Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2020

The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of September 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 September 30, 2020
(In millions)

Redemption Date⁽¹⁾

Series D

February 2014

30,000,000

1/4,000th

100,000

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⁽³⁾

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%, or 3.84738% effective September 15, 2020

Quarterly

742

September 15, 2020

Series G

April 2016

20,000,000

1/4,000th

100,000

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.

⁽³⁾ Series F preferred stock is redeemable on September 15, 2020 and on each succeeding dividend payment date. We did not elect redemption on September 15, 2020

Dividends Declared

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 September 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	$	6
Series D	1,475		0.37		11		1,475		0.37		11
Series E⁽²⁾	—		—		—		1,500		0.38		11
Series F	2,625		26.25		20		2,625		26.25		20
Series G	1,338		0.33		7		1,338		0.33		7
Series H	—		—		—		—		—		—
Total					$	38					$	55

	Nine Months Ended September 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	$	3,939	$	0.99	$	19
Series D	4,425		1.11		33		4,425		1.11		33
Series E⁽²⁾	—		—		—		4,500		1.14		33
Series F	5,250		52.50		40		5,250		52.50		40
Series G	4,014		0.99		21		4,014		0.99		21
Series H	2,813		28.13		14		2,813		28.13		14
Total					$	114					$	160

⁽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.

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


	Three Months Ended September 30,
	2020						2019
	Dividends Declared per Share		Total (In millions)		Dividends Declared per Share		Total (In millions)
Common Stock	$	0.52	$	184	$	0.52	$	189

	Nine Months Ended September 30,
	2020						2019
	Dividends Declared per Share		Total (In millions)		Dividends Declared per Share		Total (In millions)
Common Stock	$	1.56	$	550	$	1.46	$	541

Stock Repurchase Program

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


	Three Months Ended September 30, 2020								Nine Months Ended September 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 September 30, 2019								Nine Months Ended September 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)
2019 Program	9.4	$	53.15	$	500	9.4	$	53.15	$	500
2018 Program	—	—		—		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:


	Nine Months Ended September 30,
(In millions)	2020		2019
Net unrealized gains (losses) on cash flow hedges	$	82	$	(63)
Net unrealized gains on available-for-sale securities portfolio	976		509
Net unrealized (losses) gains related to reclassified available-for-sale securities	(68)		56
Net unrealized gains on available-for-sale securities	908		565
Net unrealized (losses) on available-for-sale securities designated in fair value hedges	(36)		(41)

Net unrealized (losses) gains on hedges of net investments in non-U.S. subsidiaries	(54)		91
Non-credit impairment on held-to-maturity securities previously identified under ASC 320	(2)		(1)
Net unrealized (losses) on retirement plans	(172)		(180)
Foreign currency translation	(837)		(1,356)
Total	$	(111)	$	(985)

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	115		462		(100)		—		—		235		712

Amounts reclassified into (out of) earnings	37		1		—		—		15		—		53
Other comprehensive income (loss)	152		463		(100)		—		15		235		765
Balance as of September 30, 2020	$	82	$	872	$	(54)	$	(2)	$	(172)	$	(837)	$	(111)


(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	22		678		78		3		—		(326)		455
Reclassification of certain tax effects⁽¹⁾	(6)		21		(3)		(1)		(28)		(67)		(84)
Amounts reclassified into (out of) earnings	10		—		—		(1)		(9)		—		—
Other comprehensive income (loss)	26		699		75		1		(37)		(393)		371
Balance as of September 30, 2019	$	(63)	$	524	$	91	$	(1)	$	(180)	$	(1,356)	$	(985)

⁽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 September 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 $7 and $1, respectively	17		3		Net interest income reclassified from other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of $1 and ($1), respectively	1		(1)		Compensation and employee benefits expenses



Total reclassifications out of Accumulated other comprehensive loss	$	18	$	2

	Nine Months Ended September 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 $14 and $4, respectively	37		10		Net interest income reclassified from other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of $5 and ($5), respectively	15		(9)		Compensation and employee benefits expenses



Total reclassifications out of Accumulated other comprehensive loss	$	53	$	—

⁽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.

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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