Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Income (Loss) (Tables)

v3.8.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Schedule of Accumulated OCI
The table below presents the changes in accumulated OCI after-tax for the three months ended March 31, 2018 and 2017.
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
Debt and
Equity Securities
 
Debit Valuation Adjustments
 
Derivatives
 
Employee
Benefit Plans
 
Foreign
Currency
 
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
)
 
$
(882
)
 
$
(7,316
)
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2017
$
(1,206
)
 
$
(1,060
)
 
$
(831
)
 
$
(3,192
)
 
$
(793
)
 
$
(7,082
)
Accounting change related to certain tax effects (1)
(393
)
 
(220
)
 
(189
)
 
(707
)
 
239

 
(1,270
)
Cumulative adjustment for hedge accounting change (2)
—

 
—

 
57

 
—

 
—

 
57

Net change
(3,963
)
 
273

 
(275
)
 
30

 
(48
)
 
(3,983
)
Balance, March 31, 2018
$
(5,562
)
 
$
(1,007
)
 
$
(1,238
)
 
$
(3,869
)
 
$
(602
)
 
$
(12,278
)
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
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.
 
 
 
 
 
 
 
 
 
 
 
 
Changes in OCI Components Before- and After-tax
 
 
 
 
 
 
 
 
 
 
 
Before-
tax
 
Tax
effect
 
After-
tax
 
Before-
tax
 
Tax
effect
 
After-
tax
 
Three Months Ended March 31
(Dollars in millions)
2018
 
2017
Debt and equity securities:
 
 
 
 
 
 
 
 
 
 
 
Net decrease in fair value
$
(5,323
)
 
$
1,360

 
$
(3,963
)
 
$
(124
)
 
$
53

 
$
(71
)
Net realized gains reclassified into earnings (3)
(2
)
 
2

 
—

 
(45
)
 
17

 
(28
)
Net change
(5,325
)
 
1,362

 
(3,963
)
 
(169
)
 
70

 
(99
)
Debit valuation adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net increase in fair value
342

 
(82
)
 
260

 
9

 
(4
)
 
5

Net realized losses reclassified into earnings (3)
17

 
(4
)
 
13

 
6

 
(2
)
 
4

Net change
359

 
(86
)
 
273

 
15

 
(6
)
 
9

Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Net decrease in fair value
(424
)
 
131

 
(293
)
 
(9
)
 
3

 
(6
)
Reclassifications into earnings:
 
 
 
 
 
 
 
 
 
 
 
Net interest income
50

 
(12
)
 
38

 
112

 
(42
)
 
70

Personnel expense
(27
)
 
7

 
(20
)
 
(42
)
 
16

 
(26
)
Net realized losses reclassified into earnings
23

 
(5
)
 
18

 
70

 
(26
)
 
44

Net change
(401
)
 
126

 
(275
)
 
61

 
(23
)
 
38

Employee benefit plans:
 
 
 
 
 
 
 
 
 
 
 
Reclassifications into earnings:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
(1
)
 
—

 
(1
)
 
1

 
—

 
1

Net actuarial losses
42

 
(11
)
 
31

 
42

 
(16
)
 
26

Net realized losses reclassified into earnings (4)
41

 
(11
)
 
30

 
43

 
(16
)
 
27

Settlements, curtailments and other
—

 
—

 
—

 
—

 
—

 
—

Net change
41

 
(11
)
 
30

 
43

 
(16
)
 
27

Foreign currency:
 
 
 
 
 
 
 
 
 
 
 
Net decrease in fair value
(82
)
 
34

 
(48
)
 
(131
)
 
108

 
(23
)
Net realized (gains) losses reclassified into earnings (3)
1

 
(1
)
 
—

 
(12
)
 
32

 
20

Net change
(81
)
 
33

 
(48
)
 
(143
)
 
140

 
(3
)
Total other comprehensive income (loss)
$
(5,407
)
 
$
1,424

 
$
(3,983
)
 
$
(193
)
 
$
165

 
$
(28
)
(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.
(2) 
Reflects the Corporation’s adoption of the new hedge accounting standard. For additional information, see Note 1 – Summary of Significant Accounting Principles.
(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.
(4) 
Reclassifications of pretax employee benefit plan costs are recorded in other general operating expense in the Consolidated Statement of Income.