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Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2014
Financial Instruments [Abstract]  
Estimated fair value of assets and liabilities
                  
 June 30, 2014 December 31, 2013
    Assets (liabilities)    Assets (liabilities)
 Notional Carrying Estimated Notional Carrying Estimated
(In millions)amount amount (net) fair value amount amount (net) fair value
Assets                  
    Loans$(a) $215,972 $220,614 $(a) $226,293 $230,792
    Other commercial mortgages (a)  1,967  1,997  (a)  2,270  2,281
    Loans held for sale (a)  1,998  2,136  (a)  512  512
  Other financial instruments(c) (a)  1,239  1,853  (a)  1,622  2,203
Liabilities                  
   Borrowings and bank deposits(b)(d) (a)  (362,982)  (380,147)  (a)  (371,062)  (386,823)
   Investment contract benefits (a)  (3,097)  (3,665)  (a)  (3,144)  (3,644)
    Guaranteed investment contracts (a)  (1,424)  (1,424)  (a)  (1,471)  (1,459)
    Insurance - credit life(e) 2,227  (110)  (96)  2,149  (108)  (94)
                  
                  

  • These financial instruments do not have notional amounts.
  • See Note 6.
  • Principally comprises 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 June 30, 2014 and December 31, 2013 would have been reduced by $4,057 million and $2,284 million, respectively.
  • Net of reinsurance of $1,250 million at both June 30, 2014 and December 31, 2013.
Loan commitments
(In millions)      June 30, 2014 December 31, 2013
            
Ordinary course of business lending commitments(a)      $4,258 $4,756
Unused revolving credit lines(b)           
Commercial(c)       13,934  16,570
Consumer - principally credit cards       301,290  290,662
            
            

  • Excluded investment commitments of $1,293 million and $1,395 million at June 30, 2014 and December 31, 2013, respectively.
  • Excluded amounts related to inventory financing arrangements, which may be withdrawn at our option, of $15,094 million and $13,502 million at June 30, 2014 and December 31, 2013, respectively.
  • Included amounts related to commitments of $10,113 million and $11,629 million at June 30, 2014 and December 31, 2013, respectively, associated with secured financing arrangements that could have increased to a maximum of $12,772 million and $14,590 million at June 30, 2014 and December 31, 2013, respectively, based on asset volume under the arrangement.

 
Fair value of derivatives by contract type
Fair Value of Derivatives
            
  June 30, 2014  December 31, 2013
 Fair value Fair value
(In millions)Assets Liabilities Assets Liabilities
            
Derivatives accounted for as hedges           
Interest rate contracts$ 4,548 $ 969 $ 3,837 $ 1,989
   Currency exchange contracts  1,385   679   1,746   958
   Other contracts  -   -   -   -
   5,933   1,648   5,583   2,947
            
Derivatives not accounted for as hedges           
Interest rate contracts  295   201   270   175
Currency exchange contracts  813   1,498   1,753   1,765
Other contracts  19   23   57   22
   1,127   1,722   2,080   1,962
            
Gross derivatives recognized in statement of           
   financial position            
   Gross derivatives  7,060   3,370   7,663   4,909
   Gross accrued interest  1,236   150   1,227   241
   8,296   3,520   8,890   5,150
            
Amounts offset in statement of financial position           
   Netting adjustments(a)  (2,753)   (2,771)   (3,927)   (3,920)
   Cash collateral(b)  (3,185)   (337)   (2,619)   (242)
   (5,938)   (3,108)   (6,546)   (4,162)
            
Net derivatives recognized in statement of           
   financial position            
Net derivatives  2,358   412   2,344   988
            
Amounts not offset in statement of            
   financial position            
   Securities held as collateral(c)  (1,810)   -   (1,838)   -
            
Net amount$ 548 $ 412 $ 506 $ 988
            

Derivatives are classified in other assets and other liabilities and the related accrued interest is classified in other receivables 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 include fair value adjustments related to our own and counterparty non-performance risk. At June 30, 2014 and December 31, 2013, the cumulative adjustment for non-performance risk was a gain (loss) of $18 million and $(7) million, respectively.
  • Excluded excess cash collateral received and posted of $50 million and $29 million, and $160 million and $37 million at June 30, 2014 and December 31, 2013, respectively.
  • Excluded excess securities collateral received of $50 million and $286 million at June 30, 2014 and December 31, 2013, respectively.

 
Fair value hedges
 Three months ended June 30
  2014  2013
  Gain (loss)  Gain (loss)  Gain (loss)  Gain (loss)
  on hedging  on hedged  on hedging  on hedged
(In millions) derivatives  items  derivatives  items
            
Interest rate contracts$725 $(774) $(2,932) $2,945
Currency exchange contracts (5)  5  2  (1)
            
            

 Six months ended June 30
  2014  2013
  Gain (loss)  Gain (loss)  Gain (loss)  Gain (loss)
  on hedging  on hedged  on hedging  on hedged
(In millions) derivatives  items  derivatives  items
            
Interest rate contracts$1,715 $(1,779) $(3,841) $3,826
Currency exchange contracts (3)  2  (7)  7
            
            
Cash flow hedges
       Gain (loss) reclassified
 Gain (loss) recognized in AOCI from AOCI into earnings
 for the three months ended June 30 for the three months ended June 30
(In millions)2014 2013 2014 2013
            
Interest rate contracts$(12) $20 $(60) $(92)
Currency exchange contracts (148)  272  (144)  164
Total(a)$(160) $292 $(204) $72
            

  • Gain (loss) is recorded in revenues from services and interest when reclassified to earnings.

       Gain (loss) reclassified
 Gain (loss) recognized in AOCI from AOCI into earnings
 for the six months ended June 30 for the six months ended June 30
(In millions)2014 2013 2014 2013
            
Interest rate contracts$(9) $9 $(129) $(194)
Currency exchange contracts 35  238  (10)  119
Total(a)$26 $247 $(139) $(75)
            

  • Gain (loss) is recorded in revenues from services and interest when reclassified to earnings.

 
Net investment hedges
 Gain (loss) recognized Gain (loss) reclassified
 in CTA for the from CTA for the
 three months ended June 30 three months ended June 30
(In millions)2014 2013 2014 2013
            
Currency exchange contracts(a)$435 $412 $0 $15
            
            

  • Gain (loss) is recorded in revenues from services when reclassified out of AOCI.

 

    
 Gain (loss) recognized in CTA Gain (loss) reclassified from CTA
 for the six months ended June 30 for the six months ended June 30
(In millions)2014 2013 2014 2013
            
Currency exchange contracts(a)$(598) $2,517 $10 $(109)
            
            

  • Gain (loss) is recorded in revenues from services when reclassified out of AOCI.