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Stockholders' Equity | 12 Months Ended
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Dec. 31, 2019
Equity [Abstract] |
Stockholders' Equity |
NOTE 10—STOCKHOLDERS’ EQUITY
Preferred Stock The following table summarizes our preferred stock outstanding as of December 31, 2019 and 2018. Table 10.1: Preferred Stock Outstanding(1)
|  |  |  |  |  | Redeemable by Issuer Beginning |  | Per Annum Dividend Rate |  | Dividend Frequency |  | Liquidation Preference per Share |  | Total Shares Outstanding as of December 31, 2019 |  | Carrying Value (in millions)
Series |  | Description |  | Issuance Date |  |  |  |  |  |  | December 31, 2019 |  | December 31, 2018
Series B |  | 6.00% Non-Cumulative |  | August 20, 2012 |  | September 1, 2017 |  | 6.00% |  | Quarterly |  | $ | 1,000 |  |  | 875,000 |  |  | $ | 853 |  |  | $ | 853 |
Series C(2) |  | 6.25% Non-Cumulative |  | June 12, 2014 |  | September 1, 2019 |  | 6.25 |  | Quarterly |  | 1,000 |  |  | 0 |  |  | 0 |  |  | 484 |
Series D(2) |  | 6.70% Non-Cumulative |  | October 31, 2014 |  | December 1, 2019 |  | 6.70 |  | Quarterly |  | 1,000 |  |  | 0 |  |  | 0 |  |  | 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 |
Series I |  | 5.00% Non-Cumulative |  | September 11, 2019 |  | December 1, 2024 |  | 5.00 |  | Quarterly |  | 1,000 |  |  | 1,500,000 |  |  | 1,462 |  |  | 0 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,853 |  |  | $ | 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.
(2) | On December 2, 2019, we redeemed all outstanding shares of our preferred stock Series C and Series D.
Accumulated Other Comprehensive Income Accumulated other comprehensive income primarily consists of accumulated net unrealized gains or losses associated with securities available for sale, changes in fair value of derivatives in hedging relationships, and foreign currency translation adjustments. The following table includes the AOCI impacts from the adoption of accounting standards and the changes in AOCI by component for the years ended December 31, 2019, 2018 and 2017. Table 10.2: Accumulated Other Comprehensive Income (Loss)
(Dollars in millions) |  | Securities Available for Sale |  | Securities Held to Maturity |  | Hedging Relationships(1) |  | Foreign Currency Translation Adjustments(2) |  | Other |  | Total
AOCI as of December 31, 2016 |  | $ | (4 | ) |  | $ | (621 | ) |  | $ | (78 | ) |  | $ | (222 | ) |  | $ | (24 | ) |  | $ | (949 | )
Other comprehensive income (loss) before reclassifications |  | 62 |  |  | 0 |  |  | (95 | ) |  | 84 |  |  | 30 |  |  | 81 |
Amounts reclassified from AOCI into earnings |  | (41 | ) |  | 97 |  |  | (108 | ) |  | 0 |  |  | (6 | ) |  | (58 | )
Other comprehensive income (loss), net of tax |  | 21 |  |  | 97 |  |  | (203 | ) |  | 84 |  |  | 24 |  |  | 23 |
AOCI as of December 31, 2017 |  | 17 |  |  | (524 | ) |  | (281 | ) |  | (138 | ) |  | 0 |  |  | (926 | )
Cumulative effects from adoption of new accounting standards |  | 3 |  |  | (113 | ) |  | (63 | ) |  | 0 |  |  | (28 | ) |  | (201 | )
Transfer of securities held to maturity to available for sale(3) |  | (325 | ) |  | 407 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 82 |
Other comprehensive income (loss) before reclassifications |  | (293 | ) |  | 0 |  |  | 38 |  |  | (39 | ) |  | (8 | ) |  | (302 | )
Amounts reclassified from AOCI into earnings |  | 159 |  |  | 40 |  |  | (112 | ) |  | 0 |  |  | (3 | ) |  | 84 |
Other comprehensive income (loss), net of tax |  | (459 | ) |  | 447 |  |  | (74 | ) |  | (39 | ) |  | (11 | ) |  | (136 | )
AOCI as of December 31, 2018 |  | (439 | ) |  | (190 | ) |  | (418 | ) |  | (177 | ) |  | (39 | ) |  | (1,263 | )
Other comprehensive income before reclassifications |  | 670 |  |  | 0 |  |  | 414 |  |  | 70 |  |  | 17 |  |  | 1,171 |
Amounts reclassified from AOCI into earnings |  | (20 | ) |  | 26 |  |  | 358 |  |  | 0 |  |  | (4 | ) |  | 360 |
Other comprehensive income, net of tax |  | 650 |  |  | 26 |  |  | 772 |  |  | 70 |  |  | 13 |  |  | 1,531 |
Transfer of securities held to maturity to available for sale, net of tax(4) |  | 724 |  |  | 164 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 888 |
AOCI as of December 31, 2019 |  | $ | 935 |  |  | $ | 0 |  |  | $ | 354 |  |  | $ | (107 | ) |  | $ | (26 | ) |  | $ | 1,156 |
_________
(1) | Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges.
