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Derivative and Hedging Instruments (Tables) | 12 Months Ended
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Dec. 31, 2018
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Summary of Gross Notional Amount and Fair Value of Derivative Instruments | The following table presents gross notional amount and fair value of derivative instruments by the underlying risk exposure.
As at December 31, |  | 2018 |  |  |  |  |  | 2017 |
|  |  |  | Notional amount |  |  | Fair value |  |  |  |  |  | Notional amount |  |  | Fair value |
Type of hedge |  | Instrument type |  | Assets |  |  | Liabilities |  |  |  |  |  | Assets |  |  | Liabilities |
Qualifying hedge accounting relationships |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value hedges |  | Interest rate swaps |  | $ | 519 |  |  | $ | – |  |  | $ | 13 |  |  |  |  |  |  | $ | 548 |  |  | $ | – |  |  | $ | 20 |
|  | Foreign currency swaps |  |  | 91 |  |  |  | 5 |  |  |  | – |  |  |  |  |  |  |  | 84 |  |  |  | 1 |  |  |  | 4 |
Cash flow hedges |  | Foreign currency swaps |  |  | 1,834 |  |  |  | 80 |  |  |  | 367 |  |  |  |  |  |  |  | 1,757 |  |  |  | 20 |  |  |  | 333 |
|  | Forward contracts |  |  | 80 |  |  |  | – |  |  |  | 9 |  |  |  |  |  |  |  | 165 |  |  |  | – |  |  |  | 4 |
|  | Equity contracts |  |  | 101 |  |  |  | – |  |  |  | 12 |  |  |  |  |  |  |  | 125 |  |  |  | 16 |  |  |  | 1 |
Net investment hedges |  | Foreign currency forwards |  |  | 1,864 |  |  |  | 21 |  |  |  | 65 |  |  |  |  |  |  |  | – |  |  |  | – |  |  |  | – |
Total derivatives in qualifying hedge accounting relationships |  |  | 4,489 |  |  |  | 106 |  |  |  | 466 |  |  |  |  |  |  |  | 2,679 |  |  |  | 37 |  |  |  | 362 |
Derivatives not designated in qualifying hedge accounting relationships |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Interest rate swaps |  |  | 300,704 |  |  |  | 11,204 |  |  |  | 5,675 |  |  |  |  |  |  |  | 246,270 |  |  |  | 12,984 |  |  |  | 6,251 |
|  | Interest rate futures |  |  | 14,297 |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | 11,551 |  |  |  | – |  |  |  | – |
|  | Interest rate options |  |  | 11,736 |  |  |  | 314 |  |  |  | – |  |  |  |  |  |  |  | 10,093 |  |  |  | 312 |  |  |  | – |
|  | Foreign currency swaps |  |  | 23,156 |  |  |  | 747 |  |  |  | 1,341 |  |  |  |  |  |  |  | 16,321 |  |  |  | 494 |  |  |  | 1,122 |
|  | Currency rate futures |  |  | 4,052 |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | 3,157 |  |  |  | – |  |  |  | – |
|  | Forward contracts |  |  | 29,248 |  |  |  | 670 |  |  |  | 158 |  |  |  |  |  |  |  | 20,341 |  |  |  | 915 |  |  |  | 65 |
|  | Equity contracts |  |  | 15,492 |  |  |  | 653 |  |  |  | 163 |  |  |  |  |  |  |  | 13,597 |  |  |  | 813 |  |  |  | 22 |
|  | Credit default swaps |  |  | 652 |  |  |  | 9 |  |  |  | – |  |  |  |  |  |  |  | 606 |  |  |  | 14 |  |  |  | – |
|  | Equity futures |  |  | 10,908 |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | 12,158 |  |  |  | – |  |  |  | – |
Total derivatives not designated in qualifying hedge accounting relationships |  |  | 410,245 |  |  |  | 13,597 |  |  |  | 7,337 |  |  |  |  |  |  |  | 334,094 |  |  |  | 15,532 |  |  |  | 7,460 |
Total derivatives |  | $ | 414,734 |  |  | $ | 13,703 |  |  | $ | 7,803 |  |  |  |  |  |  | $ | 336,773 |  |  | $ | 15,569 |  |  | $ | 7,822 |
Summary of Gross Notional Amount by Remaining Term to Maturity, Total Fair Values (Including Accrued Interest), Credit Risk Equivalent and Risk Weighted Amount by Contract Type | The following table presents fair values of derivative instruments by the remaining term to maturity. The fair values disclosed below do not incorporate the impact of master netting agreements. Refer to note 9.
