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Stockholders' Equity

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Stockholders' Equity

NOTE 10—STOCKHOLDERS’ EQUITY

Preferred Stock

The following table summarizes our preferred stock outstanding as of December 31, 2020 and 2019.

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, 2020						Carrying Value (in millions)
Series						Description						Issuance Date																																				December 31, 2020						December 31, 2019
Series B(2)						6.000% Non-Cumulative						August 20, 2012						September 1, 2017						6.000%						Quarterly						$	1,000					0						$	0					$	853
Series E						Fixed-to-Floating Rate Non-Cumulative						May 14, 2015						June 1, 2020						5.550% 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(3)						6.200% Non-Cumulative						August 24, 2015						December 1, 2020						6.200						Quarterly						1,000						0						0						484
Series G						5.200% Non-Cumulative						July 29, 2016						December 1, 2021						5.200						Quarterly						1,000						600,000						583						583
Series H						6.000% Non-Cumulative						November 29, 2016						December 1, 2021						6.000						Quarterly						1,000						500,000						483						483
Series I						5.000% Non-Cumulative						September 11, 2019						December 1, 2024						5.000						Quarterly						1,000						1,500,000						1,462						1,462
Series J						4.800% Non-Cumulative						January 31, 2020						June 1, 2025						4.800						Quarterly						1,000						1,250,000						1,209						0
Series K						4.625% Non-Cumulative						September 17, 2020						December 1, 2025						4.625						Quarterly						1,000						125,000						122						0
Total																																																$	4,847					$	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.

(3)On December 1, 2020, we redeemed all outstanding shares of our preferred stock Series F.

Accumulated Other Comprehensive Income

AOCI 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 the CECL standard and the changes in AOCI by component for the years ended December 31, 2020, 2019 and 2018.

Table 10.2: AOCI

(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, 2017						$	17					$	(281)					$	(138)					$	(524)					$	0					$	(926)
Cumulative effects from adoption of new accounting standards						3						(63)						0						(113)						(28)						(201)
Transfer of securities held to maturity to available for sale(3)						(325)						0						0						407						0						82
Other comprehensive income (loss) before reclassifications						(293)						38						(39)						0						(8)						(302)
Amounts reclassified from AOCI into earnings						159						(112)						0						40						(3)						84
Other comprehensive income (loss), net of tax						(459)						(74)						(39)						447						(11)						(136)
AOCI as of December 31, 2018						(439)						(418)						(177)						(190)						(39)						(1,263)
Other comprehensive income before reclassifications						670						414						70						0						17						1,171
Amounts reclassified from AOCI into earnings						(20)						358						0						26						(4)						360
Other comprehensive income, net of tax						650						772						70						26						13						1,531
Transfer of securities held to maturity to available for sale, net of tax(4)						724						0						0						164						0						888
AOCI as of December 31, 2019						935						354						(107)						0						(26)						1,156
Cumulative effects from the adoption of the CECL standard						(8)						0						0						0						0						(8)
Other comprehensive income before reclassifications						1,278						1,401						76						0						5						2,760
Amounts reclassified from AOCI into earnings						(19)						(393)						0						0						(2)						(414)
Other comprehensive income, net of tax						1,259						1,008						76						0						3						2,346
AOCI as of December 31, 2020						$	2,186					$	1,362					$	(31)					$	0					$	(23)					$	3,494

__________

(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 $65 million, loss of $49 million and gain of $150 million for the years ended December 31, 2020, 2019 and 2018 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, 2020, 2019 and 2018.

Table 10.3: Reclassifications from AOCI

(Dollars in millions)																		Year Ended December 31,
AOCI Components						Affected Income Statement Line Item																		2020						2019						2018
Securities available for sale:
						Non-interest income																		$	25					$	26					$	(209)
						Income tax provision																		6						6						(50)
						Net income																		19						20						(159)
Hedging relationships:
Interest rate contracts:						Interest income																		566						(171)						(91)
Foreign exchange contracts:						Interest income																		10						44						47
						Interest expense																		(3)						(2)						0
						Non-interest income																		(57)						(341)						191
						Income from continuing operations before income taxes																		516						(470)						147
						Income tax provision																		123						(112)						35
						Net income																		393						(358)						112
Securities held to maturity:(1)
						Interest income																		0						(35)						(53)
						Income tax provision																		0						(9)						(13)
						Net income																		0						(26)						(40)
Other:
						Non-interest income and non-interest expense																		2						5						4
						Income tax provision																		0						1						1
						Net income																		2						4						3
Total reclassifications																								$	414					$	(360)					$	(84)

__________

(1)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, 2020, 2019 and 2018.

Table 10.4: Other Comprehensive Income (Loss)

						Year Ended December 31,
						2020																		2019																		2018
(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 (loss) on securities available for sale						$	1,659					$	400					$	1,259					$	855					$	205					$	650					$	(605)					$	(146)					$	(459)
Net unrealized gains (loss) on hedging relationships						1,329						321						1,008						1,016						244						772						(98)						(24)						(74)
Foreign currency translation adjustments(1)						56						(20)						76						54						(16)						70						9						48						(39)
Net changes in securities held to maturity						0						0						0						36						10						26						588						141						447
Other						4						1						3						17						4						13						(15)						(4)						(11)
Other comprehensive income (loss)						$	3,048					$	702					$	2,346					$	1,978					$	447					$	1,531					$	(121)					$	15					$	(136)

__________

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

X

- References

No definition available.

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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://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

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