Comprehensive Income

12 Months Ended

Dec. 31, 2011

Disclosure Text Block [Abstract]

Comprehensive Income

NOTE 15

changes in accumulated other comprehensive (loss) income

AOCI is a balance sheet item in the Shareholders' Equity section of the Company's Consolidated Balance Sheets. It 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 of AOCI for the three years ended December 31 were as follows:

(Millions), net of tax(a)	Net Unrealized Gains (Losses) on Investment Securities		Net Unrealized Gains (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Net Unrealized Pension and Other Postretirement Benefit Losses		Accumulated Other Comprehensive (Loss) Income
Balances as of December 31, 2008	$	(699)	$	(80)	$	(368)	$	(459)	$	(1,606)
Net unrealized gains (losses)		1,351		(22)						1,329
Reclassification for realized (gains) losses into earnings		(145)		74						(71)
Net translation of investments in foreign operations(b)						523				523
Net losses related to hedges of investment in foreign operations						(877)				(877)
Pension and other postretirement benefit losses								(10)		(10)
Net change in accumulated other comprehensive (loss) income		1,206		52		(354)		(10)		894
Balances as of December 31, 2009		507		(28)		(722)		(469)		(712)
Impact of the adoption of GAAP(c)		(315)								(315)
Net unrealized gains (losses)		(139)		(2)						(141)
Reclassification for realized (gains) losses into earnings		4		23		(2)				25
Net translation of investments in foreign operations						189				189
Net gains related to hedges of investment in foreign operations						32				32
Pension and other postretirement benefit losses								5		5
Net change in accumulated other comprehensive (loss) income		(450)		21		219		5		(205)
Balances as of December 31, 2010		57		(7)		(503)		(464)		(917)
Net unrealized gains (losses)		245		(2)						243
Reclassification for realized (gains) losses into earnings		(14)		8						(6)
Net translation of investments in foreign operations						(153)				(153)
Net losses related to hedges of investment in foreign operations						(26)				(26)
Pension and other postretirement benefit losses								(17)		(17)
Net change in accumulated other comprehensive (loss) income		231		6		(179)		(17)		41
Balances as of December 31, 2011	$	288	$	(1)	$	(682)	$	(481)	$	(876)

• The following table shows the tax impact for the three years ended December 31 for the changes in each component of accumulated other comprehensive (loss) income:

(Millions)	2011		2010		2009
Investment securities	$	149	$	(272)	$	749
Cash flow hedges		3		11		29
Foreign currency translation adjustments		(40)		22		33
Net investment hedges		(14)		(396)		―
Pension and other postretirement benefit losses		(7)		18		(28)
Total tax impact	$	91	$	(617)	$	783

• Includes a $190 million other comprehensive loss, recorded in the third quarter of 2009, representing the correction of an error related to the accounting in prior periods for cumulative translation adjustments associated with a net investment in foreign subsidiaries. Refer to Note 19 for further details.
• As a result of the adoption of new GAAP governing consolidations and VIEs, the Company no longer presents within its Consolidated Financial Statements the effects of the retained subordinated securities issued by previously unconsolidated VIEs related to the Company's cardmember loan securitization programs.