Shareholders' Equity

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Preferred Stock

    The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of December 31, 2020:

Preferred Stock(2):	Issuance Date	Depositary Shares Issued	Ownership Interest Per Depositary Share	Liquidation Preference Per Share	Liquidation Preference Per Depositary Share	Per Annum Dividend Rate	Dividend Payment Frequency	Carrying Value as of December 31, 2020 (In millions)		Redemption Date(1)
Series D	February 2014	30,000,000	1/4,000th	100,000	25	5.90% to but excluding March 15, 2024, then a floating rate equal to the three-month LIBOR plus 3.108%	Quarterly	$	742	March 15, 2024
Series F(3)	May 2015	750,000	1/100th	100,000	1,000	5.25% to but excluding September 15, 2020, then a floating rate equal to the three-month LIBOR plus 3.597%, or 3.81350% effective December 15, 2020	Quarterly	742		September 15, 2020
Series G	April 2016	20,000,000	1/4,000th	100,000	25	5.35% to but excluding March 15, 2026, then a floating rate equal to the three-month LIBOR plus 3.709%	Quarterly	493		March 15, 2026
Series H	September 2018	500,000	1/100th	100,000	1,000	5.625% to but excluding December 15, 2023, then a floating rate equal to the three-month LIBOR plus 2.539%	Semi-annually	494		December 15, 2023

(1) On the redemption date, or any dividend payment date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

(2) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

(3) Series F preferred stock is redeemable on September 15, 2020 and on each succeeding dividend payment date. We did not elect redemption on September 15, 2020 or December 15, 2020.

We redeemed all outstanding Series C non-cumulative perpetual preferred stock on March 15, 2020 at a redemption price of $500 million ($100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. The difference of $9 million between the redemption value and the net carrying value resulted in an EPS impact of approximately ($0.03) per share in the first quarter of 2020.

On January 14, 2021, we announced that we will redeem on March 15, 2021 an aggregate of $500 million, or 5,000 of the 7,500 outstanding shares of our non-cumulative perpetual preferred stock, Series F, for cash at a redemption price of $100,000 per share (equivalent to $1,000 per depositary share) plus all declared and unpaid dividends. A cash dividend of $953.38 per share of Series F Preferred Stock (or approximately $9.5338 per depositary share) has been declared for the period from December 15, 2020 up to but not including March 15, 2021 (the “March Dividend”). The March Dividend will be paid separately to the holders of record of the Series F Preferred Stock as of March 1, 2021 in the customary manner. Accordingly, there will not be any declared and unpaid dividends included in the redemption price.

The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated:

	Years Ended December 31,
	2020						2019
(Dollars in millions, except per share amounts)	Dividends Declared per Share		Dividends Declared per Depositary Share		Total		Dividends Declared per Share		Dividends Declared per Depositary Share		Total
Preferred Stock:
Series C	$	1,313	$	0.33	$	6	$	5,250	$	1.32	$	26
Series D	5,900		1.48		44		5,900		1.48		44
Series E	—		—		—		6,000		1.52		45
Series F	6,223		62.23		47		5,250		52.50		40
Series G	5,352		1.32		27		5,352		1.32		27
Series H	5,625		56.25		28		5,625		56.25		28
Total					$	152					$	210

In January 2021, we declared dividends on our series D, F, and G preferred stock of approximately $1,475, $953, and $1,338, respectively, per share, or approximately $0.37, $9.53, and $0.33, respectively, per depositary share. These dividends total approximately $11 million, $7 million, and $7 million on our series D, F, and G preferred stock, respectively, which will be paid in March 2021.

Common Stock

In June 2019, our Board approved a common stock purchase program authorizing the purchase of up to $2.0 billion of our common stock from July 1, 2019 through June 30, 2020 (the 2019 Program). We repurchased $500 million of our common stock in each of the third and fourth quarters of 2019 and the first quarter of 2020 under the 2019 Program. On March 16, 2020, we, along with the other U.S. G-SIBs, suspended common share repurchases and maintained this suspension through the fourth quarter of 2020 in response to the COVID-19 pandemic. This suspension was consistent with limitations imposed by the Federal Reserve beginning in the second quarter of 2020. As a result, we had no repurchases of our common stock in the second, third or fourth quarters of 2020.

