Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2017

Derivatives And Hedging Activities Tables [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 December 31:

		Other Assets				Other Liabilities
		Fair Value				Fair Value
(Millions)		2017		2016		2017		2016
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts^(a)		$	―	$	22	$	―	$	69
Net investment hedges - Foreign exchange contracts			54		151		38		1
Total derivatives designated as hedging instruments			54		173		38		70
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		9		128		57		28
Total derivatives, gross			63		301		95		98
Less: Cash collateral netting^(b)(c)			―		(2)		―		(49)
Derivative asset and derivative liability netting^(d)			(26)		(27)		(26)		(27)
Total derivatives, net		$	37	$	272	$	69	$	22

Effective January 2017, the Central Clearing Party (CCP) changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement payments, as opposed to collateral. As of December 31, 2017, there was no unsettled derivative asset or liability with the CCP.
Represents the offsetting of the fair value of bilateral interest rate contracts with the right to reclaim cash collateral or the obligation to return cash collateral.
Credco held no non-cash collateral as of December 31, 2017 and 2016, respectively. To mitigate counterparty credit risk related to derivatives, Credco may accept non-cash collateral from its derivatives counterparties. Additionally, Credco posted $115 million and $144 million as of December 31, 2017 and 2016, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other assets on Credco’s Consolidated Balance Sheets and are not netted against the derivative balances.
Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

Effect of fair value hedges on results of operations

The following table summarizes the gains (losses) recognized in Other expenses associated with Credco’s fair value hedges for the years ended December 31:

(Millions)		2017		2016		2015
Interest rate derivative contracts	$	(129)	$	(102)	$	(31)
Hedged items		100		91		44
Net hedge ineffectiveness (losses) gains	$	(29)	$	(11)	$	13