XML 25 R14.htm IDEA: XBRL DOCUMENT v3.24.2.u1
DERIVATIVES AND HEDGING ACTIVITIES
6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING ACTIVITIES
NOTE 7: DERIVATIVES AND HEDGING ACTIVITIES
In 2023, we entered into two interest rate floors that were designated as cash flow hedges of interest rate risk associated with our margin receivables. One interest rate floor with a notional amount of $2 billion was effective as of June 30, 2023. Another with a notional amount of $1 billion was effective as of January 1, 2024. Both interest rate floors had a maturity of six months.

Amounts reported in accumulated other comprehensive income (loss) (“AOCI”) related to interest rate floors will be reclassified to net interest revenues as interest payments are received or paid on the hedged items. During the next 12 months, we expect to reclassify an immaterial amount of losses from AOCI as a reduction to net interest revenues.
The following table summarizes the amount of gain or loss recognized in AOCI on our unaudited condensed consolidated financial statements:

Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)2023202420232024
Derivatives designated as hedging instruments:
Loss on derivatives included in effectiveness assessment
$(3)$— $(3)$— 
Loss reclassified from AOCI into net interest revenues included in effectiveness assessment
— — 
Total
$(3)$$(3)$

The following table summarizes the components of AOCI related to hedging activities on our unaudited condensed consolidated financial statements:

Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)2023202420232024
Beginning balance$— $(2)$— $(3)
Other comprehensive loss before reclassifications, net of tax(3)— (3)— 
Reclassification adjustment for net gains included in net interest revenues, net of tax
— — 
Other comprehensive gain (loss) after reclassifications, net of tax
$(3)$$(3)$
Ending balance$(3)$— $(3)$—