Changes in Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2019

Components of comprehensive income (loss), net of tax

AOCI is a balance sheet item in Shareholders’ equity on the 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 Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive (Loss) Income
Balance 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 gains on investments in foreign operations ^(a)	—		678		—		678
Net losses related to hedges of investments in foreign operations	—		(370)		—		(370)
Pension and other postretirement benefits	—		—		62		62
Net change in accumulated other comprehensive (loss) income	(7)		301		62		356
Balance as of December 31, 2017	—		(1,961)		(467)		(2,428)
Net unrealized losses	(10)		—		—		(10)
Net translation losses on investments in foreign operations	—		(500)		—		(500)
Net gain related to hedges of investments in foreign operations	—		328		—		328
Pension and other postretirement benefits	—		—		11		11
Other	2		—		—		2
Net change in accumulated other comprehensive (loss) income	(8)		(172)		11		(169)
Balance as of December 31, 2018	(8)		(2,133)		(456)		(2,597)
Net unrealized gains	41		—		—		41
Net translation gains on investments in foreign operations	—		84		—		84
Net losses related to hedges of investments in foreign operations	—		(140)		—		(140)
Pension and other postretirement benefits	—		—		(125)		(125)
Net change in accumulated other comprehensive (loss) income	41		(56)		(125)		(140)
Balance as of December 31, 2019	$	33	$	(2,189)	$	(581)	$	(2,737)

(a)Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 20).

Changes in AOCI

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)	2019		2018		2017
Net unrealized investment securities	$	12	$	(2)	$	(4)
Net translation on investments in foreign operations^(a)	24		(44)		(172)
Net hedges of investments in foreign operations	(43)		107		(215)
Pension and other postretirement benefits	(38)		9		7
Total tax impact	$	(45)	$	70	$	(384)

(a)Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 20).

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	2019		2018		2017
Foreign currency translation adjustments
Reclassification of translation adjustments and related hedges	Other expenses	$	—	$	1	$	(7)
Related income tax	Income tax provision	—		(1)		14
Reclassification of foreign currency translation adjustments		$	—	$	—	$	7