|  | Remaining term to maturity |  |  |  |
As at December 31, 2018 |  | Less than 1 year |  |  | 1 to 3 years |  |  | 3 to 5 years |  |  | Over 5 years |  |  | Total |
Derivative assets |  | $ | 649 |  |  | $ | 671 |  |  | $ | 795 |  |  | $ | 11,588 |  |  | $ | 13,703 |
Derivative liabilities |  |  | 359 |  |  |  | 229 |  |  |  | 227 |  |  |  | 6,988 |  |  |  | 7,803 |
|  |  | Remaining term to maturity |  |  |  |  |
As at December 31, 2017 |  |  | Less than 1 year |  |  |  | 1 to 3 years |  |  |  | 3 to 5 years |  |  |  | Over 5 years |  |  |  | Total |
Derivative assets |  | $ | 605 |  |  | $ | 822 |  |  | $ | 889 |  |  | $ | 13,253 |  |  | $ | 15,569 |
Derivative liabilities |  |  | 224 |  |  |  | 149 |  |  |  | 168 |  |  |  | 7,281 |  |  |  | 7,822 |
The following table presents gross notional amount by the remaining term to maturity, total fair value (including accrued interest), credit risk equivalent and risk-weighted amount by contract type.
|  | Remaining term to maturity (notional amounts) |  |  |  |  |  | Fair value |  |  |  |  |  |  |  |  |  |
As at December 31, 2018 |  | Under 1 year |  |  | 1 to 5 years |  |  | Over 5 years |  |  | Total |  |  |  |  |  | Positive |  |  | Negative |  |  | Net |  |  |  |  |  | Credit risk equivalent(1) |  |  |  |  |  | Risk- weighted amount(2) |
Interest rate contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OTC swap contracts |  | $ | 3,495 |  |  | $ | 22,568 |  |  | $ | 121,817 |  |  | $ | 147,880 |  |  |  |  |  |  | $ | 11,750 |  |  | $ | (6,477 | ) |  | $ | 5,273 |  |  |  |  |  |  | $ | 5,301 |  |  |  |  |  |  | $ | 787 |
Cleared swap contracts |  |  | 5,723 |  |  |  | 16,140 |  |  |  | 131,480 |  |  |  | 153,343 |  |  |  |  |  |  |  | 95 |  |  |  | (96 | ) |  |  | (1 | ) |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Forward contracts |  |  | 10,258 |  |  |  | 14,300 |  |  |  | 648 |  |  |  | 25,206 |  |  |  |  |  |  |  | 637 |  |  |  | (126 | ) |  |  | 511 |  |  |  |  |  |  |  | 259 |  |  |  |  |  |  |  | 37 |
Futures |  |  | 14,297 |  |  |  | – |  |  |  | – |  |  |  | 14,297 |  |  |  |  |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Options purchased |  |  | 1,166 |  |  |  | 4,981 |  |  |  | 5,589 |  |  |  | 11,736 |  |  |  |  |  |  |  | 317 |  |  |  | – |  |  |  | 317 |  |  |  |  |  |  |  | 376 |  |  |  |  |  |  |  | 58 |
Subtotal |  |  | 34,939 |  |  |  | 57,989 |  |  |  | 259,534 |  |  |  | 352,462 |  |  |  |  |  |  |  | 12,799 |  |  |  | (6,699 | ) |  |  | 6,100 |  |  |  |  |  |  |  | 5,936 |  |  |  |  |  |  |  | 882 |
Foreign exchange |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Swap contracts |  |  | 1,024 |  |  |  | 6,281 |  |  |  | 17,776 |  |  |  | 25,081 |  |  |  |  |  |  |  | 807 |  |  |  | (1,736 | ) |  |  | (929 | ) |  |  |  |  |  |  | 2,309 |  |  |  |  |  |  |  | 256 |
