Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Changes in Accumulated Other Comprehensive Income (Loss)

The following tables summarize the components of accumulated other comprehensive income (loss) (AOCI) at September 30, 2020 and 2019, and changes during the three and nine months then ended.

TABLE 67: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)


	THREE MONTHS ENDED SEPTEMBER 30, 2020
(In Millions)	NET UNREALIZED GAINS (LOSSES) ON DEBT SECURITIES AVAILABLE FOR SALE⁽¹⁾		NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES		NET FOREIGN CURRENCY ADJUSTMENT		NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS		TOTAL
Balance at June 30, 2020	$	631.8	$	0.3	$	145.5	$	(407.2)	$	370.4
Net Change	33.5		1.3		1.8		17.5		54.1
Balance at September 30, 2020	$	665.3	$	1.6	$	147.3	$	(389.7)	$	424.5

⁽¹⁾Includes net unrealized gains on debt securities transferred from available for sale to held to maturity during the period ended September 30, 2020.


	NINE MONTHS ENDED SEPTEMBER 30, 2020
(In Millions)	NET UNREALIZED GAINS (LOSSES) ON DEBT SECURITIES AVAILABLE FOR SALE⁽¹⁾		NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES		NET FOREIGN CURRENCY ADJUSTMENT		NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS		TOTAL
Balance at December 31, 2019	$	114.0	$	(3.7)	$	117.8	$	(422.8)	$	(194.7)
Net Change	551.3		5.3		29.5		33.1		619.2
Balance at September 30, 2020	$	665.3	$	1.6	$	147.3	$	(389.7)	$	424.5

⁽¹⁾Includes net unrealized gains on debt securities transferred from available for sale to held to maturity during the period ended September 30, 2020.


	THREE MONTHS ENDED SEPTEMBER 30, 2019
(In Millions)	NET UNREALIZED GAINS (LOSSES) ON DEBT SECURITIES AVAILABLE FOR SALE⁽¹⁾		NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES		NET FOREIGN CURRENCY ADJUSTMENT		NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS		TOTAL
Balance at June 30, 2019	$	133.1	$	4.5	$	96.8	$	(394.2)	$	(159.8)
Net Change	57.0		(2.4)		9.9		4.3		68.8
Balance at September 30, 2019	$	190.1	$	2.1	$	106.7	$	(389.9)	$	(91.0)

⁽¹⁾ Includes net unrealized gains on debt securities transferred from available for sale to held to maturity during the period ended September 30, 2019.


	NINE MONTHS ENDED SEPTEMBER 30, 2019
(In Millions)	NET UNREALIZED GAINS (LOSSES) ON DEBT SECURITIES AVAILABLE FOR SALE⁽¹⁾		NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES		NET FOREIGN CURRENCY ADJUSTMENT		NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS		TOTAL
Balance at December 31, 2018	$	(114.9)	$	4.0	$	67.9	$	(410.7)	$	(453.7)
Net Change	305.0		(1.9)		38.8		20.8		362.7
Balance at September 30, 2019	$	190.1	$	2.1	$	106.7	$	(389.9)	$	(91.0)

⁽¹⁾ Includes net unrealized gains on debt securities transferred from available for sale to held to maturity during the period ended September 30, 2019.

Details of Changes in Accumulated Other Comprehensive Income (Loss)

TABLE 68: DETAILS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)


