Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

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:



	Asset Derivatives⁽¹⁾						Liability Derivatives⁽²⁾
Derivatives Not Designated as Hedging Instruments	December 31,						December 31,
Derivatives Not Designated as Hedging Instruments	2015			2014			2015			2014
	(in millions)
Equity contracts	$	339		$	—		$	122		$	552
Foreign exchange contracts	—			11			19			—
Credit contracts	45			1			53			85
Interest rate contracts	—			1			—			—
Commodity contracts	46			47			10			—
Sub-total	430			60			204			637
Netting across contract types⁽³⁾	(171		)	(10		)	(171		)	(10		)
Total⁽³⁾	$	259		$	50		$	33		$	627


⁽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 December 31, 2015 and 2014 was $883 million and $1.2 billion, 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 the years ended December 31, 2015, 2014 and 2013:



	Gain (Loss) Recognized in Income⁽¹⁾
	Year Ended December 31,
Derivatives Not Designated as Hedging Instruments	2015			2014			2013
	(in millions)
Equity contracts	$	(1	)	$	(1,251	)	$	(1,871	)
Foreign exchange contracts	160			213			(80		)
Credit contracts	489			70			—
Commodity contracts	57			186			64
	$	705		$	(782	)	$	(1,887	)


⁽¹⁾	Gains (losses) recognized on derivatives are classified in net 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 Notional Amounts of Outstanding Derivative Positions

At December 31, 2015 and 2014, the volume of our derivative activities based on their notional exposure, categorized by primary underlying risk, are as follows:



	December 31, 2015				December 31, 2014
	Long Notional Exposure		Short Notional Exposure		Long Notional Exposure		Short Notional Exposure
Primary underlying risk:	(in millions)
Credit swaps⁽¹⁾	$	187	$	2,306	$	389	$	1,495
Equity swaps	1,343		14,167		108		11,312
Foreign currency forwards	—		842		—		1,578
Interest rate contracts⁽²⁾	—		137		—		137
Commodity contracts	43		643		36		234


⁽¹⁾	The short notional amount on our credit default swap positions is approximately $10.0 billion as of December 31, 2015. However, because credit spreads cannot compress below zero, our downside short notional exposure to loss is approximately $2.3 billion.


⁽²⁾	The short notional amount on certain of our interest rate contracts with a three month duration is $16.0 billion as of December 31, 2015. We assume that interest rates will not fall below zero and therefore our downside short notional exposure to loss on these contracts is $74 million (of the total $137 million disclosed in the above table).