Fair Values (Tables)

12 Months Ended

Dec. 31, 2019

Fair value assets and liabilities measured on recurring basis

The following table summarizes Credco’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy as Level 2 (as described in the preceding paragraphs), as of December 31:


(Millions)	2019		2018
Assets:
Derivatives, gross^(a)	$	43	$	277
Total assets	43		277
Liabilities:
Derivatives, gross^(a)	226		16
Total liabilities	$	226	$	16

(a)Refer to Note 6 for the fair values of derivative assets and liabilities, on a further disaggregated basis.

Summary of Estimated Fair Values of Financial Assets and Liabilities

The following table summarizes the estimated fair values of Credco’s financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of December 31, 2019 and 2018. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2019 and 2018 and require management's judgment. These figures may not be indicative of future fair values, nor can the fair value of Credco be estimated by aggregating the amounts presented.


	Carrying		Corresponding Fair Value Amount
2019 (Billions)	Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	—
Other financial assets^(a)	26.3		26.3		0.1		26.2		—
Financial assets carried at other than fair value
Card Member loans, net	0.7		0.7		—		—		0.7
Loans to affiliates and other	10.3		10.4		—		2.8		7.6
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	11.2		11.2		—		11.2		—
Financial liabilities carried at other than fair value
Long-term debt	13.5		13.7		—		13.7		—
Long-term debt to affiliates	$	9.3	$	9.4	$	—	$	9.4	$	—


	Carrying		Corresponding Fair Value Amount
2018 (Billions)	Value		Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents^(b)	$	0.1	$	0.1	$	0.1	$	—	$	—
Other financial assets^(a)	24.9		24.9		0.1		24.8		—
Financial assets carried at other than fair value
Card Member loans, net	0.6		0.6		—		—		0.6
Loans to affiliates and other	14.1		14.1		—		7.4		6.7
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	9.0		9.0		—		9.0		—
Financial liabilities carried at other than fair value
Long-term debt	20.4		20.5		—		20.5		—
Long-term debt to affiliates	$	7.5	$	7.3	$	—	$	7.3	$	—

(a)Level 1 amounts reflect interest-bearing restricted cash and Level 2 amounts primarily reflect Card Member receivables.

(b)Amounts reflect interest-bearing deposits.