Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2018

Accumulated Other Comprehensive Income

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
			Pretax	Tax	Net	Beginning	Net	Ending
September 30, 2018 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding losses on available-for-sale debt securities
	arising during period	$	(271)	64	(207)
Reclassification adjustment for net losses on available-for-sale
	debt securities included in net income		-	-	-
Net unrealized losses on available-for-sale debt securities			(271)	64	(207)	(485)	(207)	(692)
Unrealized holding losses on cash flow hedge derivatives arising
	during period		(25)	6	(19)
Reclassification adjustment for net losses on cash flow hedge
	derivatives included in net income		2	-	2
Net unrealized losses on cash flow hedge derivatives			(23)	6	(17)	(16)	(17)	(33)
Net actuarial loss arising during the period			(2)	-	(2)
Reclassification of amounts to net periodic benefit costs			3	-	3
Defined benefit pension plans, net			1	-	1	(51)	1	(50)
Total		$	(293)	70	(223)	(552)	(223)	(775)

			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

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, 2018 ($ in millions)			Activity	Effect	Activity	Balance(a)	Activity	Balance
Unrealized holding losses on available-for-sale debt securities arising
	during period	$	(1,082)	248	(834)
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			(1,073)	246	(827)	135	(827)	(692)
Unrealized holding losses on cash flow hedge derivatives arising
	during period		(31)	7	(24)
Reclassification adjustment for net losses on cash flow hedge
	derivatives included in net income		2	-	2
Net unrealized losses on cash flow hedge derivatives			(29)	7	(22)	(11)	(22)	(33)
Net actuarial loss arising during the period			(2)	-	(2)
Reclassification of amounts to net periodic benefit costs			7	(2)	5
Defined benefit pension plans, net			5	(2)	3	(53)	3	(50)
Total		$	(1,097)	251	(846)	71	(846)	(775)

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
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

Reclassification Out of Accumulated Other Comprehensive Income to Net Income

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		2018	2017	2018	2017
Net unrealized losses on available-for-sale debt securities:(b)
Net losses included in net income	Securities (losses) gains, net	$	-	(1)	(9)	(3)
	Income before income taxes		-	(1)	(9)	(3)
	Applicable income tax expense		-	-	2	1
	Net income		-	(1)	(7)	(2)
Net unrealized (losses) gains on cash flow hedge derivatives:(b)
Interest rate contracts related to C&I loans	Interest and fees on loans and leases		(2)	3	(2)	17
	Income before income taxes		(2)	3	(2)	17
	Applicable income tax expense		-	(1)	-	(6)
	Net income		(2)	2	(2)	11
Net periodic benefit costs:(b)
Amortization of net actuarial loss	Employee benefits expense(a)		(1)	(2)	(5)	(6)
Settlements	Employee benefits expense(a)		(2)	(3)	(2)	(3)
	Income before income taxes		(3)	(5)	(7)	(9)
	Applicable income tax expense		-	2	2	3
	Net income		(3)	(3)	(5)	(6)
Total reclassifications for the period	Net income	$	(5)	(2)	(14)	3

• 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, 2017 for further information.
• Amounts in parentheses indicate reductions to net income.