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Accumulated Other Comprehensive Income/(Loss)
 9 Months Ended
Sep. 30, 2014
Equity [Abstract]  
Accumulated other comprehensive income (loss)
Accumulated other comprehensive income/(loss)
AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation adjustments (including the impact of related derivatives), cash flow hedging activities, and net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans.
As of or for the three months ended
September 30, 2014
Unrealized gains/(losses) on investment securities(a)
 
Translation adjustments, net of hedges
 
Cash flow hedges
 
Defined benefit pension and OPEB plans
 
Accumulated other comprehensive income/(loss)
(in millions)
Balance at July1, 2014
 
$
4,867

 
 
 
$
(126
)
 
 
 
$
(12
)
 
 
 
$
(1,291
)
 
 
 
$
3,438

 
Net change
 
(141
)
(b) 
 
 
3

 
 
 
(58
)
 
 
 
24

 
 
 
(172
)
 
Balance at September 30, 2014
 
$
4,726

 
 
 
$
(123
)
 
 
 
$
(70
)
 
 
 
$
(1,267
)
 
 
 
$
3,266

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for the three months ended
September 30, 2013
Unrealized gains/(losses) on investment securities(a)
 
Translation adjustments, net of hedges
 
Cash flow hedges
 
Defined benefit pension and OPEB plans
 
Accumulated other comprehensive income/(loss)
(in millions)
Balance at July 1, 2013
 
$
3,137

 
 
 
$
(146
)
 
 
 
$
(232
)
 
 
 
$
(2,623
)
 
 
 
$
136

 
Net change
 
161

(c) 
 
 
4

 
 
 
69

 
 
 
20

 
 
 
254

 
Balance at September 30, 2013
 
$
3,298

 
 
 
$
(142
)
 
 
 
$
(163
)
 
 
 
$
(2,603
)
 
 
 
$
390

 
As of or for the nine months ended
September 30, 2014
Unrealized gains/(losses) on investment securities(a)
 
Translation adjustments, net of hedges
 
Cash flow hedges
 
Defined benefit pension and OPEB plans
 
Accumulated other comprehensive income/(loss)
(in millions)
Balance at January 1, 2014
 
$
2,798

 
 
 
$
(136
)
 
 
 
$
(139
)
 
 
 
$
(1,324
)
 
 
 
$
1,199

 
Net change
 
1,928

(b) 
 
 
13

 
 
 
69

 
 
 
57

 
 
 
2,067

 
Balance at September 30, 2014
 
$
4,726

 
 
 
$
(123
)
 
 
 
$
(70
)
 
 
 
$
(1,267
)
 
 
 
$
3,266

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for the nine months ended
September 30, 2013
Unrealized gains/(losses) on investment securities(a)
 
Translation adjustments, net of hedges
 
Cash flow hedges
 
Defined benefit pension and OPEB plans
 
Accumulated other comprehensive income/(loss)
(in millions)
Balance at January 1, 2013
 
$
6,868

 
 
 
$
(95
)
 
 
 
$
120

 
 
 
$
(2,791
)
 
 
 
$
4,102

 
Net change
 
(3,570
)
(c) 
 
 
(47
)
 
 
 
(283
)
 
 
 
188

 
 
 
(3,712
)
 
Balance at September 30, 2013
 
$
3,298

 
 
 
$
(142
)
 
 
 
$
(163
)
 
 
 
$
(2,603
)
 
 
 
$
390

 
(a)
Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS; including, as of the date of transfer during the first quarter of 2014, $9 million of net unrealized losses related to AFS securities that were transferred to HTM. Subsequent to transfer, includes any net unamortized unrealized gains and losses related to the transferred securities.
(b)
The net change for the three months ended September 30, 2014, was primarily due to the decline in fair value of U.S. mortgage-backed securities, partially offset by higher market valuations of U.S. states and municipalities. The net change for the nine months ended September 30, 2014, was primarily due to higher market valuations of obligations of U.S. states and municipalities and U.S. mortgage-backed securities in the Firm’s AFS investment securities portfolio.
(c)
The net change for the three months ended September 30, 2013, was primarily related to the increase in fair value of U.S. government agency issued MBS due to market changes partially offset by decreases in fair value of obligations of U.S. states and municipalities due to market changes. The net change for the nine months ended September 30, 2013, was primarily related to the decline in fair value of U.S. government agency issued MBS and obligations of U.S. states and municipalities due to market changes, as well as net realized gains.
The following table presents the pretax and after-tax changes in the components of other comprehensive income/(loss).
 
