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Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 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 September 30,
 
 
2018
 
 
2017
 
 
Before tax
 
Income tax
 
Net
 
 
Before tax
 
Income tax
 
Net
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
 
$
84

 
$
17

 
$
67

 
 
$
2,977

 
$
1,031

 
$
1,946

OCI before investment gains and losses, net, recognized in net income
 
(76
)
 
(17
)
 
(59
)
 
 
193

 
67

 
126

Investment gains and losses, net, recognized in net income
 
(1
)
 
—

 
(1
)
 
 
(4
)
 
(1
)
 
(3
)
OCI
 
(77
)
 
(17
)
 
(60
)
 
 
189

 
66

 
123

AOCI, end of period
 
$
7

 
$
—

 
$
7

 
 
$
3,166

 
$
1,097

 
$
2,069

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension obligations:
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
 
$
(11
)
 
$
(1
)
 
$
(10
)
 
 
$
(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
)
 
 
$
(24
)
 
$
(7
)
 
$
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life deferred acquisition costs, life policy reserves and other:
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
 
$
(2
)
 
$
—

 
$
(2
)
 
 
$
(6
)
 
$
(2
)
 
$
(4
)
OCI before investment gains and losses, net, recognized in net income
 
—

 
—

 
—

 
 
1

 
—

 
1

Investment gains and losses, net, recognized in net income
 
1

 
—

 
1

 
 
(3
)
 
(1
)
 
(2
)
OCI
 
1

 
—

 
1

 
 
(2
)
 
(1
)
 
(1
)
AOCI, end of period
 
$
(1
)
 
$
—

 
$
(1
)
 
 
$
(8
)
 
$
(3
)
 
$
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of AOCI:
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of period
 
$
71

 
$
16

 
$
55

 
 
$
2,946

 
$
1,021

 
$
1,925

Investments OCI
 
(77
)
 
(17
)
 
(60
)
 
 
189

 
66

 
123

Pension obligations OCI
 
—

 
—

 
—

 
 
1

 
1

 
—

Life deferred acquisition costs, life policy reserves and other OCI
 
1

 
—

 
1

 
 
(2
)
 
(1
)
 
(1
)
Total OCI
 
(76
)
 
(17
)
 
(59
)
 
 
188

 
66

 
122

AOCI, end of period
 
$
(5
)
 
$
(1
)
 
$
(4
)
 
 
$
3,134

 
$
1,087

 
$
2,047

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in millions)
Nine months ended September 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
(371
)
 
(80
)
 
(291
)
 
 
694

 
243

 
451

Investment gains and losses, net, recognized in net income
(7
)
 
(1
)
 
(6
)
 
 
(153
)
 
(54
)
 
(99
)
OCI
(378
)
 
(81
)
 
(297
)
 
 
541

 
189

 
352

AOCI, end of period
$
7

 
$
—

 
$
7

 
 
$
3,166

 
$
1,097

 
$
2,069

 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
 
2

 
1

 
1

OCI
1

 
—

 
1

 
 
2

 
1

 
1

AOCI, end of period
$
(11
)
 
$
(1
)
 
$
(10
)
 
 
$
(24
)
 
$
(7
)
 
$
(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

 
 
4

 
1

 
3

Investment gains and losses, net, recognized in net income
3

 
1

 
2

 
 
(3
)
 
(1
)
 
(2
)
OCI
9

 
2

 
7

 
 
1

 
—

 
1

AOCI, end of period
$
(1
)
 
$
—

 
$
(1
)
 
 
$
(8
)
 
$
(3
)
 
$
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
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
(378
)
 
(81
)
 
(297
)
 
 
541

 
189

 
352

Pension obligations OCI
1

 
—

 
1

 
 
2

 
1

 
1

Life deferred acquisition costs, life policy reserves and other OCI
9

 
2

 
7

 
 
1

 
—

 
1

Total OCI
(368
)
 
(79
)
 
(289
)
 
 
544

 
190

 
354

AOCI, end of period
$
(5
)
 
$
(1
)
 
$
(4
)
 
 
$
3,134

 
$
1,087

 
$
2,047

 
 
 
 
 
 
 
 
 
 
 
 
 

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.