Derivative Financial Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 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:

	June 30, 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	$	23,528	$	—	$	489	$	19,950	$	—	$	821
Cash flow hedges
Interest rate swaps	1,853		19		10		1,434		34		1
Foreign currency swaps	8,739		51		451		6,852		—		586
Derivatives not designated as hedges
Interest rate contracts	111,523		2,263		2,379		113,975		2,268		1,984
Total	$	145,643	$	2,333	$	3,329	$	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)
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Unsecured debt	$	29,843	$	28,319	$	897	$	781

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(a)Includes $461 million and $86 million of unamortized losses remaining on hedged items for which hedge accounting has been discontinued at June 30, 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 June 30,								Six Months Ended June 30,
	2023				2022				2023				2022
	Interest Expense(a)		Operating Expenses(b)		Interest Expense(a)		Operating Expenses(b)		Interest Expense(a)		Operating Expenses(b)		Interest Expense(a)		Operating Expenses(b)
Fair value hedges
Hedged items - interest rate swaps	$	145	$	—	$	301	$	—	$	116	$	—	$	677	$	—
Interest rate swaps	(165)		—		(282)		—		(120)		—		(622)		—
Hedged items - foreign currency swaps(c)	—		—		—		—		—		—		—		23
Foreign currency swaps	—		—		—		—		—		—		(2)		(24)
Cash flow hedges
Interest rate swaps	10		—		3		—		19		—		5		—
Hedged items - foreign currency swaps(c)	—		(64)		—		499		—		(200)		—		659
Foreign currency swaps	(37)		64		(42)		(499)		(74)		200		(81)		(659)
Derivatives not designated as hedges
Interest rate contracts	59		—		28		—		110		—		28		—
Total income (loss) recognized	$	12	$	—	$	8	$	—	$	52	$	—	$	5	$	—

_________________

(a)Total interest expense was $1.1 billion and $642 million for the three months ended June 30, 2023 and 2022, and $2.1 billion and $1.2 billion for the six months ended June 30, 2023 and 2022.

(b)Total operating expenses were $456 million and $393 million for the three months ended June 30, 2023 and 2022, and $899 million and $766 million for the six months ended June 30, 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Fair value hedges
Foreign currency swaps	$	—	$	—	$	—	$	(2)
Cash flow hedges
Interest rate swaps	(5)		6		(4)		10
Foreign currency swaps	45		(392)		73		(449)
Total	$	40	$	(386)	$	70	$	(441)

	(Gains) Losses Reclassified From Accumulated Other Comprehensive Income (Loss) Into Income (Loss)
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Fair value hedges
Foreign currency swaps	$	—	$	—	$	—	$	2
Cash flow hedges
Interest rate swaps	(8)		(2)		(15)		(3)
Foreign currency swaps	(21)		408		(96)		557
Total	$	(29)	$	406	$	(111)	$	557