Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Positions

	December 31, 2014
	Asset Derivatives						Liability Derivatives
(Dollars in millions)		Notional Amounts		Fair Value			Notional Amounts		Fair Value
Derivatives designated in cash flow hedging relationships 1
Interest rate contracts hedging floating rate loans			$18,150		$208			$2,850		$8
Derivatives designated in fair value hedging relationships 2
Interest rate contracts covering fixed rate debt		2,700		30			2,600		1
Interest rate contracts covering brokered CDs		30		—			—		—
Total		2,730		30			2,600		1
Derivatives not designated as hedging instruments 3
Interest rate contracts covering:
Fixed rate debt		—		—			60		6
MSRs		5,172		163			8,807		30
LHFS, IRLCs 4		1,840		4			4,923		23
Trading activity 5		61,049		2,405			61,005		2,219
Foreign exchange rate contracts covering trading activity		2,429		104			2,414		100
Credit contracts covering:
Loans		—		—			392		5
Trading activity 6		2,282		20			2,452		20
Equity contracts - Trading activity 5		21,875		2,809			28,128		3,090
Other contracts:
IRLCs and other 7		2,231		25			139		5
Commodities		381		71			374		70
Total		97,259		5,601			108,694		5,568
Total derivatives			$118,139		$5,839			$114,144		$5,577
Total gross derivatives, before netting					$5,839					$5,577
Less: Legally enforceable master netting agreements				(4,083		)			(4,083		)
Less: Cash collateral received/paid				(449		)			(1,032		)
Total derivatives, after netting					$1,307					$462

¹ See “Cash Flow Hedges” in this Note for further discussion.

² See “Fair Value Hedges” in this Note for further discussion.

³ See “Economic Hedging and Trading Activities” in this Note for further discussion.

⁴ Amount includes $791 million of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table.

⁵ Amounts include $10.3 billion and $563 million of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative assets/liabilities associated with the one day lag are included in the fair value column of this table.

⁶ Asset and liability amounts each include $4 million of notional from purchased and written credit risk participation agreements, respectively, whose notional is calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.

⁷ Includes a notional amount that is based on the number of VisaClass B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 16, “Guarantees.” The fair value of the derivative liability, which relates to a notional amount of $49 million, is immaterial and is recognized in trading assets and derivatives in the Consolidated Balance Sheets.

	December 31, 2013
	Asset Derivatives						Liability Derivatives
(Dollars in millions)		Notional Amounts		Fair Value			Notional Amounts		Fair Value
Derivatives designated in cash flow hedging relationships 1
Interest rate contracts hedging floating rate loans			$17,250		$471			$—		$—
Derivatives designated in fair value hedging relationships 2
Interest rate contracts covering fixed rate debt		2,000		52			900		24
Derivatives not designated as hedging instruments 3
Interest rate contracts covering:
Fixed rate debt		—		—			60		7
MSRs		1,425		27			6,898		79
LHFS, IRLCs 4		4,561		30			1,317		5
Trading activity 5		70,615		2,917			65,299		2,742
Foreign exchange rate contracts covering trading activity		2,449		61			2,624		57
Credit contracts covering:
Loans		—		—			427		5
Trading activity 6		1,568		37			1,579		34
Equity contracts - Trading activity 5		19,595		2,504			24,712		2,702
Other contracts:
IRLCs and other 7		1,114		12			755		4
Commodities		241		14			228		14
Total		101,568		5,602			103,899		5,649
Total derivatives			$120,818		$6,125			$104,799		$5,673
Total gross derivatives, before netting					$6,125					$5,673
Less: Legally enforceable master netting agreements				(4,284		)			(4,284		)
Less: Cash collateral received/paid				(457		)			(864		)
Total derivatives, after netting					$1,384					$525

¹ See “Cash Flow Hedges” in this Note for further discussion.

² See “Fair Value Hedges” in this Note for further discussion.

³ See “Economic Hedging and Trading Activities” in this Note for further discussion.

⁴ Amount includes $885 million of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative liability associated with the one day lag is included in the fair value column of this table.

⁵ Amounts include $15.2 billion and $157 million of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative asset associated with the one day lag is included in the fair value column of this table.

