Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2017

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

23. 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
			Pretax	Tax	Net	Beginning	Net	Ending
September 30, 2017 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale securities arising
	during period	$	34	(12)	22
Reclassification adjustment for net losses on available-for-sale
	securities included in net income		1	-	1
Net unrealized gains on available-for-sale securities			35	(12)	23	210	23	233
Unrealized holding gains on cash flow hedge derivatives arising
	during period		-	-	-
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(3)	1	(2)
Net unrealized gains on cash flow hedge derivatives			(3)	1	(2)	3	(2)	1
Net actuarial loss arising during the period			(3)	1	(2)
Reclassification of amounts to net periodic benefit costs			5	(2)	3
Defined benefit pension plans, net			2	(1)	1	(50)	1	(49)
Total		$	34	(12)	22	163	22	185

			Total OCI			Total AOCI
			Pretax	Tax	Net	Beginning	Net	Ending
September 30, 2016 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding losses on available-for-sale securities arising
	during period	$	(149)	36	(113)
Reclassification adjustment for net gains on available-for-sale
	securities included in net income		(2)	1	(1)
Net unrealized gains on available-for-sale securities			(151)	37	(114)	879	(114)	765
Unrealized holding losses on cash flow hedge derivatives arising
	during period		(23)	8	(15)
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(11)	4	(7)
Net unrealized gains on cash flow hedge derivatives			(34)	12	(22)	70	(22)	48
Net actuarial loss arising during the period			(5)	2	(3)
Reclassification of amounts to net periodic benefit costs			8	(3)	5
Defined benefit pension plans, net			3	(1)	2	(60)	2	(58)
Total		$	(182)	48	(134)	889	(134)	755

The tables below present the activity of the components of OCI and AOCI for the nine months ended:
			Total OCI			Total AOCI
			Pretax	Tax	Net	Beginning	Net	Ending
September 30, 2017 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale securities arising
	during period	$	204	(74)	130
Reclassification adjustment for net losses on available-for-sale
	securities included in net income		3	(1)	2
Net unrealized gains on available-for-sale securities			207	(75)	132	101	132	233
Unrealized holding gains on cash flow hedge derivatives arising
	during period		3	(1)	2
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(17)	6	(11)
Net unrealized gains on cash flow hedge derivatives			(14)	5	(9)	10	(9)	1
Net actuarial loss arising during the period			(4)	1	(3)
Reclassification of amounts to net periodic benefit costs			9	(3)	6
Defined benefit pension plans, net			5	(2)	3	(52)	3	(49)
Total		$	198	(72)	126	59	126	185

			Total OCI			Total AOCI
			Pretax	Tax	Net	Beginning	Net	Ending
September 30, 2016 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale securities arising
	during period	$	855	(317)	538
Reclassification adjustment for net gains on available-for-sale
	securities included in net income		(18)	7	(11)
Net unrealized gains on available-for-sale securities			837	(310)	527	238	527	765
Unrealized holding gains on cash flow hedge derivatives arising
	during period		77	(28)	49
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(37)	14	(23)
Net unrealized gains on cash flow hedge derivatives			40	(14)	26	22	26	48
Net actuarial loss arising during the period			(5)	2	(3)
Reclassification of amounts to net periodic benefit costs			12	(4)	8
Defined benefit pension plans, net			7	(2)	5	(63)	5	(58)
Total		$	884	(326)	558	197	558	755

The table below presents reclassifications out of AOCI:
			For the three months		For the nine months
	Condensed Consolidated		ended September 30,		ended September 30,
Components of AOCI: ($ in millions)	Statements of Income Caption		2017	2016	2017	2016
Net unrealized gains on available-for-sale securities:(b)
Net (losses) gains included in net income	Securities gains, net	$	(1)	2	(3)	18
	Income before income taxes		(1)	2	(3)	18
	Applicable income tax expense		-	(1)	1	(7)
	Net income		(1)	1	(2)	11
Net unrealized gains on cash flow hedge derivatives:(b)
Interest rate contracts related to C&I loans	Interest and fees on loans and leases		3	11	17	37
	Income before income taxes		3	11	17	37
	Applicable income tax expense		(1)	(4)	(6)	(14)
	Net income		2	7	11	23
Net periodic benefit costs:(b)
Amortization of net actuarial loss	Employee benefits expense(a)		(2)	(2)	(6)	(7)
Settlements	Employee benefits expense(a)		(3)	(6)	(3)	(5)
	Income before income taxes		(5)	(8)	(9)	(12)
	Applicable income tax expense		2	3	3	4
	Net income		(3)	(5)	(6)	(8)
Total reclassifications for the period	Net income	$	(2)	3	3	26

• This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2016 for further information.
• Amounts in parentheses indicate reductions to net income.