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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional and Fair Value Amounts of Client-related and Trading Derivative Financial Instruments
The following table shows the notional and fair values of all derivative financial instruments as of December 31, 2018 and December 31, 2017.

TABLE 114: NOTIONAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
 
DECEMBER 31, 2018
DECEMBER 31, 2017
 
 
FAIR VALUE
 
FAIR VALUE
(In Millions)
NOTIONAL
VALUE

ASSET 1

LIABILITY 2

NOTIONAL
VALUE

ASSET 1

LIABILITY 2

Derivatives Designated as Hedging under GAAP
 
 
 
 
 
 
Interest Rate Contracts
 
 
 
 
 
 
      Fair Value Hedges
$
4,590.4

$
29.8

$
23.3

$
4,473.1

$
31.7

$
18.2

      Cash Flow Hedges
600.0

0.2

1.2

925.0

0.2

1.2

Foreign Exchange Contracts
 
 
 
 
 
 
      Cash Flow Hedges
2,648.2

13.8

57.8

3,289.0

28.4

13.0

      Net Investment Hedges
3,475.1

292.4

14.5

3,011.3

0.6

179.5

Total Derivatives Designated as Hedging under GAAP
$
11,313.7

$
336.2

$
96.8

$
11,698.4

$
60.9

$
211.9

 
 
 
 
 
 
 
Derivatives Not Designated as Hedging under GAAP
 
 
 
 
 
 
Non-Designated Risk Management Derivatives
 
 
 
 
 
 
Foreign Exchange Contracts
$
122.2

$
0.5

$
0.2

$
214.1

$
1.1

$
0.1

Other Financial Derivatives 3
483.4

1.3

32.8

404.7

—

30.4

Total Non-Designated Risk Management Derivatives
$
605.6

$
1.8

$
33.0

$
618.8

$
1.1

$
30.5

 
 
 
 
 
 
 
Client-Related and Trading Derivatives












Foreign Exchange Contracts
$
281,864.4

$
2,159.4

$
2,190.0

$
317,882.5

$
2,527.0

$
2,522.5

Interest Rate Contracts
7,711.2

66.1

68.6

7,418.0

65.1

64.1

Total Client-Related and Trading Derivatives
$
289,575.6

$
2,225.5

$
2,258.6

$
325,300.5

$
2,592.1

$
2,586.6

 
 
 
 
 
 
 
Total Derivatives Not Designated as Hedging under GAAP
$
290,181.2

$
2,227.3

$
2,291.6

$
325,919.3

$
2,593.2

$
2,617.1

 
 
 
 
 
 
 
Total Gross Derivatives
$
301,494.9

$
2,563.5

$
2,388.4

$
337,617.7

$
2,654.1

$
2,829.0

Less: Netting 4
 
1,357.1

1,796.3

 
1,860.0

1,621.4

Total Derivative Financial Instruments
 
$
1,206.4

$
592.1

 
$
794.1

$
1,207.6


(1)    Derivative assets are reported in other assets on the consolidated balance sheets.
(2)    Derivative liabilities are reported in other liabilities on the consolidated balance sheets.
(3)    This line includes swaps related to sales of certain Visa Class B common shares and total return swap contracts.
(4)    See further detail in Note 27 - Offsetting of Assets and Liabilities.
Gains/Losses of Derivative Financial Instruments
The following table provides fair value and cash flow hedge derivative gains and losses recognized in income during the years ended December 31, 2018, 2017 and 2016.

