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


	Gross Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
(Dollars in Millions)	Gross Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Financial Instruments (b)			Collateral Received (c)			Net Amount
September 30, 2013
Derivative assets (d)	$	1,362	$	(572	)	$	790	$	(32	)	$	–		$	758
Reverse repurchase agreements		150		–			150		(35	)		(115	)		–
Securities borrowed		527		–			527		(1	)		(510	)		16

Total	$	2,039	$	(572	)	$	1,467	$	(68	)	$	(625	)	$	774

December 31, 2012
Derivative assets (d)	$	1,546	$	(418	)	$	1,128	$	(148	)	$	–		$	980
Reverse repurchase agreements		363		–			363		(44	)		(319	)		–
Securities borrowed		368		–			368		–			(356	)		12

Total	$	2,277	$	(418	)	$	1,859	$	(192	)	$	(675	)	$	992

(a)

Includes $75 million and $79 million of cash collateral related payables that were netted against derivative assets at September 30, 2013 and December 31, 2012, respectively.

(b)

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.

(c)

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

(d)

Excludes $183 million and $260 million of derivative assets centrally cleared or otherwise not subject to netting arrangements at September 30, 2013 and December 31, 2012, respectively.


	Gross Recognized Liabilities		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
(Dollars in Millions)	Gross Recognized Liabilities		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Financial Instruments (b)			Collateral Pledged (c)			Net Amount
September 30, 2013
Derivative liabilities (d)	$	1,825	$	(1,358	)	$	467	$	(32	)	$	–		$	435
Repurchase agreements		1,940		–			1,940		(35	)		(1,905	)		–
Securities loaned		134		–			134		(1	)		(132	)		1

Total	$	3,899	$	(1,358	)	$	2,541	$	(68	)	$	(2,037	)	$	436

December 31, 2012
Derivative liabilities (d)	$	2,178	$	(1,549	)	$	629	$	(148	)	$	–		$	481
Repurchase agreements		3,389		–			3,389		(44	)		(3,345	)		–
Securities loaned		–		–			–		–			–			–

Total	$	5,567	$	(1,549	)	$	4,018	$	(192	)	$	(3,345	)	$	481

(a)

Includes $862 million and $1.2 billion of cash collateral related receivables that were netted against derivative liabilities at September 30, 2013 and December 31, 2012, respectively.

(b)

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.

(c)

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

(d)

Excludes $55 million and $5 million of derivative liabilities centrally cleared or otherwise not subject to netting arrangements at September 30, 2013 and December 31, 2012, respectively.