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Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Schedule of Preferred Stock
The following table summarizes our preferred stock outstanding as of June 30, 2020 and December 31, 2019.
Table 9.1: Preferred Stock Outstanding(1)
 
 
 
 
 
 
Redeemable by Issuer Beginning
 
Per Annum Dividend Rate
 
Dividend Frequency
 
Liquidation Preference per Share
 
Total Shares Outstanding
as of
June 30, 2020
 
Carrying Value
(in millions)
Series
 
Description
 
Issuance Date
 
 
 
 
 
 
June 30, 2020
 
December 31, 2019
Series B(2)
 
6.00%
Non-Cumulative
 
August 20, 2012
 
September 1, 2017
 
6.00%
 
Quarterly
 
$
1,000

 
0

 
$
0

 
$
853

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

 
1,462

Series J
 
4.80%
Non-Cumulative
 
January 31, 2020
 
June 1, 2025
 
4.80
 
Quarterly
 
1,000

 
1,250,000

 
1,209

 
0

Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
5,209

 
$
4,853

__________
(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 March 2, 2020, we redeemed all outstanding shares of our preferred stock Series B.
Change in AOCI Gain (Loss) by Component (Net of Tax)
The following table includes the AOCI impacts from the adoption of the CECL standard and the changes in AOCI by component for the three and six months ended June 30, 2020 and 2019.
Table 9.2: Accumulated Other Comprehensive Income (Loss)
 
 
Three Months Ended June 30, 2020
(Dollars in millions)
 
Securities Available for Sale
 
Hedging Relationships(1)
 
Foreign Currency Translation Adjustments(2)
 
Other
 
Total
AOCI as of March 31, 2020
 
$
2,151

 
$
1,728

 
$
(174
)
 
$
(26
)
 
$
3,679

Other comprehensive income (loss) before reclassifications
 
222

 
(60
)
 
23

 
0

 
185

Amounts reclassified from AOCI into earnings
 
0

 
117

 
0

 
0

 
117

Other comprehensive income, net of tax
 
222

 
57

 
23

 
0

 
302

AOCI as of June 30, 2020
 
$
2,373

 
$
1,785

 
$
(151
)
 
$
(26
)
 
$
3,981

 
 
Six Months Ended June 30, 2020
(Dollars in millions)
 
Securities Available for Sale
 
Hedging Relationships(1)
 
Foreign Currency Translation Adjustments(2)
 
Other
 
Total
AOCI as of December 31, 2019
 
$
935

 
$
354

 
$
(107
)
 
$
(26
)
 
$
1,156

Cumulative effects from the adoption of the CECL standard
 
(8
)
 
0

 
0

 
0

 
(8
)
Other comprehensive income (loss) before reclassifications
 
1,446

 
1,635

 
(44
)
 
0

 
3,037

Amounts reclassified from AOCI into earnings
 
0

 
(204
)
 
0

 
0

 
(204
)
Other comprehensive income (loss), net of tax
 
1,446

 
1,431

 
(44
)
 
0

 
2,833

AOCI as of June 30, 2020
 
$
2,373


$
1,785


$
(151
)

$
(26
)

$
3,981


 
 
Three Months Ended June 30, 2019
(Dollars in millions)
 
Securities Available for Sale
 
Hedging Relationships(1)
 
Foreign Currency Translation Adjustments(2)
 
Securities Held to Maturity
 
Other
 
Total
AOCI as of March 31, 2019
 
$
(147
)
 
$
(141
)
 
$
(147
)
 
$
(184
)
 
$
(41
)
 
$
(660
)
Other comprehensive income before reclassifications
 
284

 
406

 
15

 
0

 
0

 
705

Amounts reclassified from AOCI into earnings
 
(12
)
 
131

 
0

 
6

 
0

 
125

Other comprehensive income, net of tax
 
272

 
537

 
15

 
6

 
0

 
830

AOCI as of June 30, 2019
 
$
125

 
$
396

 
$
(132
)
 
$
(178
)
 
$
(41
)
 
$
170

 
 
Six Months Ended June 30, 2019
(Dollars in millions)
 
Securities Available for Sale
 
Hedging Relationships(1)
 
Foreign Currency Translation Adjustments(2)
 
Securities Held to Maturity
 
Other
 
Total
AOCI as of December 31, 2018
 
$
(439
)
 
$
(418
)
 
$
(177
)
 
$
(190
)
 
$
(39
)
 
