Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2018

Accumulated Other Comprehensive Income

18. 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
June 30, 2018 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding losses on available-for-sale debt securities
	arising during period	$	(217)	50	(167)
Reclassification adjustment for net gains on available-for-sale
	debt securities included in net income		-	-	-
Net unrealized losses on available-for-sale debt securities			(217)	50	(167)	(318)	(167)	(485)

Unrealized holding gains 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		-	-	-
Net unrealized losses on cash flow hedge derivatives			4	(1)	3	(19)	3	(16)

Reclassification of amounts to net periodic benefit costs			1	-	1
Defined benefit pension plans, net			1	-	1	(52)	1	(51)
Total		$	(212)	49	(163)	(389)	(163)	(552)

			Total OCI			Total AOCI
			Pretax	Tax	Net	Beginning	Net	Ending
June 30, 2017 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale securities arising
	during period	$	148	(55)	93
Reclassification adjustment for net gains on available-for-sale
	securities included in net income		-	-	-
Net unrealized gains on available-for-sale securities			148	(55)	93	117	93	210

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		(6)	2	(4)
Net unrealized gains on cash flow hedge derivatives			2	(1)	1	2	1	3

Reclassification of amounts to net periodic benefit costs			2	(1)	1
Defined benefit pension plans, net			2	(1)	1	(51)	1	(50)
Total		$	152	(57)	95	68	95	163

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

			Total OCI			Total AOCI
			Pretax	Tax	Net	Beginning	Net	Ending
June 30, 2018 ($ in millions)			Activity	Effect	Activity	Balance^(a)	Activity	Balance
Unrealized holding losses on available-for-sale debt securities arising
	during period	$	(811)	184	(627)
Reclassification adjustment for net losses on available-for-sale
	debt securities included in net income		9	(2)	7
Net unrealized losses on available-for-sale debt securities			(802)	182	(620)	135	(620)	(485)

Unrealized holding losses on cash flow hedge derivatives arising
	during period		(5)	1	(4)
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(1)	-	(1)
Net unrealized losses on cash flow hedge derivatives			(6)	1	(5)	(11)	(5)	(16)

Reclassification of amounts to net periodic benefit costs			2	-	2
Defined benefit pension plans, net			2	-	2	(53)	2	(51)
Total		$	(806)	183	(623)	71	(623)	(552)

The Bancorp’s AOCI balance was adjusted as of January 1, 2018 to reflect the adoption of new accounting standards. Refer to Note 3 for additional information.


			Total OCI			Total AOCI
			Pretax	Tax	Net	Beginning	Net	Ending
June 30, 2017 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale securities arising
	during period	$	170	(62)	108
Reclassification adjustment for net losses on available-for-sale
	securities included in net income		2	(1)	1
Net unrealized gains on available-for-sale securities			172	(63)	109	101	109	210

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		(14)	5	(9)
Net unrealized gains on cash flow hedge derivatives			(11)	4	(7)	10	(7)	3

Reclassification of amounts to net periodic benefit costs			3	(1)	2
Defined benefit pension plans, net			3	(1)	2	(52)	2	(50)
Total		$	164	(60)	104	59	104	163

The table below presents reclassifications out of AOCI:

			For the three months		For the six months
	Condensed Consolidated		ended June 30,		ended June 30,
Components of AOCI: ($ in millions)	Statements of Income Caption		2018	2017	2018	2017

Net unrealized losses on available-for-sale debt securities:^(b)
Net losses included in net income	Securities (losses) gains, net	$	-	-	(9)	(2)
	Income before income taxes		-	-	(9)	(2)
	Applicable income tax expense		-	-	2	1
	Net income		-	-	(7)	(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		-	6	1	14
	Income before income taxes		-	6	1	14
	Applicable income tax expense		-	(2)	-	(5)
	Net income		-	4	1	9

Net periodic benefit costs:^(b)
Amortization of net actuarial loss	Employee benefits expense^(a)		(1)	(2)	(2)	(3)
	Income before income taxes		(1)	(2)	(2)	(3)
	Applicable income tax expense		-	1	-	1
	Net income		(1)	(1)	(2)	(2)

Total reclassifications for the period	Net income	$	(1)	3	(8)	6

This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2017 for further information.
Amounts in parentheses indicate reductions to net income.