Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) (“AOCI”) includes certain items that are reported directly within a separate component of shareholders’ equity. The following table presents changes in accumulated other comprehensive income (loss) balances.



	2013			2012
	(in millions)
Three Months Ended June 30,
Unrealized gains (losses) on cash flow hedging instruments:
Balance at beginning of period	$	(190	)	$	(439	)
Other comprehensive income (loss) for period:
Net gains (losses) arising during period, net of tax of $19 million and $(5) million, respectively	36			(9		)
Reclassification adjustment for losses realized in net income, net of tax of $1 million and $2 million, respectively⁽³⁾	2			4
Total other comprehensive income (loss) for period	38			(5		)
Balance at end of period	(152		)	(444		)
Unrealized gains (losses) on securities available-for-sale, not other-than temporarily impaired:
Balance at beginning of period	—			93
Reclassification of unrealized (gains) losses on other than temporary impaired debt securities, net of tax of $- million and $- million, respectively	—			1
Other comprehensive income (loss) for period:
Net unrealized holding gains (losses) arising during period, net of tax of $- million and $13 million, respectively	—			23
Reclassification adjustment for (gains) losses realized in net income, net of tax of $- million and $(4) million, respectively⁽¹⁾	—			(8		)
Total other comprehensive income (loss) for period	—			15
Balance at end of period	—			109
Unrealized gains (losses) on other-than-temporarily impaired debt securities available-for-sale:
Balance at beginning of period	—			—
Reclassification of unrealized (gains) losses on other than temporary impaired debt securities, net of tax of $- million and $- million, respectively	—			(1		)
Other comprehensive income (loss) for period:
Other-than-temporary impairment on debt securities available-for-sale recognized in other comprehensive income, net of tax of $- million and $- million, respectively	—			—
Reclassification adjustment for (gains) losses realized in net income, net of tax of $- million and $- million, respectively⁽¹⁾	—			1
Total other comprehensive income (loss) for period	—			1
Balance at end of period	—			—



	2013			2012
	(in millions)
Pension and postretirement benefit plan liability:
Balance at beginning of period	(26		)	(11		)
Other comprehensive income (loss) for period:
Change in unfunded pension and postretirement liability, net of tax of $- million and $- million, respectively	—			—
Reclassification adjustment for (gains) losses realized in net income, net of tax of $- million and $- million, respectively⁽²⁾	1			1
Total other comprehensive income (loss) for period	1			1
Balance at end of period	(25		)	(10		)
Foreign currency translation adjustments:
Balance at beginning of period	(9		)	12
Other comprehensive income (loss) for period:
Translation gains (losses), net of tax of $- million and $(1) million, respectively	—			(5		)
Reclassification adjustment for (gains) losses realized in net income, net of tax of $- million and $- million, respectively⁽³⁾	9			—
Total other comprehensive income (loss) for period	9			(5		)
Balance at end of period	—			7
Total accumulated other comprehensive income (loss) at end of period	$	(177	)	$	(338	)

Six Months Ended June 30,
Unrealized gains (losses) on cash flow hedging instruments:
Balance at beginning of period	$	(358	)	$	(494	)
Other comprehensive income (loss) for period:
Net gains arising during period, net of tax of $39 million and $24 million, respectively	72			41
Reclassification adjustment for (gains) losses realized in net income, net of tax of $74 million and $5 million, respectively⁽³⁾	134			9
Total other comprehensive income (loss) for period	206			50
Balance at end of period	(152		)	(444		)
Unrealized gains (losses) on securities available-for-sale, not other-than temporarily impaired:
Balance at beginning of period	115			102
Reclassification of unrealized (gains) losses on other-than-temporary impaired debt securities, net of tax of $- million and $- million, respectively	—			1
Other comprehensive income (loss) for period:
Net unrealized holding gains (losses) arising during period, net of tax of $- million and $8 million, respectively	—			15
Reclassification adjustment for (gains) losses realized in net income, net of tax of $(62) million and $(4) million, respectively⁽¹⁾	(115		)	(9		)
Total other comprehensive income (loss) for period	(115		)	6
Balance at end of period	—			109



