Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2022

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



($ 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, 2020	$	208	$	19	$	2	$	(106)	$	123
Net change	432		—		80		(4)		508
Balance at December 31, 2020	640		19		82		(110)		631

Net change	(735)		—		(47)		(7)		(789)
Balance at December 31, 2021	(95)		19		35		(117)		(158)

Net change	(4,000)		(1)		(17)		117		(3,901)
Balance at December 31, 2022	$	(4,095)	$	18	$	18	$	—	$	(4,059)

(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 21.

Our qualified defined benefit pension plan was frozen in 2006. As of December 31, 2021, we disclosed our intention to settle the qualified defined benefit pension plan in the future. During 2022, we executed our plan to settle the liability in two phases: (1) a single, lump-sum payment window program; and (2) the purchase of an annuity contract from an independent insurance company for the remainder of the liability. The independent insurance company has assumed the obligation to pay the outstanding accrued benefits to the participants and beneficiaries of the plan. As a result of this action, we realized a loss of $115 million upon reclassification from accumulated other comprehensive loss, which included $71 million of compensation and benefits expense and $44 million of income tax expense, which included $61 million of realized stranded tax effects.

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


Year ended December 31, 2022 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(5,222)		$	1,240		$	(3,982)
Less: Net realized gains reclassified to income from continuing operations	23		(a)	(5)		(b)	18

Net change	(5,245)			1,245			(4,000)
Translation adjustments
Net unrealized losses arising during the period	(10)			2			(8)



Net investment hedges (c)
Net unrealized gains arising during the period	8			(1)			7



Cash flow hedges (c)
Net unrealized losses arising during the period	(2)			—			(2)
Less: Net realized gains reclassified to income from continuing operations	21		(d)	(6)		(b)	15

Net change	(23)			6			(17)
Defined benefit pension plans
Net unrealized gains arising during the period	2			—			2
Less: Net realized losses reclassified to income from continuing operations	(71)		(e)	(44)		(b)	(115)

Net change	73			44			117
Other comprehensive loss	$	(5,197)		$	1,296		$	(3,901)

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

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

(c)For additional information on derivative instruments and hedging activities, refer to Note 21.

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

(e)Includes losses reclassified to compensation and benefits expense in our Consolidated Statement of Income as a result of the settlement of our qualified defined benefit pension plan.


Year ended December 31, 2021 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(859)		$	203		$	(656)
Less: Net realized gains reclassified to income from continuing operations	102		(a)	(23)		(b)	79
Net change	(961)			226			(735)




Cash flow hedges (c)

Less: Net realized gains reclassified to income from continuing operations	61		(d)	(14)		(b)	47

Defined benefit pension plans
Net unrealized losses arising during the period	(11)			3			(8)
Less: Net realized losses reclassified to income from continuing operations	(1)			—		(b)	(1)
Net change	(10)			3			(7)
Other comprehensive loss	$	(1,032)		$	243		$	(789)

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

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

(c)For additional information on derivative instruments and hedging activities, refer to Note 21.

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


Year ended December 31, 2020 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized gains arising during the period	$	737		$	(173)		$	564
Less: Net realized gains reclassified to income from continuing operations	171		(a)	(39)		(b)	132
Net change	566			(134)			432
Translation adjustments
Net unrealized gains arising during the period	4			(1)			3
Net investment hedges (c)
Net unrealized losses arising during the period	(4)			1			(3)
Cash flow hedges (c)
Net unrealized gains arising during the period	169			(40)			129
Less: Net realized gains reclassified to income from continuing operations	64		(d)	(15)		(b)	49
Net change	105			(25)			80
Defined benefit pension plans
Net unrealized losses arising during the period	(5)			1			(4)


Other comprehensive income	$	666		$	(158)		$	508

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

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

(c)For additional information on derivative instruments and hedging activities, refer to Note 21.

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