Notes to consolidated financial statements Cash flow hedge gains and losses Net investment hedge gains and losses JPMorgan Chase & Co./2020 Form 10-K 208 (a) Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income. (b) Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. The Firm reclassified net pre-tax gains/(losses) of $3 million and $18 million to other income, and $(17) million to other expense related to the liquidation of certain legal entities during the years ended December 31, 2020, 2019 and 2018, respectively. Refer to Note 24 for further information. (a) Primarily consists of hedges of LIBOR-indexed floating-rate assets and floating-rate liabilities. Gains and losses were recorded in net interest income. (b) Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item – primarily noninterest revenue and compensation expense. The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the years ended December 31, 2020, 2019 and 2018, respectively. The Firm includes the gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item. The Firm did not experience any forecasted transactions that failed to occur for the years ended 2020, 2019 and 2018. Over the next 12 months, the Firm expects that approximately $818 million (after-tax) of net gains recorded in AOCI at December 31, 2020, related to cash flow hedges will be recognized in income. For cash flow hedges that have been terminated, the maximum length of time over which the derivative results recorded in AOCI will be recognized in earnings is approximately nine years, corresponding to the timing of the originally hedged forecasted cash flows. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately seven years. The Firm’s longer-dated forecasted transactions relate to core lending and borrowing activities. The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre- tax gains/(losses) recorded on such instruments for the years ended December 31, 2020, 2019 and 2018. 2020 2019 2018 Year ended December 31, (in millions) Amounts recorded in income Amounts recorded in  OCI Amounts recorded in income Amounts recorded in OCI Amounts recorded in income Amounts recorded in OCI Foreign exchange derivatives $(122) $(1,408) $72 $64 $11 $1,219 (a)(b) (a)(b) (a)(b) Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2020 (in millions) Amounts reclassified from AOCI to income Amounts recorded in OCI Total change in OCI for period Contract type Interest rate $ 570 $ 3,582 $ 3,012 Foreign exchange — 41 41 Total $ 570 $ 3,623 $ 3,053 (a) (b) Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2019 (in millions) Amounts reclassified from AOCI to income Amounts recorded in OCI Total change  in OCI  for period Contract type Interest rate $ (28) $ (3) $ 25  Foreign exchange (75) 125  200  Total $ (103) $ 122 $ 225  (a) (b) Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2018 (in millions) Amounts reclassified from AOCI to income Amounts recorded in OCI Total change  in OCI  for period Contract type Interest rate $ 44 $ (44) $ (88) Foreign exchange (26) (201) (175) Total $ 18 $ (245) $ (263) (a) (b)