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Derivative Financial Instruments And Hedging Activities
 6 Months Ended
Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments And Hedging Activities
Derivative Financial Instruments and Hedging Activities
Derivative swap and cap agreements consist of the following (in millions): 
 
 
Fair Value Level
 
June 30, 2015
 
December 31, 2014
 
 
 
Notional
 
Fair Value
 
Notional
 
Fair Value
Assets
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
(a) 
3
 
$
2,845

 
$
6

 
$
1,652

 
$
6

Interest rate caps
(b) 
2
 
2,549

 
4

 
2,123

 
6

Foreign currency swaps
(b) 
2
 
—

 
—

 
1,594

 
4

Total assets
(c) 
 
 
$
5,394

 
$
10

 
$
5,369

 
$
16

Liabilities
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
(a) 
3
 
$
5,961

 
$
24

 
$
5,627

 
$
39

Interest rate caps
(b) 
2
 
2,197

 
3

 
1,804

 
6

Foreign currency swaps
(b) 
2
 
1,367

 
17

 
1,044

 
1

Total liabilities
(d) 
 
 
$
9,525

 
$
44

 
$
8,475

 
$
46

 _________________
(a)
The fair values of the interest rate swap agreements are estimated by discounting future net cash flows expected to be settled using current risk-adjusted rates.
(b)
The fair values of the interest rate cap agreements and foreign currency swap agreements are based on quoted market prices.
(c)
Included in other assets on the condensed consolidated balance sheets.
(d)
Included in other liabilities on the condensed consolidated balance sheets.
We purchase interest rate cap agreements to limit floating rate exposures on certain of our revolving secured debt. We also utilize interest rate swap agreements to convert floating rate exposures on certain of our revolving debt or on securities issued in securitization transactions to fixed rates, thereby hedging the variability in interest expense paid. We use foreign currency swaps to hedge against valuation changes of certain financial instruments denominated in foreign currencies.
The following table presents information on the effect of derivative instruments on the condensed consolidated statements of income and comprehensive income (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Non-designated hedges:
 
 
 
 
 
 
 
Interest rate contracts(a)
$
7

 
$
1

 
$
1

 
$
(9
)
Foreign currency derivatives(b)
(58
)
 
(26
)
 
11

 
(42
)
 
$
(51
)
 
$
(25
)
 
$
12

 
$
(51
)
 _________________
(a)
Recognized in earnings as interest expense.
(b)
Activity is substantially offset by translation activity (included in operating expenses) related to foreign currency-denominated loans.
The activity for interest rate swap agreements measured at fair value on a recurring basis using significant unobservable inputs (Level 3) was insignificant for the three and six months ended June 30, 2015 and 2014.