Forward contracts |  |  | 5,926 |  |  |  | 60 |  |  |  | – |  |  |  | 5,986 |  |  |  |  |  |  |  | 54 |  |  |  | (106 | ) |  |  | (52 | ) |  |  |  |  |  |  | 108 |  |  |  |  |  |  |  | 13 |
Futures |  |  | 4,052 |  |  |  | – |  |  |  | – |  |  |  | 4,052 |  |  |  |  |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Credit derivatives |  |  | 143 |  |  |  | 509 |  |  |  | – |  |  |  | 652 |  |  |  |  |  |  |  | 10 |  |  |  | – |  |  |  | 10 |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Equity contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Swap contracts |  |  | 2,728 |  |  |  | 142 |  |  |  | – |  |  |  | 2,870 |  |  |  |  |  |  |  | 29 |  |  |  | (57 | ) |  |  | (28 | ) |  |  |  |  |  |  | 303 |  |  |  |  |  |  |  | 38 |
Futures |  |  | 10,908 |  |  |  | – |  |  |  | – |  |  |  | 10,908 |  |  |  |  |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Options purchased |  |  | 6,142 |  |  |  | 6,581 |  |  |  | – |  |  |  | 12,723 |  |  |  |  |  |  |  | 621 |  |  |  | (118 | ) |  |  | 503 |  |  |  |  |  |  |  | 2,277 |  |  |  |  |  |  |  | 316 |
Subtotal including accrued interest |  |  | 65,862 |  |  |  | 71,562 |  |  |  | 277,310 |  |  |  | 414,734 |  |  |  |  |  |  |  | 14,320 |  |  |  | (8,716 | ) |  |  | 5,604 |  |  |  |  |  |  |  | 10,933 |  |  |  |  |  |  |  | 1,505 |
Less accrued interest |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | 617 |  |  |  | (913 | ) |  |  | (296 | ) |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Total |  | $ | 65,862 |  |  | $ | 71,562 |  |  | $ | 277,310 |  |  | $ | 414,734 |  |  |  |  |  |  | $ | 13,703 |  |  | $ | (7,803 | ) |  | $ | 5,900 |  |  |  |  |  |  | $ | 10,933 |  |  |  |  |  |  | $ | 1,505 |
|  | Remaining term to maturity (notional amounts) |  |  |  |  |  | Fair value |  |  |  |  |  |  |  |  |  |
As at December 31, 2017 |  | Under 1 year |  |  | 1 to 5 years |  |  | Over 5 years |  |  | Total |  |  |  |  |  | Positive |  |  | Negative |  |  | Net |  |  |  |  |  | Credit risk equivalent(1) |  |  |  |  |  | Risk- weighted amount(2) |
Interest rate contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OTC swap contracts |  | $ | 7,161 |  |  | $ | 19,141 |  |  | $ | 112,412 |  |  | $ | 138,714 |  |  |  |  |  |  | $ | 13,379 |  |  | $ | (6,867 | ) |  | $ | 6,512 |  |  |  |  |  |  | $ | 6,588 |  |  |  |  |  |  | $ | 809 |
Cleared swap contracts |  |  | 1,615 |  |  |  | 12,928 |  |  |  | 93,561 |  |  |  | 108,104 |  |  |  |  |  |  |  | 245 |  |  |  | (206 | ) |  |  | 39 |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Forward contracts |  |  | 6,036 |  |  |  | 10,614 |  |  |  | 675 |  |  |  | 17,325 |  |  |  |  |  |  |  | 903 |  |  |  | (38 | ) |  |  | 865 |  |  |  |  |  |  |  | 285 |  |  |  |  |  |  |  | 35 |
Futures |  |  | 11,551 |  |  |  | – |  |  |  | – |  |  |  | 11,551 |  |  |  |  |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Options purchased |  |  | 816 |  |  |  | 3,856 |  |  |  | 5,421 |  |  |  | 10,093 |  |  |  |  |  |  |  | 312 |  |  |  | – |  |  |  | 312 |  |  |  |  |  |  |  | 471 |  |  |  |  |  |  |  | 61 |
