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Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2012
Financial Instruments [Abstract]  
Estimated fair value of assets and liabilities
  2012  2011
     Assets (liabilities)     Assets (liabilities)
  Notional  Carrying  Estimated  Notional  Carrying  Estimated
December 31 (In millions) amount  amount (net)  fair value  amount  amount (net)  fair value
                  
Assets                 
    Loans$(a) $236,678 $239,084 $(a) $250,999 $251,433
    Other commercial mortgages (a)  2,222  2,249  (a)  1,494  1,537
    Loans held for sale (a)  1,180  1,181  (a)  496  497
    Other financial instruments(c) (a)  1,858  2,276  (a)  2,071  2,534
Liabilities                 
    Borrowings and                 
        bank deposits(b)(d) (a)  (397,300)  (414,533)  (a)  (443,097)  (449,403)
Investment contract benefits (a)  (3,321)  (4,150)  (a)  (3,493)  (4,240)
    Guaranteed investment contracts (a)  (1,644)  (1,674)  (a)  (4,226)  (4,266)
    Insurance - credit life(e) 2,277  (120)  (104)  1,944  (106)  (88)
                  
                  

  • These financial instruments do not have notional amounts.
  • See Note 8.
  • Principally cost method investments.
  • Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at December 31, 2012 and 2011 would have been reduced by $7,937 million and $9,051 million, respectively.
  • Net of reinsurance of $2,000 million at both December 31, 2012 and 2011.
Loan commitments
  Notional amount
December 31 (In millions) 2012  2011
      
Ordinary course of business lending commitments(a)$3,708 $3,756
Unused revolving credit lines(b)     
    Commercial(c) 17,929  18,757
    Consumer - principally credit cards 271,387  257,646
      
      

  • Excluded investment commitments of $1,276 million and $2,064 million as of December 31, 2012 and 2011, respectively.
  • Excluded inventory financing arrangements, which may be withdrawn at our option, of $12,813 million and $12,354 million as of December 31, 2012 and 2011, respectively.
  • Included commitments of $12,923 million and $14,057 million as of December 31, 2012 and 2011, respectively, associated with secured financing arrangements that could have increased to a maximum of $15,731 million and $17,344 million at December 31, 2012 and 2011, respectively, based on asset volume under the arrangement.
Fair value of derivatives by contract type
 2012 2011
 Fair value Fair value
December 31 (In millions)Assets Liabilities Assets Liabilities
            
            
Interest rate contracts$8,443 $719 $9,445 $1,049
Currency exchange contracts 827  1,762  3,720  2,239
Other contracts 0  0  0  0
  9,270  2,481  13,165  3,288
Derivatives not accounted for as hedges           
Interest rate contracts 452  195  314  241
Currency exchange contracts 1,457  358  1,440  972
Other contracts 35  26  71  22
  1,944  579  1,825  1,235
            
Netting adjustments(a) (2,532)  (2,517)  (3,009)  (2,998)
            
Cash collateral(b)(c) (5,125)  (391)  (2,310)  (1,027)
Total$3,557 $152 $9,671 $498
            
            

Derivatives are classified in the captions “Other assets” and “Other liabilities” in our financial statements.

  • The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts included fair value adjustments related to our own and counterparty non-performance risk. At December 31, 2012 and 2011, the cumulative adjustment for non-performance risk was a gain (loss) of $(15) million and $(11) million, respectively.
  • Excludes excess cash collateral received of $42 million and $579 million at December 31, 2012 and 2011, respectively. Excludes excess cash collateral posted of $10 million at December 31, 2012.
  • Excludes securities pledged to us as collateral of $5,419 million and $10,346 million at December 31, 2012 and 2011, respectively, which includes excess securities collateral of $359 million at December 31, 2012.
Fair value hedges
    
 2012 2011
(In millions)Gain (loss) Gain (loss) Gain (loss) Gain (loss)
 on hedging on hedged on hedging on hedged
 derivatives items derivatives items
            
Interest rate contracts $708 $(1,041) $5,888 $ (6,322)
Currency exchange contracts  (169)  199  119   (144)
            
            

Fair value hedges resulted in $(303) million and $(459) million of ineffectiveness in 2012 and 2011, respectively. In both 2012 and 2011, there were insignificant amounts excluded from the assessment of effectiveness.
Cash flow hedges
        
    
   Gain (loss) reclassified
 Gain (loss) recognized in AOCI from AOCI into earnings
(In millions)2012 2011 2012 2011
            
            
Interest rate contracts$ (158) $ (302) $ (494) $ (821)
Currency exchange contracts  359   (338)   137   (487)
            
Total$ 201 $ (640) $ (357) $ (1,308)
            
            

The total pre-tax amount in AOCI related to cash flow hedges of forecasted transactions was a $831 million loss at December 31, 2012. We expect to transfer $419 million to earnings as an expense in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. In 2012, we recognized insignificant gains and losses related to hedged forecasted transactions and firm commitments that did not occur by the end of the originally specified period. At December 31, 2012 and 2011, the maximum term of derivative instruments that hedge forecasted transactions was 20 years and 21 years, respectively.

 
Net investment hedges
        
    
 Gain (loss) recognized in CTA Gain (loss) reclassified from CTA
(In millions)2012 2011 2012 2011
            
            
Currency exchange contracts$(2,905) $1,232 $27 $(716)