Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2019

Derivatives and Hedging Activities (Tables) [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 March 31, 2019 and December 31, 2018:

			Other Assets Fair Value				Other Liabilities Fair Value
(Millions)			2019		2018		2019		2018
Derivatives designated as hedging instruments:
	Fair value hedges - Interest rate contracts(a)		$	66	$	34	$	39	$	74
	Net investment hedges - Foreign exchange contracts			42		222		138		61
Total derivatives designated as hedging instruments				108		256		177		135
Derivatives not designated as hedging instruments:
	Foreign exchange contracts, including an embedded derivative			147		258		185		79
Total derivatives, gross				255		514		362		214
Less:		Cash collateral netting(b)(c)		(46)		(28)		(35)		(78)
		Derivative asset and derivative liability netting(d)		(105)		(90)		(105)		(90)
Total derivatives, net			$	104	$	396	$	222	$	46

• For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.
• 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 $70 million and $84 million as of March 31, 2019 and December 31, 2018, 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 recognized in Interest expense associated with the fair value hedges of our fixed-rate long-term debt for the three months ended March 31:

		Gains (losses)
(Millions)	2019		2018
Fixed-rate long-term debt	$	(160)	$	210
Derivatives designated as hedging instruments		158		(191)
Total	$	(2)	$	19