Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2021

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

Comprehensive Income (Loss) Disclosure

Accumulated Other Comprehensive Income

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

($ in millions)	Unrealized gains on investment securities (a)		Translation adjustments and net investment hedges (b)		Cash flow hedges (b)		Defined benefit pension plans		Accumulated other comprehensive income
Balance at December 31, 2019	$	208	$	19	$	2	$	(106)	$	123
Net change	453		(1)		128		3		583
Balance at March 31, 2020	$	661	$	18	$	130	$	(103)	$	706
Balance at December 31, 2020	$	640	$	19	$	82	$	(110)	$	631
Net change	(587)		1		(17)		(1)		(604)
Balance at March 31, 2021	$	53	$	20	$	65	$	(111)	$	27

(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.

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

Three months ended March 31, 2021 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(736)		$	174		$	(562)
Less: Net realized gains reclassified to income from continuing operations	32		(a)	(7)		(b)	25
Net change	(768)			181			(587)
Translation adjustments
Net unrealized gains arising during the period	3			(1)			2
Net investment hedges (c)
Net unrealized losses arising during the period	(2)			1			(1)
Cash flow hedges (c)
Less: Net realized gains reclassified to income from continuing operations	21		(d)	(4)		(b)	17
Defined benefit pension plans
Net unrealized losses arising during the period	(2)			1			(1)
Other comprehensive loss	$	(790)		$	186		$	(604)

(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.

(d)Includes gains reclassified to interest and fees on finance receivables and loans in our Condensed Consolidated Statement of Comprehensive Income.

Three months ended March 31, 2020 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized gains arising during the period	$	702		$	(168)		$	534
Less: Net realized gains reclassified to income from continuing operations	105		(a)	(24)		(b)	81
Net change	597			(144)			453
Translation adjustments
Net unrealized losses arising during the period	(13)			3			(10)
Net investment hedges (c)
Net unrealized gains arising during the period	12			(3)			9
Cash flow hedges (c)
Net unrealized gains arising during the period	169			(41)			128
Defined benefit pension plans
Net unrealized gains arising during the period	4			(1)			3
Other comprehensive income	$	769		$	(186)		$	583

(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.