Offsetting Assets and Liabilities

Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments, repurchase agreements and securities borrowing and lending agreements are subject to master netting arrangements and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. Securities borrowed and loaned result from transactions between the Company’s broker dealer subsidiary and other financial institutions and are recorded at the amount of cash collateral advanced or received. The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets.

The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:



	September 30, 2014
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,248	$	—	$	3,248	$	(2,895	)	$	(157	)	$	(176	)	$	20
OTC cleared	145		—		145		(92		)	(53		)	—			—
Exchange-traded	71		—		71		—			—			—			71
Total derivatives	3,464		—		3,464		(2,987		)	(210		)	(176		)	91
Securities borrowed	175		—		175		(82		)	—			(92		)	1
Total	$	3,639	$	—	$	3,639	$	(3,069	)	$	(210	)	$	(268	)	$	92



	December 31, 2013
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,337	$	—	$	3,337	$	(3,227	)	$	(75	)	$	(15	)	$	20
OTC cleared	21		—		21		(20		)	(1		)	—			—
Exchange-traded	60		—		60		—			—			—			60
Total derivatives	3,418		—		3,418		(3,247		)	(76		)	(15		)	80
Securities borrowed	107		—		107		(15		)	—			(90		)	2
Total	$	3,525	$	—	$	3,525	$	(3,262	)	$	(76	)	$	(105	)	$	82

⁽¹⁾ Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.

The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:



	September 30, 2014
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	3,908	$	—	$	3,908	$	(2,895	)	$	(8	)	$	(1,005	)	$	—
OTC cleared	94		—		94		(92		)	(2		)	—			—
Total derivatives	4,002		—		4,002		(2,987		)	(10		)	(1,005		)	—
Securities loaned	249		—		249		(82		)	—			(159		)	8
Repurchase agreements	50		—		50		—			—			(50		)	—
Total	$	4,301	$	—	$	4,301	$	(3,069	)	$	(10	)	$	(1,214	)	$	8



	December 31, 2013
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount
	(in millions)
Derivatives:
OTC	$	4,786	$	—	$	4,786	$	(3,227	)	$	—		$	(1,498	)	$	61
OTC cleared	22		—		22		(20		)	(2		)	—			—
Total derivatives	4,808		—		4,808		(3,247		)	(2		)	(1,498		)	61
Securities loaned	136		—		136		(15		)	—			(117		)	4
Repurchase agreements	50		—		50		—			—			(50		)	—
Total	$	4,994	$	—	$	4,994	$	(3,262	)	$	(2	)	$	(1,665	)	$	65

⁽¹⁾ Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.

In the tables above, the amounts of assets or liabilities presented in the Consolidated Balance Sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables.

The Company’s freestanding derivative instruments are reflected in other assets and other liabilities. Repurchase agreements are reflected in short-term borrowings. Securities borrowing and lending agreements are reflected in receivables and other liabilities, respectively. See Note 12 for additional disclosures related to the Company’s derivative instruments, Note 9 for additional disclosures related to the Company’s repurchase agreements and Note 3 for information related to derivatives held by consolidated investment entities.