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Netting Arrangements
 6 Months Ended
Jun. 30, 2018
Offsetting [Abstract]  
Netting Arrangements
Netting Arrangements
We use master netting arrangements, which allow us to offset certain financial instruments and collateral with the same counterparty, to minimize counterparty credit exposure. The tables below display information related to derivatives, securities purchased under agreements to resell or similar arrangements, and securities sold under agreements to repurchase or similar arrangements, which are subject to an enforceable master netting arrangement or similar agreement that are either offset or not offset in our condensed consolidated balance sheets.
 
As of June 30, 2018
 
 
 
Gross Amount Offset (1)
 
Net Amount Presented in our Condensed Consolidated Balance Sheets
 
Amounts Not Offset in our Condensed Consolidated Balance Sheets
 
 
 
Gross Amount
 
 
 
Financial Instruments(2)
 
Collateral(3)
 
Net Amount
 
(Dollars in millions)
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTC risk management derivatives
$
2,672

 
$
(2,630
)
 
 
$
42

 
 
 
$
—

 
 
 
$
—

 
 
$
42

Cleared risk management derivatives
—

 
22

 
 
22

 
 
 
—

 
 
 
—

 
 
22

Mortgage commitment derivatives
288

 
—

 
 
288

 
 
 
(196
)
 
 
 
—

 
 
92

Total derivative assets
2,960

 
(2,608
)
 
 
352

(4) 
 
 
(196
)
 
 
 
—

 
 
156

Securities purchased under agreements to resell or similar arrangements(5)
27,350

 
—

 
 
27,350

 
 
 
—

 
 
 
(27,350
)
 
 
—

Total assets
$
30,310

 
$
(2,608
)
 
 
$
27,702

 
 
 
$
(196
)
 
 
 
$
(27,350
)
 
 
$
156

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTC risk management derivatives
$
(2,805
)
 
$
2,757

 
 
$
(48
)
 
 
 
$
—

 
 
 
$
—

 
 
$
(48
)
Cleared risk management derivatives
—

 
(1
)
 
 
(1
)
 
 
 
—

 
 
 
1

 
 
—

Mortgage commitment derivatives
(554
)
 
—

 
 
(554
)
 
 
 
196

 
 
 
325

 
 
(33
)
Total derivative liabilities
(3,359
)
 
2,756

 
 
(603
)
(4) 
 
 
196

 
 
 
326

 
 
(81
)
Total liabilities
$
(3,359
)
 
$
2,756

 
 
$
(603
)
 
 
 
$
196

 
 
 
$
326

 
 
$
(81
)
 
As of December 31, 2017
 
 
 
Gross Amount Offset (1)
 
Net Amount Presented in our Condensed Consolidated Balance Sheets
 
Amounts Not Offset in our Condensed Consolidated Balance Sheets
 
 
 
Gross Amount
 
 
 
Financial Instruments(2)
 
Collateral(3)
 
Net Amount
 
(Dollars in millions)
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTC risk management derivatives
$
2,479

 
$
(2,464
)
 
 
$
15

 
 
 
$
—

 
 
$
—

 
$
15

Cleared risk management derivatives
1,811

 
(1,808
)
 
 
3

 
 
 
—

 
 
—

 
3

Mortgage commitment derivatives
132

 
—

 
 
132

 
 
 
(117
)
 
 
(1
)
 
14

Total derivative assets
4,422

 
(4,272
)
 
 
150

(4) 
 
 
(117
)
 
 
(1
)
 
32

Securities purchased under agreements to resell or similar arrangements(5)
44,670

 
—

 
 
44,670

 
 
 
—

 
 
(44,670
)
 
—

Total assets
$
49,092

 
$
(4,272
)
 
 
$
44,820

 
 
 
$
(117
)
 
 
$
(44,671
)
 
$
32

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTC risk management derivatives
$
(3,045
)
 
$
2,957

 
 
$
(88
)
 
 
 
$
—

 
 
$
—

 
$
(88
)
Cleared risk management derivatives
(2,033
)
 
2,022

 
 
(11
)
 
 
 
—

 
 
11

 
—

Mortgage commitment derivatives
(228
)
 
—

 
 
(228
)
 
 
 
117

 
 
93

 
(18
)
Total derivative liabilities
(5,306
)
 
4,979

 
 
(327
)
(4) 
 
 
117

 
 
104

 
(106
)
Total liabilities
$
(5,306
)
 
$
4,979

 
 
$
(327
)
 
 
 
$
117

 
 
$
104

 
$
(106
)
__________
(1) 
Represents the effect of the right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received and accrued interest.
(2) 
Mortgage commitment derivative amounts reflect where we have recognized both an asset and a liability with the same counterparty under an enforceable master netting arrangement but we have not elected to offset the related amounts in our condensed consolidated balance sheets.
(3) 
Represents collateral received or posted that has not been offset in our condensed consolidated balance sheets. Does not include collateral held or posted in excess of our exposure. The fair value of non-cash collateral we pledged was $2.2 billion and $747 million as of June 30, 2018 and December 31, 2017, respectively, which the counterparty was permitted to sell or repledge. The fair value of non-cash collateral received was $27.4 billion and $44.7 billion, of which $24.9 billion and $42.5 billion could be sold or repledged as of June 30, 2018 and December 31, 2017, respectively. None of the underlying collateral was sold or repledged as of June 30, 2018 or December 31, 2017.
(4) 
Excludes derivative assets of $20 million and $21 million as of June 30, 2018 and December 31, 2017, respectively, and derivative liabilities of $1 million as of June 30, 2018 and December 31, 2017, recognized in our condensed consolidated balance sheets that are not subject to enforceable master netting arrangements.
(5) 
Includes $11.1 billion and $25.2 billion in securities purchased under agreements to resell classified as “Cash and cash equivalents” in our condensed consolidated balance sheets as of June 30, 2018 and December 31, 2017.
Derivative instruments are recorded at fair value and securities purchased under agreements to resell or similar arrangements are recorded at amortized cost in our condensed consolidated balance sheets. For how we determine our rights to offset the assets and liabilities presented above with the same counterparty, including collateral posted or received, see “Note 14, Netting Arrangements” in our 2017 Form 10-K.