Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2020

Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income

The tables below present the activity of the components of OCI and AOCI for the three months ended:


	Total OCI						Total AOCI
June 30, 2020 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding gains on available-for-sale debt securities arising during period	$	602	(146)	456
Net unrealized gains on available-for-sale debt securities	602		(146)	456	1,694	456	2,150

Unrealized holding gains on cash flow hedge derivatives arising during period	83		(17)	66
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(62)		13	(49)
Net unrealized gains on cash flow hedge derivatives	21		(4)	17	824	17	841

Reclassification of amounts to net periodic benefit costs	1		—	1
Defined benefit pension plans, net	1		—	1	(41)	1	(40)
Total	$	624	(150)	474	2,477	474	2,951


	Total OCI						Total AOCI
June 30, 2019 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding gains on available-for-sale debt securities arising during period	$	758	(181)	577

Net unrealized gains on available-for-sale debt securities	758		(181)	577	204	577	781

Unrealized holding gains on cash flow hedge derivatives arising during period	240		(50)	190
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income	1		—	1
Net unrealized gains on cash flow hedge derivatives	241		(50)	191	249	191	440

Reclassification of amounts to net periodic benefit costs	1		—	1
Defined benefit pension plans, net	1		—	1	(44)	1	(43)
Total	$	1,000	(231)	769	409	769	1,178

The tables below present the activity of the components of OCI and AOCI for the six months ended:


	Total OCI						Total AOCI
June 30, 2020 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding gains on available-for-sale debt securities arising during period	$	1,757	(419)	1,338
Net unrealized gains on available-for-sale debt securities	1,757		(419)	1,338	812	1,338	$	2,150

Unrealized holding gains on cash flow hedge derivatives arising during period	624		(131)	493
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(94)		20	(74)
Net unrealized gains on cash flow hedge derivatives	530		(111)	419	422	419	841

Reclassification of amounts to net periodic benefit costs	3		(1)	2
Defined benefit pension plans, net	3		(1)	2	(42)	2	(40)
Total	$	2,290	(531)	1,759	1,192	1,759	2,951


	Total OCI						Total AOCI
June 30, 2019 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding gains on available-for-sale debt securities arising during period	$	1,319	(312)	1,007
Reclassification adjustment for net losses on available-for-sale debt securities included in net income	1		—	1
Net unrealized gains on available-for-sale debt securities	1,320		(312)	1,008	(227)	1,008	781

Unrealized holding gains on cash flow hedge derivatives arising during period	351		(74)	277
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income	3		—	3
Net unrealized gains on cash flow hedge derivatives	354		(74)	280	160	280	440

Reclassification of amounts to net periodic benefit costs	2		—	2
Defined benefit pension plans, net	2		—	2	(45)	2	(43)
Total	$	1,676	(386)	1,290	(112)	1,290	1,178

Reclassification Out of Accumulated Other Comprehensive Income to Net Income

The table below presents reclassifications out of AOCI:


	Consolidated Statements of Income Caption	For the three months ended June 30,				For the six months ended June 30,
($ in millions)				2020	2019	2020	2019
Net unrealized gains on available-for-sale debt securities:^(b)
Net losses included in net income	Securities (losses) gains, net	$	—	—	—	(1)
	Income before income taxes	—		—	—	(1)
	Applicable income tax expense	—		—	—	—
	Net income	—		—	—	(1)
Net unrealized gains on cash flow hedge derivatives:^(b)
Interest rate contracts related to C&I loans	Interest and fees on loans and leases	62		(1)	94	(3)
	Income before income taxes	62		(1)	94	(3)
	Applicable income tax expense	(13)		—	(20)	—
	Net income	49		(1)	74	(3)
Net periodic benefit costs:^(b)
Amortization of net actuarial loss	Compensation and benefits^(a)	(1)		(1)	(3)	(2)
	Income before income taxes	(1)		(1)	(3)	(2)
	Applicable income tax expense	—		—	1	—
	Net income	(1)		(1)	(2)	(2)

Total reclassifications for the period	Net income	$	48	(2)	72	(6)

(a)This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 23 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information.

(b)Amounts in parentheses indicate reductions to net income.