Non-U.S. Activities

6 Months Ended

Jun. 30, 2012

Segments, Geographical Areas [Abstract]

We define our non-U.S. activities as those revenue-producing 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 our internal funds transfer pricing methodology.

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 June 30,						Six Months Ended June 30,
(In millions)	2012			2011			2012			2011
Total fee revenue	$	731		$	793		$	1,469		$	1,536
Net interest revenue	242			244			474			464
Gains (Losses) related to investment securities, net	(35		)	(3		)	(32		)	(9		)
Total revenue	938			1,034			1,911			1,991
Expenses	768			862			1,557			1,630
Income before income taxes	170			172			354			361
Income tax expense	42			44			88			92
Net income	$	128		$	128		$	266		$	269

Gains (Losses) related to investment securities, net, for the three and six months ended June 30, 2012 included a loss of $46 million from the sale of all of our Greek investment securities (refer to note 2). Non-U.S. revenue for the three and six months ended June 30, 2011 included $278 million and $508 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)	June 30, 2012		December 31, 2011
Interest-bearing deposits with banks	$	22,379	$	10,772
Investment securities	26,747		25,376
Other assets	9,780		10,246
Total non-U.S. assets	$	58,906	$	46,394

- Definition

Tabular disclosure of the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. An entity may also provide subtotals of geographic information about groups of countries.

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