| 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. |
|