TABLE 115: LOCATION AND AMOUNT OF FAIR VALUE AND CASH FLOW HEDGE DERIVATIVE GAINS AND LOSSES RECORDED IN INCOME
 
 
Location and Amount of Derivative Gain/(Loss) Recognized in Income
(in Millions)
 
Interest Income
 
Interest Expense
 
Other Operating Income
 
Other Operating Expense
For the Year Ended December 31,
 
2018

2017

2016

 
2018

2017

2016

 
2018

2017

2016

 
2018

2017

2016

Total amounts on the consolidated statements of income
 
$
2,321.4

$
1,769.4

$
1,416.9

 
$
698.7

$
340.2

$
182.0

 
$
127.5

$
157.5

$
241.2

 
$
330.6

$
331.6

$
364.4

Gains/(Losses) on fair value hedges recognized on
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recognized on derivatives
 
13.9

8.8

80.6

 
(9.5
)
(24.3
)
(33.9
)
 
—

—

—

 
—

—

—

Recognized on hedged items
 
(13.9
)
(8.8
)
(80.6
)
 
9.5

24.3

33.9

 
—

—

—

 
—

—

—

Amounts related to interest settlements on derivatives
 
17.8

(9.6
)
(16.9
)
 
7.9

27.7

38.9

 
—

—

—

 
—

—

—

Total gain/(loss) recognized on fair value hedges
 
$
17.8

$
(9.6
)
$
(16.9
)

$
7.9

$
27.7

$
38.9


$
—

$
—

$
—


$
—

$
—

$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains/(Losses) on cash flow hedges recognized on
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Exchange Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gain/(loss) reclassified from AOCI to net income
 
67.4

19.3

6.4

 
—

—

—

 
3.9

5.0

(6.4
)
 
—

(0.1
)
(0.9
)
Interest Rate Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gain/(loss) reclassified from AOCI to net income
 
(0.2
)
0.3

2.8

 
—

—

—

 
—

—

—

 
—

—

—

Total gain/(loss) reclassified from AOCI to net income on cash flow hedges
 
$
67.2

$
19.6

$
9.2


$
—

$
—

$
—


$
3.9

$
5.0

$
(6.4
)

$
—

$
(0.1
)
$
(0.9
)
The following table provides the impact of fair value hedge accounting on the carrying value of the designated hedged items as of December 31, 2018.

TABLE 116: HEDGED ITEMS IN FAIR VALUE HEDGES
 
DECEMBER 31, 2018
(In Millions)
CARRYING VALUE OF THE HEDGED ITEMS

 
CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT 1

Available for Sale Debt Securities 2
$
3,831.6

 
$
99.4

Senior Notes and Long-Term Subordinated Debt
1,248.8

 
29.3

 
 
 
 
Total
$
5,080.4

 
$
128.7

(1)    There are no amounts related to discontinued hedging relationships.
(2)    Carrying value represents amortized cost.
Gains/Losses of Derivative Financial Instruments Not Designated as Hedging
The following table provides the location and amount of gains and losses recorded in the consolidated statements of income for the years ended December 31, 2018, 2017, and 2016 for derivative instruments not designated as hedges under GAAP.

TABLE 117: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME FOR DERIVATIVES NOT DESIGNATED AS HEDGING UNDER GAAP
(In Millions)
LOCATION OF DERIVATIVE GAIN / (LOSS) RECOGNIZED IN INCOME
AMOUNT OF DERIVATIVE GAIN / (LOSS) RECOGNIZED IN INCOME
2018
2017
2016
Non-designated risk management derivatives
 
 
 
 
Foreign Exchange Contracts
Other Operating Income
$
(4.1
)
$
8.2

$
(6.7
)
Other Financial Derivatives (1)
Other Operating Income
(19.2
)
(13.3
)
(6.1
)
Gains/(Losses) from non-designated risk management derivatives
 
$
(23.3
)
$
(5.1
)
$
(12.8
)
 
 
 
 
 
Client-related and trading derivatives
 
 
 
 
Foreign Exchange Contracts
Foreign Exchange Trading Income
307.2

209.9

236.6

Interest Rate Contracts
Security Commissions and Trading Income
7.7

10.7

11.4

Gains/(Losses) from client-related and trading derivatives
 
$
314.9

$
220.6

$
248.0

 
 
 
 
 
Total gains/(losses) from derivatives not designated as hedging under GAAP
 
$
291.6

$
215.5

$
235.2

(1) This line includes swaps related to the sale of certain Visa Class B common shares, credit default swap contracts, and total return swap contracts.