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. Securities borrowed and securities loaned are primarily equity securities. The Company’s securities borrowed and securities loaned transactions generally do not have a fixed maturity date and may be terminated by either party under customary terms.

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:



	June 30, 2016
	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	$	4,441	$	—	$	4,441	$	(2,546	)	$	(825	)	$	(1,026	)	$	44
OTC cleared	1,170		—		1,170		(968		)	(201		)	—			1
Exchange-traded	20		—		20		(14		)	—			—			6
Total derivatives	5,631		—		5,631		(3,528		)	(1,026		)	(1,026		)	51
Securities borrowed	150		—		150		(45		)	—			(104		)	1
Total	$	5,781	$	—	$	5,781	$	(3,573	)	$	(1,026	)	$	(1,130	)	$	52



	December 31, 2015
	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	$	3,129	$	—	$	3,129	$	(2,331	)	$	(391	)	$	(320	)	$	87
OTC cleared	418		—		418		(314		)	(102		)	—			2
Exchange-traded	40		—		40		(3		)	—			—			37
Total derivatives	3,587		—		3,587		(2,648		)	(493		)	(320		)	126
Securities borrowed	148		—		148		(30		)	—			(115		)	3
Total	$	3,735	$	—	$	3,735	$	(2,678	)	$	(493	)	$	(435	)	$	129

⁽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:



	June 30, 2016
	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	$	2,746	$	—	$	2,746	$	(2,546	)	$	—		$	(166	)	$	34
OTC cleared	1,065		—		1,065		(968		)	(91		)	—			6
Exchange-traded	16		—		16		(14		)	(1		)	—			1
Total derivatives	3,827		—		3,827		(3,528		)	(92		)	(166		)	41
Securities loaned	234		—		234		(45		)	—			(183		)	6
Repurchase agreements	50		—		50		—			—			(50		)	—
Total	$	4,111	$	—	$	4,111	$	(3,573	)	$	(92	)	$	(399	)	$	47



	December 31, 2015
	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	$	2,725	$	—	$	2,725	$	(2,331	)	$	—		$	(393	)	$	1
OTC cleared	345		—		345		(314		)	(25		)	—			6
Exchange-traded	6		—		6		(3		)	(1		)	—			2
Total derivatives	3,076		—		3,076		(2,648		)	(26		)	(393		)	9
Securities loaned	203		—		203		(30		)	—			(164		)	9
Repurchase agreements	50		—		50		—			—			(50		)	—
Total	$	3,329	$	—	$	3,329	$	(2,678	)	$	(26	)	$	(607	)	$	18

⁽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.

When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral.

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.