derivative liabilities not subject to netting arrangements at March 31, 2013 and December 31, 2012, respectively.