| Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
The table below presents the changes in accumulated OCI after-tax for the nine months ended September 30, 2017 and 2016.
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(Dollars in millions) |
Debt
Securities
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Available-for-
Sale Marketable
Equity Securities
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Debit Valuation Adjustments |
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Derivatives |
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Employee
Benefit Plans
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Foreign
Currency (1)
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Total |
Balance, December 31, 2015 |
$ |
16 |
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|
$ |
62 |
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|
$ |
(611 |
) |
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$ |
(1,077 |
) |
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$ |
(2,956 |
) |
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$ |
(792 |
) |
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$ |
(5,358 |
) |
Net change |
3,362 |
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|
(43 |
) |
|
49 |
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|
277 |
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29 |
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|
(17 |
) |
|
3,657 |
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Balance, September 30, 2016 |
$ |
3,378 |
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$ |
19 |
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$ |
(562 |
) |
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$ |
(800 |
) |
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$ |
(2,927 |
) |
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$ |
(809 |
) |
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$ |
(1,701 |
) |
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Balance, December 31, 2016 |
$ |
(1,299 |
) |
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$ |
32 |
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$ |
(767 |
) |
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$ |
(895 |
) |
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$ |
(3,480 |
) |
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$ |
(879 |
) |
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$ |
(7,288 |
) |
Net change |
945 |
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|
(14 |
) |
|
(149 |
) |
|
156 |
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|
80 |
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|
102 |
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|
1,120 |
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Balance, September 30, 2017 |
$ |
(354 |
) |
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$ |
18 |
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$ |
(916 |
) |
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$ |
(739 |
) |
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$ |
(3,400 |
) |
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$ |
(777 |
) |
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$ |
(6,168 |
) |
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, 2017 and 2016.
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Changes in OCI Components Before- and After-tax |
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Nine Months Ended September 30 |
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2017 |
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2016 |
(Dollars in millions) |
Before-tax |
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Tax effect |
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After-tax |
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Before-tax |
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Tax effect |
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After-tax |
Debt securities: |
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Net increase in fair value |
$ |
1,757 |
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$ |
(657 |
) |
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$ |
1,100 |
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$ |
5,896 |
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$ |
(2,239 |
) |
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$ |
3,657 |
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Reclassifications into earnings: |
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Gains on sales of debt securities |
(278 |
) |
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106 |
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(172 |
) |
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(490 |
) |
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186 |
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(304 |
) |
Other income |
33 |
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(16 |
) |
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17 |
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14 |
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(5 |
) |
|
9 |
|
Net realized gains reclassified into earnings |
(245 |
) |
|
90 |
|
|
(155 |
) |
|
(476 |
) |
|
181 |
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|
(295 |
) |
Net change |
1,512 |
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|
(567 |
) |
|
945 |
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5,420 |
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(2,058 |
) |
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3,362 |
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Available-for-sale marketable equity securities: |
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Net increase (decrease) in fair value |
45 |
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(17 |
) |
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28 |
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|
(70 |
) |
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27 |
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|
(43 |
) |
Net realized gains reclassified into earnings (2)
|
(67 |
) |
|
25 |
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|
(42 |
) |
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— |
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— |
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— |
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Net change |
(22 |
) |
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8 |
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(14 |
) |
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(70 |
) |
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27 |
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(43 |
) |
Debit valuation adjustments: |
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Net increase (decrease) in fair value |
(255 |
) |
|
96 |
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|
(159 |
) |
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61 |
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(23 |
) |
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38 |
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Net realized losses reclassified into earnings (2)
|
30 |
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(20 |
) |
|
10 |
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|
18 |
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(7 |
) |
|
11 |
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Net change |
(225 |
) |
|
76 |
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|
(149 |
) |
|
79 |
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(30 |
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49 |
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Derivatives: |
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Net increase (decrease) in fair value |
79 |
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(30 |
) |
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49 |
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(64 |
) |
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23 |
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(41 |
) |
Reclassifications into earnings: |
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Net interest income |
274 |
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(103 |
) |
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171 |
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|
447 |
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(167 |
) |
|
280 |
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Personnel |
(103 |
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39 |
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(64 |
) |
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61 |
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(23 |
) |
|
38 |
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Net realized losses reclassified into earnings |
171 |
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(64 |
) |
|
107 |
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|
508 |
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(190 |
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|
318 |
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Net change |
250 |
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(94 |
) |
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156 |
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|
444 |
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(167 |
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|
277 |
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Employee benefit plans: |
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Reclassifications into earnings: |
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Prior service cost |
3 |
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(1 |
) |
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2 |
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3 |
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(1 |
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2 |
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Net actuarial losses |
125 |
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(47 |
) |
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78 |
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|
61 |
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(24 |
) |
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37 |
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Net realized losses reclassified into earnings (3)
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128 |
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(48 |
) |
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80 |
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|
64 |
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(25 |
) |
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39 |
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Settlements, curtailments and other |
— |
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— |
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— |
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— |
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(10 |
) |
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(10 |
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Net change |
128 |
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(48 |
) |
|
80 |
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|
64 |
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(35 |
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29 |
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Foreign currency: |
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Net increase (decrease) in fair value |
(454 |
) |
|
462 |
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8 |
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|
123 |
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(140 |
) |
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(17 |
) |
Net gains reclassified into earnings (1,2)
|
(608 |
) |
|
702 |
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|
94 |
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— |
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— |
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— |
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Net change |
(1,062 |
) |
|
1,164 |
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|
102 |
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|
123 |
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|
(140 |
) |
|
(17 |
) |
Total other comprehensive income (loss) |
$ |
581 |
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$ |
539 |
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$ |
1,120 |
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$ |
6,060 |
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$ |
(2,403 |
) |
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$ |
3,657 |
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(1) |
The nine months ended September 30, 2017 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 during the second quarter of 2017. The derivative gain was partially offset by a loss on the related foreign currency translation adjustment.
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(2) |
Reclassifications of pre-tax AFS marketable equity securities, DVA and foreign currency are recorded in other income in the Consolidated Statement of Income. |
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(3) |
Reclassifications of pre-tax employee benefit plan costs are recorded in personnel expense in the Consolidated Statement of Income. |
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