Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2020

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


	Total OCI				Total AOCI
September 30, 2020 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding losses on available-for-sale debt securities arising during period	$	(42)	10	(32)
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	(45)		11	(34)
Net unrealized gains on available-for-sale debt securities	(87)		21	(66)	2,150	(66)	2,084

Unrealized holding gains on cash flow hedge derivatives arising during period	1		—	1
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(72)		16	(56)
Net unrealized gains on cash flow hedge derivatives	(71)		16	(55)	841	(55)	786

Net actuarial loss arising during the year	(2)		—	(2)
Reclassification of amounts to net periodic benefit costs	4		(1)	3
Defined benefit pension plans, net	2		(1)	1	(40)	1	(39)
Total	$	(156)	36	(120)	2,951	(120)	2,831


	Total OCI				Total AOCI
September 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	$	497	(118)	379
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	(3)		1	(2)

Net unrealized gains on available-for-sale debt securities	494		(117)	377	781	377	1,158

Unrealized holding gains on cash flow hedge derivatives arising during period	105		(22)	83
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(5)		1	(4)
Net unrealized gains on cash flow hedge derivatives	100		(21)	79	440	79	519

Reclassification of amounts to net periodic benefit costs	1		—	1
Defined benefit pension plans, net	1		—	1	(43)	1	(42)
Total	$	595	(138)	457	1,178	457	1,635

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


	Total OCI				Total AOCI
September 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	$	1,715	(409)	1,306
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	(45)		11	(34)
Net unrealized gains on available-for-sale debt securities	1,670		(398)	1,272	812	1,272	2,084

Unrealized holding gains on cash flow hedge derivatives arising during period	625		(131)	494
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(165)		35	(130)
Net unrealized gains on cash flow hedge derivatives	460		(96)	364	422	364	786

Net actuarial loss arising during the year	(2)		—	(2)
Reclassification of amounts to net periodic benefit costs	7		(2)	5
Defined benefit pension plans, net	5		(2)	3	(42)	3	(39)
Total	$	2,135	(496)	1,639	1,192	1,639	2,831


	Total OCI				Total AOCI
September 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	$	1,817	(430)	1,387
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	(3)		1	(2)
Net unrealized gains on available-for-sale debt securities	1,814		(429)	1,385	(227)	1,385	1,158

Unrealized holding gains on cash flow hedge derivatives arising during period	456		(95)	361
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(2)		—	(2)
Net unrealized gains on cash flow hedge derivatives	454		(95)	359	160	359	519

Reclassification of amounts to net periodic benefit costs	4		(1)	3
Defined benefit pension plans, net	4		(1)	3	(45)	3	(42)
Total	$	2,272	(525)	1,747	(112)	1,747	1,635

The table below presents reclassifications out of AOCI:


	Consolidated Statements of Income Caption	For the three months ended September 30,			For the nine months ended September 30,
($ in millions)		2020		2019	2020	2019
Net unrealized gains on available-for-sale debt securities:(b)
Net gains included in net income	Securities gains, net	$	45	3	45	3
	Income before income taxes	45		3	45	3
	Applicable income tax expense	(11)		(1)	(11)	(1)
	Net income	34		2	34	2
Net unrealized gains on cash flow hedge derivatives:(b)
Interest rate contracts related to C&I loans	Interest and fees on loans and leases	72		5	165	2
	Income before income taxes	72		5	165	2
	Applicable income tax expense	(16)		(1)	(35)	—
	Net income	56		4	130	2
Net periodic benefit costs:(b)
Amortization of net actuarial loss	Compensation and benefits(a)	(2)		(1)	(5)	(4)
Settlements	Compensation and benefits(a)	(2)		—	(2)	—
	Income before income taxes	(4)		(1)	(7)	(4)
	Applicable income tax expense	1		—	2	1
	Net income	(3)		(1)	(5)	(3)

Total reclassifications for the period	Net income	$	87	5	159	1

(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.