Other Comprehensive Income and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2017

Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure

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

7. 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, 2017.

	Changes in Net Unrealized Gains on Investment Securities					Net Benefit Plan
(in millions, net of taxes)	Having No Credit Losses Recognized in the Consolidated Statement of Income			Having Credit Losses Recognized in the Consolidated Statement of Income		Assets and Obligations Recognized in Shareholders’ Equity			Net Unrealized Foreign Currency Translation			Total Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2016	$	528		$	202	$	(703	)	$	(782	)	$	(755	)
Other comprehensive income (OCI) before reclassifications	377			1		(23		)	177			532
Amounts reclassified from AOCI	(103		)	1		40			—			(62		)
Net OCI, current period	274			2		17			177			470
Balance, September 30, 2017	$	802		$	204	$	(686	)	$	(605	)	$	(285	)

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 September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017		2016
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	$	(42	)	$	(455	)	$	429	$	1,138
Income tax expense (benefit)	(12		)	(159		)	155		393
Net of taxes	(30		)	(296		)	274		745
Having credit losses recognized in the consolidated statement of income	2			6			4		23
Income tax expense	1			2			2		8
Net of taxes	1			4			2		15
Net changes in benefit plan assets and obligations	(9		)	16			25		50
Income tax expense (benefit)	(3		)	6			8		17
Net of taxes	(6		)	10			17		33
Net changes in unrealized foreign currency translation	113			(31		)	202		37
Income tax expense (benefit)	19			(8		)	25		13
Net of taxes	94			(23		)	177		24
Total other comprehensive income (loss)	64			(464		)	660		1,248
Total income tax expense (benefit)	5			(159		)	190		431
Total other comprehensive income (loss), net of taxes	$	59		$	(305	)	$	470	$	817

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 September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Reclassification adjustments related to unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income (1)	$	(64	)	$	(19	)	$	(158	)	$	(54	)
Income tax expense (2)	(22		)	(7		)	(55		)	(19		)
Net of taxes	(42		)	(12		)	(103		)	(35		)
Having credit losses recognized in the consolidated statement of income (1)	1			—			1			12
Income tax benefit (2)	—			—			—			4
Net of taxes	1			—			1			8
Reclassification adjustment related to benefit plan assets and obligations:
Claims and claim adjustment expenses (3)	11			6			25			18
General and administrative expenses (3)	16			9			37			28
Total	27			15			62			46
Income tax benefit (2)	10			5			22			16
Net of taxes	17			10			40			30
Reclassification adjustment related to foreign currency translation (1)	—			—			—			—
Income tax benefit (2)	—			—			—			—
Net of taxes	—			—			—			—
Total reclassifications	(36		)	(4		)	(95		)	4
Total income tax (expense) benefit	(12		)	(2		)	(33		)	1
Total reclassifications, net of taxes	$	(24	)	$	(2	)	$	(62	)	$	3

(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) expenses on the consolidated statement of income.