Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and December 31, 2018:

		Other Assets				Other Liabilities
		Fair Value				Fair Value
(Millions)		2019		2018		2019		2018
Derivatives designated as hedging instruments:
	Fair value hedges - Interest rate contracts^(a)(b)	$	―	$	―	$	6	$	―
	Net investment hedges - Foreign exchange contracts		19		57		40		10
Total derivatives designated as hedging instruments			19		57		46		10
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		30		220		114		6
Total derivatives, gross			49		277		160		16
Less: Derivative asset and derivative liability netting^(c)			(27)		(11)		(27)		(11)
Total derivatives, net		$	22	$	266	$	133	$	5

For Credco’s centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral.
Credco posted $44 million and $55 million as of March 31, 2019 and December 31, 2018, 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 losses recognized in Interest expense associated with the fair value hedges of Credco’s fixed-rate long-term debt:

		Gains (losses)
		Three Months Ended
		March 31,
(Millions)		2019		2018
Fixed-rate long-term debt	$	(67)	$	115
Derivatives designated as hedging instruments		65		(95)
Total	$	(2)	$	20