(2) | Includes other comprehensive loss of $49 million, gain of $150 million and loss of $143 million for the years ended December 31, 2019, 2018 and 2017 respectively, from hedging instruments designated as net investment hedges.
(3) | In the first quarter of 2018, we made a one-time transfer of held to maturity securities with a carrying value of $9.0 billion to available for sale as a result of our adoption of ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This transfer resulted in an after-tax gain of $82 million ($107 million pre-tax) to AOCI.
(4) | On December 31, 2019, we transferred our entire portfolio of held to maturity securities to available for sale in consideration of changes to regulatory capital requirements under the Tailoring Rules.
The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the years ended December 31, 2019, 2018 and 2017. Table 10.3: Reclassifications from AOCI
(Dollars in millions) |  |  |  | Year Ended December 31,
AOCI Components |  | Affected Income Statement Line Item |  | 2019 |  | 2018 |  | 2017
Securities available for sale: |  |  |  |  |  |  |  |
|  | Non-interest income |  | $ | 26 |  |  | $ | (209 | ) |  | $ | 65 |
|  | Income tax provision |  | 6 |  |  | (50 | ) |  | 24 |
|  | Net income |  | 20 |  |  | (159 | ) |  | 41 |
Securities held to maturity:(1) |  |  |  |  |  |  |  |
|  | Interest income |  | (35 | ) |  | (53 | ) |  | (150 | )
|  | Income tax provision |  | (9 | ) |  | (13 | ) |  | (53 | )
|  | Net income |  | (26 | ) |  | (40 | ) |  | (97 | )
Hedging relationships: |  |  |  |  |  |  |  |
Interest rate contracts: |  | Interest income |  | (171 | ) |  | (91 | ) |  | 145 |
Foreign exchange contracts: |  | Interest income |  | 44 |  |  | 47 |  |  | 27 |
|  | Interest expense |  | (2 | ) |  | 0 |  |  | 0 |
|  | Non-interest income |  | (341 | ) |  | 191 |  |  | 1 |
|  | Income from continuing operations before income taxes |  | (470 | ) |  | 147 |  |  | 173 |
|  | Income tax provision |  | (112 | ) |  | 35 |  |  | 65 |
|  | Net income |  | (358 | ) |  | 112 |  |  | 108 |
Other: |  |  |  |  |  |  |  |
|  | Non-interest income and non-interest expense |  | 5 |  |  | 4 |  |  | 9 |
|  | Income tax provision |  | 1 |  |  | 1 |  |  | 3 |
|  | Net income |  | 4 |  |  | 3 |  |  | 6 |
Total reclassifications |  | $ | (360 | ) |  | $ | (84 | ) |  | $ | 58 |
__________
(1) | The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity was largely offset by the amortization of the premium or discount created from the prior transfer of securities from available for sale to held to maturity, which occurred at fair value. On December 31, 2019, we transferred our entire portfolio of held to maturity securities to available for sale.
The table below summarizes other comprehensive income (loss) activity and the related tax impact for the years ended December 31, 2019, 2018 and 2017. Table 10.4: Other Comprehensive Income (Loss)
|  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
(Dollars in millions) |  | Before Tax |  | Provision (Benefit) |  | After Tax |  | 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 |  | $ | 855 |  |  | $ | 205 |  |  | $ | 650 |  |  | $ | (605 | ) |  | $ | (146 | ) |  | $ | (459 | ) |  | $ | 23 |  |  | $ | 2 |  |  | $ | 21 |
Net changes in securities held to maturity |  | 36 |  |  | 10 |  |  | 26 |  |  | 588 |  |  | 141 |  |  | 447 |  |  | 150 |  |  | 53 |  |  | 97 |
Net unrealized gains (losses) on hedging relationships |  | 1,016 |  |  | 244 |  |  | 772 |  |  | (98 | ) |  | (24 | ) |  | (74 | ) |  | (325 | ) |  | (122 | ) |  | (203 | )
Foreign currency translation adjustments(1) |  | 54 |  |  | (16 | ) |  | 70 |  |  | 9 |  |  | 48 |  |  | (39 | ) |  | 3 |  |  | (81 | ) |  | 84 |
Other |  | 17 |  |  | 4 |  |  | 13 |  |  | (15 | ) |  | (4 | ) |  | (11 | ) |  | 38 |  |  | 14 |  |  | 24 |
Other comprehensive income (loss) |  | $ | 1,978 |  |  | $ | 447 |  |  | $ | 1,531 |  |  | $ | (121 | ) |  | $ | 15 |  |  | $ | (136 | ) |  | $ | (111 | ) |  | $ | (134 | ) |  | $ | 23 |
__________ (1) Includes the impact of hedging instruments designated as net investment hedges.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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