⁶ Asset and liability amounts each include $4 million and $5 million of notional from purchased and written interest rate swap risk participation agreements, respectively, whose notional is calculated as the notional of the interest rate swap participated adjusted by the relevant RWA conversion factor.

⁷ Includes a notional amount that is based on the number of VisaClass B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 16, “Guarantees.” The fair value of the derivative liability, which relates to a notional amount of $55 million, is immaterial and is recognized in other liabilities in the Consolidated Balance Sheets.

^[1]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

	Year Ended December 31, 2014
(Dollars in millions)	Amount of  pre-tax gain recognized in OCI on Derivatives (Effective Portion)		Classification of gain reclassified  from AOCI into Income (Effective Portion)	Amount of pre-tax gain reclassified from AOCI into Income (Effective Portion)
Derivatives in cash flow hedging relationships:
Interest rate contracts hedging floating rate loans 1		$99	Interest and fees on loans		$290

¹ During the year endedDecember 31, 2014, the Company also reclassified $97 million of pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

	Year Ended December 31, 2014
(Dollars in millions)	Amount of gain on Derivatives recognized in Income		Amount of loss on related Hedged Items recognized in Income			Amount of gain recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships:
Interest rate contracts hedging fixed rate debt 1		$8		($7	)		$1
Interest rate contracts covering brokered CDs 1	—		—			—
Total		$8		($7	)		$1

¹ Amounts are recognized in trading income in the Consolidated Statements of Income.

(Dollars in millions)	Classification of (loss)/gain recognized in Income on Derivatives	Amount of (loss)/gain recognized in Income on Derivatives during the Year Ended December 31, 2014
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt	Trading income		($1	)
MSRs	Mortgage servicing related income	257
LHFS, IRLCs	Mortgage production related income	(149		)
Trading activity	Trading income	50
Foreign exchange rate contracts covering:
Trading activity	Trading income	69
Credit contracts covering:
Loans	Other noninterest income	(1		)
Trading activity	Trading income	17
Equity contracts - trading activity	Trading income	4
Other contracts - IRLCs	Mortgage production related income	261
Total			$507

	Year Ended December 31, 2013
(Dollars in millions)	Amount of  pre-tax (loss)/gain recognized in OCI on Derivatives (Effective Portion)			Classification of (loss)/gain reclassified  from AOCI into Income (Effective Portion)	Amount of  pre-tax gain reclassified from AOCI into Income (Effective Portion)
Derivatives in cash flow hedging relationships:
Interest rate contracts hedging forecasted debt		($2	)	Interest on long-term debt		$—
Interest rate contracts hedging floating rate loans 1	18			Interest and fees on loans	327
Total		$16				$327

¹ During the year endedDecember 31, 2013, the Company also reclassified $90 million pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

	Year Ended December 31, 2013
(Dollars in millions)	Amount of loss on Derivatives recognized in Income			Amount of gain on related Hedged Items recognized in Income		Amount of loss recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships:
Interest rate contracts hedging fixed rate debt 1		($36	)		$33		($3	)

¹ Amounts are recognized in trading income in the Consolidated Statements of Income.

(Dollars in millions)	Classification of gain/(loss) recognized in Income on Derivatives	Amount of gain/(loss) recognized in Income on Derivatives during the Year Ended December 31, 2013
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt	Trading income		$2
MSRs	Mortgage servicing related income		($284	)
LHFS, IRLCs	Mortgage production related income	289
Trading activity	Trading income	59
Foreign exchange rate contracts covering:
Commercial loans	Trading income	1
Trading activity	Trading income	23
Credit contracts covering:
Loans	Other noninterest income	(4		)
Trading activity	Trading income	21
Equity contracts - trading activity	Trading income	(15		)
Other contracts - IRLCs	Mortgage production related income	98
Total			$190

	Year Ended December 31, 2012
(Dollars in millions)	Amount of  pre-tax (loss)/gain recognized in OCI on Derivatives (Effective Portion)			Classification of (loss)/gain reclassified from AOCI into Income (Effective Portion)	Amount of  pre-tax (loss)/gain reclassified from AOCI into Income (Effective Portion)
Derivatives in cash flow hedging relationships:
Equity contracts hedging Securities AFS 1		($171	)	Net securities (losses)/gains		($365	)
Interest rate contracts hedging Floating rate loans 2	252			Interest and fees on loans	337
Total		$81				($28	)

¹ During the year ended December 31, 2012, the Company also recognized $60 million of pre-tax gains directly into net securities (losses)/gains related to mark-to-market changes of The Coca-Cola Company hedging contracts when the cash flow hedging relationship failed to qualify for hedge accounting.

