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 June 30,	2019			2018
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	(340	)	$	(494	)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $73 million and $(22) million, respectively	235			(73		)
Reclassification adjustment for gains realized in net income, net of tax of $(5) and $(3) million, respectively⁽¹⁾	(18		)	(7		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of $1 million and $1 million, respectively⁽²⁾	3			4
Total other comprehensive income (loss) for period	220			(76		)
Balance at end of period	(120		)	(570		)
Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread:
Balance at beginning of period	190			(11		)
Other comprehensive income (loss) for period:
Net unrealized gains arising during the period, net of tax of $2 million and $41 million, respectively	7			129
Total other comprehensive income for period	7			129
Balance at end of period	197			118
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Balance at beginning of period	(145		)	(197		)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(1) million and $2 million, respectively	(1		)	6
Reclassification adjustment for losses realized in net income, net of tax of $3 million and $1 million, respectively⁽³⁾	6			4
Total other comprehensive income for period	5			10
Balance at end of period	(140		)	(187		)
Pension and postretirement benefit liability:
Balance at beginning of period	8			4
Other comprehensive income (loss) for period:
Change in unfunded pension and postretirement liability, net of tax of nil and less than $1 million, respectively	—			(1		)
Total other comprehensive loss for period	—			(1		)
Balance at end of period	8			3
Total accumulated other comprehensive loss at end of period	$	(55	)	$	(636	)



Six Months Ended June 30,	2019			2018
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	(519	)	$	(250	)
Cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, net of tax of $2 million⁽⁴⁾	—			4
Cumulative effect adjustment to initially apply new accounting guidance for stranded tax effects resulting from Tax Legislation⁽⁴⁾	—			(53		)
Balance at beginning of period, adjusted	(519		)	(299		)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $128 million and $(85) million, respectively	415			(266		)
Reclassification adjustment for gains realized in net income, net of tax of $(7) million and $(4) million, respectively⁽¹⁾	(23		)	(11		)
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 $2 million, respectively⁽²⁾	7			6
Total other comprehensive income (loss) for period	399			(271		)
Balance at end of period	(120		)	(570		)
Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread:
Balance at beginning of period	301			(19		)
Cumulative effect adjustment to initially apply new accounting guidance for stranded tax effects resulting from Tax Legislation⁽⁴⁾	—			(4		)
Balance at beginning of period, adjusted	301			(23		)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(33) million and $46 million, respectively	(104		)	141
Total other comprehensive income (loss) for period	(104		)	141
Balance at end of period	197			118
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Balance at beginning of period	(159		)	(164		)
Cumulative effect adjustment to initially apply new accounting guidance for stranded tax effects resulting from Tax Legislation⁽⁴⁾	—			(35		)
Balance at beginning of period, adjusted	(159		)	(199		)
Other comprehensive income (loss) for period:
Net unrealized gains arising during period, net of tax of $1 million and $2 million, respectively	5			5
Reclassification adjustment for losses realized in net income, net of tax of $5 million and $2 million, respectively⁽³⁾	14			7
Total other comprehensive income for period	19			12
Balance at end of period	(140		)	(187		)
Pension and postretirement benefit liability:
Balance at beginning of period	11			2
Cumulative effect adjustment to initially apply new accounting guidance for stranded tax effects resulting from Tax Legislation⁽⁴⁾	—			1
Balance at beginning of period, adjusted	11			3
Other comprehensive income (loss) for period:
Change in unfunded pension and postretirement liability, net of tax of $(1) million and less than $1 million, respectively	(3		)	—
Total other comprehensive loss for period	(3		)	—
Balance at end of period	8			3
Total accumulated other comprehensive loss at end of period	$	(55	)	$	(636	)


⁽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 related to the transferred securities which are being 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 net interest income in our consolidated statement of income.


⁽⁴⁾	See Note 2, "Summary of Significant Accounting Polices and New Accounting Pronouncements," in our 2018 Form 10-K for additional discussion.