Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Accumulated Other Comprehensive Income

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

Three Months Ended March 31,	2021		2020
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	750	$	(116)
Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses on securities available-for-sale, net of tax of $1 million(1)	—		2
Balance at beginning of period, adjusted	750		(114)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(195) million and $245 million, respectively	(613)		775
Reclassification adjustment for gains realized in net income (loss), net of tax of $(7) million and $(7) million, respectively(2)	(22)		(21)
Provision for credit losses realized in net income (loss), net of tax of nil and less than $1 million, respectively(3)	—		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 $1 million and $1 million, respectively(4)	4		3
Total other comprehensive income (loss) for period	(631)		758
Balance at end of period	119		644
Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread:
Balance at beginning of period	15		(9)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(3) million and $128 million, respectively	(10)		407
Total other comprehensive income (loss) for period	(10)		407
Balance at end of period	5		398
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Balance at beginning of period	(79)		(151)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(4) million and $28 million, respectively	(13)		85
Reclassification adjustment for losses realized in net income (loss), net of tax of less than $1 million and $1 million, respectively(5)	1		5
Total other comprehensive income (loss) for period	(12)		90
Balance at end of period	(91)		(61)
Pension and postretirement benefit liability:
Balance at beginning and end of period	(7)		(3)
Total accumulated other comprehensive income at end of period	$	26	$	978

(1)See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion.

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

(3)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).

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