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Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional and Fair Value Amounts of Client-related and Trading Derivative Financial Instruments
The following table shows the notional and fair values of all derivative financial instruments as of March 31, 2020 and December 31, 2019.
TABLE 64: NOTIONAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
 
MARCH 31, 2020
DECEMBER 31, 2019
 
NOTIONAL VALUE
FAIR VALUE
NOTIONAL VALUE
FAIR VALUE
(In Millions)
ASSET (1)
LIABILITY (2)
ASSET (1)
LIABILITY (2)
Derivatives Designated as Hedging under GAAP
 
 
 
 
 
 
Interest Rate Contracts
 
 
 
 
 
 
Fair Value Hedges
$
4,527.2

$
12.5

$
18.3

$
4,538.2

$
20.3

$
20.9

Cash Flow Hedges
150.0

0.4

—

200.0

0.2

0.2

Foreign Exchange Contracts
 
 
 
 
 
 
Cash Flow Hedges
1,544.2

35.8

14.9

1,661.5

8.5

11.5

Net Investment Hedges
2,773.3

110.8

0.5

2,873.8

73.7

11.9

Total Derivatives Designated as Hedging under GAAP
$
8,994.7

$
159.5

$
33.7

$
9,273.5

$
102.7

$
44.5

Derivatives Not Designated as Hedging under GAAP
 
 
 
 
 
 
Non-Designated Risk Management Derivatives
 
 
 
 
 
 
Foreign Exchange Contracts
$
195.0

$
2.7

$
1.9

$
176.5

$
0.9

$
0.7

Other Financial Derivatives (3)
550.6

—

26.5

640.3

—

33.4

Total Non-Designated Risk Management Derivatives
$
745.6

$
2.7

$
28.4

$
816.8

$
0.9

$
34.1

Client-Related and Trading Derivatives
 
 
 
 
 
 
Foreign Exchange Contracts
$
293,879.0

$
5,786.1

$
5,746.1

$
291,533.6

$
3,151.7

$
3,158.1

Interest Rate Contracts
9,951.9

328.6

141.8

8,976.8

132.4

76.3

Total Client-Related and Trading Derivatives
$
303,830.9

$
6,114.7

$
5,887.9

$
300,510.4

$
3,284.1

$
3,234.4

Total Derivatives Not Designated as Hedging under GAAP
$
304,576.5

$
6,117.4

$
5,916.3

$
301,327.2

$
3,285.0

$
3,268.5

Total Gross Derivatives
$
313,571.2

$
6,276.9

$
5,950.0

$
310,600.7

$
3,387.7

$
3,313.0

Less: Netting (4)
 
2,065.8

4,890.2

 
2,338.0

1,618.4

Total Derivative Financial Instruments


$
4,211.1

$
1,059.8



$
1,049.7

$
1,694.6

(1) 
Derivative assets are reported in Other Assets on the consolidated balance sheets.
(2) 
Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets.
(3) 
This line includes swaps related to sales of certain Visa Class B common shares.
(4) 
See further detail in Note 22 — Offsetting of Assets and Liabilities.
Cash Flow Hedge Derivative Gains and Losses Recognized in AOCI and Reclassified to Income
The following tables provide fair value and cash flow hedge derivative gains and losses recognized in income during the three- month periods ended March 31, 2020 and 2019.
TABLE 65: LOCATION AND AMOUNT OF FAIR VALUE AND CASH FLOW HEDGE DERIVATIVE GAINS AND LOSSES RECORDED IN INCOME
(In Millions)
INTEREST INCOME
INTEREST EXPENSE
OTHER OPERATING INCOME
THREE MONTHS ENDED MARCH 31,
2020
2019
2020
2019
2020
2019
Total amounts on the consolidated statements of income
$
529.2

$
662.8

$
121.1

$
240.8

$
34.4

$
29.0

Gains (Losses) on fair value hedges recognized on
 
 
 
 
 