	2013			2012
	(in millions)
Unrealized gains (losses) on other-than-temporarily impaired debt securities available-for-sale:
Balance at beginning of period	1			—
Reclassification of unrealized (gains) losses on other-than-temporary impaired debt securities, net of tax of $- million and $- million, respectively	—			(1		)
Other comprehensive income (loss) for period:
Other-than-temporary impairment on debt securities available-for-sale recognized in other comprehensive income, net of tax of $- million and $- million, respectively	—			—
Reclassification adjustment for (gains) losses realized in net income, net of tax of $(1) million and $- million, respectively⁽¹⁾	(1		)	1
Total other comprehensive income (loss) for period	(1		)	1
Balance at end of period	—			—
Pension and postretirement benefit plan liability:
Balance at beginning of period	(26		)	(11		)
Other comprehensive income (loss) for period:
Change in unfunded pension and postretirement liability, net of tax of $- million and $- million, respectively	—			—
Reclassification adjustment for (gains) losses realized in net income, net of tax of $- million and $- million, respectively⁽²⁾	1			1
Total other comprehensive income (loss) for period	1			1
Balance at end of period	(25		)	(10		)
Foreign currency translation adjustments:
Balance at beginning of period	11			7
Other comprehensive income (loss) for period:
Translation losses, net of tax of $(1) million and $- million, respectively	(5		)	—
Reclassification adjustment for (gains) losses realized in net income, net of tax of $(9) million and $- million, respectively⁽³⁾	(6		)	—
Total other comprehensive income (loss) for period	(11		)	—
Balance at end of period	—			7
Total accumulated other comprehensive income (loss) at end of period	$	(177	)	$	(338	)


⁽¹⁾	The amounts reclassified during the three and six months ended June 30, 2013 are included in income (loss) from discontinued operations in our consolidated statement of income (loss).


⁽²⁾	The amounts reclassified during the three and six months ended June 30, 2013 are included as a component of salaries and employee benefits in our consolidated statement of income (loss).


⁽³⁾	See the tables below for the components of the amounts reclassified during the three and six months ended June 30, 2013 into income and location in our consolidated statement of income (loss)

The following table provides additional information related to amounts reclassified out of accumulated other comprehensive income into the consolidated statement of income (loss) during the three and six months ended June 30, 2013.



Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)⁽¹⁾			Affected Line Item in the Statement of Income (Loss)
	(in millions)
Three Months Ended June 30, 2013:
Unrealized gains (losses) on cash flow hedging instruments:
Interest rate and currency swaps	$	(3	)	Interest expense
Derivative loss recognized on termination of hedge relationship	—			Derivative related income (expense)
Total before tax	(3		)
Tax expense (benefit)	(1		)
Net of tax	$	(2	)

Foreign currency translation adjustments:
Sale of Insurance business	$	—		Income (loss) on discontinued operations
Closure of foreign legal entity	9			Other income
Total before tax	9
Tax expense (benefit)	—
Net of tax	$	9

Six Months Ended June 30, 2013:
Unrealized gains (losses) on cash flow hedging instruments:
Interest rate and currency swaps	$	(9	)	Interest expense
Derivative loss recognized on termination of hedge relationship	(199		)	Derivative related income (expense)
Total before tax	(208		)
Tax expense (benefit)	(74		)
Net of tax	$	(134	)

Foreign currency translation adjustments:
Sale of Insurance business	$	(24	)	Income (loss) on discontinued operations
Closure of foreign legal entity	9			Other income
Total before tax	(15		)
Tax expense (benefit)	(9		)
Net of tax	$	(6	)


⁽¹⁾	Amounts in parenthesis indicate expenses recognized in the consolidated statement of income (loss).