Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) includes certain items that are reported directly within a separate component of shareholders’ equity. The following table presents changes in accumulated other comprehensive income balances:

Three Months Ended September 30,	2014			2013
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	287		$	257
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(44) million and $(13) million, respectively	(71		)	(29		)
Reclassification adjustment for (gains) losses realized in net income, net of tax of $(10) million and $(14) million, respectively(1)	(17		)	(21		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of less than $1 million(2)	1			—
Total other comprehensive income (loss) for period	(87		)	(50		)
Balance at end of period	200			207
Unrealized losses on other-than-temporarily impaired debt securities held-to-maturity:
Balance at beginning of period	(57		)	(67		)
Other comprehensive income for period:
Reclassification adjustment related to the accretion of unrealized other-than-temporary impairment, net of tax of $4 million and $1 million, respectively(3)	6			2
Total other comprehensive income for period	6			2
Balance at end of period	(51		)	(65		)
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Balance at beginning of period	(118		)	(127		)
Other comprehensive income (loss) for period:
Net gains (losses) arising during period, net of tax of $(4) million and $14 million, respectively	(6		)	20
Reclassification adjustment for losses realized in net income, net of tax of less than $1 million and $1 million, respectively(4)	1			1
Total other comprehensive income (loss) for period	(5		)	21
Balance at end of period	(123		)	(106		)
Pension and postretirement benefit liability:
Balance at beginning of period	2			(6		)
Other comprehensive income for period:
Change in pension and postretirement liability, net of tax of less than $1 million	—			1
Total other comprehensive income for period	—			1
Balance at end of period	2			(5		)
Total accumulated other comprehensive income at end of period	$	28		$	31

Nine Months Ended September 30,	2014			2013
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	(18	)	$	992
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $157 million and $(468) million, respectively	243			(679		)
Reclassification adjustment for gains realized in net income, net of tax of $(16) million and $(75) million, respectively(1)	(26		)	(106		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of less than $1 million(2)	1			—
Total other comprehensive income (loss) for period	218			(785		)
Balance at end of period	200			207
Unrealized losses on other-than-temporarily impaired debt securities held-to-maturity:
Balance at beginning of period	(60		)	—
Adjustment to add other-than-temporary impairment due to the consolidation of a VIE, net of tax of $(48) million	—			(67		)
Other comprehensive income for period:
Reclassification adjustment related to the accretion of unrealized other-than-temporary impairment, net of tax of $7 million and $1 million, respectively(3)	9			2
Total other comprehensive income for period	9			2
Balance at end of period	(51		)	(65		)
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Balance at beginning of period	(83		)	(201		)
Other comprehensive income (loss) for period:
Net gains (losses) arising during period, net of tax of $(28) million and $63 million, respectively	(42		)	90
Reclassification adjustment for losses realized in net income, net of tax of $2 million and $4 million, respectively(4)	2			5
Total other comprehensive income (loss) for period	(40		)	95
Balance at end of period	(123		)	(106		)
Pension and postretirement benefit liability:
Balance at beginning of period	2			(6		)
Other comprehensive income for period:
Change in pension and postretirement liability, net of tax of less than $1 million	—			1
Total other comprehensive income for period	—			1
Balance at end of period	2			(5		)
Total accumulated other comprehensive income at end of period	$	28		$	31

⁽¹⁾  Amount reclassified to net income is included in other securities gains, net in our consolidated statement of income.

⁽²⁾  Amount amortized to net income is included in interest income in our consolidated statement of income. During the third quarter of 2014, we transferred securities from available-for-sale to held-to-maturity. At the date of the transfer, AOCI included net pretax unrealized losses of $234 million related to the transferred securities which will be amortized over the remaining contractual life of each security as an adjustment of yield in a manner consistent with the amortization of any premium or discount.

⁽³⁾  Amount reclassified to the carrying value of the debt securities is included in securities held-to-maturity in our consolidated balance sheet.

⁽⁴⁾  Amount reclassified to net income is included in interest income (expense) in our consolidated statement of income.