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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments including those entered into for trading and asset-and-liability management activities as of the dates indicated:
(In millions)December 31, 2020December 31, 2019
Derivatives not designated as hedging instruments:
Interest rate contracts:
Futures$2,842 $4,368 
Foreign exchange contracts:
Forward, swap and spot2,640,989 2,378,808 
Options purchased946 1,581 
Options written661 1,110 
Futures1,980 1,040 
Other:
Stable value contracts(1)
32,359 26,895 
Deferred value awards(2)
332 389 
Derivatives designated as hedging instruments:
Interest rate contracts:
Swap agreements7,449 15,196 
Foreign exchange contracts:
Forward and swap5,221 3,176 
(1) The notional value of the stable value contracts represents our maximum exposure. However, exposure to various stable value contracts is generally contractually limited to substantially lower amounts than the notional values.
(2) Represents grants of deferred value awards to employees; refer to discussion in this note under "Derivatives Not Designated as Hedging Instruments."
Schedule of Derivative Assets at Fair Value
The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 11.
Derivative Assets(1)
Derivative Liabilities(2)
(In millions)December 31, 2020December 31, 2019December 31, 2020December 31, 2019
Derivatives not designated as hedging instruments:
Foreign exchange contracts$25,939 $15,140 $25,811 $15,054 
Other derivative contracts— — 157 182 
Total$25,939 $15,140 $25,968 $15,236 
Derivatives designated as hedging instruments:
Foreign exchange contracts$4 $— $116 $96 
Interest rate contracts1 8 42 49 
Total$5 $8 $158 $145 
(1) Derivative assets are included within other assets in our consolidated statement of condition.
(2) Derivative liabilities are included within other liabilities in our consolidated statement of condition.
Schedule of Derivative Liabilities at Fair Value
The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 11.
Derivative Assets(1)
Derivative Liabilities(2)
(In millions)December 31, 2020December 31, 2019December 31, 2020December 31, 2019
Derivatives not designated as hedging instruments:
Foreign exchange contracts$25,939 $15,140 $25,811 $15,054 
Other derivative contracts— — 157 182 
Total$25,939 $15,140 $25,968 $15,236 
Derivatives designated as hedging instruments:
Foreign exchange contracts$4 $— $116 $96 
Interest rate contracts1 8 42 49 
Total$5 $8 $158 $145 
(1) Derivative assets are included within other assets in our consolidated statement of condition.
(2) Derivative liabilities are included within other liabilities in our consolidated statement of condition.
Impact of Derivative Financial Instruments On Statement of Income
The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Years Ended December 31,
202020192018
(In millions)
Location of Gain (Loss) on
Derivative in Consolidated
Statement of Income
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
Derivatives not designated as hedging instruments:
Foreign exchange contractsForeign exchange trading services revenue$922 $630 $723 
Foreign exchange contracts
Interest expense(1)
63 (153)(41)
Interest rate contractsForeign exchange trading services revenue3 (3)(6)
Interest rate contracts
Software and processing fees(1)
— — (1)
Other derivative contractsForeign exchange trading services revenue— — 5 
Other derivative contractsCompensation and employee benefits(189)(205)(171)
Total$799 $269 $509 
(1) 2018 includes approximately $15 million of swap costs related to the first quarter of 2018 that were reclassified from software and processing fees to interest expense.
The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Years Ended December 31,Years Ended December 31,
202020192018202020192018
(In millions)
Location of Gain (Loss) on Derivative in Consolidated Statement of Income
Amount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income
Hedged Item in Fair Value Hedging Relationship
Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income
Amount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
Derivatives designated as fair value hedges:
Foreign exchange contractsSoftware and processing fees$— $— $(74)Investment securitiesSoftware and processing fees
$— $— $74 
Foreign exchange contractsSoftware and processing fees
— — (328)Foreign exchange depositSoftware and processing fees
— — 328 
Interest rate contractsNet interest income1 (4)31 
Available-for-sale securities(1)
Net interest income
(4)2 (32)
Interest rate contractsNet interest income566 266 (58)Long-term debtNet interest income(559)(255)49 
Total$567 $262 $(429)$(563)$(253)$419 
(1) In 2020, 2019 and 2018, $3 million, $18 million and $24 million, respectively, of net unrealized gains on AFS investment securities designated in fair value hedges were recognized in OCI.
Years Ended December 31,Years Ended December 31,
202020192018Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income202020192018
(In millions)Amount of Gain or (Loss) Recognized in Other Comprehensive Income on DerivativeAmount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as cash flow hedges:
Interest rate contracts$176 $8 $(12)Net interest income$49 $(10)$(1)
Foreign exchange contracts(22)43 (12)Net interest income23 27 27 
Total derivatives designated as cash flow hedges$154 $51 $(24)$72 $17 $26 
Derivatives designated as net investment hedges:
Foreign exchange contracts$(250)$30 $81 Gains (Losses) related to investment securities, net$— $— $— 
Total derivatives designated as net investment hedges(250)30 81 — — — 
Total$(96)$81 $57 $72 $17 $26 
Schedule of Outstanding Hedges: (Notional Amount)
The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships:
December 31, 2020
Hedged Items Currently Designated
Hedged Items No Longer Designated(1)
(In millions)
Carrying Amount of Assets and Liabilities
Cumulative Hedge Accounting Basis Adjustments
Carrying Amount of Assets and Liabilities
Cumulative Hedge Accounting Basis Adjustments
Long-term debt$496 $3 $10,023 $688 
Available-for-sale securities2,330 45 — — 
Total$2,826 $48 $10,023 $688 
December 31, 2019
Hedged Items Currently Designated
Hedged Items No Longer Designated(1)
(In millions)Carrying Amount of Assets and LiabilitiesCumulative Hedge Accounting Basis AdjustmentsCarrying Amount of Assets and LiabilitiesCumulative Hedge Accounting Basis Adjustments
Long-term debt$9,769 $164 $1,199 $(8)
Available-for-sale securities940 49 — — 
Total$10,709 $213 $1,199 $(8)
(1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date.