Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) includes certain items that are reported directly within a separate component of shareholders’ equity. The following table presents changes in accumulated other comprehensive income (loss) balances:

Three Months Ended June 30	2016			2015
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	44		$	130
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $135 million and $(117) million, respectively	223			(198		)
Reclassification adjustment for gains realized in net income, net of tax of $(13) million and $(13) million, respectively(1)	(23		)	(22		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of $4 million and $4 million, respectively(2)	8			7
Total other comprehensive income (loss) for period	208			(213		)
Balance at end of period	252			(83		)
Unrealized losses on derivatives designated as cash flow hedges:
Balance at beginning of period	(215		)	(175		)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(10) million and $19 million, respectively	(14		)	30
Reclassification adjustment for losses realized in net income, net of tax of $2 million and $1 million, respectively(3)	3			1
Total other comprehensive income (loss) for period	(11		)	31
Balance at end of period	(226		)	(144		)
Pension and postretirement benefit liability:
Balance at beginning and end of period	(3		)	(2		)
Total accumulated other comprehensive income (loss) at end of period	$	23		$	(229	)

Six Months Ended June 30,	2016			2015
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	(234	)	$	158
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $308 million and $(128) million, respectively	515			(217		)
Reclassification adjustment for gains realized in net income, net of tax of $(24) million and $(22) million, respectively(1)	(41		)	(36		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of $7 million and $7 million, respectively(2)	12			12
Total other comprehensive income (loss) for period	486			(241		)
Balance at end of period	252			(83		)
Unrealized losses on derivatives designated as cash flow hedges:
Balance at beginning of period	(170		)	(156		)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(38) million and $7 million, respectively	(62		)	9
Reclassification adjustment for losses realized in net income, net of tax of $3 million and $2 million, respectively(3)	6			3
Total other comprehensive income (loss) for period	(56		)	12
Balance at end of period	(226		)	(144		)
Pension and postretirement benefit liability:
Balance at beginning of period	(3		)	(3		)
Other comprehensive income for period:
Change in unfunded pension and postretirement liability, net of tax of less than $1 million	—			1
Total other comprehensive income for period	—			1
Balance at and end of period	(3		)	(2		)
Total accumulated other comprehensive income (loss) at end of period	$	23		$	(229	)

⁽¹⁾  Amount reclassified to net income is included in other securities gains, net in our consolidated statement of income (loss).

⁽²⁾  Amount amortized to net income is included in interest income in our consolidated statement of income (loss). During 2014, we transferred securities from available-for-sale to held-to-maturity. At the date of transfer, AOCI included net pretax unrealized losses of $234 million related to the transferred securities which will be amortized over the remaining contractual life of each security as an adjustment of yield in a manner consistent with the amortization of any premium or discount.

⁽³⁾  Amount reclassified to net income is included in interest income (expense) in our consolidated statement of income (loss).