Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2021

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 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 Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2021
Balance at beginning of period	$	2,417		$	(189	)	$	(1,842	)	$	(64	)	$	322
Changes in unrealized gains and losses		(3,378	)		99			—			—			(3,279	)
Foreign currency translation adjustment (a)		—			—			—			25			25
Reclassification to earnings of realized gains and losses		(25	)		4			39			—			18
Applicable income taxes		861			(26	)		(10	)		(6	)		819
Balance at end of period	$	(125	)	$	(112	)	$	(1,813	)	$	(45	)	$	(2,095	)
2020
Balance at beginning of period	$	379		$	(51	)	$	(1,636	)	$	(65	)	$	(1,373	)
Changes in unrealized gains and losses		2,787			(257	)		—			—			2,530
Foreign currency translation adjustment (a)		—			—			—			(13	)		(13	)
Reclassification to earnings of realized gains and losses		(50	)		13			31			—			(6	)
Applicable income taxes		(692	)		62			(8	)		3			(635	)
Balance at end of period	$	2,424		$	(233	)	$	(1,613	)	$	(75	)	$	503

(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 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)	2021			2020
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sale of investment securities	$	25		$	50		Securities gains (losses), net
		(6	)		(13	)	Applicable income taxes
		19			37		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(4	)		(13	)	Interest expense
		1			3		Applicable income taxes
		(3	)		(10	)	Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization		(39	)		(31	)	Other noninterest expense
		10			8		Applicable income taxes
		(29	)		(23	)	Net-of-tax
Total impact to net income	$	(13	)	$	4