Accumulated Other Comprehensive Income (Loss) ("AOCI")

9 Months Ended

Sep. 30, 2022

Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income (Loss) ("AOCI")

Note 15 – Accumulated Other Comprehensive Income (Loss) (“AOCI”)

The following table presents a summary of the changes in each component of AOCI for the nine months ended September 30, 2022:

(in millions)	Unrealized gains (losses) on debt  securities			Foreign currency translation adjustment			Pension benefit adjustment			Accumulated other comprehensive income (loss)
Balance at December 31, 2021	$	29		$	(39	)	$	(82	)	$	(92	)
Change in unrealized gains (losses)    on debt securities		(1,206	)		—			—			(1,206	)
Change in foreign currency translation    adjustment		—			(59	)		—			(59	)
Amortization of net actuarial loss		—			—			4			4
Tax effect		304			1			—			305
Balance at September 30, 2022	$	(873	)	$	(97	)	$	(78	)	$	(1,048	)

The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended September 30, 2022 and 2021:

(in millions)	Unrealized gains (losses) on debt  securities			Foreign currency translation adjustment			Pension benefit adjustment			Total other comprehensive income (loss)
Three Months Ended September 30, 2022
Pretax change before reclassifications	$	(404	)	$	(36	)	$	—		$	(440	)
Reclassifications out of AOCI		50			—			1			51
Tax effect		90			1			—			91
Total other comprehensive income (loss), net of tax	$	(264	)	$	(35	)	$	1		$	(298	)
Three Months Ended September 30, 2021
Pretax change before reclassifications	$	(50	)	$	(13	)	$	—		$	(63	)
Reclassifications out of AOCI		(7	)		—			2			(5	)
Tax effect		15			—			(1	)		14
Total other comprehensive income (loss), net of tax	$	(42	)	$	(13	)	$	1		$	(54	)

The following table presents the other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2022 and 2021:

(in millions)	Unrealized gains (losses) on debt  securities			Foreign currency translation adjustment			Pension benefit adjustment			Total other comprehensive income (loss)
Nine Months Ended September 30, 2022
Pretax change before reclassifications	$	(1,264	)	$	(59	)	$	—		$	(1,323	)
Reclassifications out of AOCI		58			—			4			62
Tax effect		304			1			—			305
Total other comprehensive income (loss), net of tax	$	(902	)	$	(58	)	$	4		$	(956	)
Nine Months Ended September 30, 2021
Pretax change before reclassifications	$	(121	)	$	(4	)	$	—		$	(125	)
Reclassifications out of AOCI		(18	)		—			4			(14	)
Tax effect		34			—			(1	)		33
Total other comprehensive income (loss), net of tax	$	(105	)	$	(4	)	$	3		$	(106	)

The following table presents the effects of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2022			2021			2022			2021			Affected line items
Unrealized gains (losses)    on debt securities:
Net realized (losses) gains    on sales of debt securities	$	(50	)	$	7		$	(58	)	$	18		Net realized investment    (losses) gains
Tax effect	$	13		$	(2	)	$	15		$	(4	)
Pension benefit adjustment (1):
Amortization of net    actuarial loss	$	(1	)	$	(2	)	$	(4	)	$	(5	)	Other operating expenses
Amortization of prior    service credit		—			—			—			1		Other operating expenses
Pretax total	$	(1	)	$	(2	)	$	(4	)	$	(4	)
Tax effect	$	—		$	1		$	—		$	1

(1)Amounts are components of net periodic cost. See Note 11 Employee Benefit Plans for additional details.