$
(1,263
)
Other comprehensive income (loss) before reclassifications
 
594

 
517

 
45

 
0

 
(1
)
 
1,155

Amounts reclassified from AOCI into earnings
 
(30
)
 
297

 
0

 
12

 
(1
)
 
278

Other comprehensive income (loss), net of tax
 
564

 
814

 
45

 
12

 
(2
)
 
1,433

AOCI as of June 30, 2019
 
$
125

 
$
396

 
$
(132
)
 
$
(178
)
 
$
(41
)
 
$
170

_________
(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 $8 million and gain of $134 million for the three and six months ended June 30, 2020, respectively, and other comprehensive gains of $53 million and $19 million for the three and six months ended June 30, 2019, respectively, from hedging instruments designated as net investment hedges.
Reclassifications from AOCI
The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the three and six months ended June 30, 2020 and 2019.
Table 9.3: Reclassifications from AOCI
(Dollars in millions)
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
AOCI Components
 
Affected Income Statement Line Item
 
2020
 
2019
 
2020
 
2019
Securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest income
 
$
0

 
$
15

 
$
0

 
$
39

 
 
Income tax provision
 
0

 
3

 
0

 
9

 
 
Net income
 
0

 
12

 
0

 
30

Hedging relationships:
 
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
Interest income
 
142

 
(62
)
 
168

 
(122
)
Foreign exchange contracts:
 
Interest income
 
2

 
13

 
9

 
25

 
 
Interest expense
 
(1
)
 
0

 
(2
)
 
0

 
 
Non-interest income
 
(299
)
 
(123
)
 
93

 
(295
)
 
 
Income (loss) from continuing operations before income taxes
 
(156
)
 
(172
)
 
268

 
(392
)
 
 
Income tax provision (benefit)
 
(39
)
 
(41
)
 
64

 
(95
)
 
 
Net income (loss)
 
(117
)
 
(131
)
 
204

 
(297
)
Securities held to maturity:(1)
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
0

 
(8
)
 
0

 
(16
)
 
 
Income tax provision (benefit)
 
0

 
(2
)
 
0

 
(4
)
 
 
Net income (loss)
 
0

 
(6
)
 
0

 
(12
)
Other:
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest income and non-interest expense
 
0

 
0

 
0

 
1

 
 
Income tax provision
 
0

 
0

 
0

 
0

 
 
Net income
 
0

 
0

 
0

 
1

Total reclassifications
 
$
(117
)
 
$
(125
)
 
$
204

 
$
(278
)
__________
(1) 
On December 31, 2019, we transferred our entire portfolio of held to maturity securities to available for sale.
Components of Other Comprehensive Income (Loss) and Related Tax Impact
The table below summarizes other comprehensive income activity and the related tax impact for the three and six months ended June 30, 2020 and 2019.
Table 9.4: Other Comprehensive Income
 
 
Three Months Ended June 30,
 
 
2020
 
2019
(Dollars in millions)
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
Other comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities available for sale
 
$
292

 
$
70

 
$
222

 
$
358

 
$
86

 
$
272

Net unrealized gains on hedging relationships
 
76

 
19

 
57

 
708

 
171

 
537

Foreign currency translation adjustments(1)
 
20

 
(3
)
 
23

 
33

 
18

 
15

Net changes in securities held to maturity
 
0

 
0

 
0

 
9

 
3

 
6

Other
 
0

 
0

 
0

 
(1
)
 
(1
)
 
0

Other comprehensive income
 
$
388

 
$
86

 
$
302

 
$
1,107

 
$
277

 
$
830


 
 
Six Months Ended June 30,
 
 
2020
 
2019
(Dollars in millions)
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
 
Before
Tax
 
Provision
(Benefit)
 
After
Tax
Other comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities available for sale
 
$
1,902

 
$
456

 
$
1,446

 
$
742

 
$
178

 
$
564

Net unrealized gains on hedging relationships
 
1,884

 
453

 
1,431

 
1,073

 
259

 
814

Foreign currency translation adjustments(1)
 
(1
)
 
43

 
(44
)
 
52

 
7

 
45

Net changes in securities held to maturity
 
0

 
0

 
0

 
16

 
4

 
12

Other
 
0

 
0

 
0

 
(3
)
 
(1
)
 
(2
)
Other comprehensive income
 
$
3,785

 
$
952

 
$
2,833

 
$
1,880

 
$
447

 
$
1,433

__________
(1) 
Includes the impact of hedging instruments designated as net investment hedges.