² During the year endedDecember 31, 2013, the Company also reclassified $171 million pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

	Year Ended December 31, 2012
(Dollars in millions)	Amount of gain on Derivatives recognized in Income		Amount of loss on related Hedged Items recognized in Income			Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships 1:
Interest rate contracts hedging Fixed rate debt		$5		($5	)		$—
Interest rate contracts hedging Securities AFS	1		(1		)	—
Total		$6		($6	)		$—

¹ Amounts are recognized in trading income in the Consolidated Statements of Income.

(Dollars in millions)	Classification of (loss)/gain recognized in Income on Derivatives	Amount of (loss)/gain recognized in Income on Derivatives during the Year Ended December 31, 2012
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt	Trading income		($2	)
MSRs	Mortgage servicing related income	284
LHFS, IRLCs, LHFI-FV	Mortgage production related income	(331		)
Trading activity	Trading income	86
Foreign exchange rate contracts covering:
Commercial loans and foreign-denominated debt	Trading income	129
Trading activity	Trading income	14
Credit contracts covering:
Loans 1	Other noninterest income	(8		)
Trading activity	Trading income	24
Equity contracts - trading activity	Trading income	8
Other contracts - IRLCs	Mortgage production related income	930
Total			$1,134

¹ For the six months ended June 30, 2012, losses of $3 million were recorded in trading income.

^[2]

Netting of financial instruments - derivatives [Table Text Block]

(Dollars in millions)	Gross Amount		Amount Offset		Net Amount Presented in Consolidated Balance Sheets			Held/Pledged Financial Instruments		Net Amount
December 31, 2014
Derivative financial assets:
Derivatives subject to master netting arrangement or similar arrangement		$5,127		$4,095		$1,032			$63		$969
Derivatives not subject to master netting arrangement or similar arrangement	25		—		25			—		25
Exchange traded derivatives	687		437		250			—		250
Total derivative financial assets		$5,839		$4,532		$1,307	1		$63		$1,244
Derivative financial liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$5,001		$4,678		$323			$12		$311
Derivatives not subject to master netting arrangement or similar arrangement	133		—		133			—		133
Exchange traded derivatives	443		437		6			—		6
Total derivative financial liabilities		$5,577		$5,115		$462	2		$12		$450
December 31, 2013
Derivative financial assets:
Derivatives subject to master netting arrangement or similar arrangement		$5,285		$4,239		$1,046			$51		$995
Derivatives not subject to master netting arrangement or similar arrangement	12		—		12			—		12
Exchange traded derivatives	828		502		326			—		326
Total derivative financial assets		$6,125		$4,741		$1,384	1		$51		$1,333
Derivative financial liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$4,982		$4,646		$336			$13		$323
Derivatives not subject to master netting arrangement or similar arrangement	189		—		189			—		189
Exchange traded derivatives	502		502		—			—		—
Total derivative financial liabilities		$5,673		$5,148		$525	2		$13		$512

¹ At December 31, 2014, $1.3 billion, net of $449 million offsetting cash collateral, is recognized in trading assets and derivatives within the Company's Consolidated Balance Sheets.

At December 31, 2013, $1.4 billion, net of $457 million offsetting cash collateral, is recognized in trading assets and derivatives within the Company's Consolidated Balance Sheets.

² At December 31, 2014, $462 million, net of $1.0 billion offsetting cash collateral, is recognized in trading liabilities and derivatives within the Company's Consolidated Balance Sheets. At December 31, 2013, $525 million, net of $864 million offsetting cash collateral, is recognized in trading liabilities and derivatives within the Company's Consolidated Balance Sheets.

[1] Amounts are recognized in trading income in the Consolidated Statements of Income.

[2] During the year ended December 31, 2013, the Company also reclassified $90 million pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.