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Stockholders' Equity
9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Stockholders' Equity
NOTE 9—STOCKHOLDERS’ EQUITY
Preferred Stock
The following table summarizes our preferred stock outstanding as of September 30, 2020 and December 31, 2019.
Table 9.1: Preferred Stock Outstanding(1)
Redeemable by Issuer BeginningPer Annum Dividend RateDividend FrequencyLiquidation Preference per ShareTotal Shares Outstanding
as of
September 30, 2020
Carrying Value
(in millions)
SeriesDescriptionIssuance DateSeptember 30, 2020December 31, 2019
Series B(2)
6.000%
Non-Cumulative
August 20, 2012September 1, 20176.000%Quarterly$1,000 0$0 $853 
Series EFixed-to-Floating Rate
Non-Cumulative
May 14, 2015June 1, 2020
5.550% through 5/31/2020;
3-mo. LIBOR + 380 bps thereafter
Semi-Annually through 5/31/2020; Quarterly thereafter1,000 1,000,000 988 988 
Series F6.200%
Non-Cumulative
August 24, 2015December 1, 20206.200Quarterly1,000 500,000 484 484 
Series G5.200%
Non-Cumulative
July 29, 2016December 1, 20215.200Quarterly1,000 600,000 583 583 
Series H6.000%
Non-Cumulative
November 29, 2016December 1, 20216.000Quarterly1,000 500,000 483 483 
Series I5.000%
Non-Cumulative
September 11, 2019December 1, 20245.000Quarterly1,000 1,500,000 1,462 1,462 
Series J4.800%
Non-Cumulative
January 31, 2020June 1, 20254.800Quarterly1,000 1,250,000 1,209 
Series K4.625%
Non-Cumulative
September 17, 2020December 1, 20254.625Quarterly1,000 125,000 121 
Total$5,330 $4,853 
__________
(1)Except for Series E, ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock.
(2)On March 2, 2020, we redeemed all outstanding shares of our preferred stock Series B.
Accumulated Other Comprehensive Income
Accumulated other comprehensive income primarily consists of accumulated net unrealized gains associated with securities available for sale, changes in fair value of derivatives in hedging relationships, and foreign currency translation adjustments.
The following table includes the AOCI impacts from the adoption of the CECL standard and the changes in AOCI by component for the three and nine months ended September 30, 2020 and 2019.
Table 9.2: Accumulated Other Comprehensive Income (Loss)
Three Months Ended September 30, 2020
(Dollars in millions)Securities Available for Sale
Hedging Relationships(1)
Foreign Currency Translation Adjustments(2)
OtherTotal
AOCI as of June 30, 2020$2,373 $1,785 $(151)$(26)$3,981 
Other comprehensive income (loss) before reclassifications20 (95)28 0 (47)
Amounts reclassified from AOCI into earnings(19)(80)0 (2)(101)
Other comprehensive income (loss), net of tax1 (175)28 (2)(148)
AOCI as of September 30, 2020$2,374 $1,610 $(123)$(28)$3,833 

Nine Months Ended September 30, 2020
(Dollars in millions)Securities Available for Sale
Hedging Relationships(1)
Foreign Currency Translation Adjustments(2)
OtherTotal
AOCI as of December 31, 2019$935 $354 $(107)$(26)$1,156 
Cumulative effects from the adoption of the CECL standard(8)0 0 0 (8)
Other comprehensive income (loss) before reclassifications1,466 1,540 (16)0 2,990 
Amounts reclassified from AOCI into earnings(19)(284)0 (2)(305)
Other comprehensive income (loss), net of tax1,447 1,256 (16)(2)2,685 
AOCI as of September 30, 2020$2,374 $1,610 $(123)$(28)$3,833 

