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Loans and Leases (Tables)
 12 Months Ended
Dec. 31, 2012
Loans and Leases Receivable Disclosure [Abstract]  
Net Loans
The following table presents our recorded investment in loans and leases, by segment and class, as of December 31:
 
(In millions)
2012
 
2011
Institutional:
 
 
 
Investment funds:
 
 
 
U.S.
$
8,376

 
$
5,592

Non-U.S.
829

 
796

Commercial and financial:
 
 
 
U.S.
613

 
563

Non-U.S.
520

 
453

Purchased receivables:
 
 
 
U.S.
276

 
563

Non-U.S.
118

 
372

Lease financing:
 
 
 
U.S.
380

 
397

Non-U.S.
784

 
857

Total institutional
11,896

 
9,593

Commercial real estate:
 
 
 
U.S.
411

 
460

Total loans and leases
12,307

 
10,053

Allowance for loan losses
(22
)
 
(22
)
Loans and leases, net of allowance for loan losses
$
12,285

 
$
10,031
Components Of The Net Investment In Leveraged Leases
The components of our net investment in leveraged lease financing, included in the institutional segment in the preceding table, were as follows as of December 31:

(In millions)
2012
 
2011
Net rental income receivable
$
1,519

 
$
1,671

Estimated residual values
110

 
110

Unearned income
(465
)
 
(527
)
Investment in leveraged lease financing
1,164

 
1,254

Less related deferred income tax liabilities
(370
)
 
(397
)
Net investment in leveraged lease financing
$
794

 
$
857
Recorded Investment In Each Class Of Total Loans And Leases By Credit Quality Indicator
The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated:
 
Institutional
 
Commercial Real Estate
 
 
December 31, 2012
Investment
Funds
 
Commercial
and
Financial
 
Purchased
Receivables
 
Lease
Financing
 
Property
Development
 
Other
 
Total
Loans and
Leases
(In millions)
 
 
 
 
 
 
Investment grade
$
8,937

 
$
1,041

 
$
394

 
$
1,137

 
$
—

 
$
29

 
$
11,538

Speculative
268

 
92

 
—

 
27

 
377

 
5

 
769

Total
$
9,205

 
$
1,133

 
$
394

 
$
1,164

 
$
377

 
$
34

 
$
12,307

 
 
Institutional
 
Commercial Real Estate
 
 
December 31, 2011
Investment
Funds
 
Commercial
and
Financial
 
Purchased
Receivables
 
Lease
Financing
 
Property
Development
 
Other
Acquired
Credit-
Impaired
 
Other
 
Total
Loans and
Leases
(In millions)
 
 
 
 
 
 
 
Investment grade
$
6,341

 
$
592

 
$
935

 
$
1,194

 
$
1

 
$
3

 
$
36

 
$
9,102

Speculative
47

 
424

 
—

 
60

 
379

 
31

 
5

 
946

Doubtful
—

 
—

 
—

 
—

 
—

 
5

 
—

 
5

Total
$
6,388

 
$
1,016

 
$
935

 
$
1,254

 
$
380

 
$
39

 
$
41

 
$
10,053
Schedule of Loans and Leases Receivable by Impairment Methodology
The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of December 31:
 
Institutional
 
Commercial Real Estate
 
Total Loans and Leases
(In millions)
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Loans and leases:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
11

 
$
56

 
$
411

 
$
421

 
$
422

 
$
477

Collectively evaluated for impairment(1)
11,885

 
9,537

 
—

 
—

 
11,885

 
9,537

Loans acquired with deteriorated credit quality
—

 
—

 
—

 
39

 
—

 
39

Total
$
11,896

 
$
9,593

 
$
411

 
$
460

 
$
12,307

 
$
10,053
Impaired Loans
The following tables present information related to our recorded investment in impaired loans and leases as of and for the years ended December 31:
December 31,
2012
 
2011
(In millions)
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance(1)
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance(1)
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
CRE—property development
$
197

 
$
224

 
$
—

 
$
199

 
$
227

 
$
—

CRE—property development—acquired credit-impaired
—

 
34

 
—

 
—

 
34

 
—

CRE—other—acquired credit-impaired
—

 
64

 
—

 
8

 
69

 
—

With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
CRE—other—acquired credit-impaired
—

 
—

 
—

 
31

 
37

 
—

Total CRE
$
197

 
$
322

 
$
—

 
$
238

 
$
367

 
$
—

 
 
 
 
(1)As of both December 31, 2012 and December 31, 2011, we maintained an allowance for loan losses of $22 million associated with loans and leases that were not impaired.

 
 
Average Recorded Investment
 
Interest Revenue Recognized
Years ended December 31,
 
2012
 
2011
 
2012
 
2011
(In millions)
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
CRE—property development
 
$
198

 
$
200

 
$
16

 
$
15

CRE—other—acquired credit-impaired
 
13

 
12

 
—

 
—

With an allowance recorded:
 
 
 
 
 
 
 
 
CRE—other—acquired credit-impaired
 
—

 
31

 
—

 
1

Total CRE
 
$
211

 
$
243

 
$
16

 
$
16
Schedule Of Activity In The Allowance For Loan Losses
The following table presents activity in the allowance for loan losses for the periods indicated:

 
Years Ended December 31,
 
2012
 
2011
 
2010
(In millions)
Institutional
 
Commercial
Real Estate
 
Total Loans
and Leases
 
Total Loans
and Leases
 
Total Loans
and Leases
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
22

 
$
—

 
$
22

 
$
100

 
$
79

Charge-offs
—

 
—

 
—

 
(78
)
 
(4
)
Provisions
—

 
(3
)
 
(3
)
 
—

 
25

Recoveries
—

 
3

 
3

 
—

 
—

Ending balance
$
22

 
$
—

 
$
22

 
$
22

 
$
100