Changes in Accumulated Other Comprehensive (Loss) Income (Tables)

12 Months Ended

Dec. 31, 2017

Components of comprehensive income (loss), net of tax

AOCI is a balance sheet item in the Shareholders’ Equity section of the Company’s Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three years ended December 31 were as follows:

(Millions), net of tax	Net Unrealized Gains (Losses) on Investment Securities		Foreign Currency Translation Adjustments		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive (Loss) Income
Balances as of December 31, 2014	$	96	$	(1,499)	$	(516)	$	(1,919)
Net unrealized losses		(37)		―		―		(37)
Decrease due to amounts reclassified into earnings		(1)		(1)		―		(2)
Net translation loss of investments in foreign operations		―		(1,122)		―		(1,122)
Net gains related to hedges of investments in foreign operations		―		578		―		578
Pension and other postretirement benefit		―		―		(32)		(32)
Net change in accumulated other comprehensive loss		(38)		(545)		(32)		(615)
Balances as of December 31, 2015		58		(2,044)		(548)		(2,534)
Net unrealized losses		(45)		―		―		(45)
(Decrease) increase due to amounts reclassified into earnings		(6)		4		―		(2)
Net translation loss of investments in foreign operations		―		(503)		―		(503)
Net gains related to hedges of investment in foreign operations		―		281		―		281
Pension and other postretirement benefit		―		―		19		19
Net change in accumulated other comprehensive (loss) income		(51)		(218)		19		(250)
Balances as of December 31, 2016		7		(2,262)		(529)		(2,784)
Net unrealized losses		(7)		―		―		(7)
Decrease due to amounts reclassified into earnings		―		(7)		―		(7)
Net translation gain of investments in foreign operations^(a)		―		678		―		678
Net losses related to hedges of investment in foreign operations		―		(370)		―		(370)
Pension and other postretirement benefit		―		―		62		62
Net change in accumulated other comprehensive (loss) income		(7)		301		62		356
Balances as of December 31, 2017	$	―	$	(1,961)	$	(467)	$	(2,428)

Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 21).

Accumulated Other Comprehensive Loss Income Tax Effect Disclosure Text Block

The following table shows the tax impact for the years ended December 31 for the changes in each component of AOCI presented above:

		Tax expense (benefit)
(Millions)	2017		2016		2015
Investment securities	$	(4)	$	(27)	$	(20)
Foreign currency translation adjustments^(a)		(172)		(15)		(124)
Net investment hedges		(215)		139		340
Pension and other postretirement benefit		7		37		―
Total tax impact	$	(384)	$	134	$	196

(a) Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 21).

Reclassification out of accumulated other comprehensive (loss) income

The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the years ended December 31:

			Gains (losses) recognized in earnings
Description (Millions)		Income Statement Line Item		2017		2016
Available-for-sale securities
	Reclassifications for previously unrealized net gains on investment securities	Other non-interest revenues	$	―	$	9
	Related income tax expense	Income tax provision		―		(3)
	Reclassification to net income related to available-for-sale securities			―		6
Foreign currency translation adjustments
	Reclassification of realized losses on translation adjustments and related net investment hedges	Other expenses		(7)		(4)
	Related income tax benefit	Income tax provision		14		―
	Reclassification to net income related to foreign currency translation adjustments			7		(4)
Total			$	7	$	2