Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Schedule of Preferred Shares

The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2020:

Preferred Stock(2):

Issuance Date

Depositary Shares Issued

Ownership Interest Per Depositary Share

Liquidation Preference Per Share

Liquidation Preference Per Depositary Share

Per Annum Dividend Rate

Dividend Payment Frequency

Carrying Value as of June 30, 2020 (In millions)

Redemption Date(1)

Series D

February 2014

30,000,000

1/4,000th

$

100,000

$

25

5.90% to but excluding March 15, 2024, then a floating rate equal to the three-month LIBOR plus 3.108%

Quarterly

$

742

March 15, 2024

Series F

May 2015

750,000

1/100th

100,000

1,000

5.25% to but excluding September 15, 2020, then a floating rate equal to the three-month LIBOR plus 3.597%

Semi-annually

742

September 15, 2020

Series G

April 2016

20,000,000

1/4,000th

100,000

25

5.35% to but excluding March 15, 2026, then a floating rate equal to the three-month LIBOR plus 3.709%

Quarterly

493

March 15, 2026

Series H

September 2018

500,000

1/100th

100,000

1,000

5.625% to but excluding December 15, 2023, then a floating rate equal to the three-month LIBOR plus 2.539%

Semi-annually

494

December 15, 2023

⁽¹⁾ On the redemption date, or any dividend payment date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

⁽²⁾ The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

Dividends Declared

The table below presents the dividends declared on common stock for the periods indicated:

	Three Months Ended June 30,
	2020				2019
	Dividends Declared per Share		Total (In millions)		Dividends Declared per Share		Total (In millions)
Common Stock	$	0.52	$	183	$	0.47	$	175
	Six Months Ended June 30,
	2020				2019
	Dividends Declared per Share		Total (In millions)		Dividends Declared per Share		Total (In millions)
Common Stock	$	1.04	$	366	$	0.94	$	352

The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated:

	Three Months Ended June 30,
	2020						2019
	Dividends Declared per Share		Dividends Declared per Depositary Share		Total (In millions)(1)		Dividends Declared per Share		Dividends Declared per Depositary Share		Total (In millions)
Preferred Stock:
Series C(1)	$	—	$	—	$	—	$	1,313	$	0.33	$	7
Series D	1,475		0.37		11		1,475		0.37		11
Series E(2)	—		—		—		1,500		0.38		11
Series F	—		—		—		—		—		—
Series G	1,338		0.33		7		1,338		0.33		7
Series H	28.13		28.13		14		2,813		28.13		14
Total					$	32					$	50
	Six Months Ended June 30,
	2020						2019
(Dollars in millions, except per share amounts)	Dividends Declared per Share		Dividends Declared per Depositary Share		Total		Dividends Declared per Share		Dividends Declared per Depositary Share		Total
Preferred Stock:
Series C(1)	$	1,313	$	0.33	$	6	$	2,626	$	0.66	$	13
Series D	2,950		0.74		22		2,950		0.74		22
Series E(2)	—		—		—		3,000		0.76		22
Series F	2,625		26.25		20		2,625		26.25		20
Series G	2,676		0.66		14		2,676		0.66		14
Series H	2,813		28.13		14		2,813		28.13		14
Total					$	76					$	105

⁽¹⁾We redeemed all outstanding Series C non-cumulative perpetual preferred stock as of March 15, 2020 at a redemption price of $500 million ($100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends.

⁽²⁾ We redeemed all outstanding Series E non-cumulative perpetual preferred stock as of December 15, 2019 at a redemption price of $750 million ($100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends.

Stock Repurchase Program

    The table below presents the activity under our common stock purchase program during the periods indicated:

	Three Months Ended June 30, 2020					Six Months Ended June 30, 2020
	Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)		Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)
2019 Program	—	$	—	$	—	6.5	$	77.35	$	500
	Three Months Ended June 30, 2019					Six Months Ended June 30, 2019
	Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)		Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)
2018 Program	4.6	$	65.25	$	300	8.8	$	67.97	$	600

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents the after-tax components of AOCI as of the dates indicated:

