XML 80 R33.htm IDEA: XBRL DOCUMENT v3.19.3
Shareholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2019
Stockholders' Equity Note [Abstract]  
Components of accumulated other comprehensive income (loss)
The progression of the components of accumulated other comprehensive income follows (in millions):
 
 
 
Other Comprehensive Income (Loss)
 
 
 
 
 
AOCI
Beginning
Balance
 
Pretax
 
Tax
 
Net
of
tax
 
Attributable to
noncontrolling
interests
 
Attributable to
shareholders
 
Other (c)
 
AOCI
Ending
Balance
Quarter ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains on securities arising during the period
 
 
$
136

 
$
(29
)
 
$
107

 
$
—

 
$
107

 
 
 


Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
1

 
—

 
1

 
—

 
1

 
 
 


Total net unrealized gains on securities (b)
$
812

 
137

 
(29
)
 
108

 
—

 
108

 
$
—

 
$
920

Net unrealized gains on cash flow hedges
18

 
9

 
(2
)
 
7

 
—

 
7

 
—

 
25

Foreign currency translation adjustments
(13
)
 
(6
)
 
(1
)
 
(7
)
 
(1
)
 
(8
)
 
—

 
(21
)
Pension and other postretirement plans adjustments
(8
)
 
1

 
—

 
1

 
—

 
1

 
—

 
(7
)
Total
$
809

 
$
141

 
$
(32
)
 
$
109

 
$
(1
)
 
$
108

 
$
—

 
$
917

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding losses on securities arising during the period
 
 
$
(122
)
 
$
26

 
$
(96
)
 
$
—

 
$
(96
)
 
 
 
 
Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
(2
)
 
—

 
(2
)
 
—

 
(2
)
 
 
 
 
Total net unrealized gains (losses) on securities (b)
$
191

 
(124
)
 
26

 
(98
)
 
—

 
(98
)
 
$
—

 
$
93

Net unrealized losses on cash flow hedges
(27
)
 
(6
)
 
1

 
(5
)
 
—

 
(5
)
 
—

 
(32
)
Foreign currency translation adjustments
(9
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(9
)
Pension and other postretirement plans adjustments
(8
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(8
)
Total
$
147

 
$
(130
)
 
$
27

 
$
(103
)
 
$
—

 
$
(103
)
 
$
—

 
$
44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains on securities arising during the period
 
 
$
1,073

 
$
(226
)
 
$
847

 
$
—

 
$
847

 
 
 


Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
(13
)
 
3

 
(10
)
 
—

 
(10
)
 
 
 


Total net unrealized gains on securities (b)
$
83

 
1,060

 
(223
)
 
837

 
—

 
837

 
$
—

 
$
920

Net unrealized gains (losses) on cash flow hedges
(11
)
 
46

 
(10
)
 
36

 
—

 
36

 
—

 
25

Foreign currency translation adjustments
(16
)
 
(3
)
 
—

 
(3
)
 
(2
)
 
(5
)
 
—

 
(21
)
Pension and other postretirement plans adjustments
(8
)
 
1

 
—

 
1

 
—

 
1

 
—

 
(7
)
Total
$
48

 
$
1,104

 
$
(233
)
 
$
871

 
$
(2
)
 
$
869

 
$
—

 
$
917

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding losses on securities arising during the period
 
 
$
(662
)
 
$
139

 
$
(523
)
 
$
—

 
$
(523
)
 
 
 
 
Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
(4
)
 
1

 
(3
)
 
—

 
(3
)
 
 
 
 
Total net unrealized gains (losses) on securities (b)
$
840

 
(666
)
 
140

 
(526
)
 
—

 
(526
)
 
$
(221
)
 
$
93

Net unrealized losses on cash flow hedges
(13
)
 
(24
)
 
5

 
(19
)
 
—

 
(19
)
 
—

 
(32
)
Foreign currency translation adjustments
(6
)
 
(2
)
 
(1
)
 
(3
)
 
—

 
(3
)
 
—

 
(9
)
Pension and other postretirement plans adjustments
(8
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(8
)
Total
$
813

 
$
(692
)
 
$
144

 
$
(548
)
 
$
—

 
$
(548
)
 
$
(221
)
 
$
44

(a)The reclassification adjustment out of net unrealized gains (losses) on securities affected the following lines in AFG’s Statement of Earnings:
 
OCI component
 
Affected line in the statement of earnings
 
 
Pretax
 
Realized gains (losses) on securities
 
 
Tax
 
Provision for income taxes
 

(b)
Includes net unrealized gains of $55 million at September 30, 2019 compared to $59 million at June 30, 2019 and $58 million at December 31, 2018 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.
(c)
On January 1, 2018, AFG adopted new guidance that requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At the date of adoption, the $221 million net unrealized gain on equity securities classified as available for sale (with unrealized holding gains and losses reported in AOCI) under the prior guidance was reclassified from AOCI to retained earnings as the cumulative effect of an accounting change.