2018 Q2 Form 10-Q Financial Statement

#000002841218000146 Filed on July 31, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $650.0M $529.0M
YoY Change 22.87% 11.84%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $29.00M $29.00M
YoY Change 0.0% 0.0%
% of Gross Profit
Operating Expenses
YoY Change
Operating Profit
YoY Change
Interest Expense $60.00M $29.00M
YoY Change 106.9% 3.57%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $419.0M $302.0M
YoY Change 38.74% 106.85%
Income Tax $93.00M $99.00M
% Of Pretax Income 22.2% 32.78%
Net Earnings $326.0M $203.0M
YoY Change 60.59% 95.19%
Net Earnings / Revenue 50.15% 38.37%
Basic Earnings Per Share $1.90 $1.15
Diluted Earnings Per Share $1.87 $1.13
COMMON SHARES
Basic Shares Outstanding 171.0M shares 175.0M shares
Diluted Shares Outstanding 174.0M shares 179.0M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $5.660B $5.631B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment $467.0M $484.0M
YoY Change -3.51% -11.03%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $71.99B $71.45B
YoY Change 0.76% 0.23%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses $1.057B $997.0M
YoY Change 6.02% -22.05%
Deferred Revenue
YoY Change
Short-Term Debt $58.00M $541.0M
YoY Change -89.28% 4408.33%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $1.057B $997.0M
YoY Change 6.02% -22.05%
LONG-TERM LIABILITIES
Long-Term Debt $1.783B $2.343B
YoY Change -23.9% -24.93%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $1.783B $2.343B
YoY Change -23.9% -24.93%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.057B $997.0M
Total Long-Term Liabilities $1.783B $2.343B
Total Liabilities $63.91B $63.46B
YoY Change 0.7% -0.2%
SHAREHOLDERS EQUITY
Retained Earnings $8.374B $7.580B
YoY Change 10.47% 5.91%
Common Stock $3.285B $3.251B
YoY Change 1.05% -1.66%
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.991B $2.485B
YoY Change 20.36% 0.44%
Treasury Stock Shares 57.25M shares 52.25M shares
Shareholders Equity $8.079B $7.985B
YoY Change
Total Liabilities & Shareholders Equity $71.99B $71.45B
YoY Change 0.76% 0.23%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income $326.0M $203.0M
YoY Change 60.59% 95.19%
Depreciation, Depletion And Amortization $29.00M $29.00M
YoY Change 0.0% 0.0%
Cash From Operating Activities $256.0M $243.0M
YoY Change 5.35% -24400.0%
INVESTING ACTIVITIES
Capital Expenditures -$21.00M -$15.00M
YoY Change 40.0% -44.44%
Acquisitions
YoY Change
Other Investing Activities -$548.0M -$1.151B
YoY Change -52.39% 5.11%
Cash From Investing Activities -$569.0M -$1.166B
YoY Change -51.2% 3.92%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -863.0M -1.765B
YoY Change -51.1% -179.11%
NET CHANGE
Cash From Operating Activities 256.0M 243.0M
Cash From Investing Activities -569.0M -1.166B
Cash From Financing Activities -863.0M -1.765B
Net Change In Cash -1.176B -2.688B
YoY Change -56.25% -342.6%
FREE CASH FLOW
Cash From Operating Activities $256.0M $243.0M
Capital Expenditures -$21.00M -$15.00M
Free Cash Flow $277.0M $258.0M
YoY Change 7.36% 892.31%

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187000000 USD
CY2017Q4 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Accumulated Loss
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175000000 USD
CY2018Q2 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Accumulated Loss
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338000000 USD
CY2017Q4 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Fair Value
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10624000000 USD
CY2018Q2 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Fair Value
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11177000000 USD
CY2017Q4 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Accumulated Loss
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss
48000000 USD
CY2018Q2 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Accumulated Loss
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss
151000000 USD
CY2017Q4 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value
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6572000000 USD
CY2018Q2 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue
7243000000 USD
CY2017Q4 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value
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4052000000 USD
CY2018Q2 us-gaap Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value
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3934000000 USD
CY2018Q2 us-gaap Available For Sale Securities Pledged As Collateral
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393000000 USD
CY2018Q2 us-gaap Availableforsale Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions1
AvailableforsaleSecuritiesInUnrealizedLossPositionsQualitativeDisclosureNumberOfPositions1
399 Security
us-gaap Average Term Of Credit Risk Derivatives1
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P2Y8M12D
CY2017Q2 us-gaap Bank Owned Life Insurance Income
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us-gaap Bank Owned Life Insurance Income
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CY2018Q2 us-gaap Bank Owned Life Insurance Income
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us-gaap Bank Owned Life Insurance Income
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CY2017Q2 us-gaap Brokerage Commissions Revenue
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us-gaap Brokerage Commissions Revenue
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CY2018Q2 us-gaap Brokerage Commissions Revenue
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us-gaap Brokerage Commissions Revenue
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CY2016Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2017Q2 us-gaap Cash And Cash Equivalents At Carrying Value
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5631000000 USD
