Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

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

	Three months ended June 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 April 1, 2021	$	53	$	20	$	65	$	(111)	$	27
Net change	206		—		(17)		—		189
Balance at June 30, 2021	$	259	$	20	$	48	$	(111)	$	216
Balance at April 1, 2022	$	(1,726)	$	20	$	30	$	(115)	$	(1,791)
Net change	(1,214)		(1)		(3)		—		(1,218)
Balance at June 30, 2022 (c)	$	(2,940)	$	19	$	27	$	(115)	$	(3,009)

(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 19.

(c)The valuation of our defined benefit plan reflects our current intention to terminate our qualified defined benefit plan in the future. Upon termination and settlement, the unrealized loss and associated tax effects related to our qualified defined benefit pension plan recorded in accumulated other comprehensive income would be recognized in net income from continuing operations of our Condensed Consolidated Statement of Comprehensive Income.

	Six months ended June 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 January 1, 2021	$	640	$	19	$	82	$	(110)	$	631
Net change	(381)		1		(34)		(1)		(415)
Balance at June 30, 2021	$	259	$	20	$	48	$	(111)	$	216
Balance at January 1, 2022	$	(95)	$	19	$	35	$	(117)	$	(158)
Net change	(2,845)		—		(8)		2		(2,851)
Balance at June 30, 2022 (c)	$	(2,940)	$	19	$	27	$	(115)	$	(3,009)

(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 19.

(c)The valuation of our defined benefit plan reflects our current intention to terminate our qualified defined benefit plan in the future. Upon termination and settlement, the unrealized loss and associated tax effects related to our qualified defined benefit pension plan recorded in accumulated other comprehensive income would be recognized in net income from continuing operations of our Condensed Consolidated Statement of Comprehensive Income.

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

Three months ended June 30, 2022 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(1,588)		$	376		$	(1,212)
Less: Net realized gains reclassified to income from continuing operations	3		(a)	(1)		(b)	2
Net change	(1,591)			377			(1,214)
Translation adjustments
Net unrealized losses arising during the period	(5)			1			(4)
Net investment hedges (c)
Net unrealized gains arising during the period	4			(1)			3
Cash flow hedges (c)
Less: Net realized gains reclassified to income from continuing operations	5		(d)	(2)		(b)	3
Other comprehensive loss	$	(1,597)		$	379		$	(1,218)

(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 19.

(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, 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 19.

(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, 2022 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(3,708)		$	879		$	(2,829)
Less: Net realized gains reclassified to income from continuing operations	21		(a)	(5)		(b)	16
Net change	(3,729)			884			(2,845)
Translation adjustments
Net unrealized losses arising during the period	(2)			1			(1)
Net investment hedges (c)
Net unrealized gains arising during the period	1			—			1
Cash flow hedges (c)
Less: Net realized gains reclassified to income from continuing operations	11		(d)	(3)		(b)	8
Defined benefit pension plans
Net unrealized gains arising during the period	2			—			2
Other comprehensive loss	$	(3,739)		$	888		$	(2,851)

(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 19.

(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, 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 19.

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