Accumulated Other Comprehensive Income/(Loss) (Tables)

3 Months Ended

Mar. 31, 2012

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated other comprehensive income/(loss)

AOCI includes the after-tax change in unrealized gains and losses on AFS securities, foreign currency translation adjustments (including the impact of related derivatives), cash flow hedging activities, and net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans.



As of or for the three months ended March 31, 2012	Unrealized gains/(losses) on AFS securities^(a)					Translation adjustments, net of hedges				Cash flow hedges				Defined benefit pension and OPEB plans				Accumulated other comprehensive income/(loss)
(in millions)	Unrealized gains/(losses) on AFS securities^(a)					Translation adjustments, net of hedges				Cash flow hedges				Defined benefit pension and OPEB plans				Accumulated other comprehensive income/(loss)
Balance at January 1, 2012		$	3,565		^(b)		$	(26	)		$	51			$	(2,646	)		$	944
Net change		1,574			^(c)		127				(35		)		35				1,701
Balance at March 31, 2012		$	5,139		^(b)		$	101			$	16			$	(2,611	)		$	2,645

As of or for the three months ended March 31, 2011	Unrealized gains/(losses) on AFS securities^(a)					Translation adjustments, net of hedges				Cash flow hedges				Defined benefit pension and OPEB plans				Accumulated other comprehensive income/(loss)
(in millions)	Unrealized gains/(losses) on AFS securities^(a)					Translation adjustments, net of hedges				Cash flow hedges				Defined benefit pension and OPEB plans				Accumulated other comprehensive income/(loss)
Balance at January 1, 2011		$	2,498		^(b)		$	253			$	206			$	(1,956	)		$	1,001
Net change		(251		)	^(d)		24				(79		)		17				(289		)
Balance at March 31, 2011		$	2,247		^(b)		$	277			$	127			$	(1,939	)		$	712


(a)	Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS.


(b)	Included after-tax unrealized losses not related to credit on debt securities for which credit losses have been recognized in income of $(48) million, $(56) million, $(65) million and $(81) million at March 31, 2012, January 1, 2012, March 31, 2011, and January 1, 2011, respectively.


(c)	The net change for the three months ended March 31, 2012, was due primarily to market value increases driven by tightening of spreads.


(d)	The net change for the three months ended March 31, 2011, was due primarily to decreased market value on pass-through agency MBS and agency collateralized mortgage obligations, as well as on foreign government debt, partially offset by the narrowing of spreads on collateralized loan obligations and foreign residential MBS.

Changes of the components of accumulated other comprehensive income (loss)

The following table presents the pretax and after-tax changes in the components of other comprehensive income/(loss).



	2012									2011
Three months ended March 31, (in millions)	Pretax			Tax effect			After-tax			Pretax			Tax effect			After-tax
Unrealized gains/(losses) on AFS securities:
Net unrealized gains/(losses) arising during the period	$	3,118		$	(1,217	)	$	1,901		$	(315	)	$	124		$	(191	)
Reclassification adjustment for realized (gains)/losses included in net income	(536		)	209			(327		)	(97		)	37			(60		)
Net change	2,582			(1,008		)	1,574			(412		)	161			(251		)
Translation adjustments:
Translation	460			(169		)	291			418			(156		)	262
Hedges	(267		)	103			(164		)	(390		)	152			(238		)
Net change	193			(66		)	127			28			(4		)	24
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	(41		)	17			(24		)	(13		)	5			(8		)
Reclassification adjustment for realized (gains)/losses included in net income	(20		)	9			(11		)	(116		)	45			(71		)
Net change	(61		)	26			(35		)	(129		)	50			(79		)
Defined benefit pension and OPEB plans:
Net gains/(losses) arising during the period	2			—			2			8			(2		)	6
Reclassification adjustments included in net income:
Prior service costs/(credits)	(11		)	4			(7		)	(12		)	5			(7		)
Amortization of net loss	83			(32		)	51			53			(21		)	32
Foreign exchange and other	(18		)	7			(11		)	(22		)	8			(14		)
Net change	56			(21		)	35			27			(10		)	17
Total other comprehensive income/(loss)	$	2,770		$	(1,069	)	$	1,701		$	(486	)	$	197		$	(289	)

- Definition

This table may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

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- Definition

Schedule which may include the following: 1) the gross amount before-tax, amount of income tax expense or benefit, and the after-tax amount allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

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