| Accumulated Other Comprehensive Income (Loss) ("AOCI") |
Note 12 – 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, 2017:
|
(in thousands) |
Unrealized
gains (losses)
on securities |
|
|
Foreign
currency
translation
adjustment |
|
|
Pension
benefit
adjustment |
|
|
Accumulated
other
comprehensive
income (loss) |
|
|
Balance at December 31, 2016 |
$ |
(26,760 |
) |
|
$ |
(63,576 |
) |
|
$ |
(140,057 |
) |
|
$ |
(230,393 |
) |
|
Change in unrealized gains (losses) on securities |
|
81,044 |
|
|
|
— |
|
|
|
— |
|
|
|
81,044 |
|
|
Change in foreign currency translation adjustment |
|
— |
|
|
|
23,558 |
|
|
|
— |
|
|
|
23,558 |
|
|
Net actuarial loss |
|
— |
|
|
|
— |
|
|
|
(8,646 |
) |
|
|
(8,646 |
) |
|
Amortization of net actuarial loss |
|
— |
|
|
|
— |
|
|
|
15,792 |
|
|
|
15,792 |
|
|
Amortization of prior service credit |
|
— |
|
|
|
— |
|
|
|
(3,268 |
) |
|
|
(3,268 |
) |
|
Settlement costs |
|
— |
|
|
|
— |
|
|
|
152,388 |
|
|
|
152,388 |
|
|
Tax effect |
|
(29,030 |
) |
|
|
— |
|
|
|
(63,205 |
) |
|
|
(92,235 |
) |
|
Balance at September 30, 2017 |
$ |
25,254 |
|
|
$ |
(40,018 |
) |
|
$ |
(46,996 |
) |
|
$ |
(61,760 |
) |
|
Allocated to the Company |
$ |
25,235 |
|
|
$ |
(40,018 |
) |
|
$ |
(46,996 |
) |
|
$ |
(61,779 |
) |
|
Allocated to noncontrolling interests |
|
19 |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
|
Balance at September 30, 2017 |
$ |
25,254 |
|
|
$ |
(40,018 |
) |
|
$ |
(46,996 |
) |
|
$ |
(61,760 |
) |
The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended September 30, 2017 and 2016:
|
(in thousands) |
Unrealized
gains (losses)
on securities |
|
|
Foreign
currency
translation
adjustment |
|
|
Pension
benefit
adjustment |
|
|
Total
other
comprehensive
income (loss) |
|
|
Three Months Ended September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
$ |
22,833 |
|
|
$ |
11,415 |
|
|
$ |
(8,646 |
) |
|
$ |
25,602 |
|
|
Reclassifications out of AOCI |
|
(928 |
) |
|
|
— |
|
|
|
153,301 |
|
|
|
152,373 |
|
|
Tax effect |
|
(7,976 |
) |
|
|
— |
|
|
|
(58,764 |
) |
|
|
(66,740 |
) |
|
Total other comprehensive income (loss), net of tax |
$ |
13,929 |
|
|
$ |
11,415 |
|
|
$ |
85,891 |
|
|
$ |
111,235 |
|
|
Three Months Ended September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
$ |
12,435 |
|
|
$ |
(3,459 |
) |
|
$ |
— |
|
|
$ |
8,976 |
|
|
Reclassifications out of AOCI |
|
(8,687 |
) |
|
|
— |
|
|
|
5,832 |
|
|
|
(2,855 |
) |
|
Tax effect |
|
(1,169 |
) |
|
|
— |
|
|
|
(2,230 |
) |
|
|
(3,399 |
) |
|
Total other comprehensive income (loss), net of tax |
$ |
2,579 |
|
|
$ |
(3,459 |
) |
|
$ |
3,602 |
|
|
$ |
2,722 |
|
The following table presents the other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2017 and 2016:
|
(in thousands) |
Unrealized
gains (losses)
on securities |
|
|
Foreign
currency
translation
adjustment |
|
|
Pension
benefit
adjustment |
|
|
Total
other
comprehensive
income (loss) |
|
|
Nine Months Ended September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
$ |
95,329 |
|
|
$ |
23,558 |
|
|
$ |
(8,646 |
) |
|
$ |
110,241 |
|
|
Reclassifications out of AOCI |
|
(14,285 |
) |
|
|
— |
|
|
|
164,912 |
|
|
|
150,627 |
|
|
Tax effect |
|
(29,030 |
) |
|
|
— |
|
|
|
(63,205 |
) |
|
|
(92,235 |
) |
|
Total other comprehensive income (loss), net of tax |
$ |
52,014 |
|
|
$ |
23,558 |
|
|
$ |
93,061 |
|
|
$ |
168,633 |
|
|
Nine Months Ended September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax change before reclassifications |
$ |
96,612 |
|
|
$ |
3,066 |
|
|
$ |
— |
|
|
$ |
99,678 |
|
|
Reclassifications out of AOCI |
|
(13,222 |
) |
|
|
— |
|
|
|
17,520 |
|
|
|
4,298 |
|
|
Tax effect |
|
(31,303 |
) |
|
|
— |
|
|
|
(6,701 |
) |
|
|
(38,004 |
) |
|
Total other comprehensive income (loss), net of tax |
$ |
52,087 |
|
|
$ |
3,066 |
|
|
$ |
10,819 |
|
|
$ |
65,972 |
|
The following table presents the effects of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income:
|
|
|
Amounts reclassified from AOCI |
|
|
|
|
(in thousands) |
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
|
Affected line items in the condensed |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
consolidated statements of income |
|
Unrealized gains (losses) on securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains on
sales of securities |
$ |
928 |
|
|
$ |
8,687 |
|
|
$ |
14,285 |
|
|
$ |
13,707 |
|
|
Net realized investment (losses) gains |
|
Net other-than-temporary impairment losses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(485 |
) |
|
Net realized investment (losses) gains |
|
Pretax total |
$ |
928 |
|
|
$ |
8,687 |
|
|
$ |
14,285 |
|
|
$ |
13,222 |
|
|
|
|
Tax effect |
$ |
(332 |
) |
|
$ |
(3,261 |
) |
|
$ |
(5,778 |
) |
|
$ |
(5,057 |
) |
|
|
|
Pension benefit adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of net actuarial loss |
$ |
(1,958 |
) |
|
$ |
(7,043 |
) |
|
$ |
(15,792 |
) |
|
$ |
(21,153 |
) |
(1 |
) |
|
Amortization of prior service
credit |
|
1,045 |
|
|
|
1,211 |
|
|
|
3,268 |
|
|
|
3,633 |
|
(1 |
) |
|
Settlement costs |
|
(152,388 |
) |
|
|
— |
|
|
|
(152,388 |
) |
|
|
— |
|
(1 |
) |
|
Pretax total |
$ |
(153,301 |
) |
|
$ |
(5,832 |
) |
|
$ |
(164,912 |
) |
|
$ |
(17,520 |
) |
|
|
|
Tax effect |
$ |
62,276 |
|
|
$ |
2,229 |
|
|
$ |
66,702 |
|
|
$ |
6,701 |
|
|
|
|
|
|
|
(1) |
These components of AOCI are included in the computation of net periodic cost. See Note 9 Employee Benefit Plans for additional details. |
|