Derivative Financial Instruments And Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

Derivative swap and cap agreements consist of the following (in millions):

		March 31, 2016				December 31, 2015
	Level	Notional		Fair Value		Notional		Fair Value
Fair value hedges
Assets
Interest rate swaps(a)(c)	2	$	1,000	$	19	$	—	$	—
Liabilities
Interest rate swaps(a)(d)	2	$	2,750	$	24	$	1,000	$	6
Cash flow hedge
Liabilities
Interest rate swaps(b)(d)	3	$	431	$	—	$	—	$	—
Derivatives not designated as hedges
Assets
Interest rate swaps(b)	3	5,716		25		4,122		8
Interest rate caps(a)	2	8,410		8		6,327		19
Foreign currency swaps(a)	2	907		21		1,460		48
Total assets(c)		$	15,033	$	54	$	11,909	$	75
Liabilities
Interest rate swaps(b)	3	$	8,445	$	32	$	8,041	$	24
Interest rate caps(a)	2	7,956		8		5,892		19
Foreign currency swaps(a)	2	829		15		—		—
Total liabilities(d)		$	17,230	$	55	$	13,933	$	43

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(a) The fair value is based on observable market inputs.

(b) The fair value is estimated by discounting future net cash flows expected to be settled using current risk-adjusted rates.

(c) Included in other assets on the consolidated balance sheets.

(d) Included in other liabilities on the consolidated balance sheets.

Effect of derivative instruments on the condensed consolidated statements of income

The following table presents information on the effect of derivative instruments on the consolidated statements of income and comprehensive income (in millions):

	Three Months Ended March 31,
	2016			2015
Fair value hedges
Interest rate contracts(a)
Net interest expense	$	(4	)	$	—
Ineffectiveness(b)	(2		)	—
Derivatives not designated as hedges
Interest rate contracts(a)	—			(6		)
Foreign currency derivatives(c)	69			69
	$	63		$	63

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(a) Recognized in earnings as interest expense.

(b) Hedge ineffectiveness reflects the net change in the fair value of interest rate contracts of $2 million offset by the change in fair value of hedged debt attributable to the hedged risk of $4 million.

(c) Activity is substantially offset by translation activity (included in operating expenses) related to foreign currency-denominated loans.