Three Months Ended September 30, 2019
(Dollars in millions)Securities Available for Sale
Hedging Relationships(1)
Foreign Currency Translation Adjustments(2)
Securities Held to MaturityOtherTotal
AOCI as of June 30, 2019$125 $396 $(132)$(178)$(41)$170 
Other comprehensive income (loss) before reclassifications103 218 (12)309 
Amounts reclassified from AOCI into earnings(3)(29)(2)(26)
Other comprehensive income (loss), net of tax100 189 (12)(2)283 
AOCI as of September 30, 2019$225 $585 $(144)$(170)$(43)$453 

Nine Months Ended September 30, 2019
(Dollars in millions)Securities Available for Sale
Hedging Relationships(1)
Foreign Currency Translation Adjustments(2)
Securities Held to MaturityOtherTotal
AOCI as of December 31, 2018$(439)$(418)$(177)$(190)$(39)$(1,263)
Other comprehensive income (loss) before reclassifications697 735 33 (1)1,464 
Amounts reclassified from AOCI into earnings(33)268 20 (3)252 
Other comprehensive income (loss), net of tax664 1,003 33 20 (4)1,716 
AOCI as of September 30, 2019$225 $585 $(144)$(170)$(43)$453 
__________
(1)Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges.
(2)Includes other comprehensive loss of $75 million and gain of $59 million for the three and nine months ended September 30, 2020, respectively, and other comprehensive gains of $67 million and $86 million for the three and nine months ended September 30, 2019, respectively, from hedging instruments designated as net investment hedges.
The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the three and nine months ended September 30, 2020 and 2019.
Table 9.3: Reclassifications from AOCI
(Dollars in millions)Three Months Ended September 30,Nine Months Ended September 30,
AOCI ComponentsAffected Income Statement Line Item2020201920202019
Securities available for sale:
Non-interest income$25 $$25 $44 
Income tax provision (benefit)6 6 11 
Net income 19 19 33 
Hedging relationships:
Interest rate contracts:Interest income179 (44)347 (166)
Foreign exchange contracts:Interest income1 12 10 37 
Interest expense(1)(1)(3)(1)
Non-interest income(73)71 20 (224)
Income from continuing operations before income taxes106 38 374 (354)
Income tax provision (benefit)26 90 (86)
Net income80 29 284 (268)
Securities held to maturity:(1)
Interest income0 (10)0 (26)
Income tax provision (benefit)0 (2)0 (6)
Net income0 (8)0 (20)
Other:
Non-interest income and non-interest expense2 2 
Income tax provision (benefit)0 0 
Net income 2 2 
Total reclassifications$101 $26 $305 $(252)
__________
(1)On December 31, 2019, we transferred our entire portfolio of held to maturity securities to available for sale.
The table below summarizes other comprehensive income (loss) activity and the related tax impact for the three and nine months ended September 30, 2020 and 2019.
Table 9.4: Other Comprehensive Income (Loss)
 Three Months Ended September 30,
 20202019
(Dollars in millions)Before
Tax
Provision
(Benefit)
After
Tax
Before
Tax
Provision
(Benefit)
After
Tax
Other comprehensive income (loss):
Net unrealized gains on securities available for sale$1 $0 $1 $132 $32 $100 
Net unrealized gains (losses) on hedging relationships(231)(56)(175)24960189
Foreign currency translation adjustments(1)
4 (24)28 921(12)
Net changes in securities held to maturity0 0 0 1028
Other(2)0 (2)(2)(2)
Other comprehensive income (loss)$(228)$(80)$(148)$398 $115 $283 

 Nine Months Ended September 30,
 20202019
(Dollars in millions)Before
Tax
Provision
(Benefit)
After
Tax
Before
Tax
Provision
(Benefit)
After
Tax
Other comprehensive income:
Net unrealized gains on securities available for sale$1,903 $456 $1,447 $874 $210 $664 
Net unrealized gains on hedging relationships1,653 397 1,256 1,3223191,003
Foreign currency translation adjustments(1)
3 19 (16)612833
Net changes in securities held to maturity0 0 0 26620
Other(2)0 (2)(5)(1)(4)
Other comprehensive income$3,557 $872 $2,685 $2,278 $562 $1,716 
__________
(1)Includes the impact of hedging instruments designated as net investment hedges.