	Six Months Ended June 30,
(In millions)	2020			2019
Net unrealized (losses) on cash flow hedges	$	53		$	(70	)
Net unrealized gains on available-for-sale securities portfolio	899			372
Net unrealized gains related to reclassified available-for-sale securities	7			57
Net unrealized gains on available-for-sale securities	906			429
Net unrealized (losses) on available-for-sale securities designated in fair value hedges	(40		)	(51		)
Net unrealized gains on hedges of net investments in non-U.S. subsidiaries	68			34
Non-credit impairment on held-to-maturity securities previously identified under ASC 320	(2		)	(2		)
Net unrealized (losses) on retirement plans	(173		)	(179		)
Foreign currency translation	(1,242		)	(1,035		)
Total	$	(430	)	$	(874	)

The following table presents changes in AOCI by component, net of related taxes, for the periods indicated:

(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Available-for-Sale Securities		Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries		Non-credit Impairment on Held-to-Maturity Securities			Net Unrealized Losses on Retirement Plans			Foreign Currency Translation			Total
Balance as of December 31, 2019	$	(70	)	$	409	$	46	$	(2	)	$	(187	)	$	(1,072	)	$	(876	)
Other comprehensive income (loss) before reclassifications	103			456		22		—			—			(170		)	411
Amounts reclassified into (out of) earnings	20			1		—		—			14			—			35
Other comprehensive income (loss)	123			457		22		—			14			(170		)	446
Balance as of June 30, 2020	$	53		$	866	$	68	$	(2	)	$	(173	)	$	(1,242	)	$	(430	)

(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Available-for-Sale Securities			Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries			Other-Than-Temporary Impairment on Held-to-Maturity Securities			Net Unrealized Losses on Retirement Plans			Foreign Currency Translation			Total
Balance as of December 31, 2018	$	(89	)	$	(175	)	$	16		$	(2	)	$	(143	)	$	(963	)	$	(1,356	)
Other comprehensive income (loss) before reclassifications	18			532			21			2			—			(5		)	568
Reclassification of certain tax effects(1)	(6		)	21			(3		)	(1		)	(28		)	(67		)	(84		)
Amounts reclassified into (out of) earnings	7			—			—			(1		)	(8		)	—			(2		)
Other comprehensive income (loss)	19			553			18			—			(36		)	(72		)	482
Balance as of June 30, 2019	$	(70	)	$	378		$	34		$	(2	)	$	(179	)	$	(1,035	)	$	(874	)

⁽¹⁾ Represents the reclassification from accumulated other comprehensive income into retained earnings as a result of our adoption of ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2019.

Schedule of Reclassifications Out of AOCI

The following table presents after-tax reclassifications into earnings for the periods indicated:

	Three Months Ended June 30,
	2020		2019
(In millions)	Amounts Reclassified into (out of) Earnings					Affected Line Item in Consolidated Statement of Income
Available-for-sale securities:
Net realized gains from sales of available-for-sale securities, net of related taxes of zero and zero, respectively	$	—	$	—		Net gains (losses) from sales of available-for-sale securities
Cash flow hedges:
Gain reclassified from accumulated other comprehensive income into Income, net of related taxes of $5 and $1	15		4			Net interest income reclassified from other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of zero and zero, respectively	2		—			Compensation and employee benefits expenses
Total reclassifications into AOCI	$	17	$	4
	Six Months Ended June 30,
	2020		2019
(In millions)	Amounts Reclassified into (out of) Earnings					Affected Line Item in Consolidated Statement of Income
Available-for-sale securities:
Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of $1 and zero, respectively	$	1	$	—		Net gains (losses) from sales of available-for-sale securities
Held-to-maturity securities:
Non-credit impairment on held-to-maturity securities previously identified under ASC 320, net of related taxes of zero and zero, respectively(1)	—		(1		)	Losses reclassified (from) to other comprehensive income
Cash flow hedges:
Gain reclassified from accumulated other comprehensive income into Income, net of related taxes of $7 and $3	20		7			Net interest income reclassified from other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of $4 and ($4), respectively	14		(8		)	Compensation and employee benefits expenses
Total reclassifications (into) out of Accumulated other comprehensive loss	$	35	$	(2	)

⁽¹⁾ We adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326) : Measurement of Credit Losses on Financial Instruments, on January 1, 2020. Non-credit impairment on HTM securities was previously recognized under ASC 320. Please refer to Note 1 for additional information.