Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in statement of financial position, fair value

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of September 30, 2020 and December 31, 2019:

	Other Assets Fair Value				Other Liabilities Fair Value
(Millions)	2020		2019		2020		2019
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts (a)	$	565	$	185	$	—	$	—
Net investment hedges - Foreign exchange contracts	150		24		134		186
Total derivatives designated as hedging instruments	715		209		134		186
Derivatives not designated as hedging instruments:
Foreign exchange contracts	164		134		182		254
Total derivatives, gross	879		343		316		440
Derivative asset and derivative liability netting (b)	(158)		(90)		(158)		(90)
Cash collateral netting (c)(d)	(566)		(185)		(17)		(9)
Total derivatives, net	$	155	$	68	$	141	$	341

(a)For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.

(b)Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

(c)Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty.

(d)We posted $42 million and $47 million as of September 30, 2020 and December 31, 2019, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other assets on the Consolidated Balance Sheets and are not netted against the derivative balances.

Effect of fair value hedges on results of operations

The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the three and nine months ended September 30:

	Gains (losses)
	Three Months Ended September 30,				Nine Months Ended September 30,
(Millions)	2020		2019		2020		2019
Fixed-rate long-term debt	$	96	$	(123)	$	(497)	$	(563)
Derivatives designated as hedging instruments	(97)		127		504		571
Total	$	(1)	$	4	$	7	$	8