XML 43 R52.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value Amounts of Derivative Instruments Reported On Our Condensed Consolidated Balance Sheet [Table Text Block]
The following table summarizes the fair value amounts of derivative instruments reported on our Condensed Consolidated Balance Sheet. The fair value amounts are presented on a gross basis, are segregated by derivatives that are designated and qualifying as hedging instruments or those that are not, and are further segregated by type of contract within those two categories. At September 30, 2014 and December 31, 2013, $235 million and $362 million, respectively, of the derivative contracts in a receivable position were classified as other assets on the Condensed Consolidated Balance Sheet. At September 30, 2014 and December 31, 2013, $299 million and $317 million of derivative contracts in a liability position were classified as accrued expenses and other liabilities on the Condensed Consolidated Balance Sheet.
 
 
September 30, 2014
 
December 31, 2013
 
 
Derivative contracts in a
 
Notional
amount
 
Derivative contracts in a
 
Notional
amount
($ in millions)
 
receivable
position (a)
 
payable
position (b)
 
receivable position (a)
 
payable
position (b)
 
Derivatives qualifying for hedge accounting
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
Swaps (c)
 
$
71

 
$
51

 
$
19,959

 
$
204

 
$
169

 
$
21,606

Foreign exchange contracts
 
 
 
 
 
 
 
 
 
 
 
 
Forwards
 
3

 
—

 
304

 
3

 
—

 
326

Total derivatives qualifying for hedge accounting
 
74

 
51

 
20,263

 
207

 
169

 
21,932

Economic hedges
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
Swaps
 
33

 
49

 
12,649

 
36

 
44

 
13,613

Futures and forwards
 
6

 
—

 
12,253

 
11

 
3

 
29,836

Written options
 
—

 
94

 
28,651

 
—

 
94

 
11,132

Purchased options
 
95

 
—

 
30,097

 
95

 
—

 
22,962

Total interest rate risk
 
134

 
143

 
83,650

 
142

 
141

 
77,543

Foreign exchange contracts
 
 
 
 
 
 
 
 
 
 
 
 
Swaps
 
15

 
92

 
1,263

 
12

 
1

 
1,379

Futures and forwards
 
7

 
4

 
286

 
1

 
1

 
330

Written options
 
—

 
—

 
—

 
—

 
—

 
17

Purchased options
 
—

 
—

 
—

 
—

 
—

 
17

Total foreign exchange risk
 
22

 
96

 
1,549

 
13

 
2

 
1,743

Equity contracts
 
 
 
 
 
 
 
 
 
 
 
 
Forwards
 
—

 
6

 
89

 
—

 
—

 
—

Written options
 
—

 
3

 
1

 
—

 
5

 
3

Purchased options
 
5

 
—

 
—

 
—

 
—

 
—

Total equity risk
 
5

 
9

 
90

 
—

 
5

 
3

Total economic hedges
 
161

 
248

 
85,289

 
155

 
148

 
79,289

Total derivatives
 
$
235

 
$
299

 
$
105,552

 
$
362

 
$
317

 
$
101,221

(a)
Includes accrued interest of $51 million and $120 million at September 30, 2014 and December 31, 2013, respectively.
(b)
Includes accrued interest of $9 million and $12 million at September 30, 2014 and December 31, 2013, respectively.
(c)
Includes fair value hedges consisting of receive-fixed swaps on fixed-rate debt obligations with $43 million and $196 million in a receivable position, $46 million and $163 million in a payable position, and of a $5.9 billion and $8.5 billion notional amount at September 30, 2014 and December 31, 2013, respectively. Other fair value hedges include pay-fixed swaps on portfolios of held-for-investment automotive loan assets with $28 million and $9 million in a receivable position, $5 million and $5 million in a payable position, and of a $14.1 billion and $12.6 billion notional amount at September 30, 2014 and December 31, 2013, respectively. Also includes cash flow hedges consisting of pay-fixed swaps on floating rate debt obligations with $1 million in a payable position, and of a $495 million notional amount at December 31, 2013.
Gains and Losses On Derivative Instruments Reported in Statement of Comprehensive Income [Table Text Block]
The following table summarizes the location and amounts of gains and losses on derivative instruments reported in our Condensed Consolidated Statement of Comprehensive Income.
 
