Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Estimated fair value of assets and liabilities

		2013						2012
				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)	$	226,293	$	230,792	$	(a)	$	235,888	$	238,254
Other commercial mortgages		(a)		2,270		2,281		(a)		2,222		2,249
Loans held for sale		(a)		512		512		(a)		1,180		1,181
Other financial instruments(b)		(a)		1,622		2,203		(a)		1,858		2,276
Liabilities
Borrowings and
bank deposits(c)(d)		(a)		(371,062)		(386,823)		(a)		(397,039)		(414,264)
Investment contract benefits		(a)		(3,144)		(3,644)		(a)		(3,321)		(4,150)
Guaranteed investment contracts		(a)		(1,471)		(1,459)		(a)		(1,644)		(1,674)
Insurance - credit life(e)		2,149		(108)		(94)		2,277		(120)		(104)

These financial instruments do not have notional amounts.
Principally 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, 2013 and 2012 would have been reduced by $2,284 million and $7,937 million, respectively.
Net of reinsurance of $1,250 million and $2,000 million at December 31, 2013 and 2012, respectively.

Loan commitments

		Notional amount
December 31 (In millions)		2013		2012

Ordinary course of business lending commitments(a)	$	4,756	$	3,708
Unused revolving credit lines(b)
Commercial(c)		16,570		17,929
Consumer - principally credit cards		290,662		271,211

Excluded investment commitments of $1,395 million and $1,276 million as of December 31, 2013 and 2012, respectively.
Excluded inventory financing arrangements, which may be withdrawn at our option, of $13,502 million and $12,813 million as of December 31, 2013 and 2012, respectively.
Included commitments of $11,629 million and $12,923 million as of December 31, 2013 and 2012, respectively, associated with secured financing arrangements that could have increased to a maximum of $14,590 million and $15,731 million at December 31, 2013 and 2012, respectively, based on asset volume under the arrangement.

Fair value of derivatives by contract type

	2013				2012
	Fair value				Fair value
December 31 (In millions)	Assets		Liabilities		Assets		Liabilities

Derivatives accounted for as hedges
Interest rate contracts	$	3,837	$	1,989	$	8,443	$	719
Currency exchange contracts		1,746		958		827		1,762
Other contracts		-		-		-		-
		5,583		2,947		9,270		2,481
Derivatives not accounted for as hedges
Interest rate contracts		270		175		452		195
Currency exchange contracts		1,753		1,765		1,457		358
Other contracts		57		22		35		26
		2,080		1,962		1,944		579
Gross derivatives recognized in statement of
financial position
Gross derivatives		7,663		4,909		11,214		3,060
Gross accrued interest		1,227		241		1,683		14
		8,890		5,150		12,897		3,074
Amounts offset in statement of financial position
Netting adjustments(a)		(3,927)		(3,920)		(2,532)		(2,517)
Cash collateral(b)		(2,619)		(242)		(5,125)		(391)
		(6,546)		(4,162)		(7,657)		(2,908)
Net derivatives recognized in statement of
financial position
Net derivatives		2,344		988		5,240		166

Amounts not offset in statement of
financial position
Securities held as collateral(c)		(1,838)		-		(5,060)		-

Net amount	$	506	$	988	$	180	$	166

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 included fair value adjustments related to our own and counterparty non-performance risk. At December 31, 2013 and 2012, the cumulative adjustment for non-performance risk was a gain (loss) of $(7) million and $(15) million, respectively.
Excludes excess cash collateral received and posted of $160 million and $37 million at December 31, 2013, respectively, and $42 million and $10 million at December 31, 2012, respectively.
Excludes excess securities collateral received of $286 million and $359 million at December 31, 2013 and 2012, respectively.

Fair value hedges


	2013				2012
(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	$	(5,253)	$	5,180	$	708	$	(1,041)
Currency exchange contracts		(7)		6		(68)		98

Fair value hedges resulted in $(74) million and $(303) million of ineffectiveness in 2013 and 2012, respectively. In both 2013 and 2012, 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)	2013		2012		2013		2012


Interest rate contracts	$	(26)	$	(158)	$	(364)	$	(494)
Currency exchange contracts		704		1,046		588		824

Total	$	678	$	888	$	224	$	330

The total pre-tax amount in AOCI related to cash flow hedges of forecasted transactions was a $291 million loss at December 31, 2013. We expect to transfer $241 million to earnings as an expense in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. In 2013, 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, 2013 and 2012, the maximum term of derivative instruments that hedge forecasted transactions was 19 years and 20 years, respectively.

Net investment hedges



	Gain (loss) recognized in CTA				Gain (loss) reclassified from CTA
(In millions)	2013		2012		2013		2012


Currency exchange contracts	$	2,322	$	(2,905)	$	(1,525)	$	27