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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting and collateral, and therefore are not representative of our exposure. The table below presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet.
 
June 30, 2013
 
December 31, 2012
 
Derivative Financial Assets(1)
 
Derivative Financial Liabilities
 
Derivative Financial Assets(1)
 
Derivative Financial Liabilities
 
(in millions)
Derivatives(2)
 
 
 
 
 
 
 
Derivatives accounted for as fair value hedges
 
 
 
 
 
 
 
Interest rate swaps
$
—

 
$
—

 
$
7

 
$
—

Currency swaps
—

 
—

 
—

 
—

Fair value hedges
—

 
—

 
7

 
—

 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges
 
 
 
 
 
 
 
Interest rate swaps
19

 
(190
)
 
24

 
(474
)
Currency swaps
244

 
(74
)
 
482

 
(38
)
Cash flow hedges
263

 
(264
)
 
506

 
(512
)
 
 
 
 
 
 
 
 
Non-qualifying hedge activities
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
Interest rate swaps
23

 
(276
)
 
23

 
(1,111
)
Currency swaps
—

 
(22
)
 
—

 
(7
)
Derivatives not designated as hedging instruments
23

 
(298
)
 
23

 
(1,118
)
 
 
 
 
 
 
 
 
Derivatives associated with debt carried at fair value
 
 
 
 
 
 
 
Interest rate swaps
349

 
—

 
469

 
—

Currency swaps
497

 
—

 
678

 
—

Derivatives associated with debt carried at fair value
846

 
—

 
1,147

 
—

Total derivatives
1,132

 
(562
)
 
1,683

 
(1,630
)
Less: Gross amounts offset in the balance sheet(3)
1,132

 
(559
)
 
1,683

 
(1,608
)
Net amounts of derivative financial assets and liabilities presented in the balance sheet
—

 
(3
)
 
—

 
(22
)
Less: Gross amounts of cash or financial instrument collateral received/posted not subject to an enforceable master netting agreement
—

 
—

 
—

 
—

Net amounts of derivative financial assets and liabilities
$
—

 
$
(3
)
 
$
—

 
$
(22
)
 

(1) 
Derivative assets related to cash flow hedges and non-qualifying hedge activities are recorded within other assets in our consolidated balance sheet.
(2) 
All of our derivatives are bilateral over-the-counter ("OTC") derivatives.
(3) 
Represents the netting of derivative receivable and payable balances for the same counterparty under an enforceable netting agreement. Gross amounts offset in the balance sheet includes collateral received as of June 30, 2013 and December 31, 2012 of $661 million and$75 million , respectively. At June 30, 2013 and December 31, 2012, we did not have any financial instrument collateral received/posted.
Fair Value Hedging Information Including Gain Loss Recorded on Derivative
The following table presents fair value hedging information, including the gain (loss) recorded on the derivative and where that gain (loss) is recorded in the consolidated statement of income (loss) as well as the offsetting gain (loss) on the hedged item that is recognized in current earnings, the net of which represents hedge ineffectiveness.
  
 
 
Location of Gain
(Loss) Recognized in Income on Hedged Item and Derivative
 
Amount of Gain  (Loss)
Recognized in Income
on the Derivative
 
Amount of Gain  (Loss)
Recognized in  Income
on Hedged Item
 
Amount of Gain  (Loss)
Recognized in Income
on the Derivative
 
Amount of Gain  (Loss)
Recognized in  Income
on Hedged Item
 
 
 
 
Three Months Ended June 30,
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
Six Months Ended June 30,
 
Hedged Item
 
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
(in millions)
Interest rate swaps
Fixed rate
borrowings
 
Derivative  related income
 
$
—

 
$
2

 
$
—

 
$
(1
)
 
$
—

 
$
(3
)
 
$
—

 
$
(1
)
Currency swaps
Fixed rate
borrowings
 
Derivative related
income
 
—

 
(7
)
 
—

 
10

 
—

 
(17
)
 
—

 
19

Total
 
 
 
 
$
—

 
$
(5
)
 
$
—

 
$
9

 
$
—

 
$
(20
)
 
$
—

 
$
18
Gain or Loss Recorded on Our Cash Flow Hedging Relationships
The following table provides the gain or loss recorded on our cash flow hedging relationships.
 
Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)
 
Location of Gain
(Loss) Reclassified
from AOCI into
 
Gain (Loss) Reclassed From AOCI into Income (Effective Portion)
 
Location of Gain
(Loss) Recognized
in Income
 
Gain (Loss) Recognized In Income on Derivative (Ineffective Portion)
  
2013
 
2012
 
Income
(Effective Portion)
2013
 
2012
 
on the Derivative(Ineffective Portion)
 
2013
 
2012
 
(in millions)
Three Months Ended June 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
32

 
$
(53
)
 
Interest expense
 
$
—

 
$
(1
)
 
Derivative related
income
 
$
—

 
$
(1
)
Currency swaps
23

 
39

 
Interest expense
 
(3
)
 
(5
)
 
Derivative related
income
 
5

 
(3
)
 
 
 
 
 
Derivative loss recognized on termination of hedges
 
—

 
—

 
 
 
 
 
 
Total
$
55

 
$
(14
)
 
 
 
$
(3
)
 
$
(6
)
 
 
 
$
5

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
74

 
$
37

 
Interest expense
 
$
(1
)
 
$
(4
)
 
Derivative related
income
 
$
2

 
$
—

Currency swaps
38

 
28

 
Interest expense
 
(8
)
 
(11
)
 
Derivative related
income
 
19

 
(1
)
 
 
 
 
 
Derivative loss recognized on termination of hedges
 
(199
)
 
—

 
 
 
 
 
 
Total
$
112

 
$
65

 
 
 
$
(208
)
 
$
(15
)
 
 
 
$
21

 
$
(1
)
Gain or Loss Recorded on Our Non Qualifying Hedges
The following table provides detail of the realized and unrealized gain or loss recorded on our non-qualifying hedges:
  
Location of Gain (Loss) Recognized in Income on Derivative
Amount of Gain (Loss)
Recognized in Derivative
Related Income (Expense)
 
Amount of Gain (Loss)
Recognized in Derivative
Related Income (Expense)
Three Months Ended June 30,
 
Six Months Ended June 30,
2013
 
2012
 
2013
 
2012
 
 
(in millions)
Interest rate contracts
Derivative related income
$
181

 
$
(424
)
 
$
264

 
$
(212
)
Currency contracts
Derivative related income
(1
)
 
—

 
(1
)
 
(4
)
Total
 
$
180

 
$
(424
)
 
$
263

 
$
(216
)
Gain or Loss Recorded on Derivatives Related to Fair Value Option Debt Primarily Due to Changes in Interest Rates
The following table provides the gain or loss recorded on the derivatives related to fair value option debt primarily due to changes in interest rates. See Note 7, “Fair Value Option,” for further discussion.
 
Location of Gain (Loss)
Recognized in Income on Derivative
Amount of Gain (Loss) Recognized in Derivative Related Income (Expense)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
  
2013
 
2012
 
2013
 
2012
 
 
(in millions)
Interest rate contracts
Gain (loss) on debt designated at fair value and related derivatives
$
(6
)
 
$
25

 
$
(7
)
 
$
40

Currency contracts
Gain (loss) on debt designated at fair value and related derivatives
(17
)
 
37

 
(45
)
 
26

Total
 
$
(23
)
 
$
62

 
$
(52
)
 
$
66
Notional Values of Derivative Contracts
Notional Amount of Derivative Contracts The following table summarizes the notional amounts of derivative contracts:
 
June 30, 2013
 
December 31, 2012
 
(in millions)
Derivatives designated as hedging instruments:
 
 
 
Interest rate swaps
$
3,645

 
$
4,949

Currency swaps
4,248

 
6,063

 
7,893

 
11,012

Non-qualifying hedges:
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Interest rate swaps
3,784

 
6,219

Currency swaps
122

 
122

 
3,906

 
6,341

Derivatives associated with debt carried at fair value:
 
 
 
Interest rate swaps
5,573

 
5,573

Currency swaps
3,134

 
3,134

 
8,707

 
8,707

Total
$
20,506

 
$
26,060