 
Three months ended September 30,
 
Nine months ended September 30,
($ in millions)
 
2014
 
2013
 
2014
 
2013
Derivatives qualifying for hedge accounting
 
 
 
 
 
 
 
 
Gain (loss) recognized in earnings on derivatives
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
Interest and fees on finance receivables and loans (a)
 
$
28

 
$
3

 
$
22

 
$
3

Interest on long-term debt (b)
 
(39
)
 
11

 
102

 
(302
)
(Loss) gain recognized in earnings on hedged items (c)
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
Interest and fees on finance receivables and loans
 
(15
)
 
(3
)
 
14

 
(3
)
Interest on long-term debt
 
49

 
(15
)
 
(90
)
 
311

Total derivatives qualifying for hedge accounting
 
23

 
(4
)
 
48

 
9

Economic derivatives
 
 
 
 
 
 
 
 
(Loss) gain recognized in earnings on derivatives
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
Servicing asset valuation and hedge activities, net
 
—

 
—

 
—

 
(112
)
Loss on mortgage and automotive loans, net
 
—

 
—

 
—

 
(37
)
Other income, net of losses
 
(5
)
 
20

 
(24
)
 
26

Total interest rate contracts
 
(5
)
 
20

 
(24
)
 
(123
)
Foreign exchange contracts (d)
 
 
 
 
 
 
 
 
Interest on long-term debt
 
(108
)
 
52

 
(117
)
 
71

Other income, net of losses
 
8

 
(4
)
 
8

 
25

Total foreign exchange contracts
 
(100
)
 
48

 
(109
)
 
96

Equity contracts
 
 
 
 
 
 
 
 
Compensation and benefits expense
 
(6
)
 
—

 
(6
)
 
—

Total equity contracts
 
(6
)
 
—

 
(6
)
 
—

(Loss) gain recognized in earnings on derivatives
 
$
(88
)
 
$
64

 
$
(91
)
 
$
(18
)
(a)
Amounts exclude losses related to interest for qualifying accounting hedges of portfolios of retail automotive loans held-for-investment of $16 million and $1 million for the three months ended September 30, 2014 and 2013, respectively, and $43 million and $1 million for the nine months ended September 30, 2014 and 2013, respectively. These losses are primarily offset by the fixed coupon receipts on the retail automotive loans held-for-investment.
(b)
Amounts exclude gains related to interest for qualifying accounting hedges of debt, which are primarily offset by the fixed coupon payment on the long-term debt. The gains were $27 million and $33 million for the three months ended September 30, 2014 and 2013, respectively, and $89 million and $94 million for the nine months ended September 30, 2014 and 2013, respectively.
(c)
Amounts exclude gains related to amortization of deferred basis adjustments on the de-designated hedged item of $38 million and $112 million for the three months ended September 30, 2014 and 2013, respectively, and $120 million and $188 million for the nine months ended September 30, 2014 and 2013, respectively.
(d)
Amounts exclude gains and losses related to the revaluation of the related foreign-denominated debt or receivable. Gains of $102 million and losses of $47 million were recognized for the three months ended September 30, 2014 and 2013, respectively. Gains of $112 million and losses of $94 million were recognized for the nine months ended September 30, 2014 and 2013, respectively.
Derivative Instruments Used in Cash Flow and Net Investment Hedge Accounting Relationships [Table Text Block]
The following table summarizes derivative instruments used in cash flow and net investment hedge accounting relationships.
 
 
Three months ended September 30,
 
Nine months ended September 30,
($ in millions)
 
2014
 
2013
 
2014
 
2013
Cash flow hedges
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
Loss reclassified from accumulated other comprehensive income to interest on long-term debt (a)
 
$
(1
)
 
$
—

 
$
(1
)
 
$
(7
)
Gain recorded directly to interest on long-term debt
 
—

 
—

 
—

 
1

Total interest on long-term debt
 
$
(1
)
 
$
—

 
$
(1
)
 
$
(6
)
Gain (loss) recognized in other comprehensive income
 
$
1

 
$
(4
)
 
$
1

 
$
6

Net investment hedges
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
 
Loss reclassified from accumulated other comprehensive income (loss) to income from discontinued operations, net
 
$
—

 
$
—

 
$
—

 
$
(261
)
Total loss from discontinued operations, net
 
$
—

 
$
—

 
$
—

 
$
(261
)
Gain (loss) recognized in other comprehensive income (b)
 
$
8

 
$
(14
)
 
$
10

 
$
313

(a)
The amount represents losses reclassified from other comprehensive income (OCI) into earnings as a result of the discontinuance of hedge accounting because it is probable that the forecasted transaction will not occur.
(b)
The amounts represent the effective portion of net investment hedges. There are offsetting amounts recognized in accumulated other comprehensive income related to the revaluation of the related net investment in foreign operations. There were losses of $10 million and gains of $9 million for the three months ended September 30, 2014 and 2013, respectively. There were losses of $37 million and $530 million for the nine months ended September 30, 2014 and 2013, respectively.