Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Income (Loss) (Tables)

v3.5.0.2
Accumulated Other Comprehensive Income (Loss) (Tables)
 6 Months Ended
Jun. 30, 2016
Equity [Abstract]  
Schedule of Accumulated OCI
The table below presents the changes in accumulated OCI after-tax for the six months ended June 30, 2016 and 2015.

(Dollars in millions)
Debt Securities
 
Available-for-sale
Marketable
Equity Securities
 
Debit Valuation Adjustments (1)
 
Derivatives
 
Employee
Benefit Plans
 
Foreign
Currency (2)
 
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
(1,249
)
 
48

 
446

 
289

 
50

 
(8
)
 
(424
)
Balance, June 30, 2015
$
94

 
$
65

 
$
(780
)
 
$
(1,372
)
 
$
(3,300
)
 
$
(677
)
 
$
(5,970
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2015
$
(300
)
 
$
62

 
$
(611
)
 
$
(1,077
)
 
$
(2,956
)
 
$
(792
)
 
$
(5,674
)
Net change
4,121

 
(53
)
 
114

 
150

 
23

 
(9
)
 
4,346

Balance, June 30, 2016
$
3,821

 
$
9

 
$
(497
)
 
$
(927
)
 
$
(2,933
)
 
$
(801
)
 
$
(1,328
)
(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.
(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
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]
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 six months ended June 30, 2016 and 2015.

Changes in OCI Components Before- and After-tax
 
Six Months Ended June 30
 
2016
 
2015
(Dollars in millions)
Before-tax
 
Tax effect
 
After-tax
 
Before-tax
 
Tax effect
 
After-tax
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Net change in unrealized gains (losses)
$
7,126

 
$
(2,708
)
 
$
4,418

 
$
(1,656
)
 
$
631

 
$
(1,025
)
Net realized gains reclassified into earnings
(480
)
 
183

 
(297
)
 
(361
)
 
137

 
(224
)
Net change
6,646

 
(2,525
)
 
4,121

 
(2,017
)
 
768

 
(1,249
)
Available-for-sale marketable equity securities:
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in fair value
(87
)
 
34

 
(53
)
 
77

 
(29
)
 
48

Net change
(87
)
 
34

 
(53
)
 
77

 
(29
)
 
48

Debit valuation adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net increase in fair value
172

 
(65
)
 
107

 
210

 
(80
)
 
130

Net realized losses reclassified into earnings
12

 
(5
)
 
7

 
510

 
(194
)
 
316

Net change
184

 
(70
)
 
114

 
720

 
(274
)
 
446

Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Net decrease in fair value
(141
)
 
53

 
(88
)
 
(24
)
 
10

 
(14
)
Net realized losses reclassified into earnings
381

 
(143
)
 
238

 
487

 
(184
)
 
303

Net change
240

 
(90
)
 
150

 
463

 
(174
)
 
289

Employee benefit plans:
 
 
 
 
 
 
 
 
 
 
 
Net decrease in fair value
—

 
—

 
—

 
(2
)
 
1

 
(1
)
Net realized losses reclassified into earnings
50

 
(19
)
 
31

 
85

 
(33
)
 
52

Settlements, curtailments and other
—

 
(8
)
 
(8
)
 
—

 
(1
)
 
(1
)
Net change
50

 
(27
)
 
23

 
83

 
(33
)
 
50

Foreign currency:
 
 
 
 
 
 
 
 
 
 
 
Net decrease in fair value
40

 
(49
)
 
(9
)
 
167

 
(174
)
 
(7
)
Net realized gains reclassified into earnings
—

 
—

 
—

 
(31
)
 
30

 
(1
)
Net change
40

 
(49
)
 
(9
)
 
136

 
(144
)
 
(8
)
Total other comprehensive income (loss)
$
7,073

 
$
(2,727
)
 
$
4,346

 
$
(538
)
 
$
114

 
$
(424
)
Reclassification out of Accumulated Other Comprehensive Income
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 six months ended June 30, 2016 and 2015. There were no amounts reclassified out of AFS marketable equity securities for the six months ended June 30, 2016 and 2015.

Reclassifications Out of Accumulated OCI
(Dollars in millions)
 
Six Months Ended June 30
Accumulated OCI Components
Income Statement Line Item Impacted
2016

2015
Debt securities:
 
 
 
 
 
Gains on sales of debt securities
$
492

 
$
436

 
Other loss
(12
)
 
(75
)
 
Income before income taxes
480

 
361

 
Income tax expense
183

 
137

 
Reclassification to net income
297

 
224

Debit valuation adjustments:
 
 
 
 
 
Other loss
(12
)
 
(510
)
 
Loss before income taxes
(12
)
 
(510
)
 
Income tax benefit
(5
)
 
(194
)
 
Reclassification to net income
(7
)
 
(316
)
Derivatives:
 
 
 
 
Interest rate contracts
Net interest income
(328
)
 
(514
)
Equity compensation contracts
Personnel
(53
)
 
27

 
Loss before income taxes
(381
)
 
(487
)
 
Income tax benefit
(143
)
 
(184
)
 
Reclassification to net income
(238
)
 
(303
)
Employee benefit plans:
 
 
 
 
Net actuarial losses and prior service costs
Personnel
(50
)
 
(85
)
 
Loss before income taxes
(50
)
 
(85
)
 
Income tax benefit
(19
)
 
(33
)
 
Reclassification to net income
(31
)
 
(52
)
Foreign currency:
 
 
 
 
 
Other income
—

 
31

 
Income before income taxes
—

 
31

 
Income tax expense
—

 
30

 
Reclassification to net income
—

 
1

Total reclassification adjustments
 
$
21

 
$
(446
)