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Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Accumulated Other Comprehensive Loss
The following table presents changes in accumulated other comprehensive loss balances:
Year Ended December 31,
2019
 
2018
 
2017
 
(in millions)
Unrealized gains (losses) on investment securities:
 
 
 
 
 
Balance at beginning of period
$
(519
)
 
$
(250
)
 
$
(461
)
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(1)
—

 
4

 
—

Cumulative effect adjustment to initially apply new accounting guidance for stranded tax effects resulting from Tax Legislation(2)
—

 
(53
)
 
—

Balance at beginning of period, adjusted
(519
)
 
(299
)
 
(461
)
Other comprehensive income (loss) for period:
 
 
 
 
 
Net unrealized gains (losses) arising during period, net of tax of $145 million, $(68) million and $136 million, respectively
459

 
(215
)
 
227

Reclassification adjustment for gains realized in net income (loss), net of tax of $(21) million, $(6) million and $(19) million, respectively(3)
(67
)
 
(18
)
 
(33
)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income (loss), net of tax of $4 million, $4 million and $10 million, respectively(4)
11

 
13

 
17

Total other comprehensive income (loss) for period
403

 
(220
)
 
211

Balance at end of period
(116
)
 
(519
)
 
(250
)
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(2)
—

 
(4
)
 
—

Cumulative effect adjustment to initially apply new accounting guidance for financial liabilities measured under the fair value option, net of tax of $103 million(5)
—

 
—

 
174

Balance at beginning of period, adjusted
301

 
(23
)
 
174

Other comprehensive income (loss) for period:
 
 
 
 
 
Net unrealized gains (losses) arising during period, net of tax of $(68) million, $103 million and $(115) million, respectively
(217
)
 
324

 
(193
)
Reclassification adjustment for a gain realized in net income (loss), net of tax of $(30) million(6)
(93
)
 
—

 
—

Total other comprehensive income (loss) for period
(310
)
 
324

 
(193
)
Balance at end of period
(9
)
 
301

 
(19
)
Unrealized gains (losses) on derivatives designated as cash flow hedges:
 
 
 
 
 
Balance at beginning of period
(159
)
 
(164
)
 
(157
)
Cumulative effect adjustment to initially apply new accounting guidance for stranded tax effects resulting from Tax Legislation(2)
—

 
(35
)
 
—

Balance at beginning of period, adjusted
(159
)
 
(199
)
 
(157
)
Other comprehensive income (loss) for period:
 
 
 
 
 
Net unrealized gains (losses) arising during period, net of tax of $(5) million, $7 million and $(11) million, respectively
(19
)
 
22

 
(18
)
Reclassification adjustment for losses realized in net income (loss), net of tax of $8 million, $5 million and $6 million, respectively(7)
27

 
18

 
11

Total other comprehensive income (loss) for period
8

 
40

 
(7
)
Balance at end of period
(151
)
 
(159
)
 
(164
)
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(1)
—

 
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 $(5) million, $3 million and less than $1 million, respectively
(14
)
 
8

 
2

Total other comprehensive income (loss) for period
(14
)
 
8

 
2

Balance at end of period
(3
)
 
11

 
2

Total accumulated other comprehensive loss at end of period
$
(279
)
 
$
(366
)
 
$
(431
)
 
(1) 
As a result of adopting new accounting guidance in 2018, beginning January 1, 2018, changes in fair value for equity securities are recognized in net income (loss). Prior to January 1, 2018, changes in fair value for equity securities classified as available-for-sale were recognized in other comprehensive income.
(2) 
See Note 17, "Income Taxes," for additional discussion.
(3) 
Amount reclassified to net income (loss) is included in other securities gains, net in our consolidated statement of income (loss).
(4) 
Amount amortized to net income (loss) 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 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.
(5) 
As a result of adopting new accounting guidance in 2017, beginning January 1, 2017, the fair value movement on fair value option liabilities attributable to our own credit spread is recorded in other comprehensive income.
(6) 
During the fourth quarter of 2019, HSBC Bank USA repurchased long-term debt that was designated under fair value option. As a result, the cumulative gain attributable to our own credit spread associated with the debt was reclassified to other income in our consolidated statement of income (loss).
(7) 
Amount reclassified to net income (loss) is included in net interest income in our consolidated statement of income (loss).