Subtotal |  |  | 27,179 |  |  |  | 46,539 |  |  |  | 212,069 |  |  |  | 285,787 |  |  |  |  |  |  |  | 14,839 |  |  |  | (7,111 | ) |  |  | 7,728 |  |  |  |  |  |  |  | 7,344 |  |  |  |  |  |  |  | 905 |
Foreign exchange |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Swap contracts |  |  | 999 |  |  |  | 4,481 |  |  |  | 12,682 |  |  |  | 18,162 |  |  |  |  |  |  |  | 510 |  |  |  | (1,483 | ) |  |  | (973 | ) |  |  |  |  |  |  | 1,874 |  |  |  |  |  |  |  | 200 |
Forward contracts |  |  | 3,046 |  |  |  | 135 |  |  |  | – |  |  |  | 3,181 |  |  |  |  |  |  |  | 12 |  |  |  | (31 | ) |  |  | (19 | ) |  |  |  |  |  |  | 101 |  |  |  |  |  |  |  | 12 |
Futures |  |  | 3,157 |  |  |  | – |  |  |  | – |  |  |  | 3,157 |  |  |  |  |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Credit derivatives |  |  | 38 |  |  |  | 568 |  |  |  | – |  |  |  | 606 |  |  |  |  |  |  |  | 14 |  |  |  | – |  |  |  | 14 |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Equity contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Swap contracts |  |  | 2,612 |  |  |  | 169 |  |  |  | – |  |  |  | 2,781 |  |  |  |  |  |  |  | 60 |  |  |  | (14 | ) |  |  | 46 |  |  |  |  |  |  |  | 337 |  |  |  |  |  |  |  | 35 |
Futures |  |  | 12,158 |  |  |  | – |  |  |  | – |  |  |  | 12,158 |  |  |  |  |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Options purchased |  |  | 4,693 |  |  |  | 6,148 |  |  |  | 100 |  |  |  | 10,941 |  |  |  |  |  |  |  | 769 |  |  |  | (10 | ) |  |  | 759 |  |  |  |  |  |  |  | 2,606 |  |  |  |  |  |  |  | 305 |
Subtotal including accrued interest |  |  | 53,882 |  |  |  | 58,040 |  |  |  | 224,851 |  |  |  | 336,773 |  |  |  |  |  |  |  | 16,204 |  |  |  | (8,649 | ) |  |  | 7,555 |  |  |  |  |  |  |  | 12,262 |  |  |  |  |  |  |  | 1,457 |
Less accrued interest |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  |  |  |  |  | 635 |  |  |  | (827 | ) |  |  | (192 | ) |  |  |  |  |  |  | – |  |  |  |  |  |  |  | – |
Total |  | $ | 53,882 |  |  | $ | 58,040 |  |  | $ | 224,851 |  |  | $ | 336,773 |  |  |  |  |  |  | $ | 15,569 |  |  | $ | (7,822 | ) |  | $ | 7,747 |  |  |  |  |  |  | $ | 12,262 |  |  |  |  |  |  | $ | 1,457 |
(1) | Credit risk equivalent is the sum of replacement cost and the potential future credit exposure. Replacement cost represents the current cost of replacing all contracts with a positive fair value. The amounts take into consideration legal contracts that permit offsetting of positions. The potential future credit exposure is calculated based on a formula prescribed by OSFI.
(2) | Risk-weighted amount represents the credit risk equivalent, weighted according to the creditworthiness of the counterparty, as prescribed by OSFI.
