Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2014

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

20. Accumulated Other Comprehensive Income

The activity of the components of other comprehensive income and accumulated other comprehensive income for the three months ended September 30, 2014 and 2013 was as follows:
			Total Other			Total Accumulated Other
			Comprehensive Income			Comprehensive Income
			Pretax	Tax	Net	Beginning	Net	Ending
($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
September 30, 2014
Unrealized holding losses on available-for-sale securities arising
	during period	$	(105)	36	(69)
Reclassification adjustment for net gains included in net income			(5)	2	(3)
Net unrealized gains on available-for-sale securities			(110)	38	(72)	410	(72)	338
Unrealized holding losses on cash flow hedge derivatives arising
	during period		(4)	1	(3)
Reclassification adjustment for net gains on cash flow
	hedge derivatives included in net income		(10)	3	(7)
Net unrealized gains on cash flow hedge derivatives			(14)	4	(10)	22	(10)	12
Reclassification of amounts to net periodic benefit costs			2	(1)	1
Defined benefit pension plans, net			2	(1)	1	(50)	1	(49)
Total		$	(122)	41	(81)	382	(81)	301

			Total Other			Total Accumulated Other
			Comprehensive Income			Comprehensive Income
			Pretax	Tax	Net	Beginning	Net	Ending
($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
September 30, 2013
Unrealized holding gains on available-for-sale securities arising
	during period	$	106	(37)	69
Reclassification adjustment for net gains included in net income			(5)	1	(4)
Net unrealized gains on available-for-sale securities			101	(36)	65	203	65	268
Unrealized holding gains on cash flow hedge derivatives arising
	during period		9	(3)	6
Reclassification adjustment for net gains on cash flow
	hedge derivatives included in net income		(6)	2	(4)
Net unrealized gains on cash flow hedge derivatives			3	(1)	2	29	2	31
Reclassification of amounts to net periodic benefit costs			3	(1)	2
Defined benefit pension plans, net			3	(1)	2	(83)	2	(81)
Total		$	107	(38)	69	149	69	218

The activity of the components of other comprehensive income and accumulated other comprehensive income for the nine months ended September 30, 2014 and 2013 was as follows:
			Total Other			Total Accumulated Other
			Comprehensive Income			Comprehensive Income
			Pretax	Tax	Net	Beginning	Net	Ending
($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
September 30, 2014
Unrealized holding gains on available-for-sale securities arising
	during period	$	357	(124)	233
Reclassification adjustment for net gains included in net income			(25)	9	(16)
Net unrealized gains on available-for-sale securities			332	(115)	217	121	217	338
Unrealized holding gains on cash flow hedge derivatives arising
	during period		30	(11)	19
Reclassification adjustment for net gains on cash flow
	hedge derivatives included in net income		(31)	11	(20)
Net unrealized gains on cash flow hedge derivatives			(1)	0	(1)	13	(1)	12
Reclassification of amounts to net periodic benefit costs			5	(2)	3
Defined benefit pension plans, net			5	(2)	3	(52)	3	(49)
Total		$	336	(117)	219	82	219	301

			Total Other			Total Accumulated Other
			Comprehensive Income			Comprehensive Income
			Pretax	Tax	Net	Beginning	Net	Ending
($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
September 30, 2013
Unrealized holding losses on available-for-sale securities arising
	during period	$	(274)	96	(178)
Reclassification adjustment for net losses included in net income			53	(19)	34
Net unrealized gains on available-for-sale securities			(221)	77	(144)	412	(144)	268
Unrealized holding gains on cash flow hedge derivatives arising
	during period		8	(3)	5
Reclassification adjustment for net gains on cash flow
	hedge derivatives included in net income		(37)	13	(24)
Net unrealized gains on cash flow hedge derivatives			(29)	10	(19)	50	(19)	31
Reclassification of amounts to net periodic benefit costs			9	(3)	6
Defined benefit pension plans, net			9	(3)	6	(87)	6	(81)
Total		$	(241)	84	(157)	375	(157)	218

The table below presents reclassifications out of accumulated other comprehensive income:
	Affected Line Item		For the three months		For the nine months
	in the Condensed Consolidated		ended September 30,		ended September 30,
Components of AOCI: ($ in millions)	Statements of Income		2014	2013	2014	2013
Net unrealized gains on available-for-sale securities: (b)
Net gains (losses) included in net income	Securities gains, net	$	5	5	25	(53)
	Income before income taxes		5	5	25	(53)
	Applicable income tax expense		(2)	(1)	(9)	19
	Net income		3	4	16	(34)
Net unrealized gains on cash flow hedge derivatives: (b)
Interest rate contracts related to C&I loans	Interest and fees on loans and leases		10	6	31	38
Interest rate contracts related to long-term debt	Interest on long-term debt		-	-	-	(1)
	Income before income taxes		10	6	31	37
	Applicable income tax expense		(3)	(2)	(11)	(13)
	Net income		7	4	20	24
Net periodic benefit costs: (b)
Amortization of net actuarial loss	Employee benefits expense(a)		(2)	(3)	(5)	(9)
	Income before income taxes		(2)	(3)	(5)	(9)
	Applicable income tax expense		1	1	2	3
	Net income		(1)	(2)	(3)	(6)
Total reclassifications for the period	Net income	$	9	6	33	(16)

• This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2013 for information on the computation of net periodic benefit cost.
• Amounts in parentheses indicate reductions to net income