Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2023

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 September 30,
($ in millions)	Unrealized losses on investment securities (a)		Translation adjustments and net investment hedges (b)		Cash flow hedges (b)		Defined benefit pension plans (c)		Accumulated other comprehensive loss
Balance at July 1, 2022	$	(2,940)	$	19	$	27	$	(115)	$	(3,009)
Net change	(1,343)		(1)		(3)		16		(1,331)
Balance at September 30, 2022	$	(4,283)	$	18	$	24	$	(99)	$	(4,340)
Balance at July 1, 2023	$	(3,881)	$	21	$	(3)	$	—	$	(3,863)
Net change	(886)		(1)		(15)		—		(902)
Balance at September 30, 2023	$	(4,767)	$	20	$	(18)	$	—	$	(4,765)

(a)Represents the after-tax difference between the fair value and amortized cost of our available-for-sale securities portfolio. Refer to Note 6 for additional information.

(b)For additional information on derivative instruments and hedging activities, refer to Note 18.

(c)During 2022, we settled our qualified defined benefit pension plan. Refer to Note 18 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for additional information.

	Nine months ended September 30,
($ in millions)	Unrealized losses on investment securities (a)		Translation adjustments and net investment hedges (b)		Cash flow hedges (b)		Defined benefit pension plans (c)		Accumulated other comprehensive loss
Balance at January 1, 2022	$	(95)	$	19	$	35	$	(117)	$	(158)
Net change	(4,188)		(1)		(11)		18		(4,182)
Balance at September 30, 2022	$	(4,283)	$	18	$	24	$	(99)	$	(4,340)
Balance at January 1, 2023	$	(4,095)	$	18	$	18	$	—	$	(4,059)
Net change	(672)		2		(36)		—		(706)
Balance at September 30, 2023	$	(4,767)	$	20	$	(18)	$	—	$	(4,765)

(a)Represents the after-tax difference between the fair value and amortized cost of our available-for-sale securities portfolio. Refer to Note 6 for additional information.

(b)For additional information on derivative instruments and hedging activities, refer to Note 18.

(c)During 2022, we settled our qualified defined benefit pension plan. Refer to Note 18 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for additional information.

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

Three months ended September 30, 2023 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(1,163)		$	277		$	(886)
Translation adjustments
Net unrealized losses arising during the period	(5)			1			(4)
Net investment hedges (a)
Net unrealized gains arising during the period	4			(1)			3
Cash flow hedges (a)
Net unrealized losses arising during the period	(15)			4			(11)
Less: Net realized gains reclassified to income from continuing operations	5		(b)	(1)		(c)	4
Net change	(20)			5			(15)
Other comprehensive loss	$	(1,184)		$	282		$	(902)

(a)For additional information on derivative instruments and hedging activities, refer to Note 18.

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

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

Three months ended September 30, 2022 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(1,757)		$	416		$	(1,341)
Less: Net realized gains reclassified to income from continuing operations	2		(a)	—		(b)	2
Net change	(1,759)			416			(1,343)
Translation adjustments
Net unrealized losses arising during the period	(11)			2			(9)
Net investment hedges (c)
Net unrealized gains arising during the period	10			(2)			8
Cash flow hedges (c)
Less: Net realized gains reclassified to income from continuing operations	4		(d)	(1)		(b)	3
Defined benefit pension plans
Less: Net realized losses reclassified to income from continuing operations	(21)		(e)	5		(b)	(16)
Other comprehensive loss	$	(1,743)		$	412		$	(1,331)

(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.

(e)Includes losses reclassified to compensation and benefits expense in our Condensed Consolidated Statement of Comprehensive Income as a result of actions taken toward the settlement of our qualified defined benefit pension plan. Refer to Note 18 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for additional information.

Nine months ended September 30, 2023 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(877)		$	209		$	(668)
Less: Net realized gains reclassified to income from continuing operations	5		(a)	(1)		(b)	4
Net change	(882)			210			(672)
Translation adjustments
Net unrealized gains arising during the period	1			—			1
Net investment hedges (c)
Net unrealized gains arising during the period	1			—			1
Cash flow hedges (c)
Net unrealized losses arising during the period	(33)			9			(24)
Less: Net realized gains reclassified to income from continuing operations	15		(d)	(3)		(b)	12
Net change	(48)			12			(36)
Other comprehensive loss	$	(928)		$	222		$	(706)

(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.

Nine months ended September 30, 2022 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Net unrealized losses arising during the period	$	(5,465)		$	1,295		$	(4,170)
Less: Net realized gains reclassified to income from continuing operations	23		(a)	(5)		(b)	18
Net change	(5,488)			1,300			(4,188)
Translation adjustments
Net unrealized losses arising during the period	(13)			3			(10)
Net investment hedges (c)
Net unrealized gains arising during the period	11			(2)			9
Cash flow hedges (c)
Less: Net realized gains reclassified to income from continuing operations	15		(d)	(4)		(b)	11
Defined benefit pension plans
Net unrealized gains arising during the period	2			—			2
Less: Net realized losses reclassified to income from continuing operations	(21)		(e)	5		(b)	(16)
Net change	23			(5)			18
Other comprehensive loss	$	(5,482)		$	1,300		$	(4,182)

(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.

(e)Includes losses reclassified to compensation and benefits expense in our Condensed Consolidated Statement of Comprehensive Income as a result of actions taken toward the settlement of our qualified defined benefit pension plan. Refer to Note 18 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for additional information.