Comprehensive Income

12 Months Ended

Dec. 31, 2012

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, 2009	$	507	$	(28)	$	(722)	$	(469)	$	(712)
Impact of the adoption of GAAP(b)		(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)
Net unrealized gains (losses)		106								106
Reclassification for realized (gains) losses into earnings		(79)		1		1				(77)
Net translation of investments in foreign operations						215				215
Net losses related to hedges of investment in foreign operations						(288)				(288)
Pension and other postretirement benefit losses								(7)		(7)
Net change in accumulated other comprehensive (loss) income		27		1		(72)		(7)		(51)
Balances as of December 31, 2012	$	315	$	―	$	(754)	$	(488)	$	(927)

• 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)	2012		2011		2010
Investment securities	$	7	$	149	$	(272)
Cash flow hedges		1		3		11
Foreign currency translation adjustments		24		(40)		22
Net investment hedges		(176)		(14)		(396)
Pension and other postretirement benefit losses		―		(7)		18
Total tax impact	$	(144)	$	91	$	(617)

• 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.