Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 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 Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2018		2017		2018		2017
Securities
Beginning balance	$	(31)	$	436	$	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 balance		(31)		436		389		362
Appreciation (depreciation) on securities		2		(5)		(553)		163
Tax (expense) benefit		(1)		-		112		(62)
Net appreciation (depreciation) on securities		1		(5)		(441)		101
Reclassification adjustment for (gains) losses included in shareholders' net income (net realized investment gains)		(1)		(26)		27		(76)
Tax benefit (expense)		-		9		(6)		27
Net (gains) losses reclassified from AOCI to net income		(1)		(17)		21		(49)
Other comprehensive (loss) income, net of tax		-		(22)		(420)		52
Ending balance	$	(31)	$	414	$	(31)	$	414
Derivatives
Beginning balance	$	(19)	$	-	$	-	$	3
Reclassification adjustment from retained earnings related to new hedging guidance (1)		-		-		(6)		-
Adjusted beginning balance		(19)		-		(6)		3
Appreciation (depreciation) on derivatives		2		(1)		(14)		(1)
Tax benefit		-		-		3		-
Net appreciation (depreciation) on derivatives		2		(1)		(11)		(1)
Reclassification adjustment for losses (gains) included in shareholders' net income (net realized investment gains)		-		1		-		(3)
Tax benefit		-		-		-		1
Net losses (gains) reclassified from AOCI to net income		-		1		-		(2)
Other comprehensive income (loss), net of tax		2		-		(11)		(3)
Ending balance	$	(17)	$	-	$	(17)	$	-
Translation of foreign currencies
Beginning balance	$	(176)	$	(230)	$	(65)	$	(369)
Reclassification adjustment to retained earnings related to U.S. tax reform legislation (1)		-		-		(4)		-
Adjusted beginning balance		(176)		(230)		(69)		(369)
Translation of foreign currencies		(31)		38		(136)		179
Tax (expense) benefit		2		(4)		-		(6)
Net translation of foreign currencies		(29)		34		(136)		173
Ending balance	$	(205)	$	(196)	$	(205)	$	(196)
(1) See Note 2 for further information about adjustments resulting from the Company's adoption of new accounting standards in 2018.
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2018		2017		2018		2017
Postretirement benefits liability
Beginning balance	$	(1,617)	$	(1,352)	$	(1,345)	$	(1,378)
Reclassification adjustment to retained earnings related to U.S. tax reform legislation (1)		-		-		(290)		-
Adjusted beginning balance		(1,617)		(1,352)		(1,635)		(1,378)
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)		19		16		53		48
Reclassification adjustment for settlement (other operating expenses)		-		-		-		6
Tax (expense)		(6)		(6)		(13)		(20)
Net adjustments reclassified from AOCI to net income		13		10		40		34
Valuation update		-		-		(12)		2
Tax benefit (expense)		-		-		3		-
Net change due to valuation update		-		-		(9)		2
Other comprehensive income, net of tax		13		10		31		36
Ending balance	$	(1,604)	$	(1,342)	$	(1,604)	$	(1,342)
(1) See Note 2 for further information about adjustments resulting from the Company's adoption of new accounting standards in 2018.