Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2015

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 June 30, 2015 and December 31, 2014:

			Other Assets				Accrued Interest and Other Liabilities
			Fair Value				Fair Value
(Millions)			2015		2014		2015		2014
Derivatives designated as hedging instruments:
	Interest rate contracts
		Fair value hedges	$	93	$	90	$	5	$	4
	Foreign exchange contracts
		Net investment hedges		32		186		13		―
Total derivatives designated as hedging instruments				125		276		18		4
Derivatives not designated as hedging instruments:
	Foreign exchange contracts			51		73		64		49
Total derivatives, gross				176		349		82		53
Less: Cash collateral netting (a)				(84)		(63)		―		―
Derivative asset and derivative liability netting (b)				(50)		(50)		(50)		(50)
Total derivatives, net (c)			$	42	$	236	$	32	$	3

• Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. From time to time, Credcoalso receives non-cash collateral from counterparties in the form of security interests in U.S. Treasury securities,which reduces Credco’s risk exposure, but does not reduce the net exposure on Credco’s Consolidated Balance Sheets.Credco had such non-cash collateral as of December 31, 2014, with a fair value of $40 million, none of which was sold or repledged. Credco did not have any such non-cash collateral as of June 30, 2015. Additionally, Credco posted $103 million and $91million as ofJune 30, 2015 and December 31, 2014, 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 counterparty under an enforceable master netting arrangement.
• Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are presented within Other assets and Accrued interest and other liabilities on Credco’s Consolidated Balance Sheets.

Effect of fair value hedges on results of operations

The following table summarizes the impact on the Consolidated Statements of Income and Retained Earnings associated with Credco’s fair value hedgesfor the three and six months endedJune 30:

Three Months Ended June 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative relationship	Income Statement Line Item	2015		2014		Income Statement Line Item	2015		2014		2015		2014
Interest rate contracts	Other expenses	$	(45)	$	(6)	Other expenses	$	45	$	10	$	―	$	4
Six Months Ended June 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative relationship	Income Statement Line Item	2015		2014		Income Statement Line Item	2015		2014		2015		2014
Interest rate contracts	Other expenses	$	3	$	(42)	Other expenses	$	1	$	47	$	4	$	5

Derivative instruments gain (loss) recognized in income

The following table summarizes the impact on the Consolidated Statements of Income and retained earnings associated with Credco’sderivatives not designated as hedges for the three and six months endedJune 30:

		Pretax (losses) gains
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		Amount				Amount
Description (Millions)	Income Statement Line Item	2015		2014		2015		2014
Foreign exchange contracts	Other expenses	$	(17)	$	(58)	$	(31)	$	63
Total		$	(17)	$	(58)	$	(31)	$	63