Fair Value Option (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value, Liabilities Measured on Recurring Basis

The following table summarizes fixed rate debt issuances accounted for under FVO:



	March 31, 2015		December 31, 2014
	(in millions)
Fixed rate debt accounted for under FVO reported in:
Long-term debt	$	6,396	$	6,762
Due to affiliates	513		512
Total fixed rate debt accounted for under FVO	$	6,909	$	7,274

Unpaid principal balance of fixed rate debt accounted for under FVO⁽¹⁾	$	6,598	$	6,888

Fixed rate long-term debt not accounted for under FVO	$	5,607	$	5,863


⁽¹⁾	Balance includes a foreign currency translation adjustment relating to our foreign denominated FVO debt which decreased the debt balance by $436 million at March 31, 2015 and decreased the debt balance by $146 million at December 31, 2014.

Components of Gain (Loss) on Debt Designated at Fair Value and Related Derivatives

The following table summarizes the components of the gain on debt designated at fair value and related derivatives for the three months ended March 31, 2015 and 2014:



Three Months Ended March 31,	2015			2014
	(in millions)
Mark-to-market on debt designated at fair value⁽¹⁾:
Interest rate component	$	49		$	36
Credit risk component	26			(16		)
Total mark-to-market on debt designated at fair value	75			20
Mark-to-market on the related derivatives⁽¹⁾⁽²⁾	(77		)	(57		)
Net realized gains on the related derivatives⁽¹⁾	61			68
Gain on debt designated at fair value and related derivatives	$	59		$	31


⁽¹⁾	The derivatives associated with debt designated at fair value are economic hedges but do not qualify for hedge accounting. See Note 7, "Derivative Financial Instruments," for additional discussion of these non-qualifying hedges.

⁽²⁾

Mark-to-market on debt designated at fair value and related derivatives excludes market value changes due to fluctuations in foreign currency exchange rates. Foreign currency translation gains (losses) recorded in derivative related expense associated with debt designated at fair value was a gain of $291 million and a loss of $2 million during the three months ended March 31, 2015 and 2014, respectively. Offsetting gains (losses) recorded in derivative related expense associated with the related derivatives was a loss of $291 million and a gain of $2 million during the three months ended March 31, 2015 and 2014, respectively.

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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