Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss (“AOCI”) includes certain items that are reported directly within a separate component of shareholders’ equity. The following table presents changes in accumulated other comprehensive loss balances.

	2014			2013
	(in millions)
Three Months Ended September 30,
Unrealized gains (losses) on cash flow hedging instruments:
Balance at beginning of period	$	(74	)	$	(152	)
Other comprehensive income for period:
Net gains arising during period, net of tax of $6 million and $17 million, respectively	10			30
Reclassification adjustment for losses realized in net income, net of tax of $1 million and $1 million, respectively(3)	1			2
Total other comprehensive income for period	11			32
Balance at end of period	(63		)	(120		)
Pension and postretirement benefit plan liability:
Balance at beginning of period	(11		)	(25		)
Other comprehensive income for period:
Reclassification adjustment for losses realized in net income, net of tax of $- million and $- million, respectively(2)	1			—
Total other comprehensive income for period	1			—
Balance at end of period	(10		)	(25		)
Total accumulated other comprehensive loss at end of period	$	(73	)	$	(145	)
Nine Months Ended September 30,
Unrealized gains (losses) on cash flow hedging instruments:
Balance at beginning of period	$	(97	)	$	(358	)
Other comprehensive income for period:
Net gains arising during period, net of tax of $15 million and $56 million, respectively	29			102
Reclassification adjustment for losses realized in net income, net of tax of $3 million and $75 million, respectively(3)	5			136
Total other comprehensive income for period	34			238
Balance at end of period	(63		)	(120		)

	2014			2013
	(in millions)
Unrealized gains (losses) on securities available-for-sale, not other-than temporarily impaired:
Balance at beginning of period	—			115
Other comprehensive income (loss) for period:
Reclassification adjustment for losses realized in net income, net of tax of $- million and $(62) million, respectively(1)	—			(115		)
Total other comprehensive income (loss) for period	—			(115		)
Balance at end of period	—			—
Unrealized gains (losses) on other-than-temporarily impaired debt securities available-for-sale:
Balance at beginning of period	—			1
Other comprehensive income (loss) for period:
Reclassification adjustment for gains realized in net income, net of tax of $- million and $(1) million, respectively(1)	—			(1		)
Total other comprehensive income (loss) for period	—			(1		)
Balance at end of period	—			—
Pension and postretirement benefit plan liability:
Balance at beginning of period	(11		)	(26		)
Other comprehensive income for period:
Reclassification adjustment for losses realized in net income, net of tax of $- million and $- million, respectively(2)	1			1
Total other comprehensive income for period	1			1
Balance at end of period	(10		)	(25		)
Foreign currency translation adjustments:
Balance at beginning of period	—			11
Other comprehensive income (loss) for period:
Translation losses, net of tax of $- million and $(1) million, respectively	—			(5		)
Reclassification adjustment for gains realized in net income, net of tax of $- million and $(9) million, respectively(3)	—			(6		)
Total other comprehensive income (loss) for period	—			(11		)
Balance at end of period	—			—
Total accumulated other comprehensive loss at end of period	$	(73	)	$	(145	)

⁽¹⁾  The amounts reclassified during the nine months ended September 30, 2013 are included in loss from discontinued operations in our consolidated statement of income.

⁽²⁾  The amounts reclassified during the three and nine months ended September 30, 2014 and 2013 are included as a component of salaries and employee benefits in our consolidated statement of income.

⁽³⁾  See the tables below for the components of the amounts reclassified during the three and nine months ended September 30, 2014 and 2013 into income and location in our consolidated statement of income.

The following table provides additional information related to the amounts classified into the consolidated statement of income out of accumulated other comprehensive loss during the three and nine months ended September 30, 2014 and 2013.

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss(1)			Affected Line Item in the Statement of Income
	(in millions)
Three Months Ended September 30, 2014:
Unrealized gains (losses) on cash flow hedging instruments:
Interest rate and currency swaps	$	(2	)	Interest expense
Total before tax	(2		)
Tax benefit	(1		)
Net of tax	$	(1	)
Three Months Ended September 30, 2013:
Unrealized gains (losses) on cash flow hedging instruments:
Interest rate and currency swaps	$	(3	)	Interest expense
Total before tax	(3		)
Tax benefit	(1		)
Net of tax	$	(2	)
Nine Months Ended September 30, 2014:
Unrealized gains (losses) on cash flow hedging instruments:
Interest rate and currency swaps	$	(8	)	Interest expense
Total before tax	(8		)
Tax benefit	(3		)
Net of tax	$	(5	)
Nine Months Ended September 30, 2013:
Unrealized gains (losses) on cash flow hedging instruments:
Interest rate and currency swaps	$	(12	)	Interest expense
Derivative loss recognized on termination of hedge relationship	(199		)	Derivative related income (expense)
Total before tax	(211		)
Tax benefit	(75		)
Net of tax	$	(136	)
Foreign currency translation adjustments:
Sale of Insurance business	$	(24	)	Income (loss) on discontinued operations
Closure of foreign legal entity	9			Other income
Total before tax	(15		)
Tax benefit	(9		)
Net of tax	$	(6	)

⁽¹⁾  Amounts in parenthesis indicate expenses recognized in the consolidated statement of income.