Changes in Accumulated Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2019

Changes In Accumulated Other Comprehensive (Loss) Income

12. Changes In Accumulated Other Comprehensive Income

AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three months ended March 31, 2019 and 2018 were as follows:

2019 (Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive (Loss) Income
Balances as of December 31, 2018	$	(8)	$	(2,133)	$	(456)	$	(2,597)
Net unrealized gains		17		―		―		17
Net translation gains on investments in foreign operations		―		170		―		170
Net losses related to hedges of investments in foreign operations		―		(162)		―		(162)
Pension and other postretirement benefits		―		―		(27)		(27)
Net change in accumulated other comprehensive income (loss)		17		8		(27)		(2)
Balances as of March 31, 2019	$	9	$	(2,125)	$	(483)	$	(2,599)

2018 (Millions), net of tax	Net Unrealized Gains (Losses) on Investment Securities		Foreign Currency Translation Adjustment Gains (Losses)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive (Loss) Income
Balances as of December 31, 2017	$	―	$	(1,961)	$	(467)	$	(2,428)
Net unrealized losses		(13)		―		―		(13)
Net translation gains on investments in foreign operations		―		192		―		192
Net losses related to hedges of investments in foreign operations		―		(162)		―		(162)
Pension and other postretirement benefits		―		―		28		28
Other^(a)		2		―		―		2
Net change in accumulated other comprehensive (loss) income		(11)		30		28		47
Balances as of March 31, 2018	$	(11)	$	(1,931)	$	(439)	$	(2,381)

Represents unrealized gains and losses pertaining to equity securities moved from AOCI to retained earnings as of January 1, 2018, due to the prospective adoption of the financial instruments guidance effective January 1, 2018.

The following table shows the tax impact for the three months ended March 31 for the changes in each component of AOCI presented above:

		Tax expense (benefit)
(Millions)	2019		2018
Net unrealized investment securities	$	4	$	(3)
Net translation on investments in foreign operations		14		2
Net hedges of investments in foreign operations		(50)		(54)
Pension and other postretirement benefits		(11)		3
Total tax impact	$	(43)	$	(52)

The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the three months ended March 31, 2019 and 2018:

			Gains (losses) recognized in earnings
					Amount
Description (Millions)		Income Statement Line Item		2019		2018
Foreign currency translation adjustments
	Reclassification of translation adjustments and related hedges	Other expenses		$	―	$	1
	Related income tax	Income tax provision			―		(1)
	Reclassification of foreign currency translation adjustments			$	―	$	―