 
Interest Rate Contracts
 
 
 
 
 
 
Recognized on derivatives
(76.0
)
(35.4
)
150.4

28.5

—

—

Recognized on hedged items
76.0

35.4

(150.4
)
(28.5
)
—

—

Amounts related to interest settlements on derivatives
(0.5
)
5.5

(2.9
)
(1.6
)
—

—

Total gains (losses) recognized on fair value hedges
$
(0.5
)
$
5.5

$
(2.9
)
$
(1.6
)
$
—

$
—

Gains (Losses) on cash flow hedges recognized on
 
 
 
 
 
 
Foreign Exchange Contracts
 
 
 
 
 
 
Net gains (losses) reclassified from AOCI to net income
$
4.1

$
14.4

$
—

$
—

$
(0.1
)
$
(0.6
)
Interest Rate Contracts
 
 
 
 
 
 
Net gains (losses) reclassified from AOCI to net income
—

(0.2
)
—

—

—

—

Total gains (losses) reclassified from AOCI to net income on cash flow hedges
$
4.1

$
14.2

$
—

$
—

$
(0.1
)
$
(0.6
)
 
 
 
 
 
 
 
Location and Amount of Fair Value Hedge Derivative Gains and Losses Recorded in Income
The following table provides the impact of fair value hedge accounting on the carrying value of the designated hedged items as of March 31, 2020 and December 31, 2019.
TABLE 66: HEDGED ITEMS IN FAIR VALUE HEDGES
 
MARCH 31, 2020
DECEMBER 31, 2019
(In Millions)
CARRYING VALUE OF THE HEDGED ITEMS
CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT (1)
CARRYING VALUE OF THE HEDGED ITEMS
CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT (2)
Available for Sale Debt Securities (3)
$
2,999.2

$
75.7

$
2,981.0

$
3.3

Senior Notes and Long-Term Subordinated Debt
1,748.5

270.0

1,748.5

126.9

Total
$
4,747.7

$
345.7

$
4,729.5

$
130.2

(1) 
The cumulative hedge accounting basis adjustment includes $1.6 million related to discontinued hedging relationships of available for sale debt securities as of March 31, 2020. There are no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of March 31, 2020.
(2) 
The cumulative hedge accounting basis adjustment includes $1.5 million related to discontinued hedging relationships of available for sale debt securities as of December 31, 2019. There were no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2019.
(3) 
Carrying value represents amortized cost.
Location and Amount of Gains and Losses Recorded in Income for Non-Designated Risk Management Derivative Instruments The following table provides the location and amount of gains and losses recorded in the consolidated statements of income for the three months ended March 31, 2020 and 2019 for derivative instruments not designated as hedges under GAAP.
TABLE 67: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME FOR DERIVATIVES NOT DESIGNATED AS HEDGING UNDER GAAP
(In Millions)
DERIVATIVE GAINS (LOSSES) LOCATION RECOGNIZED IN INCOME
AMOUNT OF DERIVATIVE GAINS (LOSSES) RECOGNIZED IN INCOME
THREE MONTHS ENDED MARCH 31,
2020
2019
Non-designated risk management derivatives
 
 
 
Foreign Exchange Contracts
Other Operating Income
$
0.1

$
0.9

Other Financial Derivatives (1)
Other Operating Income
2.9

(7.3
)
Gains (Losses) from non-designated risk management derivatives
 
$
3.0

$
(6.4
)
Client-related and trading derivatives
 
 
 
Foreign Exchange Contracts
Foreign Exchange Trading Income
$
88.9

$
66.2

Interest Rate Contracts
Security Commissions and Trading Income
11.0

1.5

Gains (Losses) from client-related and trading derivatives
 
$
99.9

$
67.7

Total gains (losses) from derivatives not designated as hedging under GAAP
 
$
102.9

$
61.3

(1) 
This line includes swaps related to the sale of certain Visa Class B common shares and total return swap contracts.