Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2021

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 at December 31:
	2021						2020
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	12,350	$	–	$	–	$	8,400	$	–	$	–
Pay fixed/receive floating swaps		16,650		–		–		100		–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		–		–		–		3,250		–		–
Net investment hedges
Foreign exchange forward contracts		793		–		4		815		–		3
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		9,322		10		16		18,356		73		5
Sell		29,348		25		27		39,416		48		157
Options
Purchased		18,570		256		–		11,610		121		–
Written		9,662		52		231		12,843		202		198
Receive fixed/pay floating swaps		9,653		–		–		11,971		–		–
Pay fixed/receive floating swaps		7,033		–		–		8,616		–		–
Foreign exchange forward contracts		735		2		6		633		1		2
Equity contracts		209		5		–		172		3		–
Other (a)		1,792		–		125		1,879		1		183
Total	$	116,117	$	350	$	409	$	118,061	$	449	$	548

(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 and fair value of $1.8 billion and $125 million at December 31, 2021, respectively, compared to $1.8 billion and $182 million at December 31, 2020, respectively. In addition, includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $4 million at December 31, 2021, and $47 million at December 31, 2020.

Customer-Related Derivative Positions of Company

The following table summarizes the customer-related derivative positions of the Company at December 31:
	2021						2020
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Interest rate contracts
Receive fixed/pay floating swaps	$	178,701	$	2,007	$	438	$	156,886	$	3,782	$	99
Pay fixed/receive floating swaps		174,176		134		670		150,011		2		1,239
Other (a)		16,267		1		2		16,308		6		3
Options
Purchased		89,679		194		36		74,109		111		46
Written		85,211		36		176		69,941		46		81
Futures
Buy		3,607		–		–		2,775		–		–
Sell		3,941		–		–		4,090		–		–
Foreign exchange rate contracts
Forwards, spots and swaps		89,321		1,145		1,143		90,837		1,590		1,565
Options
Purchased		805		19		–		519		14		–
Written		805		–		19		519		–		14
Credit contracts		9,331		1		5		10,355		1		7
Total	$	651,844	$	3,537	$	2,489	$	576,350	$	5,552	$	3,054
(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) for the years ended December 31:
	Gains (Losses) Recognized in Other Comprehensive Income (Loss)								Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2021		2020			2019			2021			2020			2019
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts	$	94	$	(145	)	$	(171	)	$	(10	)	$	(7	)		$(8)
Net investment hedges
Foreign exchange forward contracts		19		(21	)		3			–			–			–
Non-derivative debt instruments		84		(90	)		13			–			–			–
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 on the Consolidated Statement of Income for the years ended December 31:
	Interest Income								Interest Expense
(Dollars in Millions)	2021			2020			2019		2021			2020			2019
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	$	13,487		$	14,840		$	17,494	$	993		$	2,015		$	4,442
Asset and Liability Management Positions
Fair value hedges
Interest rate contract derivatives		17			1			–		232			(134	)		(44)
Hedged items		(19	)		(1	)		–		(232	)		134			44
Cash flow hedges
Interest rate contract derivatives		–			–			–		14			10			11
Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $53 million and $41 million into earnings during the years ended December 31, 2021 and 2020, respectively, as a result of realized cash flows on discontinued cash flow hedges. The Company did not reclassify gains or losses into earnings as a result of realized cash flows on discontinued cash flow hedges during the year ended December 31, 2019. No amounts were reclassified into earnings on discontinued cash flow hedges because it is probable the original hedged forecasted cash flows will not occur.

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)
At December 31 (Dollars in Millions)	2021		2020		2021			2020
Line Item in the Consolidated Balance Sheet
Available-for-sale investment securities	$	16,445	$	99	$	(26	)		$(1)
Long-term debt		12,278		8,567		585			903
(a) The cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt was $(6) million and $640 million, respectively, at December 31, 2021. The cumulative hedging adjustment related to discontinued hedging relationships on long-term debt was $726 million at December 31, 2020.

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 for the years ended December 31:
(Dollars in Millions)	Location of Gains (Losses) Recognized in Earnings	2021			2020			2019
Asset and Liability Management Positions
Other economic hedges
Interest rate contracts
Futures and forwards	Mortgage banking revenue/ other noninterest income	$	511		$	82		$	34
Purchased and written options	Mortgage banking revenue		527			1,527			432
Swaps	Mortgage banking revenue		(197	)		598			316
Foreign exchange forward contracts	Other noninterest income		1			3			(24)
Equity contracts	Compensation expense		7			3			—
Other	Other noninterest income		5			(70	)		(140)
Customer-Related Positions
Interest rate contracts
Swaps	Commercial products revenue		110			135			82
Purchased and written options	Commercial products revenue		(5	)		(8	)		10
Futures	Commercial products revenue		3			(18	)		(5)
Foreign exchange rate contracts
Forwards, spots and swaps	Commercial products revenue		93			78			82
Purchased and written options	Commercial products revenue		1			1			1
Credit contracts	Commercial products revenue		(7	)		(32	)		(18)