| Accumulated Other Comprehensive Income (Loss) ("AOCI") |
NOTE 17. Accumulated Other Comprehensive Income (Loss) (“AOCI”):
The following table presents a summary of the changes in each component of AOCI for the years ended December 31, 2016, 2015 and 2014:
|
|
Unrealized
gains (losses)
on securities |
|
|
Foreign
currency
translation
adjustment |
|
|
Pension
benefit
adjustment |
|
|
Accumulated
other
comprehensive
income (loss) |
|
|
|
(in thousands) |
|
|
Balance at December 31, 2013 |
$ |
(8,727 |
) |
|
$ |
(3,726 |
) |
|
$ |
(133,084 |
) |
|
$ |
(145,537 |
) |
|
Change in unrealized gains (losses) on securities |
|
31,118 |
|
|
|
— |
|
|
|
— |
|
|
|
31,118 |
|
|
Change in foreign currency translation adjustment |
|
— |
|
|
|
(16,694 |
) |
|
|
— |
|
|
|
(16,694 |
) |
|
Net actuarial loss |
|
— |
|
|
|
— |
|
|
|
(109,924 |
) |
|
|
(109,924 |
) |
|
Amortization of net actuarial loss |
|
— |
|
|
|
— |
|
|
|
22,587 |
|
|
|
22,587 |
|
|
Amortization of prior service credit |
|
— |
|
|
|
— |
|
|
|
(4,153 |
) |
|
|
(4,153 |
) |
|
Tax effect |
|
(11,480 |
) |
|
|
— |
|
|
|
34,994 |
|
|
|
23,514 |
|
|
Balance at December 31, 2014 |
|
10,911 |
|
|
|
(20,420 |
) |
|
|
(189,580 |
) |
|
|
(199,089 |
) |
|
Change in unrealized gains (losses) on securities |
|
(42,205 |
) |
|
|
— |
|
|
|
— |
|
|
|
(42,205 |
) |
|
Change in foreign currency translation adjustment |
|
— |
|
|
|
(36,822 |
) |
|
|
— |
|
|
|
(36,822 |
) |
|
Net actuarial gain |
|
— |
|
|
|
— |
|
|
|
10,743 |
|
|
|
10,743 |
|
|
Amortization of net actuarial loss |
|
— |
|
|
|
— |
|
|
|
32,645 |
|
|
|
32,645 |
|
|
Amortization of prior service credit |
|
— |
|
|
|
— |
|
|
|
(4,163 |
) |
|
|
(4,163 |
) |
|
Tax effect |
|
14,893 |
|
|
|
— |
|
|
|
(15,002 |
) |
|
|
(109 |
) |
|
Balance at December 31, 2015 |
|
(16,401 |
) |
|
|
(57,242 |
) |
|
|
(165,357 |
) |
|
|
(239,000 |
) |
|
Change in unrealized gains (losses) on securities |
|
(15,702 |
) |
|
|
— |
|
|
|
— |
|
|
|
(15,702 |
) |
|
Change in foreign currency translation adjustment |
|
— |
|
|
|
(6,334 |
) |
|
|
— |
|
|
|
(6,334 |
) |
|
Net actuarial loss |
|
— |
|
|
|
— |
|
|
|
(48,803 |
) |
|
|
(48,803 |
) |
|
Amortization of net actuarial loss |
|
— |
|
|
|
— |
|
|
|
28,282 |
|
|
|
28,282 |
|
|
Amortization of prior service credit |
|
— |
|
|
|
— |
|
|
|
(4,844 |
) |
|
|
(4,844 |
) |
|
Settlement costs |
|
— |
|
|
|
— |
|
|
|
66,337 |
|
|
|
66,337 |
|
|
Tax effect |
|
5,343 |
|
|
|
— |
|
|
|
(15,672 |
) |
|
|
(10,329 |
) |
|
Balance at December 31, 2016 |
$ |
(26,760 |
) |
|
$ |
(63,576 |
) |
|
$ |
(140,057 |
) |
|
$ |
(230,393 |
) |
Components of AOCI allocated to the Company and noncontrolling interests at December 31, 2016, 2015 and 2014, are as follows:
|
|
Unrealized
gains (losses)
on securities |
|
|
Foreign
currency
translation
adjustment |
|
|
Pension
benefit
adjustment |
|
|
Accumulated
other
comprehensive
income (loss) |
|
|
|
(in thousands) |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated to the Company |
$ |
(26,767 |
) |
|
$ |
(63,576 |
) |
|
$ |
(140,057 |
) |
|
$ |
(230,400 |
) |
|
Allocated to noncontrolling interests |
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
Balance at December 31, 2016 |
$ |
(26,760 |
) |
|
$ |
(63,576 |
) |
|
$ |
(140,057 |
) |
|
$ |
(230,393 |
) |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated to the Company |
$ |
(16,404 |
) |
|
$ |
(57,242 |
) |
|
$ |
(165,357 |
) |
|
$ |
(239,003 |
) |
|
Allocated to noncontrolling interests |
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