In June 2020, concurrent with the release of the CCAR 2020 results, the Federal Reserve announced that all CCAR banks were required to resubmit their capital plan and stress test results based on scenarios to be provided in September 2020. Scenarios were provided on September 17, 2020 with materials due on November 2, 2020. In December 2020, the Federal Reserve issued results of 2020 resubmission stress tests and authorized us to continue to pay common stock dividends at current levels and to resume repurchasing common shares in the first quarter of 2021. In January 2021, our Board authorized a share repurchase program for the purchase of up to $475 million of our common stock through March 31, 2021.

In June 2018, our Board approved a common stock purchase program authorizing the purchase of up to $1.2 billion of our common stock through June 30, 2019 (the 2018 Program). We repurchased $300 million of our common stock in each of the first and second quarters of 2019 under the 2018 Program.

The table below presents the activity under our common stock purchase program for the period indicated:

	Year Ended December 31, 2020
	Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)
2019 Program	6.5	$	77.35	$	500
Total	6.5	77.35		$	500

The table below presents the dividends declared on common stock for the periods indicated:

	Years Ended December 31,
	2020				2019
	Dividends Declared per Share		Total (In millions)		Dividends Declared per Share		Total (In millions)
Common Stock	$	2.08	$	734	$	1.98	$	728

Accumulated Other Comprehensive Income (Loss)

The following table presents the after-tax components of AOCI for the periods indicated:

	Years Ended December 31,
(In millions)	2020		2019		2018
Net unrealized gains (losses) on cash flow hedges	$	57	$	(70)	$	(89)
Net unrealized gains (losses) on available-for-sale securities portfolio	936		426		(193)
Net unrealized gains (losses) related to reclassified available-for-sale securities	(55)		19		58
Net unrealized gains (losses) on available-for-sale securities	881		445		(135)
Net unrealized (losses) on available-for-sale securities designated in fair value hedges	(33)		(36)		(40)
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries	(204)		46		16
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(2)		(2)		(2)
Net unrealized (losses) on retirement plans	(178)		(187)		(143)
Foreign currency translation	(334)		(1,072)		(963)
Total	$	187	$	(876)	$	(1,356)

The following table presents changes in AOCI by component, net of related taxes, for the periods indicated:

(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for-Sale Securities		Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries		Other-Than-Temporary Impairment on Held-to-Maturity Securities		Net Unrealized Losses on Retirement Plans		Foreign Currency Translation		Total
Balance as of December 31, 2018	$	(89)	$	(175)	$	16	$	(2)	$	(143)	$	(963)	$	(1,356)
Other comprehensive income (loss) before reclassifications	13		563		33		2		—		(42)		569
Reclassification of certain tax effects(1)	(6)		21		(3)		(1)		(28)		(67)		(84)
Amounts reclassified into (out of) earnings	12		—		—		(1)		(16)		—		(5)
Other comprehensive income (loss)	19		584		30		—		(44)		(109)		480
Balance as of December 31, 2019	$	(70)	$	409	$	46	$	(2)	$	(187)	$	(1,072)	$	(876)
Other comprehensive income (loss) before reclassifications	75		439		(250)		—		—		738		1,002
Amounts reclassified into earnings	52		—		—		—		9		—		61
Other comprehensive income (loss)	127		439		(250)		—		9		738		1,063
Balance as of December 31, 2020	$	57	$	848	$	(204)	$	(2)	$	(178)	$	(334)	$	187

(1) Represents the reclassification from accumulated other comprehensive income into retained earnings as a result of our adoption of ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2019.

The following table presents after-tax reclassifications into earnings for the periods indicated:

	Years Ended December 31,
	2020		2019
(In millions)	Amounts Reclassified into (out of) Earnings				Affected Line Item in Consolidated Statement of Income
Held-to-maturity securities:
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of zero and zero, respectively	$	—	$	(1)	Losses reclassified (from) to other comprehensive income
Cash flow hedges:
Gain reclassified from accumulated other comprehensive income into Income, net of related taxes of $20 and $5	52		12		Net interest income reclassified from other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of $3 and ($8), respectively	9		(16)		Compensation and employee benefits expenses
Total reclassifications (into) out of Accumulated other comprehensive loss	$	61	$	(5)