	THREE MONTHS ENDED SEPTEMBER 30,
	2020										2019
(In Millions)	BEFORE TAX		TAX EFFECT		AFTER TAX		BEFORE TAX		TAX EFFECT		AFTER TAX
Unrealized Gains (Losses) on Debt Securities Available for Sale
Unrealized Gains (Losses) on Debt Securities Available for Sale	$	45.3	$	(11.8)	$	33.5	$	76.1	$	(19.4)	$	56.7
Reclassification Adjustment for (Gains) Losses Included in Net Income⁽¹⁾	—		—		—		0.3		—		0.3
Net Change	$	45.3	$	(11.8)	$	33.5	$	76.4	$	(19.4)	$	57.0
Unrealized Gains (Losses) on Cash Flow Hedges
Foreign Exchange Contracts	$	6.6	$	(1.6)	$	5.0	$	0.7	$	(0.2)	$	0.5
Interest Rate Contracts	(0.2)		—		(0.2)		0.1		—		0.1
Reclassification Adjustment for (Gains) Losses Included in Net Income⁽²⁾	(4.7)		1.2		(3.5)		(4.0)		1.0		(3.0)
Net Change	$	1.7	$	(0.4)	$	1.3	$	(3.2)	$	0.8	$	(2.4)
Foreign Currency Adjustments
Foreign Currency Translation Adjustments	$	92.1	$	(3.1)	$	89.0	$	(71.9)	$	2.0	$	(69.9)
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses)	1.2		(0.3)		0.9		(1.3)		0.3		(1.0)
Net Investment Hedge Gains (Losses)	(117.4)		29.3		(88.1)		107.6		(26.8)		80.8
Net Change	$	(24.1)	$	25.9	$	1.8	$	34.4	$	(24.5)	$	9.9
Pension and Other Postretirement Benefit Adjustments
Net Actuarial Gains	$	12.6	$	(3.1)	$	9.5	$	—	$	—	$	—
Reclassification Adjustment for (Gains) Losses Included in Net Income⁽³⁾
Amortization of Net Actuarial Loss	10.7		(2.6)		8.1		5.7		(1.3)		4.4
Amortization of Prior Service Cost	(0.1)		—		(0.1)		(0.1)		—		(0.1)
Net Change	$	23.2	$	(5.7)	$	17.5	$	5.6	$	(1.3)	$	4.3
Total Net Change	$	46.1	$	8.0	$	54.1	$	113.2	$	(44.4)	$	68.8

See table footnotes under the YTD table.


	NINE MONTHS ENDED SEPTEMBER 30,
	2020										2019
(In Millions)	BEFORE TAX		TAX EFFECT		AFTER TAX		BEFORE TAX		TAX EFFECT		AFTER TAX
Unrealized Gains (Losses) on Debt Securities Available for Sale
Unrealized Gains (Losses) on Debt Securities Available for Sale	$	736.8	$	(185.4)	$	551.4	$	409.0	$	(104.6)	$	304.4
Reclassification Adjustment for (Gains) Losses Included in Net Income⁽¹⁾	(0.1)		—		(0.1)		0.6		—		0.6
Net Change	$	736.7	$	(185.4)	$	551.3	$	409.6	$	(104.6)	$	305.0
Unrealized Gains (Losses) on Cash Flow Hedges
Foreign Exchange Contracts	$	18.1	$	(4.5)	$	13.6	$	17.4	$	(4.3)	$	13.1
Interest Rate Contracts	0.2		(0.1)		0.1		1.4		(0.3)		1.1
Reclassification Adjustment for (Gains) Losses Included in Net Income⁽²⁾	(11.2)		2.8		(8.4)		(21.4)		5.3		(16.1)
Net Change	$	7.1	$	(1.8)	$	5.3	$	(2.6)	$	0.7	$	(1.9)
Foreign Currency Adjustments
Foreign Currency Translation Adjustments	$	53.1	$	(1.0)	$	52.1	$	(69.4)	$	3.3	$	(66.1)
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses)	0.7		(0.2)		0.5		(1.3)		0.3		(1.0)
Net Investment Hedge Gains (Losses)	(29.8)		6.7		(23.1)		144.1		(38.2)		105.9
Net Change	$	24.0	$	5.5	$	29.5	$	73.4	$	(34.6)	$	38.8
Pension and Other Postretirement Benefit Adjustments
Net Actuarial Gains (Losses)	$	11.8	$	(3.0)	$	8.8	$	11.4	$	(3.1)	$	8.3
Reclassification Adjustment for (Gains) Losses Included in Net Income⁽³⁾
Amortization of Net Actuarial Loss	$	32.3	$	(7.8)	$	24.5	$	16.8	$	(4.1)	$	12.7
Amortization of Prior Service Cost	(0.2)		—		(0.2)		(0.2)		—		(0.2)
Net Change	$	43.9	$	(10.8)	$	33.1	$	28.0	$	(7.2)	$	20.8
Total Net Change	$	811.7	$	(192.5)	$	619.2	$	508.4	$	(145.7)	$	362.7

⁽¹⁾ The before-tax reclassification adjustment out of AOCI related to the realized gains (losses) on debt securities available for sale is recorded as Investment Security Gains (Losses), net within the consolidated statements of income.

⁽²⁾ See Note 20 — Derivative Financial Instruments for the location of the reclassification adjustment related to cash flow hedges.

⁽³⁾ The before-tax reclassification adjustment out of AOCI related to pension and other postretirement benefit adjustments is recorded in Employee Benefits expense within the consolidated statements of income.