EQUITY

12 Months Ended

Dec. 31, 2020

AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of December 31, 2020, 2019, and 2018 follow:


	December 31,
	2020		2019		2018
	(in millions)
Unrealized gains (losses) on investments (1)	$	4,600	$	1,601	$	(494)
Defined benefit pension plans (2)	(5)		(5)		(7)
Accumulated other comprehensive income (loss) attributable to Equitable Financial	$	4,595	$	1,596	$	(501)

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(1)2018 includes a $86 million decrease to AOCI from the impact of adoption of ASU 2018-02.

(2)2018 includes a $3 million increase to AOCI from the impact of adoption of ASU 2018-02.

The components of OCI, net of taxes for the years ended December 31, 2020, 2019 and 2018, follow:


	Year Ended December 31,
		2020		2019		2018
		(in millions)
Change in net unrealized gains (losses) on investments:
Net unrealized gains (losses) arising during the period		$	4,698	$	3,052	$	(1,663)
(Gains) losses reclassified into net income (loss) during the period (1)		(633)		(160)		(4)
Net unrealized gains (losses) on investments		4,065		2,892		(1,667)
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other		(1,066)		(797)		446
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of, $798, $547, and $310)		2,999		2,095		(1,221)
Change in defined benefit plans:
Reclassification to net income (loss) of amortization of net prior service credit included in net periodic cost		—		2		(4)
Change in defined benefit plans, (net of deferred income tax expense (benefit) of $0, $0 and $0 (2))		—		2		(4)
Other comprehensive income (loss), attributable to Equitable Financial		$	2,999	$	2,097	$	(1,225)

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(1)See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $(168) million, $(42) million, and $(1) million for the years ended December 31, 2020, 2019 and 2018, respectively.

(2)These AOCI components are included in the computation of net periodic costs (see “Employee Benefit Plans” in Note 13).

Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and credit losses of AFS securities and are included in total investment gains (losses), net on the consolidated statements of income (loss). Amounts reclassified from AOCI to net income (loss) as related to defined benefit plans primarily consist of amortization of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in compensation and benefits in the consolidated statements of income (loss). Amounts presented in the table above are net of tax.