XML 63 R49.htm IDEA: XBRL DOCUMENT v3.10.0.1
Accumulated Other Comprehensive Income/(Loss) (Tables)
 6 Months Ended
Jun. 30, 2018
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), fair value changes of excluded components on fair value hedges, cash flow hedging activities, 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
June 30, 2018
(in millions)
Unrealized
gains/(losses)
on investment securities
 
Translation adjustments, net of hedges
 
Fair value hedges(b)
Cash flow hedges
 
Defined benefit
pension and
OPEB plans
DVA on fair value option elected liabilities
Accumulated other comprehensive income/(loss)
 
 
Balance at April 1, 2018
 
$
1,826

 
 
 
$
(720
)
 
 
$
(94
)
 
$
19

 
 
 
$
(1,914
)
 
 
$
(180
)
 
 
$
(1,063
)
 
 
Net change
 
(227
)
 
 
 
88

 
 
(68
)
 
(166
)
 
 
 
38

 
 
260

 
 
(75
)
 
 
Balance at June 30, 2018
 
$
1,599

 
 
 
$
(632
)
 
 
$
(162
)
 
$
(147
)
 
 
 
$
(1,876
)
 
 
$
80

 
 
$
(1,138
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for the three months ended
June 30, 2017
(in millions)
Unrealized
gains/(losses)
on investment securities
 
Translation adjustments, net of hedges
 
Fair value hedges
Cash flow hedges
 
Defined benefit pension and
OPEB plans
DVA on fair value option elected liabilities
Accumulated other comprehensive income/(loss)
 
 
Balance at April 1, 2017
 
$
1,762

 
 
 
$
(157
)
 
 
NA

 
$
(9
)
 
 
 
$
(2,274
)
 
 
$
(245
)
 
 
$
(923
)
 
 
Net change
 
457

 
 
 
—

 
 
NA

 
53

 
 
 
19

 
 
2

 
 
531

 
 
Balance at June 30, 2017
 
$
2,219

 
 
 
$
(157
)
 
 
NA

 
$
44

 
 
 
$
(2,255
)
 
 
$
(243
)
 
 
$
(392
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for the six months ended
June 30, 2018
(in millions)
Unrealized
gains/(losses)
on investment securities
 
Translation adjustments, net of hedges
 
Fair value hedges
Cash flow hedges
 
Defined benefit
pension and
OPEB plans
DVA on fair value option elected liabilities
Accumulated other comprehensive income/(loss)
 
 
Balance at January 1, 2018
 
$
2,164

 
 
 
$
(470
)
 
 
$
—

 
$
76

 
 
 
$
(1,521
)
 
 
$
(368
)
 
 
$
(119
)
 
 
Cumulative effect of changes in accounting principles:(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium amortization on purchased callable debt securities
 
261

 
 
 
—

 
 
—

 
—

 
 
 
—

 
 
—

 
 
261

 
 
Hedge accounting
 
169

 
 
 
—

 
 
(54
)
 
—

 
 
 
—

 
 
—

 
 
115

 
 
Reclassification of certain tax effects from AOCI
 
466

 
 
 
(277
)
 
 
—

 
16

 
 
 
(414
)
 
 
(79
)
 
 
(288
)
 
 
Net change
 
(1,461
)
 
 
 
115

 
 
(108
)
 
(239
)
 
 
 
59

 
 
527

 
 
(1,107
)
 
 
Balance at June 30, 2018
 
$
1,599

 
 
 
$
(632
)
 
 
$
(162
)
 
$
(147
)
 
 
 
$
(1,876
)
 
 
$
80

 
 
$
(1,138
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for the six months ended
June 30, 2017
(in millions)
Unrealized
gains/(losses)
on investment securities
 
Translation adjustments, net of hedges
 
Fair value hedges
Cash flow hedges
 
Defined benefit pension and
OPEB plans
DVA on fair value option elected liabilities
Accumulated other comprehensive income/(loss)
 
 
Balance at January 1, 2017
 
$
1,524

 
 
 
$
(164
)
 
 
NA

 
$
(100
)
 
 
 
$
(2,259
)
 
 
$
(176
)
 
 
$
(1,175
)
 
 
Net change
 
695

 
 
 
7

 
 
NA

 
144

 
 
 
4

 
 
(67
)
 
 
783

 
 
Balance at June 30, 2017
 
$
2,219

 
 
 
$
(157
)
 
 
NA

 
$
44

 
 
 
$
(2,255
)
 
 
$
(243
)
 
 
$
(392
)
 

(a)
Represents the adjustment to AOCI as a result of the new accounting standards adopted in the first quarter of 2018.
(b)
Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swap.

