Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

The volume of our derivative activities based on their notional exposure, categorized by primary underlying risk, is as follows:



	June 30, 2016				December 31, 2015
	Long Notional Exposure		Short Notional Exposure		Long Notional Exposure		Short Notional Exposure
Primary underlying risk:	(in millions)
Credit swaps⁽¹⁾	$	195	$	565	$	187	$	2,306
Equity swaps	210		15,359		1,343		14,167
Foreign currency forwards	—		861		—		842
Interest rate swap contracts⁽²⁾	—		—		—		137
Commodity contracts	32		654		43		643


⁽¹⁾	The short notional amount on our credit default swap positions is approximately $2.6 billion and $10.0 billion as of June 30, 2016 and December 31, 2015, respectively. However, because credit spreads cannot compress below zero, our downside short notional exposure to loss is approximately $0.6 billion and $2.3 billion as of June 30, 2016 and December 31, 2015, respectively.


⁽²⁾	The short notional amount on certain of our interest rate contracts with a six month duration is approximately $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) as of December 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:



Derivatives Not Designated as Hedging Instruments	Asset Derivatives⁽¹⁾						Liability Derivatives⁽²⁾
Derivatives Not Designated as Hedging Instruments	June 30, 2016			December 31, 2015			June 30, 2016			December 31, 2015
	(in millions)
Equity contracts	$	—		$	339		$	406		$	122
Foreign exchange contracts	—			—			2			19
Credit contracts	6			45			31			53
Interest rate swap contracts	—			—			—			—
Commodity contracts	15			46			11			10
Sub-total	21			430			450			204
Netting across contract types⁽³⁾	(2		)	(171		)	(2		)	(171		)
Total⁽³⁾	$	19		$	259		$	448		$	33


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


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


⁽³⁾	Excludes netting of cash collateral received and posted. The total collateral posted at June 30, 2016 and December 31, 2015 was $423 million and $883 million, respectively, across all counterparties.

The following table presents the amount of gain (loss) recognized in the condensed consolidated statements of operations for our derivatives not designated as hedging instruments:



	(Loss) Gain Recognized in Income⁽¹⁾
Derivatives Not Designated as Hedging Instruments	Three Months Ended June 30,						Six Months Ended June 30,
Derivatives Not Designated as Hedging Instruments	2016			2015			2016			2015
	(in millions)
Equity contracts	$	(250	)	$	14		$	(658	)	$	(151	)
Foreign exchange contracts	24			(38		)	(14		)	136
Credit contracts	6			178			131			149
Interest rate contracts	—			—			(12		)	—
Commodity contracts	(19		)	(70		)	(68		)	(51		)
	$	(239	)	$	84		$	(621	)	$	83


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