Offsetting Assets and Liabilities

3 Months Ended

Mar. 31, 2022

Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments and securities borrowing and lending agreements are subject to master netting 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:


	March 31, 2022
	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						Net Amount
							Financial Instruments (1)		Cash Collateral		Securities Collateral
	(in millions)
Derivatives:
OTC	$	4,416	$	—	$	4,416	$	(3,271)	$	(1,089)	$	—	$	56
OTC cleared	156		—		156		(82)		—		—		74
Exchange-traded	98		—		98		(89)		—		—		9
Total derivatives	4,670		—		4,670		(3,442)		(1,089)		—		139
Securities borrowed	178		—		178		(64)		—		(111)		3
Total	$	4,848	$	—	$	4,848	$	(3,506)	$	(1,089)	$	(111)	$	142


	December 31, 2021
	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						Net Amount
							Financial Instruments (1)		Cash Collateral		Securities Collateral
	(in millions)
Derivatives:
OTC	$	5,387	$	—	$	5,387	$	(3,613)	$	(1,637)	$	(114)	$	23
OTC cleared	88		—		88		(41)		—		—		47
Exchange-traded	99		—		99		(91)		—		—		8
Total derivatives	5,574		—		5,574		(3,745)		(1,637)		(114)		78
Securities borrowed	135		—		135		(41)		—		(91)		3
Total	$	5,709	$	—	$	5,709	$	(3,786)	$	(1,637)	$	(205)	$	81

(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:


	March 31, 2022
	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						Net Amount
							Financial Instruments (1)		Cash Collateral		Securities Collateral
	(in millions)
Derivatives:
OTC	$	3,839	$	—	$	3,839	$	(3,271)	$	(169)	$	(393)	$	6
OTC cleared	82		—		82		(82)		—		—		—
Exchange-traded	181		—		181		(89)		(89)		—		3
Total derivatives	4,102		—		4,102		(3,442)		(258)		(393)		9
Securities loaned	269		—		269		(64)		—		(197)		8
Total	$	4,371	$	—	$	4,371	$	(3,506)	$	(258)	$	(590)	$	17


	December 31, 2021
	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						Net Amount
							Financial Instruments (1)		Cash Collateral		Securities Collateral
	(in millions)
Derivatives:
OTC	$	4,091	$	—	$	4,091	$	(3,613)	$	(183)	$	(292)	$	3
OTC cleared	41		—		41		(41)		—		—		—
Exchange-traded	91		—		91		(91)		—		—		—
Total derivatives	4,223		—		4,223		(3,745)		(183)		(292)		3
Securities loaned	207		—		207		(41)		—		(160)		6
Total	$	4,430	$	—	$	4,430	$	(3,786)	$	(183)	$	(452)	$	9

(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 amount of assets or liabilities presented 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.

Freestanding derivative instruments are reflected in Other assets and Other liabilities. Cash collateral pledged by the Company is reflected in Other assets and cash collateral accepted by the Company is reflected in Other liabilities. Securities borrowing and lending agreements are reflected in Receivables and Other liabilities, respectively. See Note 13 for additional disclosures related to the Company’s derivative instruments and Note 4 for information related to derivatives held by consolidated investment entities.