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Accumulated Other Comprehensive Income (Loss)
12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) includes certain items that are reported directly within a separate component of equity. The following table presents changes in accumulated other comprehensive income (loss) balances:
Year Ended December 31,202120202019
 (in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period$750 $(116)$(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(1)
 — 
Balance at beginning of period, adjusted750 (114)(519)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(244) million, $298 million and $145 million, respectively
(774)944 459 
Reclassification adjustment for gains realized in net income (loss), net of tax of $(18) million, $(33) million and $(21) million, respectively(2)
(55)(104)(67)
Reversal of provision for credit losses realized in net income (loss), net of tax of nil, less than $(1) million and nil, respectively(3)
 (2)— 
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, $8 million and $4 million, respectively(4)
14 26 11 
Total other comprehensive income (loss) for period(815)864 403 
Balance at end of period(65)750 (116)
Unrealized gains (losses) on fair value option liabilities attributable to our own credit spread:
Balance at beginning of period15 (9)301 
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $4 million, $8 million and $(68) million, respectively
12 24 (217)
Reclassification adjustment for a gain realized in net income (loss), net of tax of $(30) million(5)
 — (93)
Total other comprehensive income (loss) for period12 24 (310)
Balance at end of period27 15 (9)
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Balance at beginning of period(79)(151)(159)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(16) million, $20 million and $(5) million, respectively
(49)64 (19)
Reclassification adjustment for (gains) losses realized in net income (loss), net of tax of $(3) million, $3 million and $8 million, respectively(6)
(10)27 
Total other comprehensive income (loss) for period(59)72 
Balance at end of period(138)(79)(151)
Pension and postretirement benefit liability:
Balance at beginning of period(7)(3)11 
Other comprehensive income (loss) for period:
Change in unfunded pension and postretirement liability, net of tax of $1 million, $(1) million and $(5) million, respectively
4 (4)(14)
Total other comprehensive income (loss) for period4 (4)(14)
Balance at end of period(3)(7)(3)
Total accumulated other comprehensive income (loss) at end of period$(179)$679 $(279)
(1)As a result of adopting new accounting guidance in 2020, beginning January 1, 2020, an allowance for credit losses is recognized for debt securities, with changes in the allowance recorded in earnings. Prior to January 1, 2020, debt securities were assessed for other-than-temporary impairment.
(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)In 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 (loss) in our consolidated statement of income (loss).
(6)Amount reclassified to net income (loss) is included in net interest income in our consolidated statement of income (loss).