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Stockholders' Equity
 6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
Stockholders' Equity
NOTE 10—STOCKHOLDERS’ EQUITY
Preferred Stock
The following table summarizes the Company’s preferred stock issued and outstanding as of June 30, 2017 and December 31, 2016.
Table 10.1: Preferred Stock Issued and Outstanding(1)
 
 
 
 
 
 
Redeemable by Issuer Beginning
 
Per Annum Dividend Rate
 
Dividend Frequency
 
Liquidation Preference per Share
 
 
 
Carrying Value
(in millions)
Series
 
Description
 
Issuance Date
 
 
 
 
 
Total Shares Outstanding
 
June 30, 2017
 
December 31, 2016
Series B
 
6.00%
Non-Cumulative
 
August 20, 2012
 
September 1, 2017
 
6.00%
 
Quarterly
 
$
1,000

 
875,000

 
$
853

 
$
853

Series C
 
6.25%
Non-Cumulative
 
June 12, 2014
 
September 1, 2019
 
6.25
 
Quarterly
 
1,000

 
500,000

 
484

 
484

Series D
 
6.70%
Non-Cumulative
 
October 31, 2014
 
December 1, 2019
 
6.70
 
Quarterly
 
1,000

 
500,000

 
485

 
485

Series E
 
Fixed-to-Floating Rate Non-Cumulative
 
May 14, 2015
 
June 1, 2020
 
5.55% through 5/31/2020;
3-mo. LIBOR+ 380 bps thereafter
 
Semi-Annually through 5/31/2020; Quarterly thereafter
 
1,000

 
1,000,000

 
988

 
988

Series F
 
6.20%
Non-Cumulative
 
August 24, 2015
 
December 1, 2020
 
6.20
 
Quarterly
 
1,000

 
500,000

 
484

 
484

Series G
 
5.20%
Non-Cumulative
 
July 29, 2016
 
December 1, 2021
 
5.20
 
Quarterly
 
1,000

 
600,000

 
583

 
583

Series H
 
6.00%
Non-Cumulative
 
November 29, 2016
 
December 1, 2021
 
6.00
 
Quarterly
 
1,000

 
500,000

 
483

 
483

Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
4,360

 
$
4,360

__________
(1) 
Except for Series E, ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock.
Accumulated Other Comprehensive Income
The following table presents the changes in AOCI by component for the three and six months ended June 30, 2017 and 2016.
Table 10.2: Accumulated Other Comprehensive Income
 
 
Three Months Ended June 30, 2017
(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 March 31, 2017
 
$
32

 
$
(598
)
 
$
(144
)
 
$
(205
)
 
$
(19
)
 
$
(934
)
Other comprehensive income before reclassifications
 
147

 
0

 
74

 
31

 
4

 
256

Amounts reclassified from AOCI into earnings
 
2

 
23

 
(29
)
 
0

 
(1
)
 
(5
)
Net other comprehensive income (loss)
 
149

 
23

 
45

 
31

 
3

 
251

AOCI as of June 30, 2017
 
$
181

 
$
(575
)
 
$
(99
)
 
$
(174
)
 
$
(16
)
 
$
(683
)
 
 
Six Months Ended June 30, 2017
(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, 2016
 
$
(4
)
 
$
(621
)
 
$
(78
)
 
$
(222
)
 
$
(24
)
 
$
(949
)
Other comprehensive income before reclassifications
 
183

 
0

 
48

 
48

 
11

 
290

Amounts reclassified from AOCI into earnings
 
2

 
46

 
(69
)
 
0

 
(3
)
 
(24
)
Net other comprehensive income (loss)
 
185

 
46

 
(21
)
 
48

 
8

 
266

AOCI as of June 30, 2017
 
$
181

 
$
(575
)
 
$
(99
)
 
$
(174
)
 
$
(16
)
 
$
(683
)

 
 
Three Months Ended June 30, 2016
(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 March 31, 2016
 
$
349

 
$
(704
)
 
$
497

 
$
(142
)
 
$
(41
)
 
$
(41
)
Other comprehensive income (loss) before reclassifications
 
137

 
0

 
192

 
(30
)
 
8

 
307

Amounts reclassified from AOCI into earnings
 
(1
)
 
25

 
(49
)
 
0

 
0

 
(25
)
Net other comprehensive income (loss)
 
136

 
25

 
143

 
(30
)
 
8

 
282

AOCI as of June 30, 2016
 
$
485

 
$
(679
)
 
$
640

 
$
(172
)
 
$
(33
)
 
$
241

 
 
Six Months Ended June 30, 2016
(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, 2015
 
