Other Comprehensive Income and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

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, 2015.

(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, 2014	$	1,768		$	198		$	(755	)	$	(331	)	$	880
Other comprehensive income (loss) (OCI) before reclassifications	(507		)	(11		)	1			(342		)	(859		)
Amounts reclassified from AOCI	(36		)	2			45			—			11
Net OCI, current period	(543		)	(9		)	46			(342		)	(848		)
Balance, September 30, 2015	$	1,225		$	189		$	(709	)	$	(673	)	$	32

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, 2015 and 2014.

(for the three months ended September 30, in millions)	2015			2014
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	$	67		$	(154	)
Income tax expense (benefit)	26			(55		)
Net of taxes	41			(99		)
Having credit losses recognized in the consolidated statement of income	(3		)	1
Income tax expense (benefit)	—			1
Net of taxes	(3		)	—
Net changes in benefit plan assets and obligations	24			15
Income tax expense	9			5
Net of taxes	15			10
Net changes in unrealized foreign currency translation	(227		)	(203		)
Income tax benefit	(37		)	(30		)
Net of taxes	(190		)	(173		)
Total other comprehensive loss	(139		)	(341		)
Total income tax benefit	(2		)	(79		)
Total other comprehensive loss, net of taxes	$	(137	)	$	(262	)

(for the nine months ended September 30, in millions)	2015			2014
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	$	(829	)	$	901
Income tax expense (benefit)	(286		)	311
Net of taxes	(543		)	590
Having credit losses recognized in the consolidated statement of income	(13		)	4
Income tax expense (benefit)	(4		)	2
Net of taxes	(9		)	2
Net changes in benefit plan assets and obligations	71			45
Income tax expense	25			17
Net of taxes	46			28
Net changes in unrealized foreign currency translation	(407		)	(149		)
Income tax benefit	(65		)	(19		)
Net of taxes	(342		)	(130		)
Total other comprehensive income (loss)	(1,178		)	801
Total income tax expense (benefit)	(330		)	311
Total other comprehensive income (loss), net of taxes	$	(848	)	$	490

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, 2015 and 2014.

(for the three months ended September 30, in millions)	2015			2014
Reclassification adjustments related to unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income (1)	$	(20	)	$	(1	)
Income tax expense (2)	(7		)	—
Net of taxes	(13		)	(1		)
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)	23			15
Income tax benefit (2)	8			5
Net of taxes	15			10
Reclassification adjustment related to foreign currency translation (1)	—			—
Income tax benefit (2)	—			—
Net of taxes	—			—
Total reclassifications	3			14
Total income tax benefit	1			5
Total reclassifications, net of taxes	$	2		$	9

(1) (Increases) decreases net realized investment gains 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)	2015			2014
Reclassification adjustments related to unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income (1)	$	(55	)	$	(30	)
Income tax expense (2)	(19		)	(10		)
Net of taxes	(36		)	(20		)
Having credit losses recognized in the consolidated statement of income (1)	2			4
Income tax benefit (2)	—			2
Net of taxes	2			2
Reclassification adjustment related to benefit plan assets and obligations (3)	70			45
Income tax benefit (2)	25			17
Net of taxes	45			28
Reclassification adjustment related to foreign currency translation (1)	—			—
Income tax benefit (2)	—			—
Net of taxes	—			—
Total reclassifications	17			19
Total income tax benefit	6			9
Total reclassifications, net of taxes	$	11		$	10

(1) (Increases) decreases net realized investment gains 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.