Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2012

Accumulated Other Comprehensive Income (Loss)

10.    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 balances.

	2012			2011
	(in millions)
Three Months Ended September 30:
Unrealized gains (losses) on cash flow hedging instruments:
Balance at beginning of period	$	(444	)	$	(515	)
Other comprehensive income (loss) for period:
Net gains (losses) arising during period, net of tax of $15 million and $(34) million, respectively		30			(65	)
Reclassification adjustment for losses realized in net income, net of tax of $2 million and $5 million, respectively		4			9
Total other comprehensive income (loss) for period		34			(56	)
Balance at end of period		(410	)		(571	)
Unrealized gains (losses) on securities available-for-sale, not other-than temporarily impaired:
Balance at beginning of period	$	109		$	75
Other comprehensive income for period:
Net unrealized holding gains arising during period, net of tax of $11 million and $28 million, respectively		20			52
Reclassification adjustment for gains realized in net income, net of tax of $(3) million and $(4) million, respectively		(5	)		(9	)
Total other comprehensive income for period		15			43
Balance at end of period		124	(1)		118
Unrealized gains (losses) on other-than-temporarily impaired debt securities available-for-sale:
Balance at beginning of period	$	-		$	(5	)
Other comprehensive income 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		1			-
Reclassification adjustment for gains realized in net income, net of tax of $- million and $- million, respectively		(1	)		-
Total other comprehensive income for period		-			-
Balance at end of period		-			(5	)
Pension and postretirement benefit plan liability:
Balance at beginning and end of period		(10	)		1
Foreign currency translation adjustments:
Balance at beginning of period		7			16
Other comprehensive income (loss) for period:
Translation gains (losses), net of tax of $1 million and $(5) million, respectively		4			(11	)
Total other comprehensive income (loss) for period		4			(11	)
Balance at end of period		11			5
Total accumulated other comprehensive loss at end of period	$	(285	)	$	(452	)

	2012			2011
	(in millions)
Nine Months Ended September 30:
Unrealized gains (losses) on cash flow hedging instruments:
Balance at beginning of period	$	(494	)	$	(575	)
Other comprehensive income for period:
Net gains (losses) arising during period, net of tax of $39 million and $(10) million, respectively		71			(27	)
Reclassification adjustment for losses realized in net income, net of tax of $7 million and $19 million, respectively		13			31
Total other comprehensive income for period		84			4
Balance at end of period		(410	)		(571	)
Unrealized gains (losses) on securities available-for-sale, not other-than temporarily impaired:
Balance at beginning of period	$	102		$	78
Reclassification of unrealized gains on other than temporary impaired debt securities, net of tax of $- million and $- million, respectively		1			-
Other comprehensive income for period:
Net unrealized holding gains arising during period, net of tax of $19 million and $32 million, respectively		35			58
Reclassification adjustment for gains realized in net income, net of tax of $(7) million and $(10) million, respectively		(14	)		(18	)
Total other comprehensive income for period		22			40
Balance at end of period		124	(1)		118
Unrealized gains (losses) on other-than-temporarily impaired debt securities available-for-sale:
Balance at beginning of period	$	-		$	(4	)
Reclassification of unrealized gains on other than temporary impaired debt securities, net of tax of $- million and $- million, respectively		(1	)		-
Other comprehensive 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		1			(1	)
Reclassification adjustment for (gains) losses realized in net income, net of tax of $- million and $- million, respectively		-			-
Total other comprehensive loss for period		-			(1	)
Balance at end of period		-			(5	)
Pension and postretirement benefit plan liability:
Balance at beginning of period		(11	)		-
Other comprehensive income for period:
Reclassification adjustment for (gains) losses realized in net income, net of tax of $1 million and $- million, respectively		1			1
Total other comprehensive income for period		1			1
Balance at end of period		(10	)		1
Foreign currency translation adjustments:
Balance at beginning of period		7			10
Other comprehensive income (loss) for period:
Translation gains (losses), net of tax of $1 million and $(3) million, respectively		4			(5	)
Total other comprehensive income (loss) for period		4			(5	)
Balance at end of period		11			5
Total accumulated other comprehensive loss at end of period	$	(285	)	$	(452	)

⁽¹⁾  Amounts relate primarily to securities available-for-sale of our Insurance business which is classified as discontinued operations.