Other Comprehensive Income and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2014

Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure

Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure [Text Block]

6. OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents the changes in the Company’s accumulated other comprehensive income (AOCI) for the nine months ended September 30, 2014.

(in millions)	Changes in Net Unrealized Gains on Investment Securities Having No Credit Losses Recognized in the Consolidated Statement of Income			Changes in Net Unrealized Gains on Investment Securities 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
Balance, December 31, 2013	$	1,125		$	197	$	(431	)	$	(81	)	$	810
Other comprehensive income (OCI) before reclassifications	610			—		—			(130		)	480
Amounts reclassified from AOCI	(20		)	2		28			—			10
Net OCI, current period	590			2		28			(130		)	490
Balance, September 30, 2014	$	1,715		$	199	$	(403	)	$	(211	)	$	1,300

The following tables present the pretax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit) for the three months and nine months ended September 30, 2014 and 2013.

(for the three months ended September 30, in millions)	2014			2013
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	$	(154	)	$	(204	)
Income tax benefit	(55		)	(72		)
Net of taxes	(99		)	(132		)
Having credit losses recognized in the consolidated statement of income	1			(2		)
Income tax expense (benefit)	1			(1		)
Net of taxes	—			(1		)
Net changes in benefit plan assets and obligations	15			24
Income tax expense	5			9
Net of taxes	10			15
Net changes in unrealized foreign currency translation	(203		)	112
Income tax expense (benefit)	(30		)	9
Net of taxes	(173		)	103
Total other comprehensive loss	(341		)	(70		)
Total income tax benefit	(79		)	(55		)
Total other comprehensive loss, net of taxes	$	(262	)	$	(15	)

(for the nine months ended September 30, in millions)	2014			2013
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	$	901		$	(2,370	)
Income tax expense (benefit)	311			(824		)
Net of taxes	590			(1,546		)
Having credit losses recognized in the consolidated statement of income	4			2
Income tax expense	2			—
Net of taxes	2			2
Net changes in benefit plan assets and obligations	45			78
Income tax expense	17			28
Net of taxes	28			50
Net changes in unrealized foreign currency translation	(149		)	(57		)
Income tax benefit	(19		)	(20		)
Net of taxes	(130		)	(37		)
Total other comprehensive income (loss)	801			(2,347		)
Total income tax expense (benefit)	311			(816		)
Total other comprehensive income (loss), net of taxes	$	490		$	(1,531	)

The following tables present the pretax and related income tax expense (benefit) components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income for the three months and nine months ended September 30, 2014 and 2013.

(for the three months ended September 30, in millions)	2014			2013
Reclassification adjustments related to unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income (1)	$	(1	)	$	(4	)
Income tax expense (2)	—			(1		)
Net of taxes	(1		)	(3		)
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 (3)	15			26
Income tax benefit (2)	5			9
Net of taxes	10			17
Reclassification adjustment related to foreign currency translation (1)	—			11
Income tax benefit (2)	—			—
Net of taxes	—			11
Total reclassifications	14			33
Total income tax benefit	5			8
Total reclassifications, net of taxes	$	9		$	25

(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) general and administrative expenses on the consolidated statement of income.

(for the nine months ended September 30, in millions)	2014			2013
Reclassification adjustments related to unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income (1)	$	(30	)	$	(55	)
Income tax expense (2)	(10		)	(19		)
Net of taxes	(20		)	(36		)
Having credit losses recognized in the consolidated statement of income (1)	4			2
Income tax benefit (2)	2			1
Net of taxes	2			1
Reclassification adjustment related to benefit plan assets and obligations (3)	45			78
Income tax benefit (2)	17			27
Net of taxes	28			51
Reclassification adjustment related to foreign currency translation (1)	—			8
Income tax benefit (2)	—			—
Net of taxes	—			8
Total reclassifications	19			33
Total income tax benefit	9			9
Total reclassifications, net of taxes	$	10		$	24

(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) general and administrative expenses on the consolidated statement of income.