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Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 30, 2014
Equity [Abstract]  
Accumulated Other Comprehensive Income
NOTE 10—ACCUMULATED OTHER COMPREHENSIVE INCOME
The following tables present the components of accumulated other comprehensive income as of September 30, 2014 and December 31, 2013, as well as the current period activities related to other comprehensive income. AOCI is presented net of deferred tax of $304 million and $544 million as of September 30, 2014 and December 31, 2013, respectively.
Table 10.1: Accumulated Other Comprehensive Income
 
 
Three Months Ended September 30, 2014
(Dollars in millions)
 
Securities
Available
for Sale
 
Securities Held to Maturity(1)
 
Cash Flow
Hedges
 
Foreign
Currency
Translation
Adjustments (2)
 
Other
 
Total
AOCI as of June 30, 2014
 
$
419

 
$
(863
)
 
$
(20
)
 
$
106

 
$
(13
)
 
$
(371
)
Other comprehensive income (loss) before reclassifications
 
(62
)
 
0

 
(39
)
 
(82
)
 
3

 
(180
)
Net realized (gains) losses reclassified from AOCI into earnings
 
(3
)
 
22

 
(29
)
 
0

 
2

 
(8
)
Net other comprehensive income (loss)
 
(65
)
 
22

 
(68
)
 
(82
)
 
5

 
(188
)
AOCI as of September 30, 2014
 
$
354

 
$
(841
)
 
$
(88
)
 
$
24

 
$
(8
)
 
$
(559
)
 
 
Nine Months Ended September 30, 2014
(Dollars in millions)
 
Securities
Available
for Sale
 
Securities Held to Maturity(1)
 
Cash Flow
Hedges
 
Foreign
Currency
Translation
Adjustments (2)
 
Other
 
Total
AOCI as of December 31, 2013
 
$
106

 
$
(897
)
 
$
(110
)
 
$
40

 
$
(11
)
 
$
(872
)
Other comprehensive income (loss) before reclassifications
 
259

 
0

 
96

 
(16
)
 
6

 
345

Net realized (gains) losses reclassified from AOCI into earnings
 
(11
)
 
56

 
(74
)
 
0

 
(3
)
 
(32
)
Net other comprehensive income (loss)
 
248

 
56

 
22

 
(16
)
 
3

 
313

AOCI as of September 30, 2014
 
$
354

 
$
(841
)
 
$
(88
)
 
$
24

 
$
(8
)
 
$
(559
)
 
 
Three Months Ended September 30, 2013
(Dollars in millions)
 
Securities
Available
for Sale
 
Securities Held to Maturity(1)
 
Cash Flow
Hedges
 
Foreign
Currency
Translation
Adjustments (2)
 
Other
 
Total
AOCI as of June 30, 2013
 
$
(517
)
 
$
0

 
$
(129
)
 
$
(111
)
 
$
(35
)
 
$
(792
)
Other comprehensive income (loss) before reclassifications
 
692

 
(916
)
 
59

 
124

 
(1
)
 
(42
)
Net realized (gains) losses reclassified from AOCI into earnings
 
0

 
1

 
(6
)
 
0

 
0

 
(5
)
Net other comprehensive income (loss)
 
692

 
(915
)
 
53

 
124

 
(1
)
 
(47
)
AOCI as of September 30, 2013
 
$
175

 
$
(915
)
 
$
(76
)
 
$
13

 
$
(36
)
 
$
(839
)
 
 
Nine Months Ended September 30, 2013
(Dollars in millions)
 
Securities
Available
for Sale
 
Securities Held to Maturity(1)
 
Cash Flow
Hedges
 
Foreign
Currency
Translation
Adjustments (2)
 
Other
 
Total
AOCI as of December 31, 2012
 
$
703

 
$
0

 
$
45

 
$
32

 
$
(41
)
 
$
739

Other comprehensive income (loss) before reclassifications
 
(526
)
 
(916
)
 
(98
)
 
(19
)
 
4

 
(1,555
)
Net realized (gains) losses reclassified from AOCI into earnings
 
(2
)
 
1

 
(23
)
 
0

 
1

 
(23
)
Net other comprehensive income (loss)
 
(528
)
 
(915
)
 
(121
)
 
(19
)
 
5

 
(1,578
)
AOCI as of September 30, 2013
 
$
175

 
$
(915
)
 
$
(76
)
 
$
13

 
$
(36
)
 
$
(839
)

__________
(1) 
In the third quarter of 2013, we transferred securities with a fair value of $18.3 billion on the date of transfer, from securities available for sale to securities held to maturity. The securities included net pre-tax unrealized losses of $1.5 billion at the date of transfer. The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of the premium or discount created from the transfer into securities held to maturity, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.
(2) 
Include impact from foreign currency transactions that are designated as net investment hedges.
Table 10.2: Reclassifications from AOCI
 
 
 
 
Amount Reclassified from AOCI
(Dollars in millions)
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
AOCI Components
 
Affected Income Statement Line Item
 
2014
 
2013
 
2014
 
2013
Securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest income - Other
 
$
6

 
$
0

 
$
18

 
$
3

 
 
Income tax provision
 
3

 
0

 
7

 
1

 
 
Net income
 
3

 
0

 
11

 
2

Securities held to maturity:(1)
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest income - Other
 
(35
)
 
(2
)
 
(96
)
 
(2
)
 
 
Income tax benefit
 
(13
)
 
(1
)
 
(40
)
 
(1
)
 
 
Net income
 
(22
)
 
(1
)
 
(56
)
 
(1
)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Interest income - Other
 
54

 
23

 
144

 
65

Foreign exchange contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest income - Other
 
(7
)
 
(13
)
 
(25
)
 
(27
)
 
 
 
 
47

 
10

 
119

 
38

 
 
Income tax provision
 
18

 
4

 
45

 
15

 
 
Net income
 
29

 
6

 
74

 
23

Other:
 
 
 
 
 
 
 
 
 
 
 
 
Various
 
2

 
0

 
10

 
(1
)
 
 
Income tax provision
 
4

 
0

 
7

 
0

 
 
Net income
 
(2
)
 
0

 
3

 
(1
)
Total reclassifications
 
 
 
$
8

 
$
5

 
$
32

 
$
23

__________
(1) 
The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of the premium or discount created from the transfer into securities held to maturity, which occurred at fair value. 

The table below summarizes other comprehensive income activity and the related tax impact for the three and nine months ended September 30, 2014 and 2013:
Table 10.3: Other Comprehensive Income (Loss)
 
 
Three Months Ended September 30,
 
 
2014
 
2013
(Dollars in millions)
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on securities available for sale
 
$
(104
)
 
$
(39
)
 
$
(65
)
 
$
1,107

 
$
415

 
$
692

Net unrealized gains (losses) on securities transferred to held to maturity
 
35

 
13

 
22

 
(1,465
)
 
(550
)
 
(915
)
Net unrealized gains (losses) on cash flow hedges
 
(107
)
 
(39
)
 
(68
)
 
84

 
31

 
53

Foreign currency translation adjustments(1)
 
(41
)
 
41

 
(82
)
 
124

 
0

 
124

Other
 
6

 
1

 
5

 
(1
)
 
0

 
(1
)
Other comprehensive loss
 
$
(211
)
 
$
(23
)
 
$
(188
)
 
$
(151
)
 
$
(104
)
 
$
(47
)
 
 
Nine Months Ended September 30,
 
 
2014
 
2013
(Dollars in millions)
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on securities available for sale
 
$
394

 
$
146

 
$
248

 
$
(849
)
 
$
(321
)
 
$
(528
)
Net unrealized gains (losses) on securities transferred to held to maturity
 
96

 
40

 
56

 
(1,465
)
 
(550
)
 
(915
)
Net unrealized gains (losses) on cash flow hedges
 
37

 
15

 
22

 
(195
)
 
(74
)
 
(121
)
Foreign currency translation adjustments(1)
 
25

 
41

 
(16
)
 
(19
)
 
0

 
(19
)
Other
 
2

 
(1
)
 
3

 
6

 
1

 
5

Other comprehensive income (loss)
 
$
554

 
$
241

 
$
313

 
$
(2,522
)
 
$
(944
)
 
$
(1,578
)
__________
(1) 
Includes the impact from foreign currency transactions that are designated as net investment hedges.