Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2019

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 December 31:

	Other Assets Fair Value				Other Liabilities Fair Value
(Millions)	2019		2018		2019		2018
Derivatives designated as hedging instruments:
Fair value hedges - Interest rate contracts(a)(b)	$	—	$	—	$	—	$	—
Net investment hedges - Foreign exchange contracts	12		57		44		10
Total derivatives designated as hedging instruments	12		57		44		10
Derivatives not designated as hedging instruments:
Foreign exchange contracts	31		220		182		6
Total derivatives, gross	43		277		226		16
Derivative asset and derivative liability netting(c)	(27)		(11)		(27)		(11)
Total derivatives, net	$	16	$	266	$	199	$	5

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

(b)Credco posted $20 million and $55 million as of December 31, 2019 and 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.

(c)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 associated with the fair value hedges of Credco’s fixed-rate long-term debt for the years ended December 31:

	Gains (losses)
(Millions)	2019		2018		2017
	Interest Expense(a)		Interest Expense(a)		Other, net expenses
Fixed-rate long-term debt	$	(181)	$	29	$	100
Derivatives designated as hedging instruments	184		(13)		(129)
Total	$	3	$	16	$	(29)

(a)Credco adopted a 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.