Non-U.S. Activities

6 Months Ended

Jun. 30, 2011

Non-U.S. Activities

Non-U.S. Activities

Note 17.    Non-U.S. Activities

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

The following table presents our non-U.S. operating results for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2011			2010			2011			2010
Total fee revenue	$	792		$	687		$	1,535		$	1,322
Net interest revenue		159			142			314			297
Gains (Losses) related to investment securities, net		(3	)		(13	)		(9	)		50
Total revenue		948			816			1,840			1,669
Expenses		887			770			1,676			1,425
Income before income taxes		61			46			164			244
Income tax expense		16			17			42			92
Net income	$	45		$	29		$	122		$	152

Non-U.S. revenue for the three and six months ended June 30, 2011 included $262 million and $498 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, 2011		December 31, 2010
Interest-bearing deposits with banks	$	8,829	$	9,443
Non-U.S. investment securities		27,149		21,330
Other assets		18,322		16,239
Total assets	$	54,300	$	47,012