Accumulated Other Comprehensive Income (Loss)

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



Three Months Ended June 30,	2017			2016
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	(354	)	$	44
Other comprehensive income (loss) for period:
Net unrealized gains arising during period, net of tax of $70 million and $135 million, respectively	118			223
Reclassification adjustment for gains realized in net income, net of tax of $(7) million and $(13) million, respectively⁽¹⁾	(12		)	(23		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of $2 million and $4 million, respectively⁽²⁾	4			8
Total other comprehensive income for period	110			208
Balance at end of period	(244		)	252
Unrealized gains (losses) on fair value option liabilities attributable to credit spread:
Balance at beginning of period	95			—
Other comprehensive income (loss) for period:
Net unrealized losses arising during the period, net of tax of $(6) million	(9		)	—
Total other comprehensive loss for period	(9		)	—
Balance at end of period	86			—
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Balance at beginning of period	(156		)	(215		)
Other comprehensive income (loss) for period:
Net unrealized losses arising during period, net of tax of $(3) million and $(10) million, respectively	(5		)	(14		)
Reclassification adjustment for losses realized in net income, net of tax of $1 million and $2 million, respectively⁽³⁾	2			3
Total other comprehensive loss for period	(3		)	(11		)
Balance at end of period	(159		)	(226		)
Pension and postretirement benefit liability:
Balance at beginning and end of period	—			(3		)
Total accumulated other comprehensive income (loss) at end of period	$	(317	)	$	23



Six Months Ended June 30,	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 $134 million and $308 million, respectively	224			515
Reclassification adjustment for gains realized in net income, net of tax of $(9) million and $(24) million, respectively⁽¹⁾	(15		)	(41		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of $5 million and $7 million, respectively⁽²⁾	8			12
Total other comprehensive income for period	217			486
Balance at end of period	(244		)	252
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⁽⁴⁾	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 $(52) million	(88		)	—
Total other comprehensive loss for period	(88		)	—
Balance at end of period	86			—
Unrealized gains (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 $(4) million and $(38) million, respectively	(6		)	(62		)
Reclassification adjustment for losses realized in net income, net of tax of $2 million and $3 million, respectively⁽³⁾	4			6
Total other comprehensive loss for period	(2		)	(56		)
Balance at end of period	(159		)	(226		)
Pension and postretirement benefit liability:
Balance at beginning and end of period	—			(3		)
Total accumulated other comprehensive income (loss) at end of period	$	(317	)	$	23


⁽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).


⁽⁴⁾	See Note 19, "New Accounting Pronouncements," for additional discussion.