Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

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 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
2016
Balance at beginning of period	$	612		$	31		$	(133	)	$	(1,006	)	$	(66	)	$	(562	)
Changes in unrealized gains and losses		(105	)		–			31			–			–			(74	)
Foreign currency translation adjustment (a)		–			–			–			–			6			6
Reclassification to earnings of realized gains and losses		(10	)		(5	)		28			41			–			54
Applicable income taxes		44			1			(22	)		(16	)		(10	)		(3	)
Balance at end of period	$	541		$	27		$	(96	)	$	(981	)	$	(70	)	$	(579	)
2015
Balance at beginning of period	$	301		$	43		$	(125	)	$	(1,037	)	$	(47	)	$	(865	)
Changes in unrealized gains and losses		202			–			(38	)		–			–			164
Foreign currency translation adjustment (a)		–			–			–			–			(28	)		(28	)
Reclassification to earnings of realized gains and losses		1			(6	)		48			55			–			98
Applicable income taxes		(78	)		2			(4	)		(21	)		11			(90	)
Balance at end of period	$	426		$	39		$	(119	)	$	(1,003	)	$	(64	)	$	(721	)

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

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
2016
Balance at beginning of period	$	111		$	36		$	(67	)	$	(1,056	)	$	(43	)	$	(1,019	)
Changes in unrealized gains and losses		716			–			(152	)		–			–			564
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		(1	)		–			–			–			–			(1	)
Foreign currency translation adjustment (a)		–			–			–			–			(30	)		(30	)
Reclassification to earnings of realized gains and losses		(16	)		(14	)		104			122			–			196
Applicable income taxes		(269	)		5			19			(47	)		3			(289	)
Balance at end of period	$	541		$	27		$	(96	)	$	(981	)	$	(70	)	$	(579	)
2015
Balance at beginning of period	$	392		$	52		$	(172	)	$	(1,106	)	$	(62	)	$	(896	)
Changes in unrealized gains and losses		54			–			(61	)		–			–			(7	)
Foreign currency translation adjustment (a)		–			–			–			–			(3	)		(3	)
Reclassification to earnings of realized gains and losses		1			(20	)		147			167			–			295
Applicable income taxes		(21	)		7			(33	)		(64	)		1			(110	)
Balance at end of period	$	426		$	39		$	(119	)	$	(1,003	)	$	(64	)	$	(721	)

(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												Affected Line Item in the Consolidated Statement of Income
	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2016			2015			2016			2015
Unrealized gains (losses) on securities available-for-sale
Realized gains (losses) on sale of securities	$	12		$	–		$	19		$	–		Total securities gains (losses), net
Other-than-temporary impairment recognized in earnings		(2	)		(1	)		(3	)		(1	)
		10			(1	)		16			(1	)	Total before tax
		(4	)		–			(6	)		–		Applicable income taxes
		6			(1	)		10			(1	)	Net-of-tax
Unrealized gains (losses) on securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		5			6			14			20		Interest income
		(1	)		(2	)		(5	)		(7	)	Applicable income taxes
		4			4			9			13		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(28	)		(48	)		(104	)		(147	)	Interest expense
		11			19			40			57		Applicable income taxes
		(17	)		(29	)		(64	)		(90	)	Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization		(41	)		(55	)		(122	)		(167	)	Employee benefits expense
		16			21			47			64		Applicable income taxes
		(25	)		(34	)		(75	)		(103	)	Net-of-tax
Total impact to net income	$	(32	)	$	(60	)	$	(120	)	$	(181	)