| Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
The table below presents the changes in accumulated OCI after-tax for the three months ended March 31, 2018 and 2017.
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(Dollars in millions) |
Debt and
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
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Total |
Balance, December 31, 2016 |
$ |
(1,267 |
) |
|
$ |
(767 |
) |
|
$ |
(895 |
) |
|
$ |
(3,480 |
) |
|
$ |
(879 |
) |
|
$ |
(7,288 |
) |
Net change |
(99 |
) |
|
9 |
|
|
38 |
|
|
27 |
|
|
(3 |
) |
|
(28 |
) |
Balance, March 31, 2017 |
$ |
(1,366 |
) |
|
$ |
(758 |
) |
|
$ |
(857 |
) |
|
$ |
(3,453 |
) |
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$ |
(882 |
) |
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$ |
(7,316 |
) |
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Balance, December 31, 2017 |
$ |
(1,206 |
) |
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$ |
(1,060 |
) |
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$ |
(831 |
) |
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$ |
(3,192 |
) |
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$ |
(793 |
) |
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$ |
(7,082 |
) |
Accounting change related to certain tax effects (1)
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(393 |
) |
|
(220 |
) |
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(189 |
) |
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(707 |
) |
|
239 |
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(1,270 |
) |
Cumulative adjustment for hedge accounting change (2)
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— |
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— |
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|
57 |
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— |
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— |
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|
57 |
|
Net change |
(3,963 |
) |
|
273 |
|
|
(275 |
) |
|
30 |
|
|
(48 |
) |
|
(3,983 |
) |
Balance, March 31, 2018 |
$ |
(5,562 |
) |
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$ |
(1,007 |
) |
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$ |
(1,238 |
) |
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$ |
(3,869 |
) |
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$ |
(602 |
) |
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$ |
(12,278 |
) |
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, 2018 and 2017.
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Changes in OCI Components Before- and After-tax |
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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
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Three Months Ended March 31 |
(Dollars in millions) |
2018 |
|
2017 |
Debt and equity securities: |
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Net decrease in fair value |
$ |
(5,323 |
) |
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$ |
1,360 |
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$ |
(3,963 |
) |
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$ |
(124 |
) |
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$ |
53 |
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$ |
(71 |
) |
Net realized gains reclassified into earnings (3)
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(2 |
) |
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2 |
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— |
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|
(45 |
) |
|
17 |
|
|
(28 |
) |
Net change |
(5,325 |
) |
|
1,362 |
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|
(3,963 |
) |
|
(169 |
) |
|
70 |
|
|
(99 |
) |
Debit valuation adjustments: |
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Net increase in fair value |
342 |
|
|
(82 |
) |
|
260 |
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|
9 |
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|
(4 |
) |
|
5 |
|
Net realized losses reclassified into earnings (3)
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17 |
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(4 |
) |
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13 |
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|
6 |
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(2 |
) |
|
4 |
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Net change |
359 |
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|
(86 |
) |
|
273 |
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|
15 |
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(6 |
) |
|
9 |
|
Derivatives: |
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Net decrease in fair value |
(424 |
) |
|
131 |
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(293 |
) |
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(9 |
) |
|
3 |
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(6 |
) |
Reclassifications into earnings: |
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Net interest income |
50 |
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(12 |
) |
|
38 |
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|
112 |
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(42 |
) |
|
70 |
|
Personnel expense |
(27 |
) |
|
7 |
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(20 |
) |
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(42 |
) |
|
16 |
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(26 |
) |
Net realized losses reclassified into earnings |
23 |
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(5 |
) |
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18 |
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|
70 |
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|
(26 |
) |
|
44 |
|
Net change |
(401 |
) |
|
126 |
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|
(275 |
) |
|
61 |
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(23 |
) |
|
38 |
|
Employee benefit plans: |
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Reclassifications into earnings: |
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Prior service cost |
(1 |
) |
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— |
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(1 |
) |
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1 |
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— |
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|
1 |
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Net actuarial losses |
42 |
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(11 |
) |
|
31 |
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|
42 |
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(16 |
) |
|
26 |
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Net realized losses reclassified into earnings (4)
|
41 |
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(11 |
) |
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30 |
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|
43 |
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(16 |
) |
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27 |
|
Settlements, curtailments and other |
— |
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— |
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— |
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— |
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— |
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— |
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Net change |
41 |
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(11 |
) |
|
30 |
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|
43 |
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(16 |
) |
|
27 |
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Foreign currency: |
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Net decrease in fair value |
(82 |
) |
|
34 |
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(48 |
) |
|
(131 |
) |
|
108 |
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|
(23 |
) |
Net realized (gains) losses reclassified into earnings (3)
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1 |
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(1 |
) |
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— |
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(12 |
) |
|
32 |
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|
20 |
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Net change |
(81 |
) |
|
33 |
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(48 |
) |
|
(143 |
) |
|
140 |
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(3 |
) |
Total other comprehensive income (loss) |
$ |
(5,407 |
) |
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$ |
1,424 |
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$ |
(3,983 |
) |
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$ |
(193 |
) |
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$ |
165 |
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|
$ |
(28 |
) |
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(1) |
Effective January 1, 2018, the Corporation adopted the new accounting standard on tax effects in accumulated OCI related to the Tax Act. Accordingly, certain tax effects were reclassified from accumulated OCI to retained earnings. For additional information, see Note 1 – Summary of Significant Accounting Principles.
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(2) |
Reflects the Corporation’s adoption of the new hedge accounting standard. For additional information, see Note 1 – Summary of Significant Accounting Principles.
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(3) |
Reclassifications of pretax debt and equity securities, DVA and foreign currency (gains) losses are recorded in other income in the Consolidated Statement of Income. |
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(4) |
Reclassifications of pretax employee benefit plan costs are recorded in other general operating expense in the Consolidated Statement of Income. |
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