Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Assets and liabilities at fair value

Assets and Liabilities Measured at Fair Value on a Recurring Basis
									Netting
(In millions)	Level 1		(a)	Level 2		(a)	Level 3		adjustment		(b)	Net balance
March 31, 2014
Assets
Investment securities
Debt
U.S. corporate	$	0		$	19,590		$	3,071	$	0		$	22,661
State and municipal		0			4,834			560		0			5,394
Residential mortgage-backed		0			1,793			81		0			1,874
Commercial mortgage-backed		0			3,112			11		0			3,123
Asset-backed(c)		0			430			6,908		0			7,338
Corporate ̶ non-U.S.		51			678			1,060		0			1,789
Government ̶ non-U.S.		1,334			823			1		0			2,158
U.S. government and federal agency		0			505			232		0			737
Retained interests		0			0			75		0			75
Equity
Available-for-sale		208			14			11		0			233
Trading		66			2			0		0			68
Derivatives(d)		0			6,944			157		(6,106)			995
Other(e)		0			0			99		0			99
Total	$	1,659		$	38,725		$	12,266	$	(6,106)		$	46,544
Liabilities
Derivatives	$	0		$	4,156		$	18	$	(3,716)		$	458
Other		0			22			0		0			22
Total	$	0		$	4,178		$	18	$	(3,716)		$	480
December 31, 2013
Assets
Investment securities
Debt
U.S. corporate	$	0		$	18,788		$	2,918	$	0		$	21,706
State and municipal		0			4,193			96		0			4,289
Residential mortgage-backed		0			1,824			86		0			1,910
Commercial mortgage-backed		0			3,025			10		0			3,035
Asset-backed(c)		0			489			6,898		0			7,387
Corporate ̶ non-U.S.		61			645			1,052		0			1,758
Government ̶ non-U.S.		1,590			789			31		0			2,410
U.S. government and federal agency		0			545			225		0			770
Retained interests		0			0			72		0			72
Equity
Available-for-sale		225			15			11		0			251
Trading		72			2			0		0			74
Derivatives(d)		0			7,493			170		(6,546)			1,117
Other(e)		0			0			293		0			293
Total	$	1,948		$	37,808		$	11,862	$	(6,546)		$	45,072
Liabilities
Derivatives	$	0		$	4,893		$	16	$	(4,162)		$	747
Other		0			24			0		0			24
Total	$	0		$	4,917		$	16	$	(4,162)		$	771

• There were no securities transferred between Level 1 and Level 2in the three months ended March 31, 2014.
• The netting of derivative receivables and payables (including the effects of any collateral posted or received) is permitted when a legally enforceable master netting agreement exists.
• Includes investments in our CLL business in asset-backed securities collateralized by senior secured loans of high-quality, middle-market companies in a variety of industries.
• The fair value of derivatives includes an adjustment for non-performance risk. The cumulative adjustment was a gain (loss) of $29 million and $(7) million at March 31, 2014 and December 31, 2013, respectively. See Note 11 for additional information on the composition of our derivative portfolio.
• Includes private equity investments and loans designated under the fair value option.

Changes in level 3 instruments

Changes in Level 3 Instruments for the Three Months Ended
																				Net
																				change in
			Net				Net													unrealized
			realized/				realized/													gains
			unrealized			unrealized														(losses)
			gains				gains													relating to
			(losses)			(losses)								Transfers		Transfers				instruments
	Balance at		included			included								into		out of		Balance at		still held at
(In millions)	January 1		in earnings		(a)	in AOCI		Purchases		Sales		Settlements		Level 3(b)		Level 3(b)		March 31		March 31		(c)
2014
Investment securities
Debt
U.S. corporate	$	2,918	$	8		$	63	$	153	$	(2)	$	(112)	$	96	$	(53)	$	3,071	$	-
State and municipal		96		-			27		9		-		(7)		435		-		560		-
RMBS		86		-			(1)		-		-		(4)		-		-		81		-
CMBS		10		-			-		-		-		(1)		2		-		11		-
ABS		6,898		1			(27)		405		-		(369)		-		-		6,908		-
Corporate – non-U.S.		1,052		(21)			46		220		(2)		(235)		-		-		1,060		-
Government – non-U.S.		31		-			-		-		-		-		-		(30)		1		-
U.S. government and
federal agency		225		-			9		-		-		-		-		(2)		232		-
Retained interests		72		2			3		1		-		(3)		-		-		75		-
Equity
Available-for-sale		11		-			-		-		-		-		-		-		11		-
Derivatives(d)(e)		163		(11)			-		(1)		-		(1)		(1)		-		149		(4)
Other		293		2			-		83		-		-		-		(279)		99		-
Total	$	11,855	$	(19)		$	120	$	870	$	(4)	$	(732)	$	532	$	(364)	$	12,258	$	(4)

