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Derivative Instruments (Tables)
9 Months Ended
Sep. 30, 2020
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
 
September 30, 2020
          
 
        
Fair value hedges
          
 
        
Interest rate contracts
          
 
        
Receive fixed/pay floating swaps
  $ 8,400      $        2.02     
 
   $      $         
Cash flow hedges
          
 
        
Interest rate contracts
          
 
        
Pay fixed/receive floating swaps
                      
 
     3,250        11        4.84  
Net investment hedges
          
 
        
Foreign exchange forward contracts
    483        5        .06     
 
     308        1        .06  
Other economic hedges
          
 
        
Interest rate contracts
          
 
        
Futures and forwards
          
 
        
Buy
    13,858        88        .06     
 
     5,141        11        .41  
Sell
    9,105        20        .04     
 
     28,066        102        .16  
Options
          
 
        
Purchased
    2,570        44        4.91     
 
     1,340               4.25  
Written
    5,817        227        .11     
 
     7,800        227        2.82  
Receive fixed/pay floating swaps
    4,985               5.36     
 
     6,367               11.18  
Pay fixed/receive floating swaps
    604               10.55     
 
     6,207               4.31  
Foreign exchange forward contracts
    275        2        .04     
 
     294        2        .05  
Equity contracts
    127               .67     
 
     20               .64  
Other (a)
    588        4        .02     
 
     2,376        199        2.07  
Total
  $ 46,812      $ 390        
 
   $ 61,169      $ 553     
December 31, 2019
          
 
        
Fair value hedges
          
 
        
Interest rate contracts
          
 
        
Receive fixed/pay floating swaps
  $ 18,300      $        3.89     
 
   $ 4,900      $        3.49  
Cash flow hedges
          
 
        
Interest rate contracts
          
 
        
Pay fixed/receive floating swaps
    1,532               6.06     
 
     7,150        10        2.11  
Net investment hedges
          
 
        
Foreign exchange forward contracts
                      
 
     287        3        .04  
Other economic hedges
          
 
        
Interest rate contracts
          
 
        
Futures and forwards
          
 
        
Buy
    5,409        17        .08     
 
     5,477        11        .07  
Sell
    16,333        13        .81     
 
     8,113        25        .03  
Options
          
 
        
Purchased
    10,180        79        2.97     
 
                    
Written
    1,270        30        .08     
 
     4,238        81        2.07  
Receive fixed/pay floating swaps
    4,408               5.99     
 
     5,316               13.04  
Pay fixed/receive floating swaps
    1,259               5.67     
 
     4,497               6.03  
Foreign exchange forward contracts
    113        1        .05     
 
     467        6        .04  
Equity contracts
    128        2        .45     
 
     20               1.06  
Other (a)
    34               .01     
 
     1,823        165        2.45  
Total
  $ 58,966      $ 142     
 
 
 
  
 
 
 
   $ 42,288      $ 301     
 
 
 
 
(a)
Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value, fair value and weighted-average remaining maturity of $1.8 billion, $195 million and 2.75
 
years at September 30, 2020, respectively, compared to $1.8 billion, $165 million and 2.50 years at December 31, 2019, respectively. In addition, includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $588
 
m
illion at September 30, 2020, and $34 million at December 31, 2019.
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
 
September 30, 2020
          
 
        
Interest rate contracts
          
 
        
Receive fixed/pay floating swaps
  $ 149,619      $ 4,432        5.02     
 
   $ 4,983      $ 38        10.63  
Pay fixed/receive floating swaps
    5,479        3        10.31     
 
     142,997        1,409        4.83  
Other (a)
    9,049        2        3.53     
 
     7,490        3        3.59  
Options
          
 
        
Purchased
    65,401        110        1.36     
 
     3,119        64        2.10  
Written
    3,310        65        2.19     
 
     60,533        76        1.23  
Futures
          
 
        
Buy
    1,463               .71     
 
                    
Sell
                      
 
     5,682               .77  
Foreign exchange rate contracts
          
 
        
Forwards, spots and swaps
    35,624        1,029        1.15     
 
     36,540        998        1.36  
Options
          
 
        
Purchased
    744        22        .74     
 
                    
Written
                      
 
     744        22        .74  
Credit contracts
    2,836        2        2.88     
 
     7,478        9        3.84  
Total
  $ 273,525      $ 5,665        
 
   $ 269,566      $ 2,619     
December 31, 2019
          
 
        
Interest rate contracts
          
 
        
Receive fixed/pay floating swaps
  $ 108,560      $ 1,865        4.83     
 
   $ 31,544      $ 88        3.83  
Pay fixed/receive floating swaps
    28,150        30        3.83     
 