Changes of the components of accumulated other comprehensive income (loss)
The following table presents the pre-tax and after-tax changes in the components of OCI.-
 
2018
 
2017
Three months ended June 30, (in millions)
Pre-tax
 
Tax effect
 
After-tax
 
Pre-tax
 
Tax effect
 
After-tax
Unrealized gains/(losses) on investment securities:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
$
(376
)
 
$
88

 
$
(288
)
 
$
695

 
$
(259
)
 
$
436

Reclassification adjustment for realized (gains)/losses included in net income(a)
80

 
(19
)
 
61

 
34

 
(13
)
 
21

Net change
(296
)
 
69

 
(227
)
 
729

 
(272
)
 
457

Translation adjustments(b):
 
 
 
 
 
 
 
 
 
 
 
Translation
(1,056
)
 
208

 
(848
)
 
317

 
(117
)
 
200

Hedges
1,227

 
(291
)
 
936

 
(319
)
 
119

 
(200
)
Net change
171

 
(83
)
 
88

 
(2
)
 
2

 
—

Fair value hedges, net change(c):

(89
)
 
21

 
(68
)
 
NA

 
NA

 
NA

Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
(199
)
 
47

 
(152
)
 
23

 
(10
)
 
13

Reclassification adjustment for realized (gains)/losses included in net income(d)
(19
)
 
5

 
(14
)
 
65

 
(25
)
 
40

Net change
(218
)
 
52

 
(166
)
 
88

 
(35
)
 
53

Defined benefit pension and OPEB plans:
 
 
 
 
 
 
 
 
 
 
 
Net gains/(losses) arising during the period
2

 
—

 
2

 
6

 
(2
)
 
4

Reclassification adjustments included in net income(e):
 
 
 
 
 
 
 
 
 
 
 
Amortization of net loss
26

 
(6
)
 
20

 
62

 
(23
)
 
39

Prior service costs/(credits)
(6
)
 
2

 
(4
)
 
(9
)
 
4

 
(5
)
Foreign exchange and other
31

 
(11
)
 
20

 
(25
)
 
6

 
(19
)
Net change
53

 
(15
)
 
38

 
34

 
(15
)
 
19

DVA on fair value option elected liabilities, net change:
340

 
(80
)
 
260

 
2

 
—

 
2

Total other comprehensive income/(loss)
$
(39
)
 
$
(36
)
 
$
(75
)
 
$
851

 
$
(320
)
 
$
531

 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
Six months ended June 30, (in millions)
Pre-tax
 
Tax effect
 
After-tax
 
Pre-tax
 
Tax effect
 
After-tax
Unrealized gains/(losses) on investment securities:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
$
(2,234
)
 
$
525

 
$
(1,709
)
 
$
1,062

 
$
(390
)
 
$
672

Reclassification adjustment for realized (gains)/losses included in net income(a)
325

 
(77
)
 
248

 
37

 
(14
)
 
23

Net change
(1,909
)
 
448

 
(1,461
)
 
1,099

 
(404
)
 
695

Translation adjustments:(b)
 
 
 
 
 
 
 
 
 
 
 
Translation
(667
)
 
143

 
(524
)
 
899

 
(342
)
 
557

Hedges
838

 
(199
)
 
639

 
(875
)
 
325

 
(550
)
Net change
171

 
(56
)
 
115

 
24

 
(17
)
 
7

Fair value hedges, net change(c):
(141
)
 
33

 
(108
)
 
NA

 
NA

 
NA

Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
(243
)
 
58

 
(185
)
 
82

 
(31
)
 
51

Reclassification adjustment for realized (gains)/losses included in net income(d)
(71
)
 
17

 
(54
)
 
150

 
(57
)
 
93

Net change
(314
)
 
75

 
(239
)
 
232

 
(88
)
 
144

Defined benefit pension and OPEB plans:
 
 
 
 
 
 
 
 
 
 
 
Net gains/(losses) arising during the period
25

 
(6
)
 
19

 
(52
)
 
19

 
(33
)
Reclassification adjustments included in net income(e):
 
 
 
 
 
 
 
 
 
 
 
Amortization of net loss
52

 
(12
)
 
40

 
124

 
(46
)
 
78

Prior service costs/(credits)
(12
)
 
3

 
(9
)
 
(18
)
 
7

 
(11
)
Settlement (gain)/loss

—

 
—

 
—

 
(3
)
 
1

 
(2
)
Foreign exchange and other
12

 
(3
)
 
9

 
(32
)
 
4

 
(28
)
Net change
77

 
(18
)
 
59

 
19

 
(15
)
 
4

DVA on fair value option elected liabilities, net change:
$
690

 
$
(163
)
 
$
527

 
$
(105
)
 
$
38

 
$
(67
)
Total other comprehensive income/(loss)
$
(1,426
)
 
$
319

 
$
(1,107
)
 
$
1,269

 
$
(486
)
 
$
783

(a)
The pre-tax amount is reported in investment securities losses in the Consolidated statements of income.
(b)
Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the three and six months ended June 30, 2018, the Firm reclassified a net pre-tax loss of $174 million to other expense related to the liquidation of a legal entity, comprised of $23 million related to net investment hedge losses and $151 million related to cumulative translation adjustments. During the six months ended June 30, 2017, the Firm reclassified a net pre-tax loss of $25 million to other expense related to the liquidation of a legal entity, comprised of $47 million related to net investment hedge gains and $72 million related to cumulative translation adjustments. There were no such reclassifications during the three months ended June 30, 2017.
(c)
Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swap.
(d)
The pre-tax amounts are predominantly recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.
(e)
The pre-tax amount is reported in other expense in the Consolidated statements of income.