Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income (Loss)


NOTE 8			Accumulated Other Comprehensive Income (Loss)

Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity is as follows:


Three Months Ended March 31 (Dollars in Millions)	Unrealized Gains (Losses) on Investment Securities Available-for- Sale		Unrealized Gains (Losses) on Investment Securities Transferred From Available- for-Sale to Held-to-Maturity		Unrealized Gains (Losses) on Derivative Hedges		Unrealized Gains (Losses) on Retirement Plans		Foreign Currency Translation		Total
2024
Balance at beginning of period	$	(5,151)	$	(3,537)	$	(242)	$	(1,138)	$	(28)	$	(10,096)
Changes in unrealized gains (losses)	(171)		—		(343)		—		—		(514)
Foreign currency translation adjustment(a)	—		—		—		—		6		6
Reclassification to earnings of realized (gains) losses	(2)		114		49		—		—		161
Applicable income taxes	45		(29)		75		—		(1)		90
Balance at end of period	$	(5,279)	$	(3,452)	$	(461)	$	(1,138)	$	(23)	$	(10,353)
2023
Balance at beginning of period	$	(6,378)	$	(3,933)	$	(114)	$	(939)	$	(43)	$	(11,407)
Changes in unrealized gains (losses)	1,305		—		204		1		—		1,510

Foreign currency translation adjustment(a)	—		—		—		—		(1)		(1)
Reclassification to earnings of realized (gains) losses	32		121		7		(2)		—		158
Applicable income taxes	(328)		(31)		(54)		—		—		(413)
Balance at end of period	$	(5,369)	$	(3,843)	$	43	$	(940)	$	(44)	$	(10,153)

(a)Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings is as follows:


	Impact to Net Income
	Three Months Ended March 31				Affected Line Item in the Consolidated Statement of Income
(Dollars in Millions)	2024		2023
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sale of investment securities	$	2	$	(32)		Securities gains (losses), net
	(1)		8			Applicable income taxes
	1		(24)			Net-of-tax
Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains (losses)	(114)		(121)			Interest income
	29		31			Applicable income taxes
	(85)		(90)			Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges	(49)		(7)			Net interest income
	13		1			Applicable income taxes
	(36)		(6)			Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization	—		2			Other noninterest expense
	—		—			Applicable income taxes
	—		2			Net-of-tax
Total impact to net income	$	(120)	$	(118)