Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2021

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


Three Months Ended September 30,	2021		2020
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	172	$	754
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(27) million and $26 million, respectively	(86)		84
Reclassification adjustment for gains realized in net income (loss), net of tax of $(1) million and $(13) million, respectively(1)	(3)		(39)
Reversal of provision for credit losses realized in net income (loss), net of tax of nil and less than $(1) million, respectively(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 $1 million and $4 million, respectively(3)	3		12
Total other comprehensive income (loss) for period	(86)		56
Balance at end of period	86		810
Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread:
Balance at beginning of period	15		137
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $3 million and $(13) million, respectively	9		(40)

Total other comprehensive income (loss) for period	9		(40)
Balance at end of period	24		97
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Balance at beginning of period	(100)		(58)
Other comprehensive income (loss) for period:
Net unrealized losses arising during period, net of tax of $(1) million and $(4) million, respectively	(2)		(10)
Reclassification adjustment for (gains) losses realized in net income (loss), net of tax of $(1) million and $1 million, respectively(4)	(5)		—
Total other comprehensive loss for period	(7)		(10)
Balance at end of period	(107)		(68)
Pension and postretirement benefit liability:
Balance at beginning of period	(6)		(3)
Other comprehensive income (loss) for period:
Change in unfunded pension and postretirement liability, net of tax of nil and $(1) million, respectively	—		(2)

Total other comprehensive income for period	—		(2)
Balance at end of period	(6)		(5)
Total accumulated other comprehensive income (loss) at end of period	$	(3)	$	834


Nine Months Ended September 30,	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(5)	—		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 $(201) million and $312 million, respectively	(636)		990
Reclassification adjustment for gains realized in net income (loss), net of tax of $(12) million and $(27) million, respectively(1)	(39)		(84)
Reversal of provision for credit losses realized in net income (loss), net of tax of nil and less than $(1) million, respectively(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 $3 million and $6 million, respectively(3)	11		19
Total other comprehensive income (loss) for period	(664)		924
Balance at end of period	86		810
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 arising during period, net of tax of $3 million and $33 million, respectively	9		106

Total other comprehensive income for period	9		106
Balance at end of period	24		97
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 $(7) million and $24 million, respectively	(21)		75
Reclassification adjustment for (gains) losses realized in net income (loss), net of tax of $(2) million and $3 million, respectively(4)	(7)		8
Total other comprehensive income (loss) for period	(28)		83
Balance at end of period	(107)		(68)
Pension and postretirement benefit liability:
Balance at beginning of period	(7)		(3)


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

Total other comprehensive income (loss) for period	1		(2)
Balance at end of period	(6)		(5)
Total accumulated other comprehensive income (loss) at end of period	$	(3)	$	834

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