STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 169 NOTE 23 - ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in the components of AOCI, net of tax, are presented in the following table: (Dollars in millions) Securities AFS Derivative Instruments Brokered Time Deposits Long-Term Debt Employee Benefit Plans Total Year Ended December 31, 2018 Balance, beginning of period ($1) ($244) ($1) ($4) ($570) ($820) Cumulative effect adjustment related to ASU adoption 1 30 (56) — (1) (127) (154) Net unrealized (losses)/gains arising during the period (385) (123) 2 4 (56) (558) Amounts reclassified to net income (1) 55 — — 58 112 Other comprehensive (loss)/income, net of tax (386) (68) 2 4 2 (446) Balance, end of period ($357) ($368) $1 ($1) ($695) ($1,420) Year Ended December 31, 2017 Balance, beginning of period ($62) ($157) ($1) ($7) ($594) ($821) Net unrealized (losses)/gains arising during the period (7) (31) — 3 11 (24) Amounts reclassified to net income 68 (56) — — 13 25 Other comprehensive income/(loss), net of tax 61 (87) — 3 24 1 Balance, end of period ($1) ($244) ($1) ($4) ($570) ($820) Year Ended December 31, 2016 Balance, beginning of period $135 $87 $— $— ($682) ($460) Cumulative credit risk adjustment 2 — — — (5) — (5) Net unrealized (losses)/gains arising during the period (194) (91) (1) (2) 76 (212) Amounts reclassified to net income (3) (153) — — 12 (144) Other comprehensive (loss)/income, net of tax (197) (244) (1) (2) 88 (356) Balance, end of period ($62) ($157) ($1) ($7) ($594) ($821) 1 Related to the Company's early adoption of ASU 2018-02 beginning January 1, 2018. See Note 1, "Significant Accounting Policies," for additional information. 2 Related to the Company's early adoption of the ASU 2016-01 provision related to changes in instrument-specific credit risk beginning January 1, 2016. See Note 1, "Significant Accounting Policies," for additional information. Reclassifications from AOCI to Net income, and the related tax effects, are presented in the following table: (Dollars in millions) Year Ended December 31 Impacted Line Item in the Consolidated Statements of Income Details About AOCI Components 2018 2017 2016 Securities AFS: Net realized (gains)/losses on securities AFS ($1) $108 ($4) Net securities gains/(losses) Tax effect — (40) 1 Provision for income taxes (1) 68 (3) Derivative Instruments: Net realized losses/(gains) on cash flow hedges 72 (89) (244) Interest and fees on loans held for investment Tax effect (17) 33 91 Provision for income taxes 55 (56) (153) Employee Benefit Plans: Amortization of prior service credit (6) (6) (6) Employee benefits Amortization of actuarial loss 22 25 25 Employee benefits Deferred losses related to NCF Retirement Plan settlement 1 60 — — Employee benefits 76 19 19 Tax effect (18) (6) (7) Provision for income taxes 58 13 12 Total reclassifications from AOCI to net income $112 $25 ($144) 1 Related to the Company's NCF Retirement Plan settlement in the fourth quarter of 2018. See Note 17, "Employee Benefit Plans," for additional information.