Fair Values (Tables)

9 Months Ended

Sep. 30, 2020

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 of September 30, 2020 and December 31, 2019:


(Millions)	2020		2019
Assets:
Derivatives, gross (a)	$	105	$	43
Total Assets	105		43
Liabilities:
Derivatives, gross (a)	99		226
Total Liabilities	$	99	$	226

(a)Refer to Note 4 for the fair values of derivative assets and liabilities, on a further disaggregated basis.

Estimated fair value of financial assets and financial 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 September 30, 2020 and December 31, 2019. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30, 2020 and December 31, 2019, 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 Value		Corresponding Fair Value Amount
2020 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values
equal or approximate fair value
Cash and cash equivalents (a)	$	1.0	$	1.0	$	1.0	$	—	$	—
Other financial assets (b)	11.1		11.1		0.1		11.0		—
Financial assets carried at other than fair value
Card Member loans, less reserves for credit losses	0.4		0.4		—		—		0.4
Loans to affiliates and other	10.4		10.5		—		5.2		5.3
Financial Liabilities:
Financial liabilities for which carrying values equal
or approximate fair value	11.6		11.6		—		11.6		—
Financial liabilities carried at other than fair value
Long-term debt	7.0		7.3		—		7.3		—
Long-term debt to affiliates	$	0.9	$	0.9	$	—	$	0.9	$	—


	Carrying Value		Corresponding Fair Value Amount
2019 (Billions)			Total		Level 1		Level 2		Level 3
Financial Assets:
Financial assets for which carrying values
equal or approximate fair value
Cash and cash equivalents (a)	$	—	$	—	$	—	$	—	$	—
Other financial assets (b)	26.3		26.3		0.1		26.2		—
Financial assets carried at other than fair value
Card Member loans, less reserves for credit losses	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	$	—

(a)Amounts reflect interest-bearing deposits. Refer to Note 1 for additional information.

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