| Accumulated Other Comprehensive Income (Loss) |
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NOTE 12 – Accumulated Other Comprehensive Income (Loss) |
The table below presents the changes in accumulated OCI after-tax for the three months ended March 31, 2016 and 2015.
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(Dollars in millions) |
Debt Securities |
|
Available-for-sale
Marketable
Equity Securities
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Debit Valuation Adjustments (1)
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Derivatives |
|
Employee
Benefit Plans
|
|
Foreign
Currency (2)
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Total |
Balance, December 31, 2014 |
$ |
1,343 |
|
|
$ |
17 |
|
|
n/a |
|
|
$ |
(1,661 |
) |
|
$ |
(3,350 |
) |
|
$ |
(669 |
) |
|
$ |
(4,320 |
) |
Cumulative adjustment for accounting change |
— |
|
|
— |
|
|
$ |
(1,226 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(1,226 |
) |
Net change |
1,317 |
|
|
19 |
|
|
260 |
|
|
43 |
|
|
25 |
|
|
(51 |
) |
|
1,613 |
|
Balance, March 31, 2015 |
$ |
2,660 |
|
|
$ |
36 |
|
|
$ |
(966 |
) |
|
$ |
(1,618 |
) |
|
$ |
(3,325 |
) |
|
$ |
(720 |
) |
|
$ |
(3,933 |
) |
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Balance, December 31, 2015 |
$ |
(300 |
) |
|
$ |
62 |
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|
$ |
(611 |
) |
|
$ |
(1,077 |
) |
|
$ |
(2,956 |
) |
|
$ |
(792 |
) |
|
$ |
(5,674 |
) |
Net change |
2,924 |
|
|
(33 |
) |
|
127 |
|
|
24 |
|
|
10 |
|
|
12 |
|
|
3,064 |
|
Balance, March 31, 2016 |
$ |
2,624 |
|
|
$ |
29 |
|
|
$ |
(484 |
) |
|
$ |
(1,053 |
) |
|
$ |
(2,946 |
) |
|
$ |
(780 |
) |
|
$ |
(2,610 |
) |
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(1) |
For information on the impact of early adoption of new accounting guidance on recognition and measurement of financial instruments, see Note 1 – Summary of Significant Accounting Principles.
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(2) |
The net change in fair value represents the impact of changes in spot foreign exchange rates on the Corporation's net investment in non-U.S. operations and related hedges. |
n/a = not applicable
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 the three months ended March 31, 2016 and 2015.
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Changes in OCI Components Before- and After-tax |
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Three Months Ended March 31 |
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2016 |
|
2015 |
(Dollars in millions) |
Before-tax |
|
Tax effect |
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After-tax |
|
Before-tax |
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Tax effect |
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After-tax |
Debt securities: |
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Net change in unrealized gains (losses) |
$ |
4,936 |
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|
$ |
(1,876 |
) |
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$ |
3,060 |
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$ |
2,320 |
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|
$ |
(880 |
) |
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$ |
1,440 |
|
Net realized gains reclassified into earnings |
(219 |
) |
|
83 |
|
|
(136 |
) |
|
(198 |
) |
|
75 |
|
|
(123 |
) |
Net change |
4,717 |
|
|
(1,793 |
) |
|
2,924 |
|
|
2,122 |
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|
(805 |
) |
|
1,317 |
|
Available-for-sale marketable equity securities: |
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|
|
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|
|
|
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Net increase (decrease) in fair value |
(54 |
) |
|
21 |
|
|
(33 |
) |
|
32 |
|
|
(13 |
) |
|
19 |
|
Net change |
(54 |
) |
|
21 |
|
|
(33 |
) |
|
32 |
|
|
(13 |
) |
|
19 |
|
Debit valuation adjustments: |
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Net increase in fair value |
195 |
|
|
(72 |
) |
|
123 |
|
|
84 |
|
|
(32 |
) |
|
52 |
|
Net realized losses reclassified into earnings |
7 |
|
|
(3 |
) |
|
4 |
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|
335 |
|
|
(127 |
) |
|
208 |
|
Net change |
202 |
