Derivatives, Hedging Activities and Interest Expense (Tables)

12 Months Ended

Mar. 31, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Activity Impact on Consolidated Balance Sheet

The following tables show the financial statement line item and amount of our derivative assets and liabilities that are reported in the Consolidated Balance Sheet at March 31, 2015 and 2014.

As of March 31, 2015	Hedge accounting derivatives				Non-hedge accounting derivatives				Total
			Fair				Fair				Fair
(Dollars in millions)	Notional		value		Notional		value		Notional		value
Other assets
Interest rate swaps	$	190	$	4	$	26,549	$	467	$	26,739	$	471
Foreign currency swaps		271		24		913		193		1,184		217
Total	$	461	$	28	$	27,462	$	660	$	27,923	$	688
Counterparty netting and collateral held												(635	)
Carrying value of derivative contracts – Other assets											$	53
Other liabilities
Interest rate swaps	$	-	$	-	$	64,852	$	386	$	64,852	$	386
Interest rate caps		-		-		50		-		50		-
Foreign currency swaps		251		43		12,971		1,845		13,222		1,888
Total	$	251	$	43	$	77,873	$	2,231	$	78,124	$	2,274
Counterparty netting and collateral held												(2,184	)
Carrying value of derivative contracts – Other liabilities											$	90

Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued)

As of March 31, 2014	Hedge accounting derivatives				Non-hedge accounting derivatives				Total
			Fair				Fair				Fair
(Dollars in millions)	Notional		value		Notional		value		Notional		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

Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued)

The following table summarizes the components of interest expense, including the location and amount of gains and losses on derivative instruments and related hedged items, for fiscal 2015, 2014 and 2013 as reported in our Consolidated Statement of Income:

	Years ended March 31,
(Dollars in millions)	2015			2014			2013
Interest expense on debt	$	1,213		$	1,262		$	1,330
Interest income on hedge accounting derivatives		(43	)		(85	)		(103	)
Interest income on non-hedge accounting foreign currency swaps		(147	)		(202	)		(258	)
Interest expense on non-hedge accounting interest rate swaps		123			210			359
Interest expense on debt and derivatives, net		1,146			1,185			1,328
Loss on hedge accounting derivatives:
Interest rate swaps		19			20			15
Foreign currency swaps		122			8			274
Loss on hedge accounting derivatives		141			28			289
Less hedged item:  change in fair value of fixed rate debt		(142	)		(31	)		(299	)
Ineffectiveness related to hedge accounting derivatives		(1	)		(3	)		(10	)
(Gain) loss from foreign currency transactions and  non-hedge accounting derivatives:
Gain on non-hedge accounting foreign currency transactions		(2,375	)		(45	)		(430	)
Loss on non-hedge accounting foreign currency swaps		2,248			185			431
(Gain) loss on non-hedge accounting interest rate swaps		(282	)		18			(379	)
Total interest expense	$	736		$	1,340		$	940