XML 40 R29.htm IDEA: XBRL DOCUMENT v3.5.0.2
Derivative Financial Instruments And Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
Derivative swap and cap agreements consist of the following (in millions): 
 
 
 
June 30, 2016
 
December 31, 2015
 
Level
 
Notional
 
Fair Value
 
Notional
 
Fair Value
Fair value hedges
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Interest rate swaps(a)(c)
2
 
$
6,450

 
$
70

 
$
—

 
$
—

Liabilities
 
 
 
 
 
 
 
 
 
Interest rate swaps(a)(d)
2
 
$
500

 
$
—

 
$
1,000

 
$
6

Cash flow hedges
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Interest rate swaps(b)(d)
3
 
$
1,786

 
$
6

 
$
—

 
$
—

Derivatives not designated as hedges
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Interest rate swaps(b)
3
 
$
5,153

 
$
60

 
$
4,122

 
$
8

Interest rate caps(a)
2
 
8,028

 
5

 
6,327

 
19

Foreign currency swaps(a)
2
 
1,307

 
79

 
1,460

 
48

Total assets(c)
 
 
$
14,488

 
$
144

 
$
11,909

 
$
75

Liabilities
 
 
 
 
 
 
 
 
 
Interest rate swaps(b)
3
 
$
7,874

 
$
42

 
$
8,041

 
$
24

Interest rate caps(a)
2
 
8,124

 
5

 
5,892

 
19

Total liabilities(d)
 
 
$
15,998

 
$
47

 
$
13,933

 
$
43

 _________________
(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 condensed consolidated balance sheets.
(d)
Included in other liabilities on the condensed consolidated balance sheets.
Effect of Derivative Instruments on the Condensed Consolidated Statements of Income
The following table presents information on the gains/(losses) on derivative instruments included in the condensed consolidated statements of income and comprehensive income (in millions):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Fair value hedges
 
 
 
 
 
 
 
 
Interest rate contracts(a)
 
 
 
 
 
 
 
 
Net interest settlements and accruals
 
$
8

 
$
—

 
$
12

 
$
—

Ineffectiveness(b)
 
10

 
—

 
8

 
—

Derivatives not designated as hedges
 
 
 
 
 
 
 
 
Interest rate contracts(a)
 
(15
)
 
7

 
(15
)
 
1

Foreign currency derivatives(c)
 
96

 
(58
)
 
165

 
11

Total
 
$
99

 
$
(51
)
 
$
170

 
$
12

 _________________
(a)
Recognized in earnings as interest expense.
(b)
Hedge ineffectiveness reflects the net change in the fair value of interest rate contracts of $74 million and $76 million offset by the change in fair value of hedged debt attributable to the hedged risk of $64 million and $68 million for the three and six months ended June 30, 2016.
(c)
Activity is substantially offset by translation activity (included in operating expenses) related to foreign currency-denominated loans.