OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) for the three months ended March 31, 2018.



	Changes in Net Unrealized Gains on Investment Securities
(in millions)	Having No Credit Losses Recognized in the Consolidated Statement of Income			Having Credit Losses Recognized in the Consolidated Statement of Income			Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity			Net Unrealized Foreign Currency Translation			Total Accumulated Other Comprehensive Income (Loss)

Balance, December 31, 2017	$	747		$	207		$	(686	)	$	(611	)	$	(343	)
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018	(34		)	—			—			—			(34		)
Income tax benefit	(12		)	—			—			—			(12		)
Net of income taxes	(22		)	—			—			—			(22		)

Reclassification of certain tax effects from accumulated other comprehensive income at January 1, 2018	145			7			(141		)	(35		)	(24		)
Total effect of adoption of new guidance at January 1, 2018, net of tax	123			7			(141		)	(35		)	(46		)

Other comprehensive income (loss) (OCI) before reclassifications, net of tax	(950		)	(1		)	—			1			(950		)
Amounts reclassified from AOCI, net of tax	—			—			17			—			17
Net OCI, current period	(950		)	(1		)	17			1			(933		)
Balance, March 31, 2018	$	(80	)	$	213		$	(810	)	$	(645	)	$	(1,322	)

The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit).



	Three Months Ended March 31,
(in millions)	2018			2017

Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	$	(1,203	)	$	144
Income tax expense (benefit)	(253		)	51
Net of taxes	(950		)	93

Having credit losses recognized in the consolidated statement of income	(2		)	—
Income tax benefit	(1		)	—
Net of taxes	(1		)	—

Net changes in benefit plan assets and obligations	22			17
Income tax expense	5			5
Net of taxes	17			12

Net changes in unrealized foreign currency translation	6			41
Income tax expense	5			6
Net of taxes	1			35

Total other comprehensive income (loss)	(1,177		)	202
Total income tax expense (benefit)	(244		)	62
Total other comprehensive income (loss), net of taxes	$	(933	)	$	140

The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income.



	Three Months Ended March 31,
(in millions)	2018		2017

Reclassification adjustments related to unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income ⁽¹⁾	$	—	$	(10	)
Income tax expense ⁽²⁾	—		(3		)
Net of taxes	—		(7		)

Having credit losses recognized in the consolidated statement of income ⁽¹⁾	—		—
Income tax benefit ⁽²⁾	—		—
Net of taxes	—		—

Reclassification adjustment related to benefit plan assets and obligations:
Claims and claim adjustment expenses ⁽³⁾	9		7
General and administrative expenses ⁽³⁾	13		10
Total	22		17
Income tax benefit ⁽²⁾	5		5
Net of taxes	17		12

Reclassification adjustment related to foreign currency translation ⁽¹⁾	—		—
Income tax benefit ⁽²⁾	—		—
Net of taxes	—		—

Total reclassifications	22		7
Total income tax benefit	5		2
Total reclassifications, net of taxes	$	17	$	5

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(1) (Increases) decreases net realized investment gains (losses) on the consolidated statement of income.

(2) (Increases) decreases income tax expense on the consolidated statement of income.

(3) Increases (decreases) expenses on the consolidated statement of income.