Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

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 also presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet.

	March 31, 2017						December 31, 2016
	Derivative Financial Assets			Derivative Financial Liabilities			Derivative Financial Assets			Derivative Financial Liabilities
	(in millions)
Derivatives(1)
Derivatives accounted for as cash flow hedges associated with debt:
Currency swaps	$	—		$	(54	)	$	—		$	(58	)
Cash flow hedges	—			(54		)	—			(58		)
Non-qualifying hedge activities:
Derivatives associated with debt carried at fair value:
Cross currency interest rate swaps	21			(287		)	15			(286		)
Derivatives associated with debt carried at fair value	21			(287		)	15			(286		)
Total derivatives	21			(341		)	15			(344		)
Less: Gross amounts offset in the balance sheet(2)	(21		)	295			(15		)	332
Net amounts of derivative financial assets and liabilities presented in the balance sheet(3)	$	—		$	(46	)	$	—		$	(12	)

⁽¹⁾  All of our derivatives are bilateral over-the-counter 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 paid of $274 million at March 31, 2017 and $317 million at December 31, 2016. At March 31, 2017 and December 31, 2016, we did not have any financial instrument collateral received/posted.

⁽³⁾  At March 31, 2017 and December 31, 2016, we had not received any cash 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)
	2017		2016			2017		2016				2017		2016
	(in millions)					(in millions)						(in millions)
Three Months Ended March 31,
Interest rate swaps	$	—	$	11	Interest expense	$	—	$	—		Derivative related income (expense)	$	—	$	—
Currency swaps	—		—		Interest expense	—		(3		)	Derivative related income (expense)	2		4
Total	$	—	$	11		$	—	$	(3	)		$	2	$	4

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. See Note 5, "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 March 31,
		2017			2016
		(in millions)
Cross currency interest rate contracts	Gain (loss) on debt designated at fair value and related derivatives	$	(6	)	$	7
Total		$	(6	)	$	7

Notional Values of Derivative Contracts

The following table provides the notional amounts of derivative contracts.

	March 31, 2017		December 31, 2016
	(in millions)
Derivatives designated as hedging instruments:
Currency swaps	$	203	$	203
Non-qualifying hedges:
Derivatives associated with debt carried at fair value:
Cross currency interest rate swaps	1,562		1,562
Total	$	1,765	$	1,765