Derivatives, Hedging Activities and Interest Expense (Tables)

3 Months Ended

Sep. 30, 2014

Derivatives, Hedging Activities and Interest Expense [Abstract]

Derivative Activity Impact on Consolidated Balance Sheet

		Hedge accounting					Non-hedge				Total
As of September 30, 2014		derivatives					accounting derivatives
		Notional		Fair		Notional		Fair		Notional		Fair
(Dollars in millions)					value				value				value
Other assets
Interest rate swaps		$	465	$	15	$	35,271	$	321	$	35,736	$	336
Foreign currency swaps			364		61		4,204		359		4,568		420
	Total	$	829	$	76	$	39,475	$	680	$	40,304	$	756
Counterparty netting and collateral													(707)
	Carrying value of derivative contracts – Other assets												$	49
Other liabilities
Interest rate swaps		$	-	$	-	$	53,863	$	366	$	53,863	$	366
Interest rate caps			-		-		50		-		50		-
Foreign currency swaps			157		20		7,941		497		8,098		517
	Total	$	157	$	20	$	61,854	$	863	$	62,011	$	883
Counterparty netting and collateral													(861)
	Carrying value of derivative contracts – Other liabilities												$	22

Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued)
		Hedge accounting				Non-hedge				Total
As of March 31, 2014		derivatives				accounting derivatives
		Notional		Fair		Notional		Fair		Notional		Fair
(Dollars in millions)					value				value				value
Other Assets
Interest rate swaps		$	465	$	25	$	25,942	$	336	$	26,407	$	361
Foreign currency swaps			852		342		7,374		532		8,226		874
	Total	$	1,317	$	367	$	33,316	$	868	$	34,633	$	1,235
Counterparty netting and collateral held													(1,186)
	Carrying value of derivative contracts – Other assets											$	49
Other liabilities
Interest rate swaps		$	-	$	-	$	57,689	$	553	$	57,689	$	553
Interest rate caps			-		-		50		-		50		-
Foreign currency swaps			157		14		3,822		238		3,979		252
	Total	$	157	$	14	$	61,561	$	791	$	61,718	$	805
Counterparty netting and collateral held													(799)
	Carrying value of derivative contracts – Other liabilities											$	6

Derivative Activity Impact on Consolidated Statement of Income

			Three Months Ended					Six Months Ended
			September 30,					September 30,
(Dollars in millions)				2014		2013		2014		2013
Interest expense on debt			$	298	$	320	$	619	$	638
Interest expense on hedge accounting derivatives				(10)		(25)		(25)		(49)
Interest expense on non-hedge accounting foreign currency
	swaps			(37)		(54)		(92)		(105)
Interest expense on non-hedge accounting interest rate swaps				27		61		64		127
		Interest expense on debt and derivatives, net		278		302		566		611
Loss (gain) on hedge accounting derivatives:
	Interest rate swaps			5		4		10		10
	Foreign currency swaps			64		(60)		63		(16)
		Loss (gain) on hedge accounting derivatives		69		(56)		73		(6)
Less hedged item: change in fair value of fixed rate debt				(69)		55		(73)		4
		Ineffectiveness related to hedge accounting derivatives		-		(1)		-		(2)
(Gain) loss from foreign currency transactions and non-hedge
accounting derivatives:
		(Gain) loss on non-hedge accounting foreign currency transactions		(867)		352		(787)		(98)
		Loss (gain) on non-hedge accounting foreign currency swaps		866		(335)		711		231
		(Gain) loss on non-hedge accounting interest rate swaps		(62)		(4)		(145)		108
Total interest expense			$	215	$	314	$	345	$	850