Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2018

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

21. ACCUMULATED OTHER COMPREHENSIVE INCOME

The tables below present the activity of the components of OCI and AOCI for the years ended December 31:
			Total OCI			Total AOCI
			Pre-tax	Tax	Net	Beginning	Net	Ending
2018 ($ in millions)			Activity	Effect	Activity	Balance(a)	Activity	Balance
Unrealized holding losses on available-for-sale debt securities arising
	during the year	$	(483)	112	(371)
Reclassification adjustment for net losses on available-for-sale
	debt securities included in net income		11	(2)	9
Net unrealized losses on available-for-sale debt securities			(472)	110	(362)	135	(362)	(227)
Unrealized holding gains on cash flow hedge derivatives arising
	during the year		214	(45)	169
Reclassification adjustment for net losses on cash flow hedge
	derivatives included in net income		2	-	2
Net unrealized gains on cash flow hedge derivatives			216	(45)	171	(11)	171	160
Net actuarial gain arising during the year			1	-	1
Reclassification of amounts to net periodic benefit costs			9	(2)	7
Defined benefit pension plans, net			10	(2)	8	(53)	8	(45)
Total		$	(246)	63	(183)	71	(183)	(112)

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

			Total OCI			Total AOCI
			Pre-tax	Tax	Net	Beginning	Net	Ending
2017 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale securities arising
	during the year	$	14	7	21
Reclassification adjustment for net losses on available-for-sale
	securities included in net income		3	1	4
Net unrealized gains on available-for-sale securities			17	8	25	101	25	126
Unrealized holding losses on cash flow hedge derivatives arising
	during the year		(11)	4	(7)
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(19)	7	(12)
Net unrealized losses on cash flow hedge derivatives			(30)	11	(19)	10	(19)	(9)
Net actuarial gain arising during the year			1	-	1
Reclassification of amounts to net periodic benefit costs			11	(4)	7
Defined benefit pension plans, net			12	(4)	8	(52)	8	(44)
Total		$	(1)	15	14	59	14	73

			Total OCI			Total AOCI
			Pre-tax	Tax	Net	Beginning	Net	Ending
2016 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding losses on available-for-sale securities arising
	during the year	$	(196)	66	(130)
Reclassification adjustment for net gains on available-for-sale
	securities included in net income		(11)	4	(7)
Net unrealized gains on available-for-sale securities			(207)	70	(137)	238	(137)	101
Unrealized holding gains on cash flow hedge derivatives arising
	during the year		30	(11)	19
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(48)	17	(31)
Net unrealized gains on cash flow hedge derivatives			(18)	6	(12)	22	(12)	10
Net actuarial loss arising during the year			(2)	1	(1)
Reclassification of amounts to net periodic benefit costs			18	(6)	12
Defined benefit pension plans, net			16	(5)	11	(63)	11	(52)
Total		$	(209)	71	(138)	197	(138)	59

The table below presents reclassifications out of AOCI for the years ended December 31:
		Consolidated Statements of
Components of AOCI: ($ in millions)		Income Caption		2018	2017	2016
Net unrealized (losses) gains on available-for-sale debt securities:(b)
	Net (losses) gains included in net income	Securities (losses) gains, net	$	(11)	(3)	11
		Income before income taxes		(11)	(3)	11
		Applicable income tax expense		2	(1)	(4)
		Net income		(9)	(4)	7
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)	19	48
		Income before income taxes		(2)	19	48
		Applicable income tax expense		-	(7)	(17)
		Net income		(2)	12	31
Net periodic benefit costs:(b)
	Amortization of net actuarial loss	Employee benefits expense(a)		(6)	(7)	(11)
	Settlements	Employee benefits expense(a)		(3)	(4)	(7)
		Income before income taxes		(9)	(11)	(18)
		Applicable income tax expense		2	4	6
		Net income		(7)	(7)	(12)
Total reclassifications for the period		Net income	$	(18)	1	26

• This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 20 for information on the computation of net periodic benefit cost.
• Amounts in parentheses indicate reductions to net income.