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Derivatives and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2016
Derivatives and Hedging Activities (Tables) [Abstract]  
Schedule of derivative instruments in statement of financial position, fair value

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of June 30, 2016 and December 31, 2015:

Other Assets  Other Liabilities
Fair Value  Fair Value
(Millions)2016  2015  2016  2015
Derivatives designated as hedging instruments:      
Interest rate contracts      
Fair value hedges$452  $236  $―  $9
Foreign exchange contracts      
Net investment hedges216  191  141  57
Total derivatives designated as hedging instruments668  427  141  66
Derivatives not designated as hedging instruments:      
Foreign exchange contracts, including certain embedded derivatives(a)475  117  248  135
Total derivatives, gross1,143  544  389  201
Less: Cash collateral netting(b) (361)(155)――
Derivative asset and derivative liability netting(c) (169)(107)(169)(107)
Total derivatives, net(d)$613$282$220$94

  • Includes foreign currency derivatives embedded in certain operating agreements.
  • Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. The Company received non-cash collateral from a counterparty in the form of security interests in U.S. Treasury securities with a fair value of $30 million as of June 30, 2016, none of which was sold or repledged. Such non-cash collateral economically reduced the Company’s risk exposure to $583 million but did not reduce the net exposure on the Company’s Consolidated Balance Sheets. The Company did not have any such non-cash collateral as of December 31, 2015. Additionally, the Company posted $159 million and $149 million as of June 30, 2016 and December 31, 2015, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance Sheets and are not netted against the derivative balances.
  • Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.
  • The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are presented within Other assets and Other liabilities on the Consolidated Balance Sheets.
Effect of fair value hedges on results of operations

The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s fair value hedges for the three and six months ended June 30:

Three Months Ended June 30 (Millions)
  Gains (losses) recognized in income
  Derivative contractHedged item  Net hedge
     Amount  Amount   ineffectiveness
Derivative relationship  Income Statement Line Item   2016  2015Income Statement Line Item  20162015  2016  2015
Interest rate contracts  Other expenses     $61  $(89)Other expenses    $(53)$85  $8  $(4)

Six Months Ended June 30 (Millions)
  Gains (losses) recognized in income
  Derivative contractHedged item  Net hedge
    Amount  Amount   ineffectiveness
Derivative relationship  Income Statement Line Item  2016  2015Income Statement Line Item  20162015  2016  2015
Interest rate contracts  Other expenses    $226  $(26)Other expenses    $(224)$29  $2  $3
Impact of cash flow hedges and investment hedges on results of operations

The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s net investment hedges for the three and six months ended June 30:

Three Months Ended June 30: (Millions)
  Gains (losses) recognized in income
  Amount reclassified from AOCI into income  Net hedge
        ineffectiveness
Description  Income Statement Line Item   2016  2015Income Statement Line Item  2016  2015
Net investment hedges:
Foreign exchange contracts  Other, net expenses     $5  $―Other, net expenses    $―  $1

Six Months Ended June 30: (Millions)
  Gains (losses) recognized in income
  Amount reclassified from AOCI into income  Net hedge
        ineffectiveness
Description  Income Statement Line Item   2016  2015Income Statement Line Item  2016  2015
Net investment hedges:
Foreign exchange contracts  Other, net expenses     $5  $―Other, net expenses    $―  $1