Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Financial Instruments [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

At September 30, 2014, the volume of our derivative activities based on their notional exposure, categorized by primary underlying risk, are as follows:

	Long Notional Exposure		Short Notional Exposure
Primary underlying risk:	(in millions)
Credit swaps (1)	$	390	$	1,277
Equity swaps	1		12,352
Foreign currency forwards	2		1,635
Interest rate swap contracts	—		63
Commodity contracts	39		279

⁽¹⁾  The short notional amount on our credit swap positions is $8,540 million. Because credit spreads cannot compress below zero, however, our downside

short notional exposure is $1,277 million.

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the consolidated fair values of our derivatives that are not designated as hedging instruments:

Derivatives Not Designated as Hedging Instruments	Asset Derivatives(1)						Liability Derivatives(2)
	September 30, 2014			December 31, 2013			September 30, 2014			December 31, 2013
	(in millions)
Equity contracts	$	81		$	—		$	104		$	654
Foreign exchange contracts	11			1			—			—
Credit contracts	94			—			2			—
Commodity contracts	62			17			—			33
Sub-total	248			18			106			687
Netting across contract types(3)	(3		)	(17		)	(3		)	(17		)
Total(3)	$	245		$	1		$	103		$	670

⁽¹⁾  Net asset derivatives are located within other assets in our consolidated balance sheets.

⁽²⁾  Net liability derivatives are located within accrued expenses and other liabilities in our consolidated balance sheets.

⁽³⁾  Excludes netting of cash collateral received and posted.  The total collateral posted at September 30, 2014 and December 31, 2013 was approximately $1.1 billion and $255 million, respectively, across all counterparties.

The following table presents the effects of our derivative instruments not designated as hedging instruments on the statements of operations for each of the three and nine months ended September 30, 2014 and 2013:

	Gain (Loss) Recognized in Income(1)
Derivatives Not Designated as Hedging Instruments	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in millions)
Equity contracts	$	(50	)	$	(254	)	$	(772	)	$	(1,077	)
Foreign exchange contracts	141			(82		)	144			(52		)
Credit contracts	163			—			133			—
Commodity contracts	26			68			171			169
	$	280		$	(268	)	$	(324	)	$	(960	)

⁽¹⁾  Gains (losses) recognized on derivatives are classified in net (loss) gain from investment activities in our consolidated statements of operations for our Investment segment and are included in other income (loss), net for all other segments.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the consolidated fair values of our derivative instruments that are designated as cash flow hedging instruments:

Derivatives Designated as Cash Flow Hedging Instruments	Asset Derivatives(1)					Liability Derivatives(2)
	September 30, 2014		December 31, 2013			September 30, 2014		December 31, 2013
	(in millions)
Interest rate swap contracts	$	—	$	—		$	1	$	2
Foreign exchange contracts	—		—			—		1
Commodity contracts	2		1			1		2
Sub-total	2		1			2		5
Netting across contract types	—		(1		)	—		(1		)
Total	$	2	$	—		$	2	$	4

⁽¹⁾  Located within other assets in our consolidated balance sheets.

⁽²⁾  Located within accrued expenses and other liabilities in our consolidated balance sheets.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables present the effect of our derivative instruments that are designated as cash flow hedging instruments on our consolidated financial statements for each of the three and nine months ended September 30, 2014 and 2013:

Three Months Ended September 30, 2014
Derivatives Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)		Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
	(in millions)		(in millions)
Interest rate swap contracts	$	—	$	(1	)	Interest expense
Commodity contracts	—		1			Cost of goods sold
Foreign currency contracts	—		—			Cost of goods sold
	$	—	$	—

Three Months Ended September 30, 2013
Derivatives Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)		Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)			Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)
	(in millions)		(in millions)
Interest rate swap contracts	$	—	$	(1	)	Interest expense
Commodity contracts	3		(2		)	Cost of goods sold
Foreign currency contracts	—		—			Cost of goods sold
	$	3	$	(3	)

Nine Months Ended September 30, 2014
Derivatives Designated as Hedging Instruments	Amount of (Loss) Gain Recognized in OCI on Derivatives (Effective Portion)		Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)			Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)
	(in millions)		(in millions)
Interest rate swap contracts	$	—	$	(1	)	Interest expense
Commodity contracts	1		(1		)	Cost of goods sold
Foreign currency contracts	—		(1		)	Cost of goods sold
	$	1	$	(3	)

Nine Months Ended September 30, 2013
Derivatives Designated as Hedging Instruments	Amount of (Loss) Gain Recognized in OCI on Derivatives (Effective Portion)			Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)			Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)
	(in millions)			(in millions)
Interest rate swap contracts	$	1		$	(9	)	Interest expense
Commodity contracts	(5		)	(3		)	Cost of goods sold
	$	(4	)	$	(12	)