Changes in Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2020

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Changes In Accumulated Other Comprehensive Income

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 and nine months ended September 30, 2020 and 2019 were as follows:

Three Months Ended September 30, 2020 (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 June 30, 2020	$	85	$	(2,388)	$	(608)	$	(2,911)
Net unrealized losses	(9)		—		—		(9)
Net translation gains on investments in foreign operations	—		210		—		210
Net losses related to hedges of investments in foreign operations	—		(170)		—		(170)
Pension and other postretirement benefits	—		—		8		8
Net change in accumulated other comprehensive (loss) income	(9)		40		8		39
Balances as of September 30, 2020	$	76	$	(2,348)	$	(600)	$	(2,872)

Nine Months Ended September 30, 2020 (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, 2019	$	33	$	(2,189)	$	(581)	$	(2,737)
Net unrealized gains	43		—		—		43
Decrease due to amounts reclassified into earnings	—		(3)		—		(3)
Net translation losses on investments in foreign operations	—		(379)		—		(379)
Net gains related to hedges of investments in foreign operations	—		223		—		223
Pension and other postretirement benefits	—		—		(19)		(19)
Net change in accumulated other comprehensive income (loss)	43		(159)		(19)		(135)
Balances as of September 30, 2020	$	76	$	(2,348)	$	(600)	$	(2,872)

Three Months Ended September 30, 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 June 30, 2019	$	35	$	(2,161)	$	(480)	$	(2,606)
Net unrealized gains	3		—		—		3
Net translation losses on investments in foreign operations	—		(197)		—		(197)
Net gains related to hedges of investments in foreign operations	—		138		—		138
Pension and other postretirement benefits	—		—		1		1
Net change in accumulated other comprehensive income (loss)	3		(59)		1		(55)
Balances as of September 30, 2019	$	38	$	(2,220)	$	(479)	$	(2,661)

Nine Months Ended September 30, 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	46		—		—		46
Net translation losses on investments in foreign operations	—		(150)		—		(150)
Net gains related to hedges of investments in foreign operations	—		63		—		63
Pension and other postretirement benefits	—		—		(23)		(23)
Net change in accumulated other comprehensive income (loss)	46		(87)		(23)		(64)
Balances as of September 30, 2019	$	38	$	(2,220)	$	(479)	$	(2,661)

The following table shows the tax impact for the three and nine months ended September 30 for the changes in each component of AOCI presented above:

	Tax expense (benefit)
	Three Months Ended September 30,				Nine Months Ended September 30,
(Millions)	2020		2019		2020		2019
Net unrealized debt securities	$	(3)	$	1	$	13	$	14
Net translation on investments in foreign operations	(14)		(4)		10		11
Net hedges on investments in foreign operations	(57)		45		67		23
Pension and other postretirement benefits	(1)		2		10		(5)
Total tax impact	$	(75)	$	44	$	100	$	43

Reclassifications out of AOCI into the Consolidated Statements of Income associated with the sale or liquidation of a business, net of taxes, were nil for both the three months ended September 30, 2020 and 2019, and a gain of $3 million and nil for the nine months ended September 30, 2020 and 2019, respectively.