Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 7 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 September 30 (Dollars in Millions)	Unrealized Gains (Losses) on Securities Available-For-Sale			Unrealized Gains (Losses) on 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
2013
Balance at beginning of period	$	185		$	84		$	(313	)	$	(1,184	)	$	(60	)	$	(1,288	)
Changes in unrealized gains and losses		(237	)		–			(17	)		38			–			(216	)
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		1			–			–			–			–			1
Foreign currency translation adjustment		–			–			–			–			13			13
Reclassification to earnings of realized gains and losses		3			(13	)		47			62			–			99
Applicable income taxes		89			5			(11	)		(38	)		(5	)		40
Balance at end of period	$	41		$	76		$	(294	)	$	(1,122	)	$	(52	)	$	(1,351	)
2012
Balance at beginning of period	$	504		$	134		$	(447	)	$	(977	)	$	(44	)	$	(830	)
Changes in unrealized gains and losses		300			–			(30	)		–			–			270
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		2			–			–			–			–			2
Foreign currency translation adjustment		–			–			–			–			26			26
Reclassification to earnings of realized gains and losses		(1	)		(21	)		53			38			–			69
Applicable income taxes		(115	)		8			(9	)		(14	)		(10	)		(140	)
Balance at end of period	$	690		$	121		$	(433	)	$	(953	)	$	(28	)	$	(603	)

Nine Months Ended September 30 (Dollars in Millions)	Unrealized Gains (Losses) on Securities Available-For-Sale			Unrealized Gains (Losses) on 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
2013
Balance at beginning of period	$	679		$	107		$	(404	)	$	(1,265	)	$	(40	)	$	(923	)
Changes in unrealized gains and losses		(1,032	)		–			33			37			–			(962	)
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		8			–			–			–			–			8
Foreign currency translation adjustment		–			–			–			–			(20	)		(20	)
Reclassification to earnings of realized gains and losses		(8	)		(50	)		142			186			–			270
Applicable income taxes		394			19			(65	)		(80	)		8			276
Balance at end of period	$	41		$	76		$	(294	)	$	(1,122	)	$	(52	)	$	(1,351	)
2012
Balance at beginning of period	$	360		$	–		$	(489	)	$	(1,022	)	$	(49	)	$	(1,200	)
Changes in unrealized gains and losses		738			–			(68	)		–			–			670
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		3			–			–			–			–			3
Transfer of securities from available-for-sale to held-to-maturity		(224	)		224			–			–			–			–
Foreign currency translation adjustment		–			–			–			–			34			34
Reclassification to earnings of realized gains and losses		18			(28	)		158			112			–			260
Applicable income taxes		(205	)		(75	)		(34	)		(43	)		(13	)		(370	)
Balance at end of period	$	690		$	121		$	(433	)	$	(953	)	$	(28	)	$	(603	)

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income and into earnings for the periods presented, is as follows:

	Impact to Net Income
(Dollars in Millions)	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013			Affected Line Item in the Consolidated Statement of Income
Unrealized gains (losses) on securities available-for-sale
Realized gains (losses) on sale of securities	$	–		$	21		Total securities gains (losses), net
Other-than-temporary impairment recognized in earnings		(3	)		(13	)
		(3	)		8		Total before tax
		1			(3	)	Applicable income taxes
		(2	)		5		Net-of-tax
Unrealized gains (losses) on securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		13			50		Interest income
		(5	)		(19	)	Applicable income taxes
		8			31		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(47	)		(142	)	Net interest income
		18			55		Applicable income taxes
		(29	)		(87	)	Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses), prior service cost (credit) and transition obligation (asset) amortization		(62	)		(186	)	Employee benefits expense
		24			72		Applicable income taxes
		(38	)		(114	)	Net-of-tax
Total impact to net income	$	(61	)	$	(165	)