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Accumulated Other Comprehensive Income
 6 Months Ended
Jun. 30, 2018
Accumulated Other Comprehensive Income [Abstract]  
Comprehensive Income (Loss) Note
Accumulated Other Comprehensive Income
Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life deferred acquisition costs, life policy reserves and other as follows:
(Dollars in millions)
 
Three months ended June 30,
 
 
2018
 
 
2017
 
 
Before tax
 
Income tax
 
Net
 
 
Before tax
 
Income tax
 
Net
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
 
$
164

 
$
35

 
$
129

 
 
$
2,756

 
$
954

 
$
1,802

OCI before investment gains and losses, net, recognized in net income
 
(78
)
 
(18
)
 
(60
)
 
 
211

 
74

 
137

Investment gains and losses, net, recognized in net income
 
(2
)
 
—

 
(2
)
 
 
10

 
3

 
7

OCI
 
(80
)
 
(18
)
 
(62
)
 
 
221

 
77

 
144

AOCI, end of period
 
$
84

 
$
17

 
$
67

 
 
$
2,977

 
$
1,031

 
$
1,946

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension obligations:
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
 
$
(12
)
 
$
(1
)
 
$
(11
)
 
 
$
(25
)
 
$
(8
)
 
$
(17
)
OCI excluding amortization recognized in net income
 
—

 
—

 
—

 
 
—

 
—

 
—

Amortization recognized in net income
 
1

 
—

 
1

 
 
—

 
—

 
—

OCI
 
1

 
—

 
1

 
 
—

 
—

 
—

AOCI, end of period
 
$
(11
)
 
$
(1
)
 
$
(10
)
 
 
$
(25
)
 
$
(8
)
 
$
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life deferred acquisition costs, life policy reserves and other:
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
 
$
(4
)
 
$
(1
)
 
$
(3
)
 
 
$
(7
)
 
$
(2
)
 
$
(5
)
OCI before investment gains and losses, net, recognized in net income
 
—

 
—

 
—

 
 
—

 
(1
)
 
1

Investment gains and losses, net, recognized in net income
 
2

 
1

 
1

 
 
1

 
1

 
—

OCI
 
2

 
1

 
1

 
 
1

 
—

 
1

AOCI, end of period
 
$
(2
)
 
$
—

 
$
(2
)
 
 
$
(6
)
 
$
(2
)
 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of AOCI:
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
 
$
148

 
$
33

 
$
115

 
 
$
2,724

 
$
944

 
$
1,780

Investments OCI
 
(80
)
 
(18
)
 
(62
)
 
 
221

 
77

 
144

Pension obligations OCI
 
1

 
—

 
1

 
 
—

 
—

 
—

Life deferred acquisition costs, life policy reserves and other OCI
 
2

 
1

 
1

 
 
1

 
—

 
1

Total OCI
 
(77
)
 
(17
)
 
(60
)
 
 
222

 
77

 
145

AOCI, end of period
 
$
71

 
$
16

 
$
55

 
 
$
2,946

 
$
1,021

 
$
1,925

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in millions)
Six months ended June 30,
 
2018
 
 
2017
 
Before tax
 
Income tax
 
Net
 
 
Before tax
 
Income tax
 
Net
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
$
3,540

 
$
733

 
$
2,807

 
 
$
2,625

 
$
908

 
$
1,717

Cumulative effect of change in accounting for equity securities as of January 1, 2018
(3,155
)
 
(652
)
 
(2,503
)
 
 
—

 
—

 
—

Adjusted AOCI, beginning of period
385

 
81

 
304

 
 
2,625

 
908

 
1,717

OCI before investment gains and losses, net, recognized in net income
(295
)
 
(63
)
 
(232
)
 
 
501

 
176

 
325

Investment gains and losses, net, recognized in net income
(6
)
 
(1
)
 
(5
)
 
 
(149
)
 
(53
)
 
(96
)
OCI
(301
)
 
(64
)
 
(237
)
 
 
352

 
123

 
229

AOCI, end of period
$
84

 
$
17

 
$
67

 
 
$
2,977

 
$
1,031

 
$
1,946

 
 
 
 
 
 
 
 
 
 
 
 
 
Pension obligations:
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
$
(12
)
 
$
(1
)
 
$
(11
)
 
 
$
(26
)
 
$
(8
)
 
$
(18
)
OCI excluding amortization recognized in net income
—

 
—

 
—

 
 
—

 
—

 
—

Amortization recognized in net income
1

 
—

 
1

 
 
1

 
—

 
1

OCI
1

 
—

 
1

 
 
1

 
—

 
1

AOCI, end of period
$
(11
)
 
$
(1
)
 
$
(10
)
 
 
$
(25
)
 
$
(8
)
 
$
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Life deferred acquisition costs, life policy reserves and other:
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
$
(10
)
 
$
(2
)
 
$
(8
)
 
 
$
(9
)
 
$
(3
)
 
$
(6
)
OCI before investment gains and losses, net, recognized in net income
6

 
1

 
5

 
 
3

 
1

 
2

Investment gains and losses, net, recognized in net income
2

 
1

 
1

 
 
—

 
—

 
—

OCI
8

 
2

 
6

 
 
3

 
1

 
2

AOCI, end of period
$
(2
)
 
$
—

 
$
(2
)
 
 
$
(6
)
 
$
(2
)
 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of AOCI:
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
$
3,518

 
$
730

 
$
2,788

 
 
$
2,590

 
$
897

 
$
1,693

Cumulative effect of change in accounting for equity securities as of January 1, 2018
(3,155
)
 
(652
)
 
(2,503
)
 
 
—

 
—

 
—

Adjusted AOCI, beginning of period
363

 
78

 
285

 
 
2,590

 
897

 
1,693

Investments OCI
(301
)
 
(64
)
 
(237
)
 
 
352

 
123

 
229

Pension obligations OCI
1

 
—

 
1

 
 
1

 
—

 
1

Life deferred acquisition costs, life policy reserves and other OCI
8

 
2

 
6

 
 
3

 
1

 
2

Total OCI
(292
)
 
(62
)
 
(230
)
 
 
356

 
124

 
232

AOCI, end of period
$
71

 
$
16

 
$
55

 
 
$
2,946

 
$
1,021

 
$
1,925

 
 
 
 
 
 
 
 
 
 
 
 
 

Investment gains and losses, net and life deferred acquisition costs, life policy reserves and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the condensed consolidated statements of income. Amortization on pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses in the condensed consolidated statements of income.