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Derivative Financial Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 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:
 September 30, 2023December 31, 2022
NotionalFair Value of AssetsFair Value of LiabilitiesNotionalFair Value of AssetsFair Value of Liabilities
Derivatives designated as hedges
Fair value hedges
Interest rate swaps$21,820 $— $827 $19,950 $— $821 
Cash flow hedges
Interest rate swaps1,881 27 4 1,434 34 1 
Foreign currency swaps7,674 20 547 6,852 — 586 
Derivatives not designated as hedges
Interest rate contracts117,215 2,248 2,299 113,975 2,268 1,984 
Total$148,589 $2,295 $3,677 $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)
September 30, 2023December 31, 2022September 30, 2023December 31, 2022
Unsecured debt$29,545 $28,319 $1,224 $781 
 _________________
(a)Includes $615 million and $86 million of unamortized losses remaining on hedged items for which hedge accounting has been discontinued at September 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 September 30,Nine Months Ended September 30,
2023202220232022
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$327 $— $346 $— $443 $— $1,023 $— 
Interest rate swaps(334)— (341)— (454)— (963)— 
Hedged items - foreign currency swaps(c)
— — — — — — — 23 
Foreign currency swaps— — — — — — (2)(24)
Cash flow hedges
Interest rate swaps10 — 4 — 29 — 9 — 
Hedged items - foreign currency swaps(c)
— 260 — 470 — 60 — 1,129 
Foreign currency swaps(40)(260)(42)(470)(114)(60)(123)(1,129)
Derivatives not designated as hedges
Interest rate contracts48 — 31 — 158 — 59 — 
Total income (loss) recognized$11 $— $(2)$— $63 $— $4 $— 
_________________
(a)Total interest expense was $1.2 billion and $764 million for the three months ended September 30, 2023 and 2022, and $3.4 billion and $2.0 billion for the nine months ended September 30, 2023 and 2022.
(b)Total operating expenses were $461 million and $436 million for the three months ended September 30, 2023 and 2022, and $1.4 billion and $1.2 billion for the nine months ended September 30, 2023 and 2022.
(c)Transaction activity recorded in operating expenses related to foreign currency-denominated debt.
The tables below present the effect of our derivative financial instruments in the condensed consolidated statements of comprehensive income:
 Gains (Losses) Recognized In
Accumulated Other Comprehensive Income (Loss)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Fair value hedges
Foreign currency swaps$— $— $— $(2)
Cash flow hedges
Interest rate swaps15 (1)12 9 
Foreign currency swaps(154)(383)(81)(832)
Total$(139)$(384)$(69)$(825)
(Gains) Losses Reclassified From Accumulated Other
Comprehensive Income (Loss) Into Income (Loss)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Fair value hedges
Foreign currency swaps$— $— $— $2 
Cash flow hedges
Interest rate swaps(7)(3)(22)(6)
Foreign currency swaps226 386 129 944 
Total$219 $383 $107 $940