CY2017Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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5845000000 USD
CY2018Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
5660000000 USD
us-gaap Cash And Cash Equivalents Period Increase Decrease
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us-gaap Cash And Cash Equivalents Period Increase Decrease
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-185000000 USD
CY2017Q4 us-gaap Cash And Due From Banks
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1438000000 USD
CY2018Q2 us-gaap Cash And Due From Banks
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1424000000 USD
CY2017Q2 us-gaap Common Stock Dividends Per Share Declared
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0.26
us-gaap Common Stock Dividends Per Share Declared
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CY2018Q2 us-gaap Common Stock Dividends Per Share Declared
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0.34
us-gaap Common Stock Dividends Per Share Declared
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0.64
CY2017Q4 us-gaap Common Stock Par Or Stated Value Per Share
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5
CY2018Q2 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
5
CY2017Q4 us-gaap Common Stock Shares Authorized
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325000000 shares
CY2018Q2 us-gaap Common Stock Shares Authorized
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325000000 shares
CY2017Q4 us-gaap Common Stock Shares Issued
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228164824 shares
CY2018Q2 us-gaap Common Stock Shares Issued
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CY2017Q4 us-gaap Common Stock Value
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CY2018Q2 us-gaap Common Stock Value
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CY2017Q2 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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221000000 USD
us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
427000000 USD
CY2018Q2 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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290000000 USD
us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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468000000 USD
CY2017Q4 us-gaap Credit Derivative Maximum Exposure Undiscounted
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CY2018Q2 us-gaap Credit Derivative Maximum Exposure Undiscounted
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0 USD
CY2018Q2 us-gaap Decrease In Unrecognized Tax Benefits Is Reasonably Possible
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us-gaap Deferred Income Tax Expense Benefit
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us-gaap Deferred Income Tax Expense Benefit
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14000000 USD
CY2017Q4 us-gaap Deferred Tax Assets Liabilities Net
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141000000 USD
CY2018Q2 us-gaap Deferred Tax Assets Liabilities Net
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169000000 USD
CY2017Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards State And Local
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4000000 USD
CY2018Q2 us-gaap Deferred Tax Assets Operating Loss Carryforwards State And Local
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4000000 USD
CY2017Q4 us-gaap Deferred Tax Assets Valuation Allowance
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3000000 USD
CY2018Q2 us-gaap Deferred Tax Assets Valuation Allowance
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3000000 USD
us-gaap Defined Benefit Plan Net Periodic Benefit Cost
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us-gaap Defined Benefit Plan Net Periodic Benefit Cost
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-10000000 USD
CY2017Q4 us-gaap Deposits
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CY2018Q2 us-gaap Deposits
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CY2017Q4 us-gaap Deposits Money Market Deposits And Negotiable Order Of Withdrawal Now
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21500000000 USD
CY2018Q2 us-gaap Deposits Money Market Deposits And Negotiable Order Of Withdrawal Now
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22544000000 USD
CY2017Q4 us-gaap Deposits Savings Deposits
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2152000000 USD
CY2018Q2 us-gaap Deposits Savings Deposits
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2227000000 USD
CY2017Q4 us-gaap Derivative Asset Collateral Obligation To Return Cash Offset
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CY2018Q2 us-gaap Derivative Asset Collateral Obligation To Return Cash Offset
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us-gaap Depreciation And Amortization
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60000000 USD
us-gaap Depreciation And Amortization
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60000000 USD
CY2017Q4 us-gaap Derivative Asset Fair Value Gross Liability
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49000000 USD
CY2018Q2 us-gaap Derivative Asset Fair Value Gross Liability
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48000000 USD
CY2018Q2 us-gaap Derivative Asset Fair Value Of Collateral
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10000000 USD
CY2017Q4 us-gaap Derivative Assets
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142000000 USD
CY2018Q2 us-gaap Derivative Assets
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197000000 USD
CY2017Q4 us-gaap Derivative Collateral Obligation To Return Securities
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3000000 USD
CY2018Q2 us-gaap Derivative Collateral Obligation To Return Securities
