Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Estimated fair value of assets and liabilities

	2014						2013
			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)	$	193,214	$	197,833	$	(a)	$	206,839	$	211,137
Other commercial mortgages		(a)		1,427		1,508		(a)		1,609		1,619
Loans held for sale		(a)		1,830		1,855		(a)		512		512
Other financial instruments(b)		(a)		566		786		(a)		1,462		1,952
Liabilities
Borrowings and bank deposits(c)(d)		(a)		(349,041)		(365,724)		(a)		(370,326)		(386,044)
Investment contract benefits		(a)		(2,970)		(3,565)		(a)		(3,144)		(3,644)
Guaranteed investment contracts		(a)		(1,000)		(1,031)		(a)		(1,471)		(1,459)
Insurance - credit life(e)		1,843		(90)		(77)		2,149		(108)		(94)

These financial instruments do not have notional amounts.
Principally comprises cost method investments.
See Note 8.
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, 2014 and 2013 would have been reduced by $5,020 million and $2,284 million, respectively.
Net of reinsurance of $964 million and $1,250 million at December 31, 2014 and 2013, respectively.

Loan commitments

NOTIONAL AMOUNTS OF LOAN COMMITMENTS

December 31 (In millions)	2014		2013

Ordinary course of business lending commitments(a)	$	3,239	$	4,253
Unused revolving credit lines(b)
Commercial(c)		14,681		16,570
Consumer – principally credit cards		306,188		290,662

Excluded investment commitments of $835 million and $1,214 million at December 31, 2014 and 2013, respectively.
Excluded amounts related to inventory financing arrangements, which may be withdrawn at our option, of $15,041 million and $13,502 million at December 31, 2014 and 2013, respectively.
Included amounts related to commitments of $10,509 million and $11,629 million at December 31, 2014 and 2013, respectively, associated with secured financing arrangements that could have increased to a maximum of $12,353 million and $14,590 million at December 31, 2014 and 2013, respectively, based on asset volume under the arrangement.

Fair value of derivatives by contract type

FAIR VALUE OF DERIVATIVES

	2014				2013
December 31 (In millions)	Assets		Liabilities		Assets		Liabilities

Derivatives accounted for as hedges
Interest rate contracts	$	5,859	$	461	$	3,837	$	1,989
Currency exchange contracts		2,435		779		1,746		958
Other contracts		-		-		-		-
		8,294		1,240		5,583		2,947

Derivatives not accounted for as hedges
Interest rate contracts		186		141		132		174
Currency exchange contracts		598		2,910		1,753		1,765
Other contracts		26		22		57		22
		810		3,073		1,942		1,961

Gross derivatives recognized in statement of
financial position
Gross derivatives		9,104		4,313		7,525		4,908
Gross accrued interest		1,398		(18)		1,223		241
		10,502		4,295		8,748		5,149

Amounts offset in statement of financial position
Netting adjustments(a)		(3,705)		(3,713)		(3,927)		(3,920)
Cash collateral(b)		(3,695)		(502)		(2,619)		(242)
		(7,400)		(4,215)		(6,546)		(4,162)

Net derivatives recognized in statement of
financial position
Net derivatives		3,102		80		2,202		987

Amounts not offset in statement of
financial position
Securities held as collateral(c)		(3,083)		-		(1,838)		-

Net amount	$	19	$	80	$	364	$	987

Derivatives are classified in the captions “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 December 31, 2014 and 2013, the cumulative adjustment for non-performance risk was a gain (loss) of $8 million and $(7) million, respectively.
Excluded excess cash collateral received and posted of $57 million and $211 million, and $160 million and $37 million at December 31, 2014 and 2013, respectively.
Excluded excess securities collateral received of $305 million and $286 million at December 31, 2014 and 2013, respectively.

Fair value hedges

EARNINGS EFFECTS OF FAIR VALUE HEDGING RELATIONSHIPS

		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	$	3,898	$	(3,973)	$	(5,253)	$	5,180
Currency exchange contracts		(19)		17		(7)		6

Cash flow hedges

					Gain (loss) reclassified
	Gain (loss) recognized in AOCI				from AOCI into earnings
(In millions)	2014		2013		2014		2013


Interest rate contracts	$	(1)	$	(26)	$	(234)	$	(364)
Currency exchange contracts		(529)		704		(652)		588
Total(a)	$	(530)	$	678	$	(886)	$	224

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

Net investment hedges

GAINS (LOSSES) RECOGNIZED THROUGH CTA

	Gain (loss) recognized in CTA				Gain (loss) reclassified from CTA
(In millions)	2014		2013		2014		2013

Currency exchange contracts(a)	$	5,741	$	2,322	$	88	$	(1,525)

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