KeyBank 2015 Annual Report Download - page 190

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The following table summarizes the pre-tax net gains (losses) on our cash flow and net investment hedges for the
years ended December 31, 2015, and December 31, 2014, and where they are recorded on the income statement.
The table includes the effective portion of net gains (losses) recognized in OCI during the period, the effective
portion of net gains (losses) reclassified from OCI into income during the current period, and the portion of net
gains (losses) recognized directly in income, representing the amount of hedge ineffectiveness.
Year ended December 31, 2015
in millions
Net Gains (Losses)
Recognized in OCI
(Effective Portion)
Income Statement Location of Net Gains
(Losses) Reclassified From OCI Into
Income (Effective Portion)
Net Gains
(Losses) Reclassified
From OCI Into Income
(Effective Portion)
Income Statement Location of
Net Gains (Losses) Recognized
in Income (Ineffective Portion)
Net Gains
(Losses) Recognized
in Income (Ineffective
Portion)
Cash Flow Hedges
Interest rate $ 102 Interest income –Loans $98 Other income —
Interest rate (2) Interest expense –Long-term debt (4) Other income —
Interest rate 1Investment banking and debt placement fees —Other income —
Net Investment Hedges
Foreign exchange
contracts 38 Other Income —Other income —
Total $ 139 $ 94 —
Year ended December 31, 2014
in millions
Net Gains (Losses)
Recognized in OCI
(Effective Portion)
Income Statement Location of
Net Gains (Losses)
Reclassified From OCI Into Income
(Effective Portion)
Net Gains
(Losses) Reclassified
From OCI Into Income
(Effective Portion)
Income Statement Location of
Net Gains (Losses) Recognized
in Income (Ineffective Portion)
Net Gains
(Losses) Recognized
in Income (Ineffective
Portion)
Cash Flow Hedges
Interest rate $ 50 Interest income – Loans $ 67 Other income —
Interest rate (8) Interest expense – Long-term debt (4) Other income —
Interest rate (1) Investment banking and debt placement fees — Other income —
Net Investment Hedges
Foreign exchange
contracts 27 Other Income — Other income —
Total $ 68 $ 63 —
The after-tax change in AOCI resulting from cash flow and net investment hedges is as follows:
in millions
December 31,
2014
2015 Hedging
Activity
Reclassification
of Gains to Net
Income
December 31,
2015
AOCI resulting from cash flow and net investment hedges $ (8) $ 87 $ (59) $ 20
Nonhedging instruments. Our derivatives that are not designated as hedging instruments are recorded at fair
value in “derivative assets” and “derivative liabilities” on the balance sheet. Adjustments to the fair values of
these instruments, as well as any premium paid or received, are included in “corporate services income” and
“other income” on the income statement.
175