Non-U.S. Activities

3 Months Ended

Mar. 31, 2012

Segments, Geographical Areas [Abstract]

Non-U.S. Activities

Non-U.S. Activities

We define our non-U.S. activities as those revenue-producing assets and business activities that arise from clients domiciled outside the U.S. Due to the integrated nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible. Subjective estimates and other judgments have been applied to determine the financial results and assets related to our non-U.S. activities, including our application of funds transfer pricing, our asset and liability management policies and the allocation of certain indirect corporate expenses. Interest expense allocations are based on the average cost of short-term borrowings.

The following table presents our non-U.S. financial results for the periods indicated. Results for 2011 reflect the retroactive effect of management changes in methodology related to funds transfer pricing and direct and indirect expense allocation in 2012.

	Three Months Ended March 31,
(In millions)	2012		2011
Total fee revenue	$	738	$	743
Net interest revenue	210		218
Gains (Losses) related to investment securities, net	3		(6		)
Total revenue	951		955
Expenses	789		769
Income before income taxes	162		186
Income tax expense	40		48
Net income	$	122	$	138

Non-U.S. revenue for the three months ended March 31, 2012 and 2011 included $242 million and $227 million, respectively, in the U.K., primarily from our London operations.

The following table presents the significant components of our non-U.S. assets as of the dates indicated, based on the domicile of the underlying counterparties:

(In millions)	March 31, 2012		December 31, 2011
Interest-bearing deposits with banks	$	15,901	$	10,772
Investment securities	27,315		25,376
Other assets	9,391		12,573
Total non-U.S. assets	$	52,607	$	48,721