Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

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

Three Months Ended March 31,	2017			2016
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	(461	)	$	(234	)
Other comprehensive income (loss) for period:
Net unrealized gains arising during period, net of tax of $64 million and $173 million, respectively	106			292
Reclassification adjustment for gains realized in net income, net of tax of $(2) million and $(11) million, respectively(1)	(3		)	(18		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of $3 million and $3 million, respectively(2)	4			4
Total other comprehensive income for period	107			278
Balance at end of period	(354		)	44
Unrealized gains (losses) on fair value option liabilities attributable to credit spread:
Balance at beginning of period, as previously reported	—			—
Cumulative effect adjustment to initially apply new accounting guidance for financial liabilities measured under the fair value option, net of tax of $103 million(3)	174			—
Balance at beginning of period, adjusted	174			—
Other comprehensive income (loss) for period:
Net unrealized losses arising during the period, net of tax of $(46) million	(79		)	—
Total other comprehensive loss for period	(79		)	—
Balance at end of period	95			—
Unrealized losses on derivatives designated as cash flow hedges:
Balance at beginning of period	(157		)	(170		)
Other comprehensive income (loss) for period:
Net unrealized losses arising during period, net of tax of less than $(1) million and $(28) million, respectively	(1		)	(48		)
Reclassification adjustment for losses realized in net income, net of tax of $1 million and $1 million, respectively(4)	2			3
Total other comprehensive income (loss) for period	1			(45		)
Balance at end of period	(156		)	(215		)
Pension and postretirement benefit liability:
Balance at beginning and end of period	—			(3		)
Total accumulated other comprehensive loss at end of period	$	(415	)	$	(174	)

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

⁽²⁾  Amount amortized to net income is included in interest income in our consolidated statement of income. 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⁾  See Note 19, "New Accounting Pronouncements," for additional discussion.

⁽⁴⁾  Amount reclassified to net income is included in interest income (expense) in our consolidated statement of income.