Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The table below presents the gross fair value amounts of our derivative financial instruments and the associated notional amounts:

	March 31, 2023						December 31, 2022
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Derivatives designated as hedges
Fair value hedges
Interest rate swaps	$	16,559	$	8	$	334	$	19,950	$	—	$	821
Cash flow hedges
Interest rate swaps	1,637		33		3		1,434		34		1
Foreign currency swaps	8,013		3		497		6,852		—		586
Derivatives not designated as hedges
Interest rate contracts	114,353		1,924		2,073		113,975		2,268		1,984
Total	$	140,562	$	1,968	$	2,907	$	142,212	$	2,302	$	3,392

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following amounts were recorded in the condensed consolidated balance sheet related to items designated and qualifying as hedged items in fair value hedging relationships:

	Carrying Amount of Hedged Items				Cumulative Amount of Fair Value Hedging Adjustments(a)
	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Unsecured debt	$	29,257	$	28,319	$	752	$	781

 _________________

(a)Includes $470 million and $86 million of unamortized losses remaining on hedged items for which hedge accounting has been discontinued at March 31, 2023 and December 31, 2022.

Effect of Derivative Instruments on the Condensed Consolidated Statements of Income

The table below presents the effect of our derivative financial instruments in the condensed consolidated statements of income:

	Three Months Ended March 31,
	2023				2022
	Interest Expense(a)		Operating Expenses(b)		Interest Expense(a)		Operating Expenses(b)
Fair value hedges
Hedged items - interest rate swaps	$	(29)	$	—	$	376	$	—
Interest rate swaps	46		—		(340)		—
Hedged items - foreign currency swaps(c)	—		—		—		23
Foreign currency swaps	—		—		(2)		(24)
Cash flow hedges
Interest rate swaps	9		—		2		—
Hedged items - foreign currency swaps(c)	—		(136)		—		160
Foreign currency swaps	(37)		136		(38)		(160)
Derivatives not designated as hedges
Interest rate contracts	52		—		—		—
Total income (loss) recognized	$	40	$	—	$	(2)	$	—

_________________

(a)Total interest expense was $1.0 billion and $577 million for the three months ended March 31, 2023 and 2022.

(b)Total operating expenses were $442 million and $372 million for the three months ended March 31, 2023 and 2022.

(c)Transaction activity recorded in operating expenses related to foreign currency-denominated loans.

The tables below present the effect of our derivative financial instruments in the condensed consolidated statements of comprehensive income:

	Gains (Losses) Recognized In Accumulated Other Comprehensive Income (Loss)
	Three Months Ended March 31,
	2023		2022
Fair value hedges
Foreign currency swaps	$	—	$	(2)
Cash flow hedges
Interest rate swaps	1		4
Foreign currency swaps	29		(57)
Total	$	30	$	(55)

	(Gains) Losses Reclassified From Accumulated Other Comprehensive Income (Loss) Into Income (Loss)
	Three Months Ended March 31,
	2023		2022
Fair value hedges
Foreign currency swaps	$	—	$	2
Cash flow hedges
Interest rate swaps	(7)		(1)
Foreign currency swaps	(76)		149
Total	$	(82)	$	150