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Derivative Instruments (Tables)
6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Asset and Liability Management Derivative Positions of Company

The following table summarizes the asset and liability management derivative positions of the Company:

 

    Asset Derivatives              Liability Derivatives  
(Dollars in Millions)   Notional
Value
     Fair
Value
     Weighted-
Average
Remaining
Maturity
In Years
             Notional
Value
     Fair
Value
     Weighted-
Average
Remaining
Maturity
In Years
 

June 30, 2018

                     

Cash flow hedges

                     

Interest rate contracts

                     

Pay fixed/receive floating swaps

  $ 8,872      $ 14        3.28           $ 1,720      $        2.35  

Net investment hedges

                     

Foreign exchange forward contracts

    298        4        .05                            

Other economic hedges

                     

Interest rate contracts

                     

Futures and forwards

                     

Buy

    2,363        12        .09             602        2        .10  

Sell

    13,904        9        1.10             5,718        23        .03  

Options

                     

Purchased

    6,255        85        8.18                            

Written

    1,060        25        .09             8               .12  

Receive fixed/pay floating swaps

    2,822               12.76             4,911               9.07  

Pay fixed/receive floating swaps

    4,530               7.37             430               11.30  

Foreign exchange forward contracts

    579        8        .05             141        1        .05  

Equity contracts

                              143        4        .84  

Credit contracts

    1,820               2.83             4,265        1        3.46  

Other (a)

    147        1        .01             1,420        120        1.80  

Total

  $ 42,650      $ 158              $ 19,358      $ 151     

December 31, 2017

                     

Fair value hedges

                     

Interest rate contracts

                     

Receive fixed/pay floating swaps

  $ 1,000      $ 28        6.70           $ 3,600      $ 16        1.55  

Cash flow hedges

                     

Interest rate contracts

                     

Pay fixed/receive floating swaps

    3,772        5        6.73                            

Net investment hedges

                     

Foreign exchange forward contracts

                              373        8        .05  

Other economic hedges

                     

Interest rate contracts

                     

Futures and forwards

                     

Buy

    1,632        7        .10             1,326        2        .04  

Sell

    15,291        10        .89             4,511        10        .03  

Options

                     

Purchased

    4,985        65        7.57                            

Written

    1,285        21        .10             5               .05  

Receive fixed/pay floating swaps

    2,019        5        16.49             5,469               8.43  

Pay fixed/receive floating swaps

    4,844        21        7.69             46        1        6.70  

Foreign exchange forward contracts

    147        1        .02             669        8        .04  

Equity contracts

    45               1.10             88        1        .58  

Credit contracts

    1,559               3.41             3,779        1        3.16  

Other (a)

                              1,164        125        2.50  

Total

  $ 36,579      $ 163                        $ 21,030      $ 172           

 

(a) Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common shares of Visa Inc. The Visa swap agreements had a total notional value, fair value and weighted average remaining maturity of $1.3 billion, $119 million and 2.01 years at June 30, 2018, respectively, compared to $1.2 billion, $125 million and 2.50 years at December 31, 2017, respectively. In addition, includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $147 million at June 30, 2018.
Customer-Related Derivative Positions of Company

The following table summarizes the customer-related derivative positions of the Company:

 

    Asset Derivatives              Liability Derivatives  
(Dollars in Millions)   Notional
Value
     Fair
Value
     Weighted-
Average
Remaining
Maturity
In Years
             Notional
Value
     Fair
Value
     Weighted-
Average
Remaining
Maturity
In Years
 

June 30, 2018

                     

Interest rate contracts

                     

Receive fixed/pay floating swaps

  $ 24,816      $ 470        5.93           $ 76,059      $ 733        4.55  

Pay fixed/receive floating swaps

    72,131        464        4.50             24,623        353        6.11  

Options

                     

Purchased

    37,827        65        1.63             1,360        9        3.03  

Written

    1,360        11        3.03             34,942        61        1.47  

Futures

                     

Buy

    40               1.72                            

Sell

    7,588        10        .98             800               .22  

Foreign exchange rate contracts

                     

Forwards, spots and swaps

    24,755        621        .88             24,056        601        .91  

Options

                     

Purchased

    5,132        85        .76                            

Written

                              5,132        85        .76  

Total

  $ 173,649      $ 1,726              $ 166,972      $ 1,842     

December 31, 2017

                     

Interest rate contracts

                     

Receive fixed/pay floating swaps

  $ 28,681      $ 679        5.71           $ 59,990      $ 840        4.27  

Pay fixed/receive floating swaps

    63,038        860        4.20             25,093        602        5.76  

Options

                     

