Bank of America 2015 Annual Report Download - page 153
Download and view the complete annual report
Please find page 153 of the 2015 Bank of America annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143 -
144 -
145 -
146 -
147 -
148 -
149 -
150 -
151 -
152 -
153 -
154 -
155 -
156 -
157 -
158 -
159 -
160 -
161 -
162 -
163 -
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
-
239
-
240
-
241
-
242
-
243
-
244
-
245
-
246
-
247
-
248
-
249
-
250
-
251
-
252
-
253
-
254
-
255
-
256
 |
 |
Bank of America 2015 151
Cash Flow and Net Investment Hedges
The table below summarizes certain information related to cash
flow hedges and net investment hedges for 2015, 2014 and 2013.
Of the $1.1 billion net loss (after-tax) on derivatives in accumulated
OCI for 2015, $563 million ($352 million after-tax) is expected to
be reclassified into earnings in the next 12 months. These net
losses reclassified into earnings are expected to primarily reduce
net interest income related to the respective hedged items.
Amounts related to price risk on restricted stock awards
reclassified from accumulated OCI are recorded in personnel
expense. For terminated cash flow hedges, the time period over
which substantially all of the forecasted transactions are hedged
is approximately seven years, with a maximum length of time for
certain forecasted transactions of 20 years.
Derivatives Designated as Cash Flow and Net Investment Hedges
2015
(Dollars in millions, amounts pretax)
Gains (Losses)
Recognized in
Accumulated OCI
on Derivatives
Gains (Losses)
in Income
Reclassified from
Accumulated OCI
Hedge
Ineffectiveness and
Amounts Excluded
from Effectiveness
Testing (1)
Cash flow hedges
Interest rate risk on variable-rate portfolios $ 95 $ (974)$ (2)
Price risk on restricted stock awards (2) (40) 91 —
Total $ 55 $ (883)$ (2)
Net investment hedges
Foreign exchange risk $ 3,010 $ 153 $ (298)
2014
Cash flow hedges
Interest rate risk on variable-rate portfolios $ 68 $ (1,119) $ (4)
Price risk on restricted stock awards (2) 127 359 —
Total $ 195 $ (760) $ (4)
Net investment hedges
Foreign exchange risk $ 3,021 $ 21 $ (503)
2013
Cash flow hedges
Interest rate risk on variable-rate portfolios $ (321) $ (1,102) $ —
Price risk on restricted stock awards (2) 477 329 —
Total $ 156 $ (773) $ —
Net investment hedges
Foreign exchange risk $ 1,024 $ (355) $ (134)
(1) Amounts related to cash flow hedges represent hedge ineffectiveness and amounts related to net investment hedges represent amounts excluded from effectiveness testing.
(2) The hedge gain (loss) recognized in accumulated OCI is primarily related to the change in the Corporation’s stock price for the period.