Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2019

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, 2019 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale debt securities
	arising during period	$	497	(118)	379
Reclassification adjustment for net gains on available-for-sale
	debt securities included in net income		(3)	1	(2)
Net unrealized gains on available-for-sale debt securities			494	(117)	377	781	377	1,158
Unrealized holding gains on cash flow hedge derivatives arising
	during period		105	(22)	83
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(5)	1	(4)
Net unrealized gains on cash flow hedge derivatives			100	(21)	79	440	79	519
Reclassification of amounts to net periodic benefit costs			1	-	1
Defined benefit pension plans, net			1	-	1	(43)	1	(42)
Total		$	595	(138)	457	1,178	457	1,635

			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)

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, 2019 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale debt securities arising
	during period	$	1,817	(430)	1,387
Reclassification adjustment for net gains on available-for-sale
	debt securities included in net income		(3)	1	(2)
Net unrealized gains on available-for-sale debt securities			1,814	(429)	1,385	(227)	1,385	1,158
Unrealized holding gains on cash flow hedge derivatives arising
	during period		456	(95)	361
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(2)	-	(2)
Net unrealized gains on cash flow hedge derivatives			454	(95)	359	160	359	519
Reclassification of amounts to net periodic benefit costs			4	(1)	3
Defined benefit pension plans, net			4	(1)	3	(45)	3	(42)
Total		$	2,272	(525)	1,747	(112)	1,747	1,635

			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	$	(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 table below presents reclassifications out of AOCI:
			For the three months ended September 30,		For the nine months ended September 30,
	Condensed Consolidated
($ in millions)	Statements of Income Caption		2019	2018	2019	2018
Net unrealized gains (losses) on available-for-sale debt securities:(b)
Net gains (losses) included in net income	Securities gains (losses), net	$	3	-	3	(9)
	Income before income taxes		3	-	3	(9)
	Applicable income tax expense		(1)	-	(1)	2
	Net income		2	-	2	(7)
Net unrealized gains (losses) on cash flow hedge derivatives:(b)
Interest rate contracts related to C&I loans	Interest and fees on loans and leases		5	(2)	2	(2)
	Income before income taxes		5	(2)	2	(2)
	Applicable income tax expense		(1)	-	-	-
	Net income		4	(2)	2	(2)
Net periodic benefit costs:(b)
Amortization of net actuarial loss	Employee benefits(a)		(1)	(1)	(4)	(5)
Settlements	Employee benefits(a)		-	(2)	-	(2)
	Income before income taxes		(1)	(3)	(4)	(7)
	Applicable income tax expense		-	-	1	2
	Net income		(1)	(3)	(3)	(5)
Total reclassifications for the period	Net income	$	5	(5)	1	(14)

This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 20 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2018 for further information.Amounts in parentheses indicate reductions to net income.