Summary of Fair Value and the Fair Value Hierarchy of Derivative Instruments | Fair value and the fair value hierarchy of derivative instruments
As at December 31, 2018 |  | Fair value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Derivative assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | 12,155 |  |  | $ | – |  |  | $ | 11,537 |  |  | $ | 618 |
Foreign exchange contracts |  |  | 886 |  |  |  | – |  |  |  | 876 |  |  |  | 10 |
Equity contracts |  |  | 653 |  |  |  | – |  |  |  | 621 |  |  |  | 32 |
Credit default swaps |  |  | 9 |  |  |  | – |  |  |  | 9 |  |  |  | – |
Total derivative assets |  | $ | 13,703 |  |  | $ | – |  |  | $ | 13,043 |  |  | $ | 660 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | 5,815 |  |  | $ | – |  |  | $ | 5,318 |  |  | $ | 497 |
Foreign exchange contracts |  |  | 1,814 |  |  |  | – |  |  |  | 1,813 |  |  |  | 1 |
Equity contracts |  |  | 174 |  |  |  | – |  |  |  | 118 |  |  |  | 56 |
Total derivative liabilities |  | $ | 7,803 |  |  | $ | – |  |  | $ | 7,249 |  |  | $ | 554 |
As at December 31, 2017 |  | Fair value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Derivative assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | 14,199 |  |  | $ | – |  |  | $ | 13,181 |  |  | $ | 1,018 |
Foreign exchange contracts |  |  | 527 |  |  |  | – |  |  |  | 527 |  |  |  | – |
Equity contracts |  |  | 829 |  |  |  | – |  |  |  | 768 |  |  |  | 61 |
Credit default swaps |  |  | 14 |  |  |  | – |  |  |  | 14 |  |  |  | – |
Total derivative assets |  | $ | 15,569 |  |  | $ | – |  |  | $ | 14,490 |  |  | $ | 1,079 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | 6,309 |  |  | $ | – |  |  | $ | 6,012 |  |  | $ | 297 |
Foreign exchange contracts |  |  | 1,490 |  |  |  | – |  |  |  | 1,490 |  |  |  | – |
Equity contracts |  |  | 23 |  |  |  | – |  |  |  | 10 |  |  |  | 13 |
Total derivative liabilities |  | $ | 7,822 |  |  | $ | – |  |  | $ | 7,512 |  |  | $ | 310 |
Net Derivative Significant Unobservable Inputs Used in Fair Value Measurement | The following table presents a roll forward for net derivative contracts measured at fair value using significant unobservable inputs (Level 3).
For the years ended December 31, |  | 2018 |  |  | 2017 |
Balance at the beginning of the year |  | $ | 769 |  |  | $ | 163 |
Net realized / unrealized gains (losses) included in: |  |  |  |  |  |  |  |
Net income(1) |  |  | (666 | ) |  |  | 1,082 |
OCI(2) |  |  | (48 | ) |  |  | (9 | )
Purchases |  |  | 12 |  |  |  | 22 |
Settlements |  |  | 18 |  |  |  | (103 | )
Transfers |  |  |  |  |  |  |  |
Into Level 3(3) |  |  | 9 |  |  |  | – |
Out of Level 3(3) |  |  | (13 | ) |  |  | (363 | )
Currency movement |  |  | 25 |  |  |  | (23 | )
Balance at the end of the year |  | $ | 106 |  |  | $ | 769 |
Change in unrealized gains (losses) on instruments still held |  | $ | (460 | ) |  | $ | 832 |
(1) | These amounts are included in investment income on the Consolidated Statements of Income.
(2) | These amounts are included in AOCI on the Consolidated Statements of Financial Position.
(3) | For derivatives transferred into and out of Level 3, the Company uses the fair value of the items at the end and beginning of the period, respectively. Transfers into Level 3 occur when the inputs used to price the assets and liabilities lack observable market data (versus the previous year). Transfers out of Level 3 occur when the inputs used to price the assets and liabilities become available from observable market data.
Summary of Recognized Gains Losses on Derivatives and Hedged Items in Fair Value Hedges in Investment Income | The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges in investment income. These investment gains (losses) are shown in the following table.
For the year ended December 31, 2018 |  | Hedged items in qualifying fair value hedging relationships |  | Gains (losses) recognized on derivatives |  |  | Gains (losses) recognized for hedged items |  |  | Ineffectiveness recognized in investment income |
Interest rate swaps |  | Fixed rate assets |  | $ | 1 |  |  | $ | (1 | ) |  | $ | – |
|  | Fixed rate liabilities |  |  | 3 |  |  |  | (3 | ) |  |  | – |
Foreign currency swaps |  | Fixed rate assets |  |  | 7 |  |  |  | (5 | ) |  |  | 2 |
Total |  |  |  | $ | 11 |  |  | $ | (9 | ) |  | $ | 2 |
For the year ended December 31, 2017 |  | Hedged items in qualifying fair value hedging relationships |  | Gains (losses) recognized on derivatives |  |  | Gains (losses) recognized for hedged items |  |  | Ineffectiveness recognized in investment income |
Interest rate swaps |  | Fixed rate assets |  | $ | 2 |  |  | $ | (3 | ) |  | $ | (1) |
|  | Fixed rate liabilities |  |  | (17 | ) |  |  | 17 |  |  |  | – |
Foreign currency swaps |  | Fixed rate assets |  |  | (2 | ) |  |  | 4 |  |  |  | 2 |
Total |  |  |  | $ | (17 | ) |  | $ | 18 |  |  | $ | 1 |
Summary of Effects of Derivatives in Cash Flow Hedging Relationships | The effects of derivatives in cash flow hedging relationships on the Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income are shown in the following table.
