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Debt And Shareholders' Equity
 6 Months Ended
Jun. 30, 2017
Capitalization, Long-term Debt and Equity [Abstract]  
Debt And Shareholders' Equity
DEBT AND SHAREHOLDERS’ EQUITY
Long-term debt is summarized as follows:
(In millions)
June 30,
2017
 
December 31, 2016
 
 
 
 
Subordinated notes
$
247

 
$
247

Senior notes
135

 
287

Capital lease obligations
1

 
1

Total
$
383

 
$
535


The preceding carrying values represent the par value of the debt adjusted for any unamortized premium or discount or unamortized debt issuance costs.
Debt Redemptions and Maturities
During the first quarter of 2017, $153 million of our 4.5% senior notes matured.
Shareholders’ Equity
During the second quarter of 2017, the Company continued its common stock buyback program and repurchased 1 million shares of common stock outstanding with a fair value of $45 million at an average price of $40.99 per share, and has repurchased 2 million shares of common stock outstanding with a fair value $90 million at an average price of $41.70 per share during the first six months of 2017. There were no purchases during the first six months of 2016 under the common stock buyback program.
During the second quarter of 2017, we redeemed all outstanding shares of our 7.9% Series F preferred stock for a cash payment of approximately $144 million. Dividends paid to these redeemed shares amounted to $0.49375 per depositary share for a total amount of $3 million. The total one-time reduction to net earnings applicable to common shareholders associated with the preferred stock redemption was $2 million due to the accelerated recognition of preferred stock issuance costs.
Accumulated Other Comprehensive Income
Accumulated other comprehensive income (loss) was $(49) million at June 30, 2017 compared to $(122) million at December 31, 2016. Changes in AOCI by component are as follows:
(In millions)
Net unrealized gains (losses) on investment securities
 
Net unrealized gains (losses) on derivatives and other
 
Pension and post-retirement
 
Total
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
Balance at December 31, 2016
$
(93
)
 
$
2

 
$
(31
)
 
$
(122
)
OCI before reclassifications, net of tax
73

 
2

 
—

 
75

Amounts reclassified from AOCI, net of tax
—

 
(2
)
 
—

 
(2
)
OCI
73

 
—

 
—

 
73

Balance at June 30, 2017
$
(20
)
 
$
2

 
$
(31
)
 
$
(49
)
Income tax expense included in OCI
$
45

 
$
—

 
$
—

 
$
45

Six Months Ended June 30, 2016
 
 
 
 
 
 
 
Balance at December 31, 2016
$
(18
)
 
$
1

 
$
(38
)
 
$
(55
)
OCI (loss) before reclassifications, net of tax
65

 
17

 
(1
)
 
81

Amounts reclassified from AOCI, net of tax
—

 
(3
)
 
—

 
(3
)
OCI (loss)
65

 
14

 
(1
)
 
78

Balance at June 30, 2016
$
47

 
$
15

 
$
(39
)
 
$
23

Income tax expense included in OCI
$
40

 
$
8

 
$
1

 
$
49


 
 
Amounts reclassified
from AOCI 1
 
Amounts reclassified
from AOCI 1
 
Statement of income (SI)
Balance sheet (BS)
 
 
(In millions)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
 
Details about AOCI components
 
2017
 
2016
 
2017
 
2016
 
 
Affected line item
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on derivative instruments
 
$
1

 
$
3

 
$
3

 
$
6

 
SI
 
Interest and fees on loans
Income tax expense
 
—

 
1

 
1

 
3

 
 
 
 
Amounts Reclassified from AOCI
 
$
1

 
$
2

 
$
2

 
$
3

 
 
 
 

1 
Negative reclassification amounts indicate decreases to earnings in the statement of income and increases to balance sheet assets. The opposite applies to positive reclassification amounts.