Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2020

The following table presents changes in accumulated other comprehensive income (loss) balances:


Three Months Ended September 30,	2020		2019
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	754	$	(120)
Other comprehensive income (loss) for period:
Net unrealized gains arising during period, net of tax of $26 million and $38 million, respectively	84		117
Reclassification adjustment for gains realized in net income (loss), net of tax of $(13) million and $(11) million, respectively⁽¹⁾	(39)		(35)
Reversal of provision for credit losses realized in net income (loss), net of tax of less than $(1) million⁽²⁾	(1)		—
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 and $1 million, respectively⁽³⁾	12		4
Total other comprehensive income for period	56		86
Balance at end of period	810		(34)
Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread:
Balance at beginning of period	137		197
Other comprehensive income (loss) for period:
Net unrealized losses arising during the period, net of tax of $(13) million and $(1) million, respectively	(40)		(3)

Total other comprehensive income (loss) for period	(40)		(3)
Balance at end of period	97		194
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Balance at beginning of period	(58)		(140)
Other comprehensive income (loss) for period:
Net unrealized losses arising during period, net of tax of $(4) million and $(4) million, respectively	(10)		(17)
Reclassification adjustment for losses realized in net income (loss), net of tax of $1 million and $1 million, respectively⁽⁴⁾	—		7
Total other comprehensive loss for period	(10)		(10)
Balance at end of period	(68)		(150)
Pension and postretirement benefit liability:
Balance at beginning of period	(3)		8
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	(2)		(1)

Total other comprehensive loss for period	(2)		(1)
Balance at end of period	(5)		7
Total accumulated other comprehensive income at end of period	$	834	$	17


Nine Months Ended September 30,	2020		2019
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	(116)	$	(519)
Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses on securities available-for-sale, net of tax of $1 million⁽⁵⁾	2		—


Balance at beginning of period, adjusted	(114)		(519)
Other comprehensive income (loss) for period:
Net unrealized gains arising during period, net of tax of $312 million and $166 million, respectively	990		532
Reclassification adjustment for gains realized in net income (loss), net of tax of $(27) million and $(18) million, respectively⁽¹⁾	(84)		(58)
Reversal of provision for credit losses realized in net income (loss), net of tax of less than $(1) million⁽²⁾	(1)		—
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 $6 million and $3 million, respectively⁽³⁾	19		11
Total other comprehensive income for period	924		485
Balance at end of period	810		(34)
Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread:
Balance at beginning of period	(9)		301



Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $33 million and $(34) million, respectively	106		(107)

Total other comprehensive income (loss) for period	106		(107)
Balance at end of period	97		194
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Balance at beginning of period	(151)		(159)


Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $24 million and $(3) million, respectively	75		(12)
Reclassification adjustment for losses realized in net income (loss), net of tax of $3 million and $6 million, respectively⁽⁴⁾	8		21
Total other comprehensive income for period	83		9
Balance at end of period	(68)		(150)
Pension and postretirement benefit liability:
Balance at beginning of period	(3)		11


Other comprehensive income (loss) for period:
Change in unfunded pension and postretirement liability, net of tax of $(1) million and $(1) million, respectively	(2)		(4)

Total other comprehensive loss for period	(2)		(4)
Balance at end of period	(5)		7
Total accumulated other comprehensive income at end of period	$	834	$	17

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

⁽²⁾Changes in the allowance for credit losses on securities available-for-sale are included in the provision for credit losses in our consolidated statement of income (loss).

⁽³⁾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.

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

⁽⁵⁾See Note 21, "New Accounting Pronouncements," for additional discussion.