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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2014
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, 2014
 
December 31, 2013
 
Derivative Financial Assets
 
Derivative Financial Liabilities
 
Derivative Financial Assets
 
Derivative Financial Liabilities
 
(in millions)
Derivatives(1)
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges
 
 
 
 
 
 
 
Interest rate swaps
$
12

 
$
(108
)
 
$
16

 
$
(138
)
Currency swaps
264

 
(10
)
 
255

 
(28
)
Cash flow hedges
276

 
(118
)
 
271

 
(166
)
 
 
 
 
 
 
 
 
Non-qualifying hedge activities
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
Interest rate swaps
21

 
(303
)
 
24

 
(171
)
Currency swaps
—

 
—

 
—

 
—

Derivatives not designated as hedging instruments
21

 
(303
)
 
24

 
(171
)
 
 
 
 
 
 
 
 
Derivatives associated with debt carried at fair value
 
 
 
 
 
 
 
Interest rate swaps
197

 
—

 
270

 
—

Currency swaps
498

 
—

 
542

 
—

Derivatives associated with debt carried at fair value
695

 
—

 
812

 
—

Total derivatives
992

 
(421
)
 
1,107

 
(337
)
Less: Gross amounts offset in the balance sheet(2)
992

 
(421
)
 
1,107

 
(337
)
Net amounts of derivative financial assets and liabilities presented in the balance sheet(3)
$
—

 
$
—

 
$
—

 
$
—

 

(1) 
All of our derivatives are bilateral over-the-counter ("OTC") derivatives.
(2) 
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 cash collateral received as of June 30, 2014 and December 31, 2013 of $590 million and $811 million, respectively. At June 30, 2014 and December 31, 2013, we did not have any financial instrument collateral received/posted.
(3) 
At June 30, 2014 and December 31, 2013, we had not received any cash or financial instruments not subject to an enforceable master netting agreement.
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 Income
(Effective Portion)
 
Gain (Loss) Reclassed From AOCI into Income (Effective Portion)
 
Location of Gain
(Loss) Recognized
in Income on the Derivative(Ineffective Portion)
 
Gain (Loss) Recognized In Income on Derivative (Ineffective Portion)
 
2014
 
2013
 
2014
 
2013
 
 
2014
 
2013
 
(in millions)
Three Months Ended June 30,
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
8

 
$
32

 
Interest expense
 
$
1

 
$
—

 
Derivative related
income (expense)
 
$
—

 
$
—

Currency swaps
3

 
23

 
Interest expense
 
(4
)
 
(3
)
 
Derivative related
income (expense)
 
3

 
5

Total
$
11

 
$
55

 
 
 
$
(3
)
 
$
(3
)
 
 
 
$
3

 
$
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
21

 
$
74

 
Interest expense
 
$
1

 
$
(1
)
 
Derivative related
income (expense)
 
$
—

 
$
2

Currency swaps
7

 
38

 
Interest expense
 
(7
)
 
(8
)
 
Derivative related
income (expense)
 
8

 
19

 
 
 
 
 
Derivative loss recognized on termination of hedges
 
—

 
(199
)
 
 
 
 
 
 
Total
$
28

 
$
112

 
 
 
$
(6
)
 
$
(208
)
 
 
 
$
8

 
$
21
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)
Three Months Ended June 30,
 
Six Months Ended June 30,
2014
 
2013
 
2014
 
2013
 
 
(in millions)
Interest rate contracts
Derivative related income (expense)
$
(93
)
 
$
181

 
$
(188
)
 
$
264

Currency contracts
Derivative related income (expense)
—

 
(1
)
 
—

 
(1
)
Total
 
$
(93
)
 
$
180

 
$
(188
)
 
$
263
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,
 
2014
 
2013
 
2014
 
2013
 
 
(in millions)
Interest rate contracts
Gain on debt designated at fair value and related derivatives
$
5

 
$
(6
)
 
$
8

 
$
(7
)
Currency contracts
Gain on debt designated at fair value and related derivatives
18

 
(17
)
 
26

 
(45
)
Total
 
$
23

 
$
(23
)
 
$
34

 
$
(52
)
Notional Values of Derivative Contracts
Notional Amount of Derivative Contracts The following table provides the notional amounts of derivative contracts.
 
June 30, 2014
 
December 31, 2013
 
(in millions)
Derivatives designated as hedging instruments:
 
 
 
Interest rate swaps
$
1,959

 
$
3,256

Currency swaps
2,248

 
2,277

 
4,207

 
5,533

Non-qualifying hedges:
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Interest rate swaps
3,199

 
3,699

Currency swaps
—

 
—

 
3,199

 
3,699

Derivatives associated with debt carried at fair value:
 
 
 
Interest rate swaps
3,682

 
4,343

Currency swaps
2,892

 
2,892

 
6,574

 
7,235

Total
$
13,980

 
$
16,467