2014
 
2013
Three months ended September 30, (in millions)
Pretax
 
Tax effect
 
After-tax
 
Pretax
 
Tax effect
 
After-tax
Unrealized gains/(losses) on investment securities:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
$
(283
)
 
$
146

 
$
(137
)
 
$
290

 
$
(113
)
 
$
177

Reclassification adjustment for realized (gains)/losses included in
net income(a)
(6
)
 
2

 
(4
)
 
(26
)
 
10

 
(16
)
Net change
(289
)
 
148

 
(141
)
 
264

 
(103
)
 
161

Translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
Translation(b)
(1,133
)
 
416

 
(717
)
 
349

 
(128
)
 
221

Hedges(b)
1,185

 
(465
)
 
720

 
(343
)
 
126

 
(217
)
Net change
52

 
(49
)
 
3

 
6

 
(2
)
 
4

Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
(66
)
 
27

 
(39
)
 
106

 
(42
)
 
64

Reclassification adjustment for realized (gains)/losses included in
net income(c)
(31
)
 
12

 
(19
)
 
7

 
(2
)
 
5

Net change
(97
)
 
39

 
(58
)
 
113

 
(44
)
 
69

Defined benefit pension and OPEB plans:
 
 
 
 
 
 
 
 
 
 
 
Net gains/(losses) arising during the period
(1
)
 
—

 
(1
)
 
—

 
—

 
—

Reclassification adjustments included in net income(d):
 
 
 
 
 
 
 
 
 
 
 
Amortization of net loss
18

 
(8
)
 
10

 
80

 
(31
)
 
49

Prior service costs/(credits)
(10
)
 
4

 
(6
)
 
(11
)
 
4

 
(7
)
Foreign exchange and other
34

 
(13
)
 
21

 
(35
)
 
13

 
(22
)
Net change
41

 
(17
)
 
24

 
34

 
(14
)
 
20

Total other comprehensive income/(loss)
$
(293
)
 
$
121

 
$
(172
)
 
$
417

 
$
(163
)
 
$
254

 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
2013
Nine months ended September 30, (in millions)
Pretax
 
Tax effect
 
After-tax
 
Pretax
 
Tax effect
 
After-tax
Unrealized gains/(losses) on investment securities:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
$
3,116

 
$
(1,158
)
 
$
1,958

 
$
(5,172
)
 
$
2,003

 
$
(3,169
)
Reclassification adjustment for realized (gains)/losses included in
net income(a)
(48
)
 
18

 
(30
)
 
(659
)
 
258

 
(401
)
Net change
3,068

 
(1,140
)
 
1,928

 
(5,831
)
 
2,261

 
(3,570
)
Translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
Translation(b)
(761
)
 
274

 
(487
)
 
(685
)
 
253

 
(432
)
Hedges(b)
823

 
(323
)
 
500

 
648

 
(263
)
 
385

Net change
62

 
(49
)
 
13

 
(37
)
 
(10
)
 
(47
)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
149

 
(60
)
 
89

 
(536
)
 
210

 
(326
)
Reclassification adjustment for realized (gains)/losses included in
net income(c)
(33
)
 
13

 
(20
)
 
70

 
(27
)
 
43

Net change
116

 
(47
)
 
69

 
(466
)
 
183

 
(283
)
Defined benefit pension and OPEB plans:
 
 
 
 
 
 
 
 
 
 
 
Net gains/(losses) arising during the period
87

 
(34
)
 
53

 
85

 
(25
)
 
60

Reclassification adjustments included in net income(d):
 
 
 
 
 
 
 
 
 
 
 
Amortization of net loss
55

 
(23
)
 
32

 
240

 
(93
)
 
147

Prior service costs/(credits)
(32
)
 
13

 
(19
)
 
(33
)
 
13

 
(20
)
Foreign exchange and other
15

 
(24
)
 
(9
)
 
1

 
—

 
1

Net change
125

 
(68
)
 
57

 
293

 
(105
)
 
188

Total other comprehensive income/(loss)
$
3,371

 
$
(1,304
)
 
$
2,067

 
$
(6,041
)
 
$
2,329

 
$
(3,712
)

(a)
The pretax amount is reported in securities gains in the Consolidated Statements of Income.
(b)
Reclassifications of pretax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated Statements of Income. The amounts were not material for the three and nine months ended September 30, 2014, and 2013.
(c)
The pretax amount is reported in the same line as the hedged items, which are predominantly recorded in net interest income in the Consolidated Statements of Income.
(d)
The pretax amount is reported in compensation expense in the Consolidated Statements of Income.