For the year ended December 31, 2018 |  | Hedged items in qualifying cash flow hedging relationships |  | Gains (losses) deferred in AOCI on derivatives |  |  | Gains (losses) reclassified from AOCI into investment income |  |  | Ineffectiveness recognized in investment income |
Interest rate swaps |  | Forecasted liabilities |  | $ | – |  |  | $ | (20 | ) |  | $ | – |
Foreign currency swaps |  | Fixed rate assets |  |  | – |  |  |  | (1 | ) |  |  | – |
|  | Floating rate liabilities |  |  | (36 | ) |  |  | (62 | ) |  |  | – |
|  | Fixed rate liabilities |  |  | 60 |  |  |  | 62 |  |  |  | – |
Forward contracts |  | Forecasted expenses |  |  | (8 | ) |  |  | (2 | ) |  |  | – |
Equity contracts |  | Stock-based compensation |  |  | (21 | ) |  |  | 27 |  |  |  | – |
Total |  |  |  | $ | (5 | ) |  | $ | 4 |  |  | $ | – |
For the year ended December 31, 2017 |  | Hedged items in qualifying cash flow hedging relationships |  | Gains (losses) deferred in AOCI on derivatives |  |  | Gains (losses) reclassified from AOCI into investment income |  |  | Ineffectiveness recognized in investment income |
Interest rate swaps |  | Forecasted liabilities |  | $ | – |  |  | $ | (17 | ) |  | $ | – |
Foreign currency swaps |  | Fixed rate assets |  |  | 3 |  |  |  | (1 | ) |  |  | – |
|  | Floating rate liabilities |  |  | 95 |  |  |  | 50 |  |  |  | – |
|  | Fixed rate liabilities |  |  | 35 |  |  |  | 7 |  |  |  | – |
Forward contracts |  | Forecasted expenses |  |  | 10 |  |  |  | (10 | ) |  |  | – |
Equity contracts |  | Stock-based compensation |  |  | 20 |  |  |  | 29 |  |  |  | – |
Total |  |  |  | $ | 163 |  |  | $ | 58 |  |  | $ | – |
Summary of Effects of Net Investment Hedging Relationships | The effects of net investment hedging relationships on the Consolidated Statements of Income and the Consolidated Statements of Other Comprehensive Income are shown in the following table.
For the year ended December 31, 2018 |  | Gains (losses) deferred in AOCI on derivatives |  |  | Gains (losses) reclassified from AOCI into investment income |  |  | Ineffectiveness recognized in investment income |
Non-functional currency denominated debt |  | $ | (469 | ) |  | $ | – |  |  | $ | – |
Foreign currency forward |  |  | 9 |  |  |  | – |  |  |  | – |
Total |  | $ | (460 | ) |  | $ | – |  |  | $ | – |
For the year ended December 31, 2017 |  | Gains (losses) deferred in AOCI on derivatives |  |  | Gains (losses) reclassified from AOCI into investment income |  |  | Ineffectiveness recognized in investment income |
Non-functional currency denominated debt |  | $ | 355 |  |  | $ | – |  |  | $ | – |
Total |  | $ | 355 |  |  | $ | – |  |  | $ | – |
Summary of Investment Income on Derivatives Not Designated in Qualifying Hedge Accounting Relationships | Investment income on derivatives not designated in qualifying hedge accounting relationships
For the years ended December 31, |  | 2018 |  |  | 2017 |
Interest rate swaps |  | $ | (1,894 | ) |  | $ | (927 | )
Interest rate futures |  |  | (298 | ) |  |  | 372 |
Interest rate options |  |  | (52 | ) |  |  | (96 | )
Foreign currency swaps |  |  | (122 | ) |  |  | 529 |
Currency rate futures |  |  | 3 |  |  |  | (92 | )
Forward contracts |  |  | (355 | ) |  |  | 1,231 |
Equity futures |  |  | 742 |  |  |  | (2,190 | )
Equity contracts |  |  | (276 | ) |  |  | 153 |
Credit default swaps |  |  | (6 | ) |  |  | (4 | )
Total |  | $ | (2,258) |  |  | $ | (1,024 | )

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