Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2019

Reconciliation of Transactions Affecting Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity

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 for the three months ended March 31, is as follows:


(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
2019
Balance at beginning of period	$	(946	)	$	14		$	112		$	(1,418	)	$	(84	)	$	(2,322	)
Changes in unrealized gains and losses		785			–			(74	)		–			–			711
Foreign currency translation adjustment (a)		–			–			–			–			16			16
Reclassification to earnings of realized gains and losses		(5	)		(1	)		(8	)		22			–			8
Applicable income taxes		(197	)		–			21			(6	)		(4	)		(186	)
Balance at end of period	$	(363	)	$	13		$	51		$	(1,402	)	$	(72	)	$	(1,773	)
2018
Balance at beginning of period	$	(357	)	$	17		$	71		$	(1,066	)	$	(69	)	$	(1,404	)
Revaluation of tax related balances (b)		(77	)		4			15			(229	)		(13	)		(300	)
Changes in unrealized gains and losses		(776	)		–			86			(3	)		–			(693	)
Foreign currency translation adjustment (a)		–			–			–			–			13			13
Reclassification to earnings of realized gains and losses		(5	)		(3	)		3			34			–			29
Applicable income taxes		198			1			(23	)		(7	)		(7	)		162
Balance at end of period	$	(1,017	)	$	19		$	152		$	(1,271	)	$	(76	)	$	(2,193	)

(a)

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

(b)

Reflects the adoption of new accounting guidance on January 1, 2018 to reclassify the impact of the reduced federal statutory rate for corporations included in 2017 tax reform legislation from accumulated other comprehensive income to retained earnings.

Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income and into Earnings

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings for the three months ended March 31, is as follows:


	Impact to Net Income						Affected Line Item in the Consolidated Statement of Income
(Dollars in Millions)	2019			2018			Affected Line Item in the Consolidated Statement of Income
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sale of investment securities	$	5		$	5		Total securities gains (losses), net
		(2	)		(1	)	Applicable income taxes
		3			4		Net-of-tax
Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		1			3		Interest income
		–			(1	)	Applicable income taxes
		1			2		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		8			(3	)	Interest expense
		(2	)		1		Applicable income taxes
		6			(2	)	Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization		(22	)		(34	)	Other noninterest expense
		6			8		Applicable income taxes
		(16	)		(26	)	Net-of-tax
Total impact to net income	$	(6	)	$	(22	)