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3000000 USD
CY2017Q4 us-gaap Derivative Collateral Right To Reclaim Securities
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24000000 USD
CY2018Q2 us-gaap Derivative Collateral Right To Reclaim Securities
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10000000 USD
CY2017Q4 us-gaap Derivative Credit Risk Valuation Adjustment Derivative Assets
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4000000 USD
CY2018Q2 us-gaap Derivative Credit Risk Valuation Adjustment Derivative Assets
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4000000 USD
CY2017Q4 us-gaap Derivative Fair Value Of Derivative Asset
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CY2018Q2 us-gaap Derivative Fair Value Of Derivative Asset
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CY2017Q4 us-gaap Derivative Fair Value Of Derivative Asset Amount Offset Against Collateral
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CY2018Q2 us-gaap Derivative Fair Value Of Derivative Asset Amount Offset Against Collateral
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194000000 USD
CY2017Q4 us-gaap Derivative Fair Value Of Derivative Liability
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190000000 USD
CY2018Q2 us-gaap Derivative Fair Value Of Derivative Liability
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CY2017Q4 us-gaap Derivative Fair Value Of Derivative Liability Amount Offset Against Collateral
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78000000 USD
CY2018Q2 us-gaap Derivative Fair Value Of Derivative Liability Amount Offset Against Collateral
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138000000 USD
CY2017Q4 us-gaap Derivative Liabilities
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148000000 USD
CY2017Q4 us-gaap Derivative Liability Collateral Right To Reclaim Cash Offset
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39000000 USD
CY2018Q2 us-gaap Derivative Liability Collateral Right To Reclaim Cash Offset
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130000000 USD
CY2017Q4 us-gaap Derivative Liability Fair Value Gross Asset
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CY2018Q2 us-gaap Derivative Liability Fair Value Of Collateral
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CY2018Q2 us-gaap Derivative Net Liability Position Aggregate Fair Value
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CY2017Q2 us-gaap Dividends Common Stock Cash
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us-gaap Dividends Common Stock Cash
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CY2018Q2 us-gaap Dividends Common Stock Cash
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58000000 USD
us-gaap Dividends Common Stock Cash
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110000000 USD
CY2017Q2 us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Basic
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CY2018Q2 us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Basic
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CY2017Q2 us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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CY2018Q2 us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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CY2017Q2 us-gaap Equipment Expense
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us-gaap Equipment Expense
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CY2018Q2 us-gaap Equipment Expense
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us-gaap Equipment Expense
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22000000 USD
CY2017Q2 us-gaap Federal Deposit Insurance Corporation Premium Expense
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us-gaap Federal Deposit Insurance Corporation Premium Expense
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25000000 USD
CY2018Q2 us-gaap Federal Deposit Insurance Corporation Premium Expense
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12000000 USD
us-gaap Federal Deposit Insurance Corporation Premium Expense
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25000000 USD
CY2017Q2 us-gaap Fees And Commissions Credit And Debit Cards
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80000000 USD
us-gaap Fees And Commissions Credit And Debit Cards
FeesAndCommissionsCreditAndDebitCards
157000000 USD
CY2018Q2 us-gaap Fees And Commissions Credit And Debit Cards
FeesAndCommissionsCreditAndDebitCards
60000000 USD
us-gaap Fees And Commissions Credit And Debit Cards
FeesAndCommissionsCreditAndDebitCards
119000000 USD
CY2017Q2 us-gaap Fees And Commissions Depositor Accounts
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57000000 USD
us-gaap Fees And Commissions Depositor Accounts
FeesAndCommissionsDepositorAccounts
115000000 USD
CY2018Q2 us-gaap Fees And Commissions Depositor Accounts
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53000000 USD
us-gaap Fees And Commissions Depositor Accounts
FeesAndCommissionsDepositorAccounts
107000000 USD
CY2017Q2 us-gaap Fees And Commissions Fiduciary And Trust Activities
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51000000 USD
us-gaap Fees And Commissions Fiduciary And Trust Activities
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100000000 USD
CY2018Q2 us-gaap Fees And Commissions Fiduciary And Trust Activities
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52000000 USD
us-gaap Fees And Commissions Fiduciary And Trust Activities
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104000000 USD
CY2017Q2 us-gaap Financing Receivable Modifications Post Modification Recorded Investment2
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85000000 USD
us-gaap Financing Receivable Modifications Post Modification Recorded Investment2
FinancingReceivableModificationsPostModificationRecordedInvestment2
139000000 USD
