Non-U.S. Activities

12 Months Ended

Dec. 31, 2011

Non-U.S. Activities [Abstract]

Non-U.S. Activities

Note 25.     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 nature of our business, precise segregation of our 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 funds 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. financial results for the years ended December 31. Effective January 1, 2011, management revised its methodology with respect to funds transfer pricing, which is used in the measurement of net interest revenue related to non-U.S. activities. Prior-year net interest revenue amounts were not restated to reflect the revised methodology.

(In millions)	2011			2010		2009
Total fee revenue	$	3,004		$	2,661	$	2,291
Net interest revenue		1,104			725		422
Gains (Losses) related to investment securities, net		(25	)		449		(37	)
Total revenue		4,083			3,835		2,676
Expenses		3,415			2,962		2,457
Income before income taxes		668			873		219
Income tax expense		172			327		84
Net income	$	496		$	546	$	135

Non-U.S. revenue for 2011 and 2010 included $1.04 billion and $1.18 billion, 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 December 31, based on the domicile of the underlying counterparties:

(In millions)		2011		2010
Interest-bearing deposits with banks	$	10,772	$	9,443
Non-U.S. investment securities		25,376		19,329
Other assets		15,518		13,994
Total assets	$	51,666	$	42,766