Non-U.S. Activities

12 Months Ended

Dec. 31, 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 our 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 years ended December 31. Net interest revenue for 2011 reflects the retroactive effect of management changes in methodology related to funds transfer pricing implemented in 2012. Net interest revenue for 2010 was not retroactively adjusted. Expenses for 2011 and 2010 reflect the retroactive effect of management changes in methodology related to direct and indirect expense allocation implemented in 2012.



(In millions)	2012			2011			2010
Total fee revenue	$	2,917		$	3,004		$	2,661
Net interest revenue	953			966			725
Gains (Losses) related to investment securities, net	(40		)	(25		)	449
Total revenue	3,830			3,945			3,835
Expenses	3,118			3,215			2,719
Income before income taxes	712			730			1,116
Income tax expense	187			192			305
Net income	$	525		$	538		$	811

Gains (Losses) related to investment securities, net, for the year ended December 31, 2012 included a loss of $46 million from the sale of all of our Greek investment securities (refer to note 4). Non-U.S. revenue for the year ended December 31, 2010 included $1.16 billion in the U.K., primarily from our London operations.

The following table presents the significant components of our non-U.S. assets as of December 31, based on the domicile of the underlying counterparties:



(In millions)	2012		2011
Interest-bearing deposits with banks	$	20,665	$	10,772
Investment securities	28,977		25,376
Other assets	7,040		10,246
Total non-U.S. assets	$	56,682	$	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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