The following table indicates the amount and location in the statements of consolidated income in which derivative gains and losses, as well as the associated gains and losses on the underlying exposure, have been recognized for those derivatives designated as fair value hedges for the three and six months ended June 30, 2018 and 2017 (in millions):
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Derivative Instruments
in Fair Value
Hedging Relationships
|
Location of Gain (Loss) Recognized in Income |
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Derivative Amount of Gain (Loss) Recognized in Income |
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Hedged Items in
Fair Value
Hedging
Relationships
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Location of
Gain (Loss)
Recognized In
Income
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Hedged Items Amount of Gain (Loss)
Recognized in Income
|
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2018 |
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2017 |
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2018 |
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2017 |
Three Months Ended June 30: |
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Interest rate contracts |
Interest Expense |
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$ |
(19 |
) |
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$ |
2 |
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Fixed-Rate
Debt
|
|
Interest
Expense
|
|
$ |
19 |
|
|
$ |
(2 |
) |
Six Months Ended June 30: |
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Interest rate contracts |
Interest
Expense
|
|
$ |
(73 |
) |
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$ |
(22 |
) |
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Fixed-Rate
Debt
|
|
Interest
Expense
|
|
$ |
73 |
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$ |
22 |
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The following is a summary of the amounts recorded in the statements of consolidated income related to fair value changes and settlements of these interest rate swaps, foreign currency forward and investment market price forward contracts not designated as hedges for the three and six months ended June 30, 2018 and 2017 (in millions):
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Derivative Instruments Not Designated in
Hedging Relationships
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Location of Gain (Loss)
Recognized in Income
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Amount of Gain (Loss)
Recognized in Income
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2018 |
|
2017 |
Three Months Ended June 30: |
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Interest rate contracts |
Interest expense |
|
$ |
(2 |
) |
|
$ |
(2 |
) |
Foreign exchange contracts |
Investment income and other |
|
(67 |
) |
|
14 |
|
Investment market price contracts |
Investment income and other |
|
— |
|
|
(18 |
) |
Total |
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|
$ |
(69 |
) |
|
$ |
(6 |
) |
Six Months Ended June 30: |
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Interest rate contracts |
Interest expense |
|
$ |
(4 |
) |
|
$ |
(4 |
) |
Foreign exchange contracts |
Investment income and other |
|
(59 |
) |
|
$ |
20 |
|
Investment market price contracts |
Investment income and other |
|
16 |
|
|
8 |
|
Total |
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$ |
(47 |
) |
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$ |
24 |
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