Balance at December 31, 2015 |
$ |
(16,401 |
) |
|
$ |
(57,242 |
) |
|
$ |
(165,357 |
) |
|
$ |
(239,000 |
) |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated to the Company |
$ |
10,894 |
|
|
$ |
(20,420 |
) |
|
$ |
(189,580 |
) |
|
$ |
(199,106 |
) |
|
Allocated to noncontrolling interests |
|
17 |
|
|
|
— |
|
|
|
— |
|
|
|
17 |
|
|
Balance at December 31, 2014 |
$ |
10,911 |
|
|
$ |
(20,420 |
) |
|
$ |
(189,580 |
) |
|
$ |
(199,089 |
) |
The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2016, 2015 and 2014:
|
|
Unrealized
gains (losses)
on securities |
|
|
Foreign
currency
translation
adjustment |
|
|
Pension
benefit
adjustment |
|
|
Total
other
comprehensive
income (loss) |
|
|
|
(in thousands) |
|
|
Year ended December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
$ |
2,617 |
|
|
$ |
(6,334 |
) |
|
$ |
(48,803 |
) |
|
$ |
(52,520 |
) |
|
Reclassifications out of AOCI |
|
(18,319 |
) |
|
|
— |
|
|
|
89,775 |
|
|
|
71,456 |
|
|
Tax effect |
|
5,343 |
|
|
|
— |
|
|
|
(15,672 |
) |
|
|
(10,329 |
) |
|
Total other comprehensive income (loss), net of tax |
$ |
(10,359 |
) |
|
$ |
(6,334 |
) |
|
$ |
25,300 |
|
|
$ |
8,607 |
|
|
Year ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
$ |
(46,601 |
) |
|
$ |
(36,822 |
) |
|
$ |
10,743 |
|
|
$ |
(72,680 |
) |
|
Reclassifications out of AOCI |
|
4,396 |
|
|
|
— |
|
|
|
28,482 |
|
|
|
32,878 |
|
|
Tax effect |
|
14,893 |
|
|
|
— |
|
|
|
(15,002 |
) |
|
|
(109 |
) |
|
Total other comprehensive income (loss), net of tax |
$ |
(27,312 |
) |
|
$ |
(36,822 |
) |
|
$ |
24,223 |
|
|
$ |
(39,911 |
) |
|
Year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
$ |
52,693 |
|
|
$ |
(16,694 |
) |
|
$ |
(109,924 |
) |
|
$ |
(73,925 |
) |
|
Reclassifications out of AOCI |
|
(21,575 |
) |
|
|
— |
|
|
|
18,434 |
|
|
|
(3,141 |
) |
|
Tax effect |
|
(11,480 |
) |
|
|
— |
|
|
|
34,994 |
|
|
|
23,514 |
|
|
Total other comprehensive income (loss), net of tax |
$ |
19,638 |
|
|
$ |
(16,694 |
) |
|
$ |
(56,496 |
) |
|
$ |
(53,552 |
) |
The following table presents the effect of the reclassifications out of AOCI on the respective line items in the consolidated statements of income:
|
|
|
Amounts reclassified from AOCI |
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
|
Affected line items in the |
|
|
(in thousands) |
2016 |
|
|
2015 |
|
|
|
2014 |
|
|
|
|
consolidated statements of income |
|
|
Unrealized gains (losses) on securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on sales of securities |
$ |
18,804 |
|
|
$ |
(2,147 |
) |
|
$ |
23,276 |
|
|
|
|
Net realized investment gains
(losses) |
|
|
Net other-than-temporary impairment losses |
|
(485 |
) |
|
|
(2,249 |
) |
|
|
(1,701 |
) |
|
|
|
Net realized investment gains
(losses) |
|
|
Pretax total |
$ |
18,319 |
|
|
$ |
(4,396 |
) |
|
$ |
21,575 |
|
|
|
|
|
|
|
Tax effect |
$ |
(7,007 |
) |
|
$ |
1,551 |
|
|
$ |
(7,959 |
) |
|
|
|
|
|
|
Pension benefit adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of net actuarial loss |
$ |
(28,282 |
) |
|
$ |
(32,645 |
) |
|
$ |
(22,587 |
) |
(1) |
|
|
|
|
|
Amortization of prior service credit |
|
4,844 |
|
|
|
4,163 |
|
|
|
4,153 |
|
(1) |
|
|
|
|
|
Settlement costs |
|
(66,337 |
) |
|
|
— |
|
|
|
— |
|
(1) |
|
|
|
|
|
Pretax total |
$ |
(89,775 |
) |
|
$ |
(28,482 |
) |
|
$ |
(18,434 |
) |
|
|
|
|
|
|
Tax effect |
$ |
34,339 |
|
|
$ |
10,893 |
|
|
$ |
7,051 |
|
|
|
|
|
|
|
(1) |
These components of AOCI are included in the computation of net periodic cost. See Note 13 Employee Benefit Plans for additional details. |
|