CY2018Q2 us-gaap Financing Receivable Modifications Post Modification Recorded Investment2
FinancingReceivableModificationsPostModificationRecordedInvestment2
26000000 USD
us-gaap Financing Receivable Modifications Post Modification Recorded Investment2
FinancingReceivableModificationsPostModificationRecordedInvestment2
48000000 USD
CY2017Q4 us-gaap Financing Receivable Recorded Investment Current
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CY2018Q2 us-gaap Financing Receivable Recorded Investment Current
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CY2017Q4 us-gaap Financing Receivable Recorded Investment Past Due
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337000000 USD
CY2018Q2 us-gaap Financing Receivable Recorded Investment Past Due
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172000000 USD
CY2017Q4 us-gaap Foreclosed Assets
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CY2018Q2 us-gaap Foreclosed Assets
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CY2017Q2 us-gaap Foreign Currency Transaction Gain Loss Before Tax
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11000000 USD
us-gaap Foreign Currency Transaction Gain Loss Before Tax
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22000000 USD
CY2018Q2 us-gaap Foreign Currency Transaction Gain Loss Before Tax
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12000000 USD
us-gaap Foreign Currency Transaction Gain Loss Before Tax
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24000000 USD
CY2017Q2 us-gaap Gain Loss On Foreign Currency Derivative Instruments Not Designated As Hedging Instruments
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0 USD
us-gaap Gain Loss On Foreign Currency Derivative Instruments Not Designated As Hedging Instruments
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0 USD
CY2018Q2 us-gaap Gain Loss On Foreign Currency Derivative Instruments Not Designated As Hedging Instruments
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0 USD
us-gaap Gain Loss On Foreign Currency Derivative Instruments Not Designated As Hedging Instruments
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0 USD
us-gaap Gain Loss On Sale Of Other Assets
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1000000 USD
us-gaap Gain Loss On Sale Of Other Assets
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CY2017Q2 us-gaap Gain Loss On Sale Of Securities Net
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us-gaap Gain Loss On Sale Of Securities Net
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CY2018Q2 us-gaap Gain Loss On Sale Of Securities Net
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us-gaap Gain Loss On Sale Of Securities Net
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1000000 USD
CY2017Q4 us-gaap Held To Maturity Securities
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CY2017Q2 us-gaap Held To Maturity Securities Transferred Security At Carrying Value
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CY2018Q2 us-gaap Held To Maturity Securities Transferred Security At Carrying Value
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1266000000 USD
CY2017Q2 us-gaap Impaired Financing Receivable Average Recorded Investment
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us-gaap Impaired Financing Receivable Average Recorded Investment
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580000000 USD
CY2018Q2 us-gaap Impaired Financing Receivable Average Recorded Investment
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377000000 USD
us-gaap Impaired Financing Receivable Average Recorded Investment
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411000000 USD
CY2017Q2 us-gaap Impaired Financing Receivable Interest Income Accrual Method
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us-gaap Impaired Financing Receivable Interest Income Accrual Method
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CY2018Q2 us-gaap Impaired Financing Receivable Interest Income Accrual Method
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us-gaap Impaired Financing Receivable Interest Income Accrual Method
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4000000 USD
CY2017Q4 us-gaap Impaired Financing Receivable Recorded Investment
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477000000 USD
CY2018Q2 us-gaap Impaired Financing Receivable Recorded Investment
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340000000 USD
CY2017Q4 us-gaap Impaired Financing Receivable Related Allowance
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CY2018Q2 us-gaap Impaired Financing Receivable Related Allowance
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CY2017Q4 us-gaap Impaired Financing Receivable Unpaid Principal Balance
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CY2018Q2 us-gaap Impaired Financing Receivable Unpaid Principal Balance
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434000000 USD
CY2017Q4 us-gaap Impaired Financing Receivable With No Related Allowance Recorded Investment
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173000000 USD
CY2018Q2 us-gaap Impaired Financing Receivable With No Related Allowance Recorded Investment
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147000000 USD
CY2017Q4 us-gaap Impaired Financing Receivable With Related Allowance Recorded Investment
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304000000 USD
CY2018Q2 us-gaap Impaired Financing Receivable With Related Allowance Recorded Investment
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CY2017Q2 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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CY2018Q2 us-gaap Income Tax Expense Benefit
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93000000 USD
us-gaap Income Tax Expense Benefit