$
162

 
$
(725
)
 
$
120

 
$
(143
)
 
$
(30
)
 
$
(616
)
Other comprehensive income (loss) before reclassifications
 
319

 
0

 
618

 
(29
)
 
(5
)
 
903

Amounts reclassified from AOCI into earnings
 
4

 
46

 
(98
)
 
0

 
2

 
(46
)
Net other comprehensive income (loss)
 
323

 
46

 
520

 
(29
)
 
(3
)
 
857

AOCI as of June 30, 2016
 
$
485

 
$
(679
)
 
$
640

 
$
(172
)
 
$
(33
)
 
$
241

__________
(1) 
The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of premium or discount created from the transfer of securities from available for sale to held to maturity, which occurred at fair value. These unrealized gains or losses will be amortized over the remaining life of the security with no expected impact on future net income.
(2) 
Includes the impact from hedging instruments designated as net investment hedges.
The following table presents the impacts on net income of amounts reclassified from each component of AOCI for the three and six months ended June 30, 2017 and 2016.
Table 10.3: Reclassifications from AOCI
 
 
 
 
Amount Reclassified from AOCI
(Dollars in millions)
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
AOCI Components
 
Affected Income Statement Line Item
 
2017
 
2016
 
2017
 
2016
Securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest income
 
$
(4
)
 
$
1

 
$
(4
)
 
$
(7
)
 
 
Income tax provision (benefit)
 
(2
)
 
0

 
(2
)
 
(3
)
 
 
Net income (loss)
 
(2
)
 
1

 
(2
)
 
(4
)
Securities held to maturity:(1)
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
(37
)
 
(40
)
 
(73
)
 
(73
)
 
 
Income tax provision (benefit)
 
(14
)
 
(15
)
 
(27
)
 
(27
)
 
 
Net income (loss)
 
(23
)
 
(25
)
 
(46
)
 
(46
)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
Interest income
 
39

 
78

 
97

 
157

Foreign exchange contracts:
 
Interest income
 
7

 
1

 
13

 
0

 
 
Non-interest income
 
0

 
0

 
0

 
(1
)
 
 
Income from continuing operations before income taxes
 
46

 
79

 
110

 
156

 
 
Income tax provision
 
17

 
30

 
41

 
58

 
 
Net income
 
29

 
49

 
69

 
98

Other:
 
 
 
 
 
 
 
 
 
 
 
 
Various (pension and other)
 
2

 
0

 
4

 
(2
)
 
 
Income tax provision
 
1

 
0

 
1

 
0

 
 
Net income
 
1

 
0

 
3

 
(2
)
Total reclassifications
 
$
5

 
$
25

 
$
24

 
$
46

__________
(1) 
The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of premium or discount created from the transfer of securities from available for sale to held to maturity, which occurred at fair value. These unrealized gains or losses will be amortized over the remaining life of the security with no expected impact on future net income.
The table below summarizes other comprehensive income activity and the related tax impact for the three and six months ended June 30, 2017 and 2016.
Table 10.4: Other Comprehensive Income (Loss)
 
 
Three Months Ended June 30,
 
 
2017
 
2016
(Dollars in millions)
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
Other comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities available for sale
 
$
237

 
$
88

 
$
149

 
$
212

 
$
76

 
$
136

Net changes in securities held to maturity
 
37

 
14

 
23

 
41

 
16

 
25

Net unrealized gains (losses) on cash flow hedges
 
72

 
27

 
45

 
227

 
84

 
143

Foreign currency translation adjustments(1)
 
(3
)
 
(34
)
 
31

 
40

 
70

 
(30
)
Other
 
5

 
2

 
3

 
12

 
4

 
8

Other comprehensive income
 
$
348

 
$
97

 
$
251

 
$
532

 
$
250

 
$
282


 
 
Six Months Ended June 30,
 
 
2017
 
2016
(Dollars in millions)
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
Other comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities available for sale
 
$
283

 
$
98

 
$
185

 
$
508

 
$
185

 
$
323

Net changes in securities held to maturity
 
73

 
27

 
46

 
74

 
28

 
46

Net unrealized gains (losses) on cash flow hedges
 
(32
)
 
(11
)
 
(21
)
 
827

 
307

 
520

Foreign currency translation adjustments(1)
 
1

 
(47
)
 
48

 
66

 
95

 
(29
)
Other
 
12

 
4

 
8

 
(5
)
 
(2
)
 
(3
)
Other comprehensive income
 
$
337

 
$
71

 
$
266

 
$
1,470

 
$
613

 
$
857

__________
(1) 
Includes the impact from hedging instruments designated as net investment hedges.