2013
Investment securities
Debt
U.S. corporate	$	3,552	$	(258)	$	218	$	61	$	(6)	$	(45)	$	93	$	(73)	$	3,542	$	-
State and municipal		77		-		-		4		-		(1)		10		-		90		-
RMBS		100		-		(3)		-		-		(1)		-		-		96		-
CMBS		6		-		-		-		-		-		-		-		6		-
ABS		5,023		1		(2)		144		-		(262)		12		-		4,916		-
Corporate – non-U.S.		1,212		8		13		824		(3)		(733)		15		-		1,336		-
Government – non-U.S.		42		-		(1)		-		-		-		-		-		41		-
U.S. government and
federal agency		277		-		(13)		-		-		-		-		-		264		-
Retained interests		83		3		10		-		-		(5)		-		-		91		-
Equity
Available-for-sale		13		-		-		-		-		-		-		(2)		11		-
Derivatives(d)(e)		262		(38)		-		(1)		-		(53)		-		-		170		(7)
Other		432		(2)		-		33		(54)		-		-		-		409		(1)
Total	$	11,079	$	(286)	$	222	$	1,065	$	(63)	$	(1,100)	$	130	$	(75)	$	10,972	$	(8)

• Earnings effects are primarily included in the Revenues from services and Interest captions in the Condensed Statement of Earnings.
• Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were primarily a result of increased use of quotes from independent pricing vendors based on recent trading activity.
• Represents the amount of unrealized gains or losses for the period included in earnings.
• Represents derivative assets net of derivative liabilities and included cash accruals of $10 million and $4million not reflected in the fair value hierarchy table for the three months ended March 31, 2014 and 2013, respectively.
• Gains (losses) included in “net realized/unrealized gains (losses) included in earnings” were offset by the earnings effects from the underlying items that were economically hedged. See Note 11.

Non-recurring fair value amounts (as measured at the time of the adjustment) for those assets remeasured to fair value on a non-recurring basis

	Remeasured during				Remeasured during
	the three months ended				the year ended
	March 31, 2014				December 31, 2013
(In millions)	Level 2		Level 3		Level 2		Level 3
Financing receivables and loans held for sale	$	87	$	1,596	$	210	$	2,986
Cost and equity method investments		0		349		0		649
Long-lived assets, including real estate		326		192		2,050		1,085
Total	$	413	$	2,137	$	2,260	$	4,720

Significant Unobservable Inputs Used For Level Three Recurring And Nonrecurring Measurements [Table Text Block]

	Three months ended March 31
(In millions)	2014		2013
Financing receivables and loans held for sale	$	(113)	$	(128)
Cost and equity method investments		(205)		(72)
Long-lived assets, including real estate		(67)		(359)
Total	$	(385)	$	(559)

Fair value adjustments to assets measured on a non-recurring basis

					Range
(Dollars in millions)	Fair value		Valuation technique	Unobservable inputs	(weighted average)
March 31, 2014
Recurring fair value measurements
Investment securities - Debt
U.S. corporate	$	947	Income approach	Discount rate(a)	1.5%-8.9% (5.0%)
State and Municipal		469	Income approach	Discount rate(a)	1.8%-6.0% (3.3%)
Asset-backed		6,868	Income approach	Discount rate(a)	1.3%-9.5% (3.8%)
Corporate ̶ non-U.S.		776	Income approach	Discount rate(a)	1.4%-46.0% (15.3%)
Other financial assets		99	Income approach	Discount rate(a)	3.9%-5.6% (4.8%)
Non-recurring fair value measurements
Financing receivables and loans held for sale	$	995	Income approach,	Capitalization rate(b)	2.7%-11.3% (6.5%)
			Business enterprise value	WACC(c)	19.0%-19.0% (19.0%)
				EBITDA multiple	4.3X-6.5X (5.9X)
Cost and equity method investments		134	Income approach,	Discount rate(a)	8.0%-10.0% (8.5%)
			Business enterprise value	EBITDA multiple	6.0X-9.0X (9.0X)
Long-lived assets, including real estate		5	Income approach	Capitalization rate(b)	9.4%-15.3% (12.0%)
				Discount rate(a)	4.0%-19.0% (8.3%)
December 31, 2013
Recurring fair value measurements
Investment securities - Debt
U.S. corporate	$	898	Income approach	Discount rate(a)	1.5%-13.3% (6.5%)
Asset-backed		6,854	Income approach	Discount rate(a)	1.2%-10.5% (3.7%)
Corporate ̶ non-U.S.		819	Income approach	Discount rate(a)	1.4%-46.0% (15.1%)
Other financial assets		288	Income approach, Market comparables	WACC(c)	9.3%-9.3% (9.3%)
				Discount rate(a)	5.2%-5.3% (5.3%)
				EBITDA multiple	8.3X-12.5X (10.6X)
Non-recurring fair value measurements
Financing receivables and loans held for sale	$	1,937	Income approach,	Capitalization rate(b)	5.5%-16.7% (8.0%)
			Business enterprise value	EBITDA multiple	4.3X-5.5X (4.8X)
				Discount rate(a)	6.6%-6.6% (6.6%)
Cost and equity method investments		100	Income approach, Market comparables	Discount rate(a)	5.7%-5.9% (5.8%)
				Capitalization rate(b)	8.5%-10.6% (10.0%)
				WACC(c)	9.3%-9.6% (9.4%)
				EBITDA multiple	7.1X-14.5X (11.3X)
				Revenue multiple	9.3X-12.6X (10.9X)
Long-lived assets, including real estate		691	Income approach	Capitalization rate(b)	5.4%-14.5% (7.8%)
				Discount rate(a)	4.0%-23.0% (8.8%)

• Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value.
• Represents the rate of return on net operating income that is considered acceptable for an investor and is used to determine a property's capitalized value. An increase in the capitalization rate would result in a decrease in the fair value.
• Weighted average cost of capital (WACC).