Accumulated Other Comprehensive Loss

The following table presents changes, net of tax, in each component of accumulated other comprehensive loss.



($ in millions)	Unrealized (losses) gains on investment securities (a)			Translation adjustments and net investment hedges (b)			Cash flow hedges (b)		Defined benefit pension plans			Accumulated other comprehensive loss
Balance at December 31, 2016	$	(273	)	$	14		$	8	$	(90	)	$	(341	)
2017 net change	142			2			1		(1		)	144
Balance at September 30, 2017	$	(131	)	$	16		$	9	$	(91	)	$	(197	)
Balance at December 31, 2017, before cumulative effect of adjustments	$	(173	)	$	16		$	11	$	(89	)	$	(235	)
Cumulative effect of changes in accounting principles, net of tax (c)
Adoption of Accounting Standards Update 2016-01	27			—			—		—			27
Adoption of Accounting Standards Update 2018-02	(40		)	4			—		(6		)	(42		)
Balance at January 1, 2018, after cumulative effect of adjustments	(186		)	20			11		(95		)	(250		)
2018 net change	(545		)	(1		)	17		(2		)	(531		)
Balance at September 30, 2018	$	(731	)	$	19		$	28	$	(97	)	$	(781	)


(a)	Represents the after-tax difference between the fair value and amortized cost of our available-for-sale securities portfolio.


(b)	For additional information on derivative instruments and hedging activities, refer to Note 17.


(c)	Refer to the section titled Recently Adopted Accounting Standards in Note 1 for additional information.

The following tables present the before- and after-tax changes in each component of accumulated other comprehensive (loss) income.



Three months ended September 30, 2018 ($ in millions)	Before tax				Tax effect				After tax
Investment securities
Net unrealized losses arising during the period	$	(174	)		$	41			$	(133	)
Less: Net realized gains reclassified to income from continuing operations	1			(a)	(1		)	(b)	—
Net change	(175		)		42				(133		)
Translation adjustments
Net unrealized gains arising during the period	2				(1		)		1
Net investment hedges (c)
Net unrealized losses arising during the period	(2		)		1				(1		)
Cash flow hedges (c)
Net unrealized losses arising during the period	(1		)		1				—
Other comprehensive loss	$	(176	)		$	43			$	(133	)


(a)	Includes gains reclassified to other gain on investments, net in our Condensed Consolidated Statement of Comprehensive Income.


(b)	Includes amounts reclassified to income tax expense from continuing operations in our Condensed Consolidated Statement of Comprehensive Income.


(c)	For additional information on derivative instruments and hedging activities, refer to Note 17.



Three months ended September 30, 2017 ($ in millions)	Before tax				Tax effect				After tax
Investment securities
Net unrealized gains arising during the period	$	95			$	(22	)		$	73
Less: Net realized gains reclassified to income from continuing operations	25			(a)	2			(b)	27
Net change	70				(24		)		46
Translation adjustments
Net unrealized gains arising during the period	8				(3		)		5
Net investment hedges (c)
Net unrealized losses arising during the period	(6		)		3				(3		)
Cash flow hedges (c)
Net unrealized gains arising during the period	1				(1		)		—
Other comprehensive income	$	73			$	(25	)		$	48


(a)	Includes gains reclassified to other gain on investments, net in our Condensed Consolidated Statement of Comprehensive Income.


(b)	Includes amounts reclassified to income tax expense from continuing operations in our Condensed Consolidated Statement of Comprehensive Income.


(c)	For additional information on derivative instruments and hedging activities, refer to Note 17.



Nine months ended September 30, 2018 ($ in millions)	Before tax				Tax effect				After tax
Investment securities
Net unrealized losses arising during the period	$	(705	)		$	166			$	(539	)
Less: Net realized gains reclassified to income from continuing operations	8			(a)	(2		)	(b)	6
Net change	(713		)		168				(545		)
Translation adjustments
Net unrealized losses arising during the period	(6		)		1				(5		)
Net investment hedges (c)
Net unrealized gains arising during the period	5				(1		)		4
Cash flow hedges (c)
Net unrealized gains arising during the period	22				(5		)		17
Defined benefit pension plans
Net unrealized losses arising during the period	(2		)		—				(2		)
Other comprehensive loss	$	(694	)		$	163			$	(531	)


(a)	Includes gains reclassified to other gain on investments, net in our Condensed Consolidated Statement of Comprehensive Income.


(b)	Includes amounts reclassified to income tax expense from continuing operations in our Condensed Consolidated Statement of Comprehensive Income.


(c)	For additional information on derivative instruments and hedging activities, refer to Note 17.



Nine months ended September 30, 2017 ($ in millions)	Before tax				Tax effect				After tax
Investment securities
Net unrealized gains arising during the period	$	278			$	(64	)		$	214
Less: Net realized gains reclassified to income from continuing operations	75			(a)	(3		)	(b)	72
Net change	203				(61		)		142
Translation adjustments
Net unrealized gains arising during the period	14				(5		)		9
Net investment hedges (c)
Net unrealized losses arising during the period	(12		)		5				(7		)
Cash flow hedges (c)
Net unrealized gains arising during the period	2				(1		)		1
Defined benefit pension plans
Net unrealized losses arising during the period	(1		)		—				(1		)
Other comprehensive income	$	206			$	(62	)		$	144


(a)	Includes gains reclassified to other gain on investments, net in our Condensed Consolidated Statement of Comprehensive Income.


(b)	Includes amounts reclassified to income tax expense from continuing operations in our Condensed Consolidated Statement of Comprehensive Income.


(c)	For additional information on derivative instruments and hedging activities, refer to Note 17.