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147000000 USD
us-gaap Income Taxes Paid Net
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130000000 USD
us-gaap Income Taxes Paid Net
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94000000 USD
us-gaap Increase Decrease In Accrued Liabilities
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us-gaap Increase Decrease In Accrued Liabilities
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us-gaap Increase Decrease In Deferred Income Taxes
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28000000 USD
us-gaap Increase Decrease In Deposits
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us-gaap Increase Decrease In Deposits
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us-gaap Increase Decrease In Interest And Dividends Receivable
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38000000 USD
us-gaap Increase Decrease In Other Operating Capital Net
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us-gaap Increase Decrease In Other Operating Capital Net
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CY2017Q2 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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2000000 shares
CY2018Q2 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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1000000 shares
us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
1000000 shares
CY2017Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
3000000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
3000000 shares
CY2018Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
2000000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
2000000 shares
CY2017Q2 us-gaap Interest And Dividend Income Operating
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529000000 USD
us-gaap Interest And Dividend Income Operating
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1025000000 USD
CY2018Q2 us-gaap Interest And Dividend Income Operating
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650000000 USD
us-gaap Interest And Dividend Income Operating
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1240000000 USD
CY2017Q2 us-gaap Interest And Fee Income Loans And Leases Held In Portfolio
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453000000 USD
us-gaap Interest And Fee Income Loans And Leases Held In Portfolio
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874000000 USD
CY2018Q2 us-gaap Interest And Fee Income Loans And Leases Held In Portfolio
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568000000 USD
us-gaap Interest And Fee Income Loans And Leases Held In Portfolio
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1077000000 USD
CY2017Q4 us-gaap Interest Bearing Deposit Liabilities
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25832000000 USD
CY2018Q2 us-gaap Interest Bearing Deposit Liabilities
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26894000000 USD
CY2017Q4 us-gaap Interest Bearing Deposits In Banks
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4407000000 USD
CY2018Q2 us-gaap Interest Bearing Deposits In Banks
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4236000000 USD
CY2017Q4 us-gaap Interest Bearing Foreign Deposit Time Deposits
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15000000 USD
CY2018Q2 us-gaap Interest Bearing Foreign Deposit Time Deposits
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34000000 USD
CY2017Q2 us-gaap Interest Expense
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29000000 USD
us-gaap Interest Expense
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55000000 USD
CY2018Q2 us-gaap Interest Expense
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60000000 USD
us-gaap Interest Expense
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101000000 USD
CY2017Q2 us-gaap Interest Expense Deposits
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9000000 USD
us-gaap Interest Expense Deposits
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18000000 USD
CY2018Q2 us-gaap Interest Expense Deposits
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28000000 USD
us-gaap Interest Expense Deposits
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44000000 USD
CY2017Q2 us-gaap Interest Expense Long Term Debt
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20000000 USD
us-gaap Interest Expense Long Term Debt
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37000000 USD
CY2018Q2 us-gaap Interest Expense Long Term Debt
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32000000 USD
us-gaap Interest Expense Long Term Debt
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Derivatives Instruments and Hedging Activities</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Corporation adopted ASU No. 2017-12, &#8220;Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities&#8221; (ASU 2017-12), effective January 1, 2018. At transition, the Corporation elected to change the measurement methodology of all long-haul fair value hedges existing at December 31, 2017. The prior period effect of this election was a </font><font style="font-family:inherit;font-size:10pt;">$1 million</font><font style="font-family:inherit;font-size:10pt;"> reduction to opening retained earnings, included in cumulative effect of change in accounting principles in the Consolidated Statements of Shareholders' Equity. In addition, the Corporation made a transition election to reclassify the portfolio of held-to-maturity securities to available-for-sale in January 2018 as the securities are eligible to be hedged. This resulted in the recognition of additional unrealized losses of </font><font style="font-family:inherit;font-size:10pt;">$11 million</font><font style="font-family:inherit;font-size:10pt;"> at the date of transfer.</font></div></div>

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