Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2018

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)		2018		2017		2018		2017
Derivatives designated as hedging instruments:
	Fair value hedges - Interest rate contracts (a)(b)	$	―	$	―	$	―	$	―
	Net investment hedges - Foreign exchange contracts		57		54		10		38
Total derivatives designated as hedging instruments			57		54		10		38
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		220		9		6		57
Total derivatives, gross			277		63		16		95
Less: Derivative asset and derivative liability netting (c)			(11)		(26)		(11)		(26)
Total derivatives, net		$	266	$	37	$	5	$	69

• For Credco’s centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.
• Credco posted $55 million and $115 million as of December 31, 2018 and December 31, 2017, 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 counterparties under an enforceable master netting arrangement.

Effect of fair value hedges on results of operations

The following table presents the gains and lossesassociated withthe fair value hedges of Credco’s fixed-rate long-term debt for the years ended December 31:

	Gains (losses)
(Millions)			2018		2017		2016
			Interest Expense(a)		Other expenses		Other expenses
Fixed-rate long-term debt		$	29	$	100	$	91
Derivatives designated as hedging instruments			(13)		(129)		(102)
Total		$	16	$	(29)	$	(11)

Credco adopted new accounting guidance providing targeted improvements to the accounting for hedging activities effective January 1, 2018. In compliance with the standard, amounts previously recorded in Other expenses have been prospectively recorded in Interest expense. Refer to Note 1 for additional information.