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Derivatives and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [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 June 30, 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)
 
$
191

 
$
34

 
$
—

 
$
74

Net investment hedges - Foreign exchange contracts
 
107

 
222

 
60

 
61

Total derivatives designated as hedging instruments
 
298

 
256

 
60

 
135

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Foreign exchange contracts, including an embedded derivative
 
162

 
258

 
150

 
79

Total derivatives, gross
 
460

 
514

 
210

 
214

Less: Cash collateral netting (b)(c)
 
(191
)
 
(28
)
 
(9
)
 
(78
)
Derivative asset and derivative liability netting (d)
 
(133
)
 
(90
)
 
(133
)
 
(90
)
Total derivatives, net
 
$
136

 
$
396

 
$
68

 
$
46

(a)
For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.
(b)
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.
(c)
We posted $76 million and $84 million as of June 30, 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.
(d)
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 on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the three and six months ended June 30:
 
 
Gains (losses)
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(Millions)
 
2019

 
2018

 
2019

 
2018

Fixed-rate long-term debt
 
$
(280
)
 
$
58

 
$
(440
)
 
$
268

Derivatives designated as hedging instruments
 
286

 
(67
)
 
444

 
(258
)
Total
 
$
6

 
$
(9
)
 
$
4

 
$
10