Other Comprehensive Income and Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2020

Other Comprehensive Income And Accumulated Other Comprehensive Income Disclosure [Abstract]

Other Comprehensive Income and Accumulated Other Comprehensive Income

OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

The following tables present the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) for the three months ended March 31, 2020.



	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, 2019	$	2,057		$	189		$	(846	)	$	(760	)	$	640

Other comprehensive income (loss) (OCI) before reclassifications, net of tax	(459		)	(4		)	1			(246		)	(708		)
Amounts reclassified from AOCI, net of tax	2			—			17			—			19
Net OCI, current period	(457		)	(4		)	18			(246		)	(689		)
Balance, March 31, 2020	$	1,600		$	185		$	(828	)	$	(1,006	)	$	(49	)

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)	2020			2019

Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	$	(575	)	$	1,416
Income tax expense (benefit)	(118		)	300
Net of taxes	(457		)	1,116

Having credit losses recognized in the consolidated statement of income	(6		)	5
Income tax expense (benefit)	(2		)	1
Net of taxes	(4		)	4

Net changes in benefit plan assets and obligations	23			12
Income tax expense	5			2
Net of taxes	18			10

Net changes in unrealized foreign currency translation	(268		)	50
Income tax expense (benefit)	(22		)	3
Net of taxes	(246		)	47

Total other comprehensive income (loss)	(826		)	1,483
Total income tax expense (benefit)	(137		)	306
Total other comprehensive income (loss), net of taxes	$	(689	)	$	1,177

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)	2020		2019

Reclassification adjustments related to unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income ⁽¹⁾	$	2	$	(16	)
Income tax expense ⁽²⁾	—		(3		)
Net of taxes	2		(13		)

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		5
General and administrative expenses ⁽³⁾	12		8
Total	21		13
Income tax benefit ⁽²⁾	4		3
Net of taxes	17		10

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

Total reclassifications	23		(3		)
Total income tax benefit	4		—
Total reclassifications, net of taxes	$	19	$	(3	)

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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.