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Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2015
Financial Instruments [Abstract]  
Estimated fair value of assets and liabilities
September 30, 2015December 31, 2014
Assets (liabilities)Assets (liabilities)
NotionalCarryingEstimatedNotionalCarryingEstimated
(In millions)amountamount (net)fair valueamountamount (net)fair value
Assets
    Loans$(a)$78,775$85,107$(a)$115,889$120,067
    Other commercial mortgages(a)1,3921,520(a)1,4271,508
    Loans held for sale(a)22,65123,039(a)778799
  Other financial instruments(b)(a)161195(a)122136
Liabilities
   Borrowings and bank deposits(c)(d)(e)(a)(271,944)(283,092)(a)(317,674)(333,956)
   Investment contract benefits(a)(2,821)(3,327)(a)(2,970)(3,565)
    Guaranteed investment contracts(a)(179)(193)(a)(1,000)(1,031)
    Insurance - credit life(f) - --1,843 (90)(77)

(a) These financial instruments do not have notional amounts.

(b) Principally comprises cost method investments.

(c) See Note 6.

(d) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at September 30, 2015 and December 31, 2014 would have been reduced by $4,710 million and $5,020 million, respectively.

(e) Included $1,994 million and $2,888 million of accrued interest in estimated fair value at September 30, 2015 and December 31, 2014, respectively.

(f) Net of reinsurance of none and $964 million at September 30, 2015 and December 31, 2014, respectively.
Loan commitments
NOTIONAL AMOUNTS OF LOAN COMMITMENTS
(In millions)September 30, 2015December 31, 2014
Ordinary course of business lending commitments(a)$804$1,214
Unused revolving credit lines(b)
   Commercial2,0542,908
   Consumer – principally credit cards321,710306,188

(a) Excluded investment commitments of $579 million and $818 million at September 30, 2015 and December 31, 2014, respectively.

(b) Excluded amounts related to inventory financing arrangements, which may be withdrawn at our option, of $39 million and $47 million at September 30, 2015 and December 31, 2014, respectively.

Fair value of derivatives by contract type
FAIR VALUE OF DERIVATIVES
September 30, 2015December 31, 2014
(In millions)AssetsLiabilitiesAssetsLiabilities
Derivatives accounted for as hedges
Interest rate contracts$5,579$53$5,859$461
   Currency exchange contracts1,3821,2342,435779
   Other contracts----
6,9611,2878,2941,240
Derivatives not accounted for as hedges
Interest rate contracts1446111168
Currency exchange contracts3833,0335952,910
Other contracts44889
5713,1027142,987
Gross derivatives recognized in statement of
   financial position
   Gross derivatives7,5324,3899,0084,227
   Gross accrued interest97891,392(24)
8,5104,39810,4004,203
Amounts offset in statement of financial position
   Netting adjustments(a)(3,481)(3,483)(3,695)(3,710)
   Cash collateral(b)(2,844)(895)(3,683)(461)
(6,325)(4,378)(7,378)(4,171)
Net derivatives recognized in statement of
   financial position
Net derivatives2,185203,02232
Amounts not offset in statement of
   financial position
   Securities held as collateral(c)(1,510)-(3,003)-
Net amount$675$20$19$32

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 September 30, 2015 and December 31, 2014, the cumulative adjustment for non-performance risk was a gain (loss) of $2 million and $15 million, respectively.
  • Excluded excess cash collateral received and posted of $53 million and $66 million at September 30, 2015, respectively, and $58 million and $211 million at December 31, 2014, respectively.
  • Excluded excess securities collateral received of $34 million and $385 million at September 30, 2015 and December 31, 2014, respectively.
Fair value hedges
EARNINGS EFFECTS OF FAIR VALUE HEDGING RELATIONSHIPS
Three months ended September 30
20152014
Gain (loss)Gain (loss)Gain (loss)Gain (loss)
on hedgingon hedgedon hedgingon hedged
(In millions)derivativesitemsderivativesitems
Interest rate contracts$1,391$(1,387)$341$(350)
Currency exchange contracts(6)5(8)8

EARNINGS EFFECTS OF FAIR VALUE HEDGING RELATIONSHIPS
Nine months ended September 30
20152014
Gain (loss)Gain (loss)Gain (loss)Gain (loss)
on hedgingon hedgedon hedgingon hedged
(In millions)derivativesitemsderivativesitems
Interest rate contracts$514$(594)$2,056$(2,129)
Currency exchange contracts(6)4(11)10
Cash flow hedges
Gain (loss) reclassified
Gain (loss) recognized in AOCIfrom AOCI into earnings
for the three months ended September 30for the three months ended September 30
(In millions)2015201420152014
Interest rate contracts$10$9$(39)$(53)
Currency exchange contracts(136)(302)(75)(377)
Total(a)$(126)$(293)$(113)$(430)

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

Gain (loss) reclassified
Gain (loss) recognized in AOCIfrom AOCI into earnings
for the nine months ended September 30for the nine months ended September 30
(In millions)2015201420152014
Interest rate contracts$-$-$(100)$(182)
Currency exchange contracts(794)(267)(600)(387)
Total(a)$(794)$(267)$(699)$(569)

(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 CTAGain (loss) reclassified from CTA
for the three months ended September 30for the three months ended September 30
(In millions)2015201420152014
Currency exchange contracts$1,311$2,792$1,935$(24)

GAINS (LOSSES) RECOGNIZED THROUGH CTA
Gain (loss) recognized in CTAGain (loss) reclassified from CTA
for the nine months ended September 30for the nine months ended September 30
(In millions)2015201420152014
Currency exchange contracts$4,749$2,194$2,524$(14)