Annual report pursuant to Section 13 and 15(d)

Accumulated Other Comprehensive Income (Loss)

v3.8.0.1
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2017
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
The table below presents the changes in accumulated OCI after-tax for 2015, 2016 and 2017.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
Debt
Securities
 
Available-for-
Sale Marketable
Equity Securities
 
Debit Valuation Adjustments
 
Derivatives
 
Employee
Benefit Plans
 
Foreign
Currency (1)
 
Total
Balance, December 31, 2014
$
1,641

 
$
17

 
n/a

 
$
(1,661
)
 
$
(3,350
)
 
$
(669
)
 
$
(4,022
)
Cumulative adjustment for accounting change
—

 
—

 
$
(1,226
)
 
—

 
—

 
—

 
(1,226
)
Net change
(1,625
)
 
45

 
615

 
584

 
394

 
(123
)
 
(110
)
Balance, December 31, 2015
$
16

 
$
62

 
$
(611
)
 
$
(1,077
)
 
$
(2,956
)
 
$
(792
)
 
$
(5,358
)
Net change
(1,315
)
 
(30
)
 
(156
)
 
182

 
(524
)
 
(87
)
 
(1,930
)
Balance, December 31, 2016
$
(1,299
)
 
$
32

 
$
(767
)
 
$
(895
)
 
$
(3,480
)
 
$
(879
)
 
$
(7,288
)
Net change
91

 
(30
)
 
(293
)
 
64

 
288

 
86

 
206

Balance, December 31, 2017
$
(1,208
)
 
$
2

 
$
(1,060
)
 
$
(831
)
 
$
(3,192
)
 
$
(793
)
 
$
(7,082
)

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 before- and after-tax for 2017, 2016 and 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in OCI Components Before- and After-tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Before-tax
 
Tax
effect
 
After-
tax
 
Before-tax
 
Tax effect
 
After-
tax
 
Before-tax
 
Tax effect
 
After-
tax
(Dollars in millions)
2017
 
2016
 
2015
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase in fair value
$
202

 
$
26

 
$
228

 
$
(1,645
)
 
$
622

 
$
(1,023
)
 
$
(1,564
)
 
$
595

 
$
(969
)
Reclassifications into earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains on sales of debt securities
(255
)
 
97

 
(158
)
 
(490
)
 
186

 
(304
)
 
(1,138
)
 
432

 
(706
)
Other income
41

 
(20
)
 
21

 
19

 
(7
)
 
12

 
81

 
(31
)
 
50

Net realized gains reclassified into earnings
(214
)
 
77

 
(137
)
 
(471
)
 
179

 
(292
)
 
(1,057
)
 
401

 
(656
)
Net change
(12
)
 
103

 
91

 
(2,116
)
 
801

 
(1,315
)
 
(2,621
)
 
996

 
(1,625
)
Available-for-sale marketable equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in fair value
38

 
(12
)
 
26

 
(49
)
 
19

 
(30
)
 
72

 
(27
)
 
45

Net realized gains reclassified into earnings (2)
(90
)
 
34

 
(56
)
 
—

 
—

 
—

 
—

 
—

 
—

Net change
(52
)
 
22

 
(30
)
 
(49
)
 
19

 
(30
)
 
72

 
(27
)
 
45

Debit valuation adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in fair value
(490
)
 
171

 
(319
)
 
(271
)
 
104

 
(167
)
 
436

 
(166
)
 
270

Net realized losses reclassified into earnings (2)
42

 
(16
)
 
26

 
17

 
(6
)
 
11

 
556

 
(211
)
 
345

Net change
(448
)
 
155

 
(293
)
 
(254
)
 
98

 
(156
)
 
992

 
(377
)
 
615

Derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in fair value
(50
)
 
1

 
(49
)
 
(299
)
 
113

 
(186
)
 
55

 
(22
)
 
33

Reclassifications into earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
327

 
(122
)
 
205

 
553

 
(205
)
 
348

 
974

 
(367
)
 
607

Personnel
(148
)
 
56

 
(92
)
 
32

 
(12
)
 
20

 
(91
)
 
35

 
(56
)
Net realized losses reclassified into earnings
179

 
(66
)
 
113

 
585

 
(217
)
 
368

 
883

 
(332
)
 
551

Net change
129

 
(65
)
 
64

 
286

 
(104
)
 
182

 
938

 
(354
)
 
584

Employee benefit plans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in fair value
223

 
(55
)
 
168

 
(921
)
 
329

 
(592
)
 
408

 
(121
)
 
287

Reclassifications into earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
4

 
(1
)
 
3

 
5

 
(2
)
 
3

 
5

 
(2
)
 
3

Net actuarial losses
175

 
(60
)
 
115

 
92

 
(34
)
 
58

 
164

 
(60
)
 
104

Net realized losses reclassified into earnings (3)
179

 
(61
)
 
118

 
97

 
(36
)
 
61

 
169

 
(62
)
 
107

Settlements, curtailments and other
3

 
(1
)
 
2

 
15

 
(8
)
 
7

 
1

 
(1
)
 
—

Net change
405

 
(117
)
 
288

 
(809
)
 
285

 
(524
)
 
578

 
(184
)
 
394

Foreign currency:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in fair value
(439
)
 
430

 
(9
)
 
514

 
(601
)
 
(87
)
 
600

 
(723
)
 
(123
)
Net realized gains reclassified into earnings (1,2)
(606
)
 
701

 
95

 
—

 
—

 
—

 
(38
)
 
38

 
—

Net change
(1,045
)
 
1,131

 
86

 
514

 
(601
)
 
(87
)
 
562

 
(685
)
 
(123
)
Total other comprehensive income (loss)
$
(1,023
)
 
$
1,229

 
$
206

 
$
(2,428
)
 
$
498

 
$
(1,930
)
 
$
521

 
$
(631
)
 
$
(110
)

(1) 
During 2017, foreign currency included a pre-tax gain on derivatives and related income tax expense associated with the Corporation’s net investment in its non-U.S. consumer credit card business, which was sold in 2017. The derivative gain was partially offset by a loss on the related foreign currency translation adjustment.
(2) 
Reclassifications of pre-tax AFS marketable equity securities, DVA and foreign currency are recorded in other income in the Consolidated Statement of Income.
(3) 
Reclassifications of pre-tax employee benefit plan costs are recorded in personnel expense in the Consolidated Statement of Income.
n/a = not applicable