| Schedule of Accumulated OCI |
The table below presents the changes in accumulated OCI after-tax for the nine months ended September 30, 2019 and 2018.
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(Dollars in millions) |
Debt Securities |
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Debit Valuation Adjustments |
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Derivatives |
|
Employee
Benefit Plans
|
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Foreign
Currency
|
|
Total |
Balance, December 31, 2017 |
$ |
(1,206 |
) |
|
$ |
(1,060 |
) |
|
$ |
(831 |
) |
|
$ |
(3,192 |
) |
|
$ |
(793 |
) |
|
$ |
(7,082 |
) |
Accounting change related to certain tax effects (1)
|
(393 |
) |
|
(220 |
) |
|
(189 |
) |
|
(707 |
) |
|
239 |
|
|
(1,270 |
) |
Cumulative adjustment for hedge accounting change (2)
|
— |
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|
— |
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|
57 |
|
|
— |
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|
— |
|
|
57 |
|
Net change |
(6,166 |
) |
|
183 |
|
|
(346 |
) |
|
91 |
|
|
(303 |
) |
|
(6,541 |
) |
Balance, September 30, 2018 |
$ |
(7,765 |
) |
|
$ |
(1,097 |
) |
|
$ |
(1,309 |
) |
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$ |
(3,808 |
) |
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$ |
(857 |
) |
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$ |
(14,836 |
) |
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Balance, December 31, 2018 |
$ |
(5,552 |
) |
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$ |
(531 |
) |
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$ |
(1,016 |
) |
|
$ |
(4,304 |
) |
|
$ |
(808 |
) |
|
$ |
(12,211 |
) |
Net change |
6,231 |
|
|
(272 |
) |
|
651 |
|
|
83 |
|
|
(99 |
) |
|
6,594 |
|
Balance, September 30, 2019 |
$ |
679 |
|
|
$ |
(803 |
) |
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$ |
(365 |
) |
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$ |
(4,221 |
) |
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$ |
(907 |
) |
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$ |
(5,617 |
) |
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(1) |
Effective January 1, 2018, the Corporation adopted the accounting standard on tax effects in accumulated OCI related to the Tax Act. Accordingly, certain tax effects were reclassified from accumulated OCI to retained earnings. |
(2)
Effective January 1, 2018, the Corporation adopted the hedge accounting standard.
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| Schedule of Amounts Recognized in Other Comprehensive Income (Loss) |
The table below presents the net change in fair value recorded in accumulated OCI, net realized gains and losses reclassified into earnings and other changes for each component of OCI pre- and after-tax for the nine months ended September 30, 2019 and 2018.
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Pretax |
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Tax
effect
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After-
tax
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Pretax |
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Tax
effect
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After-
tax
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Nine Months Ended September 30 |
(Dollars in millions) |
2019 |
|
2018 |
Debt securities: |
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Net increase (decrease) in fair value |
$ |
8,388 |
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$ |
(2,087 |
) |
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$ |
6,301 |
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$ |
(8,198 |
) |
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$ |
2,075 |
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|
$ |
(6,123 |
) |
Net realized (gains) losses reclassified into earnings (1)
|
(93 |
) |
|
23 |
|
|
(70 |
) |
|
(55 |
) |
|
12 |
|
|
(43 |
) |
Net change |
8,295 |
|
|
(2,064 |
) |
|
6,231 |
|
|
(8,253 |
) |
|
2,087 |
|
|
(6,166 |
) |
Debit valuation adjustments: |
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|
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|
|
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Net increase (decrease) in fair value |
(368 |
) |
|
83 |
|
|
(285 |
) |
|
220 |
|
|
(52 |
) |
|
168 |
|
Net realized (gains) losses reclassified into earnings (1)
|
16 |
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|
(3 |
) |
|
13 |
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|
20 |
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|
(5 |
) |
|
15 |
|
Net change |
(352 |
) |
|
80 |
|
|
(272 |
) |
|
240 |
|
|
(57 |
) |
|
183 |
|
Derivatives: |
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Net increase (decrease) in fair value |
765 |
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|
(173 |
) |
|
592 |
|
|
(601 |
) |
|
174 |
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|
(427 |
) |
Reclassifications into earnings: |
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Net interest income |
78 |
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(19 |
) |
|
59 |
|
|
134 |
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(33 |
) |
|
101 |
|
Compensation and benefits expense |
— |
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|
— |
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|
— |
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(27 |
) |
|
7 |
|
|
(20 |
) |
Net realized (gains) losses reclassified into earnings |
78 |
|
|
(19 |
) |
|
59 |
|
|
107 |
|
|
(26 |
) |
|
81 |
|
Net change |
843 |
|
|
(192 |
) |
|
651 |
|
|
(494 |
) |
|
148 |
|
|
(346 |
) |
Employee benefit plans: |
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Net actuarial losses and other reclassified into earnings (2)
|
109 |
|
|
(26 |
) |
|
83 |
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|
119 |
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|
(28 |
) |
|
91 |
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Net change |
109 |
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|
(26 |
) |
|
83 |
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|
119 |
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(28 |
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|
91 |
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Foreign currency: |
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Net increase (decrease) in fair value |
114 |
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|
(185 |
) |
|
(71 |
) |
|
(87 |
) |
|
(165 |
) |
|
(252 |
) |
Net realized (gains) losses reclassified into earnings (3)
|
(117 |
) |
|
89 |
|
|
(28 |
) |
|
(143 |
) |
|
92 |
|
|
(51 |
) |
Net change |
(3 |
) |
|
(96 |
) |
|
(99 |
) |
|
(230 |
) |
|
(73 |
) |
|
(303 |
) |
Total other comprehensive income (loss) |
$ |
8,892 |
|
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$ |
(2,298 |
) |
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$ |
6,594 |
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|
$ |
(8,618 |
) |
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$ |
2,077 |
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$ |
(6,541 |
) |
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(1) |
Reclassifications of pretax debt securities and DVA are recorded in other income in the Consolidated Statement of Income. |
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(2) |
Reclassifications of pretax employee benefit plan costs are recorded in other general operating expense in the Consolidated Statement of Income. |
(3)
Reclassifications of pretax debt securities, DVA and foreign currency (gains) losses are recorded in other income in the Consolidated Statement of Income.
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