XML 37 R27.htm IDEA: XBRL DOCUMENT v3.5.0.2
Fair Value Option (Tables)
 6 Months Ended
Jun. 30, 2016
Fair Value Disclosures [Abstract]  
Fair Value, Liabilities Measured on Recurring Basis
The following table summarizes fixed rate debt issuances accounted for under FVO:
 
June 30, 2016
 
December 31, 2015
 
(in millions)
Fixed rate debt accounted for under FVO reported in:
 
 
 
Long-term debt
$
1,419

 
$
3,257

Due to affiliates
484

 
496

Total fixed rate debt accounted for under FVO
$
1,903

 
$
3,753

 
 
 
 
Unpaid principal balance of fixed rate debt accounted for under FVO(1)
$
1,785

 
$
3,598

 
 
 
 
Fixed rate long-term debt not accounted for under FVO
$
3,166

 
$
4,074

 
(1) 
Balance includes a foreign currency translation adjustment relating to our foreign denominated FVO debt which decreased the debt balance by $237 million at June 30, 2016 and decreased the debt balance by $283 million at December 31, 2015.
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 six months ended June 30, 2016 and 2015:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
 
(in millions)
Mark-to-market on debt designated at fair value(1):
 
 
 
 
 
 
 
Interest rate component
$
12

 
$
64

 
$
18

 
$
113

Credit risk component
8

 
8

 
19

 
34

Total mark-to-market on debt designated at fair value
20

 
72

 
37

 
147

Mark-to-market on the related derivatives(1)(2)
(15
)
 
(54
)
 
(24
)
 
(131
)
Net realized gains on the related derivatives(1)
11

 
56

 
27

 
117

Gain on debt designated at fair value and related derivatives
$
16

 
$
74

 
$
40

 
$
133

 
(1) 
The derivatives associated with debt designated at fair value are economic hedges but do not qualify for hedge accounting. See Note 6, "Derivative Financial Instruments," for additional discussion of these non-qualifying hedges.
(2) 
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 $20 million and a loss of $83 million for the three months ended June 30, 2016 and 2015, respectively, and a loss of $46 million and a gain of $207 million for the six months ended June 30, 2016 and 2015, respectively. Offsetting gains (losses) recorded in derivative related income (expense) associated with the related derivatives was a loss of $20 million and a gain of $83 million for the three months ended June 30, 2016 and 2015, respectively, and a gain of $46 million and a loss of $207 million for the six months ended June 30, 2016 and 2015, respectively.