Fair Value Option (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value, Liabilities Measured on Recurring Basis

The following table summarizes fixed rate debt issuances accounted for under FVO:



	September 30, 2014		December 31, 2013
	(in millions)
Fixed rate debt accounted for under FVO reported in:
Long-term debt	$	6,976	$	8,025
Due to affiliates	506		496
Total fixed rate debt accounted for under FVO	$	7,482	$	8,521

Unpaid principal balance of fixed rate debt accounted for under FVO⁽¹⁾	$	7,025	$	7,942

Fixed rate long-term debt not accounted for under FVO	$	6,271	$	7,083


⁽¹⁾	Balance includes a foreign currency translation adjustment relating to our foreign denominated FVO debt which decreased the debt balance by $10 million at September 30, 2014 and increased the debt balance by $245 million at December 31, 2013.

Components of Gain (Loss) on Debt Designated at Fair Value and Related Derivatives

The following table summarizes the components of the gain on debt designated at fair value and related derivatives for the three and nine months ended September 30, 2014 and 2013:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in millions)
Mark-to-market on debt designated at fair value⁽¹⁾:
Interest rate component	$	57		$	48		$	121		$	253
Credit risk component	27			(43		)	2			(61		)
Total mark-to-market on debt designated at fair value	84			5			123			192
Mark-to-market on the related derivatives⁽¹⁾	(78		)	(47		)	(180		)	(267		)
Net realized gains on the related derivatives	66			75			202			243
Gain on debt designated at fair value and related derivatives	$	72		$	33		$	145		$	168

⁽¹⁾

Mark-to-market on debt designated at fair value and related derivatives excludes market value changes due to fluctuations in foreign currency exchange rates. Foreign currency translation gains (losses) recorded in derivative related income (expense) associated with debt designated at fair value was a gain of $240 million and a loss of $109 million during the three months ended September 30, 2014 and 2013, respectively, and a gain of $255 million and a loss of $28 million for the nine months ended September 30, 2014 and 2013, respectively. Offsetting gains (losses) recorded in derivative related income (expense) associated with the related derivatives was a loss of $240 million and a gain of $109 million during the three months ended September 30, 2014 and 2013, respectively, and a loss of $255 million and a gain of $28 million for the nine months ended September 30, 2014 and 2013, respectively.

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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