Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Income (Loss)

v3.5.0.2
Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 30, 2016
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
NOTE 12 – Accumulated Other Comprehensive Income (Loss)

The table below presents the changes in accumulated OCI after-tax for the nine months ended September 30, 2016 and 2015.

(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
169

 
(2
)
 
633

 
416

 
77

 
(84
)
 
1,209

Balance, September 30, 2015
$
1,810

 
$
15

 
$
(593
)
 
$
(1,245
)
 
$
(3,273
)
 
$
(753
)
 
$
(4,039
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2015
$
16

 
$
62

 
$
(611
)
 
$
(1,077
)
 
$
(2,956
)
 
$
(792
)
 
$
(5,358
)
Net change
3,362

 
(43
)
 
49

 
277

 
29

 
(17
)
 
3,657

Balance, September 30, 2016
$
3,378

 
$
19

 
$
(562
)
 
$
(800
)
 
$
(2,927
)
 
$
(809
)
 
$
(1,701
)
(1) 
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 nine months ended September 30, 2016 and 2015.

Changes in OCI Components Before- and After-tax
 
Nine Months Ended September 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
$
5,896

 
$
(2,239
)
 
$
3,657

 
$
1,089

 
$
(418
)
 
$
671

Net realized gains reclassified into earnings
(476
)
 
181

 
(295
)
 
(809
)
 
307

 
(502
)
Net change
5,420

 
(2,058
)
 
3,362

 
280

 
(111
)
 
169

Available-for-sale marketable equity securities:
 
 
 
 
 
 
 
 
 
 
 
Net decrease in fair value
(70
)
 
27

 
(43
)
 
(3
)
 
1

 
(2
)
Net change
(70
)
 
27

 
(43
)
 
(3
)
 
1

 
(2
)
Debit valuation adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net increase in fair value
61

 
(23
)
 
38

 
475

 
(181
)
 
294

Net realized losses reclassified into earnings
18

 
(7
)
 
11

 
545

 
(206
)
 
339

Net change
79

 
(30
)
 
49

 
1,020

 
(387
)
 
633

Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Net decrease in fair value
(64
)
 
23

 
(41
)
 
(42
)
 
14

 
(28
)
Net realized losses reclassified into earnings
508

 
(190
)
 
318

 
711

 
(267
)
 
444

Net change
444

 
(167
)
 
277

 
669

 
(253
)
 
416

Employee benefit plans:
 
 
 
 
 
 
 
 
 
 
 
Net realized losses reclassified into earnings
64

 
(25
)
 
39

 
128

 
(49
)
 
79

Settlements, curtailments and other
—

 
(10
)
 
(10
)
 
(2
)
 
—

 
(2
)
Net change
64

 
(35
)
 
29

 
126

 
(49
)
 
77

Foreign currency:
 
 
 
 
 
 
 
 
 
 
 
Net decrease in fair value
123

 
(140
)
 
(17
)
 
482

 
(566
)
 
(84
)
Net realized gains reclassified into earnings
—

 
—

 
—

 
(29
)
 
29

 
—

Net change
123

 
(140
)
 
(17
)
 
453

 
(537
)
 
(84
)
Total other comprehensive income
$
6,060

 
$
(2,403
)
 
$
3,657

 
$
2,545

 
$
(1,336
)
 
$
1,209


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 nine months ended September 30, 2016 and 2015. There were no amounts reclassified out of AFS marketable equity securities and foreign currency for the nine months ended September 30, 2016 and 2015.

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

2015
Debt securities:
 
 
 
 
 
Gains on sales of debt securities
$
490

 
$
886

 
Other loss
(14
)
 
(77
)
 
Income before income taxes
476

 
809

 
Income tax expense
181

 
307

 
Reclassification to net income
295

 
502

Debit valuation adjustments:
 
 
 
 
 
Other loss
(18
)
 
(545
)
 
Loss before income taxes
(18
)
 
(545
)
 
Income tax benefit
(7
)
 
(206
)
 
Reclassification to net income
(11
)
 
(339
)
Derivatives:
 
 
 
 
Interest rate contracts
Net interest income
(447
)
 
(768
)
Equity compensation contracts
Personnel
(61
)
 
57

 
Loss before income taxes
(508
)
 
(711
)
 
Income tax benefit
(190
)
 
(267
)
 
Reclassification to net income
(318
)
 
(444
)
Employee benefit plans:
 
 
 
 
Net actuarial losses and prior service costs
Personnel
(64
)
 
(128
)
 
Loss before income taxes
(64
)
 
(128
)
 
Income tax benefit
(25
)
 
(49
)
 
Reclassification to net income
(39
)
 
(79
)
Total reclassification adjustments
 
$
(73
)
 
$
(360
)