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Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Abstract]  
Accumulated Other Comprehensive Income (Loss)

Note 13 — Accumulated Other Comprehensive Income (Loss) (“AOCI”)

AOCI includes the Company’s share from entities accounted for using the equity method. AOCI excludes amounts required to adjust future policy benefits for the run-off settlement annuity business and a portion of deferred acquisition costs associated with the corporate-owned life insurance business. Generally, tax effects in AOCI are established at the currently enacted tax rate and reclassified to net income in the same period that the related pre-tax AOCI reclassifications are recognized. As discussed in Note 2, the Company early adopted ASU 2018-02 effective January 1, 2018 and $229 million of stranded tax effects resulting from U.S. tax reform legislation enacted in 2017 were reclassified from AOCI to retained earnings. Changes in the components of AOCI, including the reclassification of the stranded tax effects, were as follows:

Three Months EndedSix Months Ended
June 30,June 30,
(In millions)2018201720182017
Securities
Beginning balance$110$369$328$362
Reclassification adjustment to retained earnings related to U.S. tax reform legislation (1)--65-
Reclassification adjustment to retained earnings related to new financial instruments guidance (1)--(4)-
Adjusted beginning balance110369389362
(Depreciation) appreciation on securities(176)115(555)168
Tax benefit (expense)37(38)113(62)
Net (depreciation) appreciation on securities(139)77(442)106
Reclassification adjustment for losses (gains) included in shareholders' net income (net realized investment gains)(2)(15)28(50)
Tax (expense) benefit-5(6)18
Net losses (gains) reclassified from AOCI to net income(2)(10)22(32)
Other comprehensive (loss) income, net of tax(141)67(420)74
Ending balance$(31)$436$(31)$436
Derivatives
Beginning balance$(11)$-$-$3
Reclassification adjustment from retained earnings related to new hedging guidance (1)--(6)-
Adjusted beginning balance(11)-(6)3
(Depreciation) on derivatives(10)-(16)-
Tax benefit2-3-
Net (depreciation) on derivatives(8)-(13)-
Reclassification adjustment for (gains) included in shareholders' net income (net realized investment gains)---(4)
Tax benefit---1
Net (gains) reclassified from AOCI to net income---(3)
Other comprehensive (loss), net of tax(8)-(13)(3)
Ending balance$(19)$-$(19)$-
Translation of foreign currencies
Beginning balance$(24)$(257)$(65)$(369)
Reclassification adjustment to retained earnings related to U.S. tax reform legislation (1)--(4)-
Adjusted beginning balance(24)(257)(69)(369)
Translation of foreign currencies(151)30(105)141
Tax (expense) benefit(1)(3)(2)(2)
Net translation of foreign currencies(152)27(107)139
Ending balance$(176)$(230)$(176)$(230)
(1) See Note 2 for further information about adjustments resulting from the Company's adoption of new accounting standards in 2018.
Three Months EndedSix Months Ended
June 30,June 30,
(In millions)2018201720182017
Postretirement benefits liability
Beginning balance$(1,622)$(1,364)$(1,345)$(1,378)
Reclassification adjustment to retained earnings related to U.S. tax reform legislation (1)--(290)-
Adjusted beginning balance(1,622)(1,364)(1,635)(1,378)
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)17173432
Reclassification adjustment for settlement (other operating expenses)---6
Tax (expense)(3)(7)(7)(14)
Net adjustments reclassified from AOCI to net income14102724
Valuation update(12)2(12)2
Tax benefit (expense) 3-3-
Net change due to valuation update(9)2(9)2
Other comprehensive income, net of tax5121826
Ending balance$(1,617)$(1,352)$(1,617)$(1,352)
(1) See Note 2 for further information about adjustments resulting from the Company's adoption of new accounting standards in 2018.