| Components of Accumulated Other Comprehensive Income |
The balance of and changes in each component of accumulated other comprehensive income (loss) (“AOCI”) for the six months ended June 30, 2015 and 2014 are as follows (dollars in thousands): | | | | | | | | | | | | | | | | | | | | Accumulated Other Comprehensive Income (Loss), Net of Income Tax | | | Accumulated Currency Translation Adjustments | | Unrealized Appreciation (Depreciation) of Investments(1) | | Pension and Postretirement Benefits | | Total | Balance, December 31, 2014 | | $ | 81,847 |
| | $ | 1,624,773 |
| | $ | (49,491 | ) | | $ | 1,657,129 |
| Other comprehensive income (loss) before reclassifications | | (89,220 | ) | | (612,314 | ) | | 733 |
| | (700,801 | ) | Deferred income tax benefit (expense) | | (6,616 | ) | | 204,252 |
| | (222 | ) | | 197,414 |
| Other comprehensive income (loss) before reclassifications, net of income tax | | (95,836 | ) | | (408,062 | ) | | 511 |
| | (503,387 | ) | Amounts reclassified to (from) AOCI | | — |
| | (6,192 | ) | | 1,965 |
| | (4,227 | ) | Deferred income tax benefit (expense) | | — |
| | 537 |
| | (688 | ) | | (151 | ) | Amounts reclassified to (from) AOCI, net of income tax | | — |
| | (5,655 | ) | | 1,277 |
| | (4,378 | ) | Balance, June 30, 2015 | | $ | (13,989 | ) | | $ | 1,211,056 |
| | $ | (47,703 | ) | | $ | 1,149,364 |
|
| | | | | | | | | | | | | | | | | | | | Accumulated Other Comprehensive Income (Loss), Net of Income Tax | | | Accumulated Currency Translation Adjustments | | Unrealized Appreciation (Depreciation) of Investments(1) | | Pension and Postretirement Benefits | | Total | Balance, December 31, 2013 | | $ | 207,083 |
| | $ | 820,245 |
| | $ | (21,721 | ) | | $ | 1,005,607 |
| Other comprehensive income (loss) before reclassifications | | (9,162 | ) | | 949,650 |
| | (257 | ) | | 940,231 |
| Deferred income tax benefit (expense) | | 9,122 |
| | (302,873 | ) | | 251 |
| | (293,500 | ) | Other comprehensive income (loss) before reclassifications, net of income tax | | (40 | ) | | 646,777 |
| | (6 | ) | | 646,731 |
| Amounts reclassified to (from) AOCI | | — |
| | (37,661 | ) | | 1,570 |
| | (36,091 | ) | Deferred income tax benefit (expense) | | — |
| | 12,963 |
| | (550 | ) | | 12,413 |
| Amounts reclassified to (from) AOCI, net of income tax | | — |
| | (24,698 | ) | | 1,020 |
| | (23,678 | ) | Balance, June 30, 2014 | | $ | 207,043 |
| | $ | 1,442,324 |
| | $ | (20,707 | ) | | $ | 1,628,660 |
|
| | (1) | Includes cash flow hedges. See Note 5 - “Derivative Instruments” for additional information on cash flow hedges. |
|
| Reclassification Out Of Accumulated Other Comprehensive Income |
The following table presents the amounts of AOCI reclassifications for the three and six months ended June 30, 2015 and 2014 (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | Amount Reclassified from AOCI | | | | | Three months ended June 30, | | | Six months ended June 30, | | | Details about AOCI Components | | 2015 | | 2014 | | | 2015 | | 2014 | | Affected Line Item in Statement of Income | Unrealized gains and losses on available-for-sale securities | | $ | 1,829 |
| | $ | 27,142 |
| | | $ | 4,908 |
| | $ | 28,331 |
| | Investment related gains (losses), net | Gains and losses on cash flow hedges | | 543 |
| | 321 |
| | | 603 |
| | 539 |
| | Investment income | Gains and losses on cash flow hedges | | 1,495 |
| | — |
| | | 655 |
| | — |
| | Investment related gains (losses), net | Deferred policy acquisition costs attributed to unrealized gains and losses(1) | | (4,307 | ) | | 4,370 |
| | | 26 |
| | 8,791 |
| | | Total | | (440 | ) | | 31,833 |
| | | 6,192 |
| | 37,661 |
| | | Provision for income taxes | | (245 | ) | | (11,059 | ) | | | (537 | ) | | (12,963 | ) | | | Net unrealized gains (losses), net of tax | | $ | (685 | ) | | $ | 20,774 |
| | | $ | 5,655 |
| | $ | 24,698 |
| | | Amortization of unrealized pension and postretirement benefits: | | | | | | | | | | | | Prior service cost(2) | | $ | (80 | ) | | $ | (216 | ) | | | $ | (163 | ) | | $ | (218 | ) | | | Actuarial gains/(losses)(2) | | (1,098 | ) | | (462 | ) | | | (1,802 | ) | | (1,352 | ) | | | Total | | (1,178 | ) | | (678 | ) | | | (1,965 | ) | | (1,570 | ) | | | Provision for income taxes | | 413 |
| | 238 |
| | | 688 |
| | 550 |
| | | Amortization of unrealized pension and postretirement benefits, net of tax | | $ | (765 | ) | | $ | (440 | ) | | | $ | (1,277 | ) | | $ | (1,020 | ) | | | | | | | | | | | | | | | Total reclassifications, net of tax | | $ | (1,450 | ) | | $ | 20,334 |
| | | $ | 4,378 |
| | $ | 23,678 |
| | |
| | (1) | This AOCI component is included in the computation of the deferred policy acquisition cost. See Note 8 – “Deferred Policy Acquisition Costs” of the 2014 Annual Report for additional details. |
| | (2) | These AOCI components are included in the computation of the net periodic pension cost. See Note 10 – “Employee Benefit Plans” for additional details. |
|