Discover 2014 Annual Report Download - page 168
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The following tables summarize the impact of the derivative instruments on income and other comprehensive
income, and indicates where within the consolidated financial statements such impact is reported for the period (dollars
in millions):
Amount of (Loss) Gain Recognized in Other Comprehensive Income
For the Calendar Years Ended
December 31, For the Fiscal
Year Ended
November 30,
2012
For the One
Month Ended
December 31,
2012
Location 2014 2013
Derivatives designated as hedges:
Interest rate swaps—cash flow/net investment hedges:
Total (losses) gains recognized in other
comprehensive income after amounts reclassified
into earnings, pre-tax ........................................
Other
Comprehensive
Income $ (27) $ 13 $ (6) $ (1)
Total (losses) gains recognized in other
comprehensive income ............................... $ (27) $ 13 $ (6) $ (1)
Amount of Gain (Loss) Recognized in Income
For the Calendar Years Ended
December 31, For the Fiscal
Year Ended
November 30,
2012
For the One
Month Ended
December 31,
2012
Location 2014 2013
Derivatives designated as hedges:
Interest rate swaps—cash flow hedges:
Amount reclassified from other comprehensive
income into income ........................................... Interest Income $ — $ 4 $ 7 $ 1
Amount reclassified from other comprehensive
income into income ........................................... Interest Expense (38) (12) — —
Total amount reclassified from other
comprehensive income into income ................... (38) (8) 7 1
Interest rate swaps—fair value hedges:
Interest expense - ineffectiveness ........................... (13) (46) 58 (9)
Interest expense - other ........................................ 38 41 30 3
Gain (loss) on interest rate swaps ..................... Interest Expense 25 (5) 88 (6)
Interest expense - ineffectiveness ........................... 19 51 (52) 10
Interest expense - other ........................................ (2) (6) (6) (1)
Gain (loss) on hedged item .............................. Interest Expense 17 45 (58) 9
Total gains recognized in income.................. $ 4 $ 32 $ 37 $ 4
Derivatives not designated as hedges:
Gain (loss) on forward contracts ........................... Other Income $ 5 $ (1) $ 1 $ (1)
Loss on interest rate swaps ................................... Other Income (1) (1) (7) —
(Loss) gain on forward delivery contracts............... Other Income (6) 4 (1) 2
Gain on interest rate lock commitments ................. Other Income 87 121 110 17
Total gains on derivatives not designated as
hedges recognized in income ..................... $ 85 $ 123 $ 103 $ 18