Changes in Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2015

Changes in Accumulated Other Comprehensive Income (Loss)

(13) Changes in Accumulated Other Comprehensive Income (Loss)

The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated:

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of July 1, 2015	$	1,628		$	1,913		$	(232	)	$	3,309
OCI before reclassifications		79			229			(302	)		6
Amounts reclassified from (to) OCI		8			(12	)		—			(4	)
Current period OCI		87			217			(302	)		2
Balances as of September 30, 2015 before noncontrolling interests		1,715			2,130			(534	)		3,311
Less: change in OCI attributable to noncontrolling interests		(16	)		—			(151	)		(167	)
Balances as of September 30, 2015	$	1,731		$	2,130		$	(383	)	$	3,478

⁽¹⁾ Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾  See note 5 for additional information.

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of July 1, 2014	$	2,128		$	1,652		$	381		$	4,161
OCI before reclassifications		(63	)		110			(379	)		(332	)
Amounts reclassified from (to) OCI		(4	)		(9	)		—			(13	)
Current period OCI		(67	)		101			(379	)		(345	)
Balances as of September 30, 2014 before noncontrolling interests		2,061			1,753			2			3,816
Less: change in OCI attributable to noncontrolling interests		(6	)		—			(112	)		(118	)
Balances as of September 30, 2014	$	2,067		$	1,753		$	114		$	3,934

⁽¹⁾  Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾  See note 5 for additional information.

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of January 1, 2015	$	2,453		$	2,070		$	(77	)	$	4,446
OCI before reclassifications		(727	)		99			(619	)		(1,247	)
Amounts reclassified from (to) OCI		(1	)		(39	)		—			(40	)
Current period OCI		(728	)		60			(619	)		(1,287	)
Balances as of September 30, 2015 before noncontrolling interests		1,725			2,130			(696	)		3,159
Less: change in OCI attributable to noncontrolling interests		(6	)		—			(313	)		(319	)
Balances as of September 30, 2015	$	1,731		$	2,130		$	(383	)	$	3,478

⁽¹⁾  Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾  See note 5 for additional information.

(Amounts in millions)	Net unrealized investment gains (losses) (1)			Derivatives qualifying as hedges (2)			Foreign currency translation and other adjustments			Total
Balances as of January 1, 2014	$	926		$	1,319		$	297		$	2,542
OCI before reclassifications		1,186			457			(252	)		1,391
Amounts reclassified from (to) OCI		(7	)		(23	)		—			(30	)
Current period OCI		1,179			434			(252	)		1,361
Balances as of September 30, 2014 before noncontrolling interests		2,105			1,753			45			3,903
Less: change in OCI attributable to noncontrolling interests		38			—			(69	)		(31	)
Balances as of September 30, 2014	$	2,067		$	1,753		$	114		$	3,934

⁽¹⁾  Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information.

⁽²⁾  See note 5 for additional information.

The foreign currency translation and other adjustments balance included $31 million and $6 million, respectively, net of taxes of $14 million and $1 million, respectively, related to a net unrecognized postretirement benefit obligation as of September 30, 2015 and 2014. Amount also included taxes of $(93) million and $35 million, respectively, related to foreign currency translation adjustments as of September 30, 2015 and 2014.

The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented:

	Amount reclassified from accumulated other comprehensive income (loss)												Affected line item in the consolidated statements of income
	Three months ended September 30,						Nine months ended September 30,
(Amounts in millions)	2015			2014			2015			2014
Net unrealized investment (gains) losses:
Unrealized (gains) losses on investments (1)	$	13		$	(6	)	$	(1	)	$	(11	)	Net investment (gains) losses
Provision for income taxes		(5	)		2			—			4		Provision for income taxes
Total	$	8		$	(4	)	$	(1	)	$	(7	)
Derivatives qualifying as hedges:
Interest rate swaps hedging assets	$	(22	)	$	(17	)	$	(61	)	$	(45	)	Net investment income
Interest rate swaps hedging liabilities		—			—			—			(1	)	Interest expense
Inflation indexed swaps		5			3			2			11		Net investment income
Forward bond purchase commitments		(1	)		—			(1	)		—		Net investment income
Provision for income taxes		6			5			21			12		Provision for income taxes
Total	$	(12	)	$	(9	)	$	(39	)	$	(23	)

⁽¹⁾  Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves.