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Accumulated Other Comprehensive Income/(Loss)
 12 Months Ended
Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income/(Loss) 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, and net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans.
 
Year ended December 31,
(in millions)
Unrealized
gains/(losses)
on investment securities
 
Translation adjustments, net of hedges
 
Fair value
hedges(c)
Cash flow hedges
 
Defined benefit pension and OPEB plans
DVA on fair value option elected liabilities
Accumulated other comprehensive income/(loss)
 
 
Balance at December 31, 2015
 
$
2,629


 
 
$
(162
)
 
 
NA

 
$
(44
)
 
 
 
$
(2,231
)
 
 
$
—

 
 
$
192

 
Cumulative effect of change in accounting principle(a)
 
—

 
 
 
—

 
 
NA

 
—

 
 
 
—

 
 
154

 
 
154

 
Net change
 
(1,105
)
 
 
 
(2
)
 
 
NA

 
(56
)
 
 
 
(28
)
 
 
(330
)
 
 
(1,521
)
 
Balance at December 31, 2016
 
$
1,524

 
 
 
$
(164
)
 
 
NA

 
$
(100
)
 
 
 
$
(2,259
)
 
 
$
(176
)
 
 
$
(1,175
)
 
Net change
 
640

 
 
 
(306
)
 
 
NA

 
176

 
 
 
738

 
 
(192
)
 
 
1,056

 
Balance at December 31, 2017
 
$
2,164

 
 
 
$
(470
)
 
 
$
—

 
$
76

 
 
 
$
(1,521
)
 
 
$
(368
)
 
 
$
(119
)
 
Cumulative effect of changes in accounting principles:(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
(1,858
)
 
 
 
20

 
 
(107
)
 
(201
)
 
 
 
(373
)
 
 
1,043

 
 
(1,476
)
 
Balance at December 31, 2018
 
$
1,202

 
 
 
$
(727
)
 
 
$
(161
)
 
$
(109
)
 
 
 
$
(2,308
)
 
 
$
596

 
 
$
(1,507
)
(a)
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 OCI; previously these amounts were recognized in net income.
(b)
Represents the adjustment to AOCI as a result of the new accounting standards adopted in the first quarter of 2018. For additional information, refer to Note 1.
(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.

The following table presents the pre-tax and after-tax changes in the components of OCI.
 
2018
 
2017
 
2016
Year ended December 31, (in millions)
Pre-tax
 
Tax effect
 
After-tax
 
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
$
(2,825
)
 
$
665

 
$
(2,160
)
 
$
944

 
$
(346
)
 
$
598

 
$
(1,628
)
 
$
611

 
$
(1,017
)
Reclassification adjustment for realized (gains)/losses included in net income(a)
395

 
(93
)
 
302

 
66

 
(24
)
 
42

 
(141
)
 
53

 
(88
)
Net change
(2,430
)
 
572

 
(1,858
)
 
1,010

 
(370
)
 
640

 
(1,769
)
 
664

 
(1,105
)
Translation adjustments(b):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Translation
(1,078
)
 
156

 
(922
)
 
1,313

 
(801
)
 
512

 
(261
)
 
99

 
(162
)
Hedges
1,236

 
(294
)
 
942

 
(1,294
)
 
476

 
(818
)
 
262

 
(102
)
 
160

Net change
158

 
(138
)
 
20

 
19

 
(325
)
 
(306
)
 
1

 
(3
)
 
(2
)
Fair value hedges, net change(c):
(140
)
 
33

 
(107
)
 
NA

 
NA

 
NA

 
NA

 
NA

 
NA

Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
(245
)
 
58

 
(187
)
 
147

 
(55
)
 
92

 
(450
)
 
168

 
(282
)
Reclassification adjustment for realized (gains)/losses included in net income(d)
(18
)
 
4

 
(14
)
 
134

 
(50
)
 
84

 
360

 
(134
)
 
226

Net change
(263
)
 
62

 
(201
)
 
281

 
(105
)
 
176

 
(90
)
 
34

 
(56
)
Defined benefit pension and OPEB plans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service credit/(cost) arising during the period
(29
)
 
7

 
(22
)
 
—

 
—

 
—

 
—

 
—

 
—

Net gain/(loss) arising during the period
(558
)
 
102

 
(456
)
 
802

 
(160
)
 
642

 
(366
)
 
145

 
(221
)
Reclassification adjustments included in net income(e):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of net loss
103

 
(24
)
 
79

 
250

 
(90
)
 
160

 
257

 
(97
)
 
160

Amortization of prior service cost/(credit)
(23
)
 
6

 
(17
)
 
(36
)
 
13

 
(23
)
 
(36
)
 
14

 
(22
)
Curtailment (gain)/loss
21

 
(5
)
 
16

 
—

 
—

 
—

 
—

 
—

 
—

Settlement (gain)/loss
2

 
—

 
2

 
2

 
(1
)
 
1

 
4

 
(1
)
 
3

Foreign exchange and other
34

 
(9
)
 
25

 
(54
)
 
12

 
(42
)
 
77

 
(25
)
 
52

Net change
(450
)
 
77

 
(373
)
 
964

 
(226
)
 
738

 
(64
)
 
36

 
(28
)
DVA on fair value option elected liabilities, net change:
$
1,364

 
$
(321
)
 
$
1,043

 
$
(303
)
 
$
111

 
$
(192
)
 
$
(529
)
 
$
199

 
$
(330
)
Total other comprehensive income/(loss)
$
(1,761
)
 
$
285

 
$
(1,476
)
 
$
1,971

 
$
(915
)
 
$
1,056

 
$
(2,451
)
 
$
930

 
$
(1,521
)
(a)
The pre-tax amount is reported in investment securities gains/(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 year ended December 31, 2018, the Firm reclassified a net pre-tax loss of $168 million to other expense related to the liquidation of certain legal entities, $17 million related to net investment hedge losses and $151 million related to cumulative translation adjustments. During the year ended December 31, 2017, the Firm reclassified a net pre-tax loss of $25 million to other expense related to the liquidation of a legal entity, $50 million related to net investment hedge gains and $75 million related to cumulative translation adjustments.
(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.