US Bank 2015 Annual Report Download - page 133

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The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains
(losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) for the years ended December 31:
Gains (Losses) Recognized in Other
Comprehensive Income (Loss)
Gains (Losses) Reclassified from
Other Comprehensive Income (Loss)
into Earnings
(Dollars in Millions) 2015 2014 2013 2015 2014 2013
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts(a) ................................... $(15) $ (26) $ 25 $(120) $(115) $(118)
Net investment hedges
Foreign exchange forward contracts ........................ 101 130 (45) – – –
Note: Ineffectiveness on cash flow and net investment hedges was not material for the years ended December 31, 2015, 2014 and 2013.
(a) Gains (Losses) reclassified from other comprehensive income (loss) into interest income on loans and interest expense on long-term debt.
The table below shows the gains (losses) recognized in earnings for fair value hedges, other economic hedges and the customer-
related positions for the years ended December 31:
(Dollars in Millions)
Location of Gains (Losses)
Recognized in Earnings 2015 2014 2013
Asset and Liability Management Positions
Fair value hedges(a)
Interest rate contracts ......................................... Other noninterest income $ 7 $ 29 $ (9)
Other economic hedges
Interest rate contracts
Futures and forwards ........................................ Mortgage banking revenue 186 (122) 615
Purchased and written options ................................ Mortgage banking revenue 191 287 243
Receive fixed/pay floating swaps ............................... Mortgage banking revenue 139 384 (322)
Pay fixed/receive floating swaps ............................... Mortgage banking revenue (33) – –
Foreign exchange forward contracts .............................. Commercial products revenue 108 (29) 49
Equity contracts .............................................. Compensation expense (1) 2 2
Credit contracts .............................................. Other noninterest income 2 – 6
Other ......................................................... Other noninterest income – (43) –
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps ................................. Other noninterest income 360 686 (361)
Pay fixed/receive floating swaps ................................. Other noninterest income (320) (652) 378
Purchased and written options .................................. Other noninterest income 3 – –
Futures ..................................................... Other noninterest income 1 – –
Foreign exchange rate contracts
Forwards, spots and swaps .................................... Commercial products revenue 74 66 51
Purchased and written options .................................. Commercial products revenue 2 1 –
(a) Gains (Losses) on items hedged by interest rate contracts included in noninterest income (expense), were $(7) million, $(27) million and $8 million for the years ended December 31, 2015, 2014
and 2013, respectively. The ineffective portion was immaterial for the years ended December 31, 2015, 2014 and 2013.
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