     101,078        753        4.55  
Other (a)
    6,895        1        3.45     
 
     6,218        2        2.98  
Options
          
 
        
Purchased
    46,406        43        2.06     
 
     12,804        47        1.25  
Written
    6,901        49        1.93     
 
     49,741        41        1.82  
Futures
          
 
        
Buy
    894               .21     
 
                    
Sell
    3,874        1        1.18     
 
     1,995               1.04  
Foreign exchange rate contracts
          
 
        
Forwards, spots and swaps
    36,350        748        .97     
 
     36,671        729        1.07  
Options
          
 
        
Purchased
    1,354        17        .54     
 
                    
Written
                      
 
     1,354        17        .54  
Credit contracts
    2,879        1        3.28     
 
     7,488        5        4.33  
Total
  $ 242,263      $ 2,755     
 
 
 
  
 
 
 
   $ 248,893      $ 1,682     
 
 
 
 
(a)
Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes.
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 September 30             Nine Months Ended September 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)   2020     2019     2020     2019             2020     2019     2020     2019  
Asset and Liability Management Positions
         
 
        
Cash flow hedges
         
 
        
Interest rate contracts
  $ 21     $ (44   $ (2   $ (5  
 
   $ (171   $ (200   $ (5   $ 6  
Net investment hedges
         
 
        
Foreign exchange forward contracts
    (4     10                
 
     6       8              
Non-derivative
debt instruments
    (45     37                
 
 
 
     (41     42              
 
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 Included in Interest Expense on Consolidated Statement of Income
The table below shows the effect of fair value and cash flow hedge accounting included in interest expense on the Consolidated Statement of Income:
 
    Three Months Ended
September 30
            Nine Months Ended
September 30
 
(Dollars in Millions)   2020     2019             2020     2019  
Total amount of interest expense presented in the Consolidated Statement of Income
  $ 346     $ 1,156    
 
   $ 1,711     $ 3,394  
 
Asset and Liability Management Positions
     
 
    
Fair value hedges
     
 
    
Interest rate contract derivatives
    28       (183  
 
     (166     (234
Hedged items
    (27     181    
 
     167       232  
Cash Flow hedges
     
 
    
Interest rate contract derivatives
    3       6    
 
 
 
     7       (8
 
Note:
The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $18 million and $24 million into earnings during the three and nine months ended September 30, 2020, respectively, as a result of the discontinuance of 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 nine months ended September 30, 2019.    
Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets and Liabilities Designated in Fair Value Hedges
The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities designated in fair value hedges:
 
    Carrying Amount of the Hedged Assets
and Liabilities
             Cumulative Hedging Adjustment (a)  
(Dollars in Millions)   September 30, 2020      December 31, 2019              September 30, 2020      December 31, 2019  
Line Item in the Consolidated Balance Sheet
       
 
     
Long-term Debt
  $ 8,599      $ 23,195     
 
 
 
   $ 990      $ 35  
 
(a)
The cumulative hedging adjustment related to discontinued hedging relationships was $780 million and $(7) million at September 30, 2020 and December 31, 2019, respectively.
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:
 
    
Location of Gains (Losses)
Recognized in Earnings
     Three Months Ended
September 30
            Nine Months Ended
September 30
 
(Dollars in Millions)    2020     2019             2020     2019  
Asset and Liability Management Positions
         
 
    
Other economic hedges
         
 
    
Interest rate contracts
         
 
    
Futures and forwards
     Mortgage banking revenue/
other noninterest income

 
   $ 46     $ 20    
 
   $ 53     $ (20
Purchased and written options
     Mortgage banking revenue        428       154    
 
     1,173       347  
Swaps
     Mortgage banking revenue        (51     215    
 
     724       513  
Foreign exchange forward contracts
     Other noninterest income        (2     (3  
 
     9       (18
Equity contracts
     Compensation expense        3          
 
           (2
Other
     Other noninterest income        (69        
 
     (70      
Customer-Related Positions
         
 
    
Interest rate contracts
         
 
    
Swaps
     Commercial products revenue        59       26    
 
     103       61  
Purchased and written options
     Commercial products revenue        (14     2    
 
     3       11  
Futures
     Commercial products revenue              (3  
 
     (18     (7
Foreign exchange rate contracts
         
 
    
Forwards, spots and swaps
     Commercial products revenue        20       20    
 
     54       59  
Purchased and written options
     Commercial products revenue        1       1    
 
     1       1  
Credit contracts
     Commercial products revenue        (10     (4  
 
 
 
     (15     (12