Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

In addition, the following table presents the effect of the changes on financial statement line items for prior periods presented:



	Consolidated Statement of Condition Impact
	December 31, 2018
(In millions)	As Originally Reported⁽¹⁾		Effect of Change			As Adjusted
Assets:
Other assets	$	34,434	$	(30	)	$	34,404
Total assets	$	244,626	$	(30	)	$	244,596
Liabilities and stockholders' equity:
Accrued expenses and other liabilities	$	24,209	$	23		$	24,232
Retained earnings	20,606		(53		)	20,553
Total liabilities and stockholders' equity	$	244,626	$	(30	)	$	244,596



	Consolidated Statement of Income Impact
	Three Months Ended March 31, 2018
(Dollars in millions, except per share amounts)	As Originally Reported⁽¹⁾		Effect of Change			As Adjusted
Processing fees and other	$	52	$	25		$	77
Total fee revenue	2,390		25			2,415
Income tax expense	102		27			129
Net income	$	661	$	(2	)	$	659
Earnings per common share:
Basic	$	1.65	$	(.01	)	$	1.64
Diluted	1.62		—			1.62

⁽¹⁾ In the first quarter of 2019, we reclassified certain immaterial revenues and expenses related to an affiliated entity from a net presentation to a gross presentation. Previously reported amounts for quarterly periods in 2018 have been reclassified to conform to the 2019 presentation. The impact of change to the statement of cash flows is immaterial.

The following table presents what our results would have been had we continued to utilize the equity method to record investments in LIHTC in the first quarter of 2019:



	Consolidated Statement of Income Impact
	Three Months Ended March 31, 2019
(Dollars in millions, except per share amounts)	As Computed under Equity Method		Effect of Change			As Reported under the Proportional Amortization Method
Processing fees and other	$	169	$	22		$	191
Total fee revenue	2,238		22		22	2,260
Income tax expense	105		22		22	127
Net income	$	508	$	—		$	508
Earnings per common share:
Basic	$	1.20	$	—		$	1.20
Diluted	1.18		—			1.18

Recent Accounting Developments



Relevant standards that were recently issued but not yet adopted as of March 31, 2019:
Standard	Description	Date of Adoption	Effects on the financial statements or other significant matters
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	The standard replaces the existing incurred loss impairment guidance and requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. The standard also amends existing impairment guidance for available-for-sale securities, and credit losses will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the date of initial application.	January 1, 2020, early adoption permitted	We are continuing to assess the impact of the standard on our consolidated financial statements. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and continue to develop key accounting policies, assess new and existing credit loss models and processes and address data requirements and sources to ensure that the expected credit losses are calculated in accordance with the standard. We have developed credit loss models that are currently under review by our Model Validation Group. Based on our analysis to date, we expect the recognition of credit losses to accelerate under the new standard. We are continuing to assess the extent of the impact on the allowance for credit losses which will be impacted by our portfolio and the macroeconomic factors on the date of adoption. We plan to adopt the new guidance on January 1, 2020.
ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment	The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss.	January 1, 2020, early adoption permitted	We are evaluating the impacts of early adoption, and will apply this standard prospectively upon adoption.
ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement	The standard eliminates, amends and adds disclosure requirements for fair value measurements.	January 1, 2020, early adoption permitted, including partial early adoption. Provisions that eliminate or amend disclosures can be early adopted without early adopting the new disclosure requirements.	We have elected to early adopt the provisions of the new standard that eliminate or amend disclosures as of December 31, 2018 and our disclosures were modified accordingly. The provisions of the new standard that add disclosures will be adopted upon the effective date of the standard.
ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement. That Is a Service Contract (a consensus of the Financial Accounting Standards Board Emerging Issues Task Force)	This standard addresses accounting for fees paid by a customer for implementation, set-up and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor, i.e., a service contract. The new guidance aligns treatment for capitalization of implementation costs with guidance on internal-use software.	January 1, 2020, early adoption permitted	We are currently evaluating the impact of the new standard and the early adoption provisions.