Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2018

Table Text Block [Abstract]

Schedule of derivative instruments in statement of financial position, fair value

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31:

			Other Assets Fair Value				Other Liabilities Fair Value
(Millions)			2018		2017		2018		2017
Derivatives designated as hedging instruments:
	Fair value hedges - Interest rate contracts(a)		$	34	$	11	$	74	$	34
	Net investment hedges - Foreign exchange contracts			222		117		61		89
Total derivatives designated as hedging instruments				256		128		135		123
Derivatives not designated as hedging instruments:
	Foreign exchange contracts, including certain embedded derivatives(b)			258		82		79		95
Total derivatives, gross				514		210		214		218
Less:		Cash collateral netting(c) (d)		(28)		(6)		(78)		(45)
		Derivative asset and derivative liability netting(e)		(90)		(80)		(90)		(80)
Total derivatives, net			$	396	$	124	$	46	$	93

• For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.
• Includes foreign currency derivatives embedded in certain operating agreements.
• Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty.
• We posted $84 million and $146 million as of December 31, 2018 and 2017, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance Sheets and are not netted against the derivative balances.
• Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

Effect of fair value hedges on results of operations

The following table presents the gains and losses associated with the fair value hedges ofour fixed-rate long-term debt for the years ended December 31:

	Gains (losses)
(Millions)	2018		2017		2016
		Interest expense(a)		Other expenses		Other expenses
Fixed-rate long-term debt	$	59	$	206	$	163
Derivatives designated as hedging instruments		(43)		(246)		(184)
Total	$	16	$	(40)	$	(21)

We adopted new accounting guidance providing targeted improvements to the accounting for hedging activities effective January 1, 2018. In compliance with the standard, amounts previously recorded in Other expenses have been prospectively recorded in Total interest expense. Refer to Note 1 for additional information.