Accumulated Other Comprehensive Income/(Loss) (Tables)

3 Months Ended

Mar. 31, 2016

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 investment securities, foreign currency translation adjustments (including the impact of related derivatives), cash flow hedging activities, net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans, and DVA on fair value option elected liabilities.

Effective January 1, 2016, the Firm adopted new accounting guidance related to the recognition and measurement of financial liabilities where the fair value option has been elected. This guidance requires the portion of the total change in fair value caused by changes in the Firm’s own credit risk (DVA) to be presented separately in other comprehensive income; previously these amounts were recognized in net income. The guidance was required to be applied as of the beginning of the fiscal year of adoption by means of a cumulative effect adjustment to the Consolidated balance sheets, which resulted in a reclassification from retained earnings to accumulated other comprehensive income.

As of or for the three months ended March 31, 2016	Unrealized gains/(losses) on investment securities(a)			Translation adjustments, net of hedges				Cash flow hedges				Defined benefit pension and OPEB plans				DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
(in millions)
Balance at January 1, 2016		$	2,629		$	(162	)		$	(44	)		$	(2,231	)		NA			$	192
Cumulative effect of change in accounting principle		—			—				—				—				154			154
Net change		425			(2		)		(70		)		25				58			436
Balance at March 31, 2016		$	3,054		$	(164	)		$	(114	)		$	(2,206	)		$	212		$	782
As of or for the three months ended March 31, 2015	Unrealized gains/(losses) on investment securities(a)			Translation adjustments, net of hedges				Cash flow hedges				Defined benefit pension and OPEB plans				DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
(in millions)
Balance at January 1, 2015		$	4,773		$	(147	)		$	(95	)		$	(2,342	)		NA			$	2,189
Net change		89			(10		)		77				85				NA			241
Balance at March 31, 2015		$	4,862		$	(157	)		$	(18	)		$	(2,257	)		NA			$	2,430

(a) Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS including, as of the date of transfer during the first quarter of 2014, $9 million of net unrealized losses related to AFS securities that were transferred to HTM. Subsequent to transfer, includes any net unamortized unrealized gains and losses related to the transferred securities.

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).

	2016									2015
Three months ended March 31, (in millions)	Pretax			Tax effect			After-tax			Pretax			Tax effect			After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	732		$	(275	)	$	457		$	225		$	(104	)	$	121
Reclassification adjustment for realized (gains)/losses included in net income(a)	(51		)	19			(32		)	(52		)	20			(32		)
Net change	681			(256		)	425			173			(84		)	89
Translation adjustments(b):
Translation	589			(220		)	369			(1,000		)	378			(622		)
Hedges	(590		)	219			(371		)	993			(381		)	612
Net change	(1		)	(1		)	(2		)	(7		)	(3		)	(10		)
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	(167		)	63			(104		)	(49		)	18			(31		)
Reclassification adjustment for realized (gains)/losses included in net income(c)(d)	55			(21		)	34			175			(67		)	108
Net change	(112		)	42			(70		)	126			(49		)	77
Defined benefit pension and OPEB plans:
Net gains/(losses) arising during the period	(23		)	9			(14		)	60			(24		)	36
Reclassification adjustments included in net income(e):
Amortization of net loss	64			(24		)	40			71			(27		)	44
Prior service costs/(credits)	(9		)	4			(5		)	(9		)	3			(6		)
Foreign exchange and other	6			(2		)	4			33			(22		)	11
Net change	38			(13		)	25			155			(70		)	85
DVA on fair value option elected liabilities, net change:	92			(34		)	58			NA			NA			NA
Total other comprehensive income/(loss)	$	698		$	(262	)	$	436		$	447		$	(206	)	$	241

(a) The pretax amount is reported in securities gains in the Consolidated statements of income.

(b) Reclassifications of pretax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. The amounts were not material for the periods presented.

(c) The pretax amounts are predominantly recorded in net interest income in the Consolidated statements of income.

(d) In 2015, the Firm reclassified approximately $150 million of net losses from AOCI to other income because the Firm determined that it is probable that the forecasted interest payment cash flows will not occur. For additional information, see Note 5.

(e) The pretax amount is reported in compensation expense in the Consolidated statements of income.