Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016 and December 31, 2015:

		Other Assets				Other Liabilities
		Fair Value				Fair Value
(Millions)		2016		2015		2016		2015
Derivatives designated as hedging instruments:
Interest rate contracts
	Fair value hedges	$	391	$	236	$	―	$	9
Foreign exchange contracts
	Net investment hedges		113		191		279		57
Total derivatives designated as hedging instruments			504		427		279		66
Derivatives not designated as hedging instruments:
	Foreign exchange contracts, including certain embedded derivatives(a)		120		117		177		135
Total derivatives, gross			624		544		456		201
Less: Cash collateral netting(b)			(324)		(155)		―		―
	Derivative asset and derivative liability netting(c)		(120)		(107)		(120)		(107)
Total derivatives, net(d)		$	180	$	282	$	336	$	94

• Includes foreign currency derivatives embedded in certain operating agreements.
• Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement.Additionally, the Company posted $140 million and $149 million as of March 31, 2016 and December 31, 2015, respectively, as initial margin on its 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.
• The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are presented within Other assets and Other liabilities on the Consolidated Balance Sheets.

Effect of fair value hedges on results of operations

The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s fair value hedges for the three months ended March 31:

For the Three Months Ended March 31: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative relationship	Income Statement Line Item	2016		2015		Income Statement Line Item	2016		2015		2016		2015
Interest rate contracts	Other expenses	$	165	$	63	Other expenses	$	(171)	$	(57)	$	(6)	$	6