Purchased

    29,091        22        1.61             880        14        4.24  

Written

    880        15        4.24             27,056        20        1.50  

Futures

                     

Sell

    7,007        4        1.21                            

Foreign exchange rate contracts

                     

Forwards, spots and swaps

    24,099        656        .81             23,440        636        .83  

Options

                     

Purchased

    4,026        83        1.20                            

Written

                              4,026        83        1.20  

Total

  $ 156,822      $ 2,319                        $ 140,485      $ 2,195           
Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax):

 

    Three Months Ended June 30             Six Months Ended June 30  
   

Gains (Losses)
Recognized in
Other
Comprehensive
Income

(Loss)

   

Gains (Losses)
Reclassified from
Other
Comprehensive
Income

(Loss) into Earnings

           

Gains (Losses)
Recognized in
Other
Comprehensive
Income

(Loss)

   

Gains (Losses)
Reclassified from
Other
Comprehensive
Income

(Loss) into Earnings

 
(Dollars in Millions)   2018      2017     2018      2017             2018      2017     2018     2017  

Asset and Liability Management Positions

                       

Cash flow hedges

                       

Interest rate contracts

  $ 25      $ (23   $ 1      $ (6        $ 89      $ (19   $ (1   $ (15

Net investment hedges

                       

Foreign exchange forward contracts

    12        (41                       28        (48            

Non-derivative debt instruments

    50        (11                           16        (11            

 

Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.
Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income

The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income:

 

    Three Months Ended June 30              Six Months Ended June 30  
    Other Noninterest
Income
    Interest Expense              Other Noninterest
Income
    Interest Expense  
(Dollars in Millions)   2018      2017     2018     2017              2018      2017     2018     2017  

Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded

  $ 207      $ 195     $ 751     $ 470           $ 374      $ 375     $ 1,374     $ 883  
 

Asset and Liability Management Positions

                       

Fair value hedges

                       

Interest rate contract derivatives

           14       48                          4       5        

Hedged items

           (14     (48                        (4     (5      

Cash Flow hedges

                       

Interest rate contract derivatives

                 (2     10                              1       24  

 

Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company did not reclassify gains or losses into earnings as a result of the discontinuance of cash flow hedges during the three and six months ended June 30, 2018 and 2017.
Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets (Liabilities) Designated in Fair Value Hedges

The table below shows cumulative hedging adjustments and the carrying amount of assets (liabilities) designated in fair value hedges:

 

    Carrying Amount of the Hedged Assets
(Liabilities)
             Cumulative Hedging Adjustment (a)  
(Dollars in Millions)   June 30, 2018      December 31, 2017              June 30, 2018     December 31, 2017  

Line Item in the Consolidated Balance Sheet

              

Long-term Debt

  $      $ 4,584               $ (45   $ (8

 

(a) The cumulative hedging adjustment at June 30, 2018 relates to discontinued hedging relationships. The Company did not have any hedging adjustments for discontinued fair value hedges at December 31, 2017.
Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions

The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions:

 

         Three Months
Ended June 30
            Six Months
Ended June 30
 
(Dollars in Millions)  

Location of Gains (Losses)

Recognized in Earnings

   2018     2017             2018     2017  

Asset and Liability Management Positions

               

Other economic hedges

               

Interest rate contracts

               

Futures and forwards

  Mortgage banking revenue    $ 15     $ (1          73     $ 5  

Purchased and written options

  Mortgage banking revenue      56       77            98       117  

Receive fixed/pay floating swaps

  Mortgage banking revenue      (61     117            (140     148  

Pay fixed/receive floating swaps

  Mortgage banking revenue      15       (71          (16     (111

Foreign exchange forward contracts

  Other noninterest income      15       (30          27       (37

Equity contracts

  Compensation expense            (1          (1      

Credit contracts

  Other noninterest income      2                  2       1  

Other

  Other noninterest income      1       (1          1       (1

Customer-Related Positions

               

Interest rate contracts

               

Receive fixed/pay floating swaps

  Commercial products revenue      (351     (323          (1,515     (573

Pay fixed/receive floating swaps

  Commercial products revenue      365       333            1,532       602  

Purchased and written options

  Commercial products revenue      2       (2          2       (8

Futures

  Commercial products revenue      3                  11       (2

Foreign exchange rate contracts

               

Forwards, spots and swaps

  Commercial products revenue      22       24            45       46  

Purchased and written options

  Commercial products revenue                                 1