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|
(75 |
) |
|
127 |
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|
419 |
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|
(159 |
) |
|
260 |
|
Derivatives: |
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Net decrease in fair value |
(159 |
) |
|
59 |
|
|
(100 |
) |
|
(186 |
) |
|
69 |
|
|
(117 |
) |
Net realized losses reclassified into earnings |
198 |
|
|
(74 |
) |
|
124 |
|
|
256 |
|
|
(96 |
) |
|
160 |
|
Net change |
39 |
|
|
(15 |
) |
|
24 |
|
|
70 |
|
|
(27 |
) |
|
43 |
|
Employee benefit plans: |
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Net decrease in fair value |
— |
|
|
— |
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|
— |
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|
(2 |
) |
|
1 |
|
|
(1 |
) |
Net realized losses reclassified into earnings |
25 |
|
|
(10 |
) |
|
15 |
|
|
42 |
|
|
(16 |
) |
|
26 |
|
Settlements, curtailments and other |
— |
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|
(5 |
) |
|
(5 |
) |
|
— |
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|
— |
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|
— |
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Net change |
25 |
|
|
(15 |
) |
|
10 |
|
|
40 |
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|
(15 |
) |
|
25 |
|
Foreign currency: |
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Net increase (decrease) in fair value |
(134 |
) |
|
146 |
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|
12 |
|
|
462 |
|
|
(513 |
) |
|
(51 |
) |
Net change |
(134 |
) |
|
146 |
|
|
12 |
|
|
462 |
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|
(513 |
) |
|
(51 |
) |
Total other comprehensive income |
$ |
4,795 |
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|
$ |
(1,731 |
) |
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$ |
3,064 |
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$ |
3,145 |
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$ |
(1,532 |
) |
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$ |
1,613 |
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The table below presents impacts on net income of significant amounts reclassified out of each component of accumulated OCI before- and after-tax for the three months ended March 31, 2016 and 2015. There were no amounts reclassified out of AFS marketable equity securities and foreign currency for the three months ended March 31, 2016 and 2015.
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Reclassifications Out of Accumulated OCI |
(Dollars in millions) |
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Three Months Ended March 31 |
Accumulated OCI Components |
Income Statement Line Item Impacted |
2016 |
|
2015 |
Debt securities: |
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Gains on sales of debt securities |
$ |
226 |
|
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$ |
268 |
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Other loss |
(7 |
) |
|
(70 |
) |
|
Income before income taxes |
219 |
|
|
198 |
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|
Income tax expense |
83 |
|
|
75 |
|
|
Reclassification to net income |
136 |
|
|
123 |
|
Debit valuation adjustments: |
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|
|
|
|
Other loss |
(7 |
) |
|
(335 |
) |
|
Loss before income taxes |
(7 |
) |
|
(335 |
) |
|
Income tax benefit |
(3 |
) |
|
(127 |
) |
|
Reclassification to net income |
(4 |
) |
|
(208 |
) |
Derivatives: |
|
|
|
|
Interest rate contracts |
Net interest income |
(164 |
) |
|
(255 |
) |
Equity compensation contracts |
Personnel |
(34 |
) |
|
(1 |
) |
|
Loss before income taxes |
(198 |
) |
|
(256 |
) |
|
Income tax benefit |
(74 |
) |
|
(96 |
) |
|
Reclassification to net income |
(124 |
) |
|
(160 |
) |
Employee benefit plans: |
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|
|
|
Net actuarial losses and prior service costs |
Personnel |
(25 |
) |
|
(42 |
) |
|
Loss before income taxes |
(25 |
) |
|
(42 |
) |
|
Income tax benefit |
(10 |
) |
|
(16 |
) |
|
Reclassification to net income |
(15 |
) |
|
(26 |
) |
Total reclassification adjustments |
|
$ |
(7 |
) |
|
$ |
(271 |
) |
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