Accumulated Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Sep. 30, 2020

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

Schedule of Accumulated Other Comprehensive Loss

The following tables present changes, net of tax, in each component of accumulated other comprehensive income (loss).

	Three months ended September 30,
($ in millions)	Unrealized gains (losses) on investment securities (a)		Translation adjustments and net investment hedges (b)		Cash flow hedges (b)		Defined benefit pension plans		Accumulated other comprehensive income (loss)
Balance at July 1, 2019	$	133	$	19	$	28	$	(96)	$	84
Net change	105		—		1		—		106
Balance at September 30, 2019	$	238	$	19	$	29	$	(96)	$	190
Balance at July 1, 2020	$	783	$	19	$	116	$	(103)	$	815
Net change	(103)		(1)		(16)		—		(120)
Balance at September 30, 2020	$	680	$	18	$	100	$	(103)	$	695

(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 18.

	Nine months ended September 30,
($ 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) income
Balance at December 31, 2018	$	(481)	$	18	$	19	$	(95)	$	(539)
Cumulative effect of changes in accounting principles, net of tax
Adoption of Accounting Standards Update 2017-08 (c)	8		—		—		—		8
Balance at January 1, 2019	(473)		18		19		(95)		(531)
Net change	711		1		10		(1)		721
Balance at September 30, 2019	$	238	$	19	$	29	$	(96)	$	190
Balance at December 31, 2019	$	208	$	19	$	2	$	(106)	$	123
Net change	472		(1)		98		3		572
Balance at September 30, 2020	$	680	$	18	$	100	$	(103)	$	695

(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 18.

(c)Refer to the section titled Recently Adopted Accounting Standards in Note 1 to the Consolidated Financial Statements in our 2019 Annual Report on Form 10-K for additional information.

Reclassification out of Accumulated Other Comprehensive Income

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

Three months ended September 30, 2020 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(92)		$	22		$	(70)
Less: Net realized gains reclassified to income from continuing operations	43		(a)	(10)		(b)	33
Net change	(135)			32			(103)
Translation adjustments
Net unrealized gains arising during the period	3			(1)			2
Net investment hedges (c)
Net unrealized losses arising during the period	(4)			1			(3)
Cash flow hedges (c)
Less: Net realized gains reclassified to income from continuing operations	21			(5)			16
Other comprehensive loss	$	(157)		$	37		$	(120)

(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 18.

Three months ended September 30, 2019 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized gains arising during the period	$	165		$	(39)		$	126
Less: Net realized gains reclassified to income from continuing operations	27		(a)	(6)		(b)	21
Net change	138			(33)			105
Translation adjustments
Net unrealized losses arising during the period	(2)			1			(1)
Net investment hedges (c)
Net unrealized gains arising during the period	2			(1)			1
Cash flow hedges (c)
Net unrealized gains arising during the period	5			(1)			4
Less: Net realized gains reclassified to income from continuing operations	3			—			3
Net change	2			(1)			1
Other comprehensive income	$	140		$	(34)		$	106

(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 18.

Nine months ended September 30, 2020 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized gains arising during the period	$	785		$	(184)		$	601
Less: Net realized gains reclassified to income from continuing operations	167		(a)	(38)		(b)	129
Net change	618			(146)			472
Translation adjustments
Net unrealized losses arising during the period	(4)			1			(3)
Net investment hedges (c)
Net unrealized gains arising during the period	3			(1)			2
Cash flow hedges (c)
Net unrealized gains arising during the period	169			(41)			128
Less: Net realized gains reclassified to income from continuing operations	40			(10)			30
Net change	129			(31)			98
Defined benefit pension plans
Net unrealized gains arising during the period	4			(1)			3
Other comprehensive income	$	750		$	(178)		$	572

(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 18.

Nine months ended September 30, 2019 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized gains arising during the period	$	990		$	(233)		$	757
Less: Net realized gains reclassified to income from continuing operations	60		(a)	(14)		(b)	46
Net change	930			(219)			711
Translation adjustments
Net unrealized gains arising during the period	4			(1)			3
Net investment hedges (c)
Net unrealized losses arising during the period	(3)			1			(2)
Cash flow hedges (c)
Net unrealized gains arising during the period	26			(6)			20
Less: Net realized gains reclassified to income from continuing operations	12			(2)			10
Net change	14			(4)			10
Defined benefit pension plans
Net unrealized losses arising during the period	(1)			—			(1)
Other comprehensive income	$	944		$	(223)		$	721

(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 18.