Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

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

	Three months ended June 30,
($ 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 April 1, 2020	$	661	$	18	$	130	$	(103)	$	706
Net change	122		1		(14)		—		109
Balance at June 30, 2020	$	783	$	19	$	116	$	(103)	$	815
Balance at April 1, 2021	$	53	$	20	$	65	$	(111)	$	27
Net change	206		—		(17)		—		189
Balance at June 30, 2021	$	259	$	20	$	48	$	(111)	$	216

(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.

	Six months ended June 30,
($ 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	575		—		114		3		692
Balance at June 30, 2020	$	783	$	19	$	116	$	(103)	$	815
Balance at December 31, 2020	$	640	$	19	$	82	$	(110)	$	631
Net change	(381)		1		(34)		(1)		(415)
Balance at June 30, 2021	$	259	$	20	$	48	$	(111)	$	216

(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.

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

Three months ended June 30, 2021 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized gains arising during the period	$	276		$	(65)		$	211
Less: Net realized gains reclassified to income from continuing operations	6		(a)	(1)		(b)	5
Net change	270			(64)			206
Translation adjustments
Net unrealized gains arising during the period	2			—			2
Net investment hedges (c)
Net unrealized losses arising during the period	(3)			1			(2)
Cash flow hedges (c)
Less: Net realized gains reclassified to income from continuing operations	22		(d)	(5)		(b)	17
Other comprehensive income	$	247		$	(58)		$	189

(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.

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

Three months ended June 30, 2020 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized gains arising during the period	$	175		$	(38)		$	137
Less: Net realized gains reclassified to income from continuing operations	19		(a)	(4)		(b)	15
Net change	156			(34)			122
Translation adjustments
Net unrealized gains arising during the period	6			(1)			5
Net investment hedges (c)
Net unrealized losses arising during the period	(5)			1			(4)
Cash flow hedges (c)
Less: Net realized gains reclassified to income from continuing operations	19			(5)			14
Other comprehensive income	$	138		$	(29)		$	109

(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.

Six months ended June 30, 2021 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(460)		$	109		$	(351)
Less: Net realized gains reclassified to income from continuing operations	38		(a)	(8)		(b)	30
Net change	(498)			117			(381)
Translation adjustments
Net unrealized gains arising during the period	5			(1)			4
Net investment hedges (c)
Net unrealized losses arising during the period	(5)			2			(3)
Cash flow hedges (c)
Less: Net realized gains reclassified to income from continuing operations	43		(d)	(9)		(b)	34
Defined benefit pension plans
Net unrealized losses arising during the period	(2)			1			(1)
Other comprehensive loss	$	(543)		$	128		$	(415)

(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.

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

Six months ended June 30, 2020 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized gains arising during the period	$	877		$	(206)		$	671
Less: Net realized gains reclassified to income from continuing operations	124		(a)	(28)		(b)	96
Net change	753			(178)			575
Translation adjustments
Net unrealized losses arising during the period	(7)			2			(5)
Net investment hedges (c)
Net unrealized gains arising during the period	7			(2)			5
Cash flow hedges (c)
Net unrealized gains arising during the period	169			(41)			128
Less: Net realized gains reclassified to income from continuing operations	19			(5)			14
Net change	150			(36)			114
Defined benefit pension plans
Net unrealized gains arising during the period	4			(1)			3
Other comprehensive income	$	907		$	(215)		$	692

(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.