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Stockholders' Equity
 12 Months Ended
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.