| Accumulated Other Comprehensive Income (Loss) |
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NOTE 13 – Accumulated Other Comprehensive Income (Loss) |
The table below presents the changes in accumulated OCI after-tax for the nine months ended September 30, 2013 and 2012.
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(Dollars in millions) |
Available-for-sale Debt Securities |
|
Available-for-sale
Marketable
Equity Securities
|
|
Derivatives |
|
Employee
Benefit Plans (1)
|
|
Foreign
Currency (2)
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|
Total |
Balance, December 31, 2011 |
$ |
3,100 |
|
|
$ |
3 |
|
|
$ |
(3,785 |
) |
|
$ |
(4,391 |
) |
|
$ |
(364 |
) |
|
$ |
(5,437 |
) |
Net change |
2,645 |
|
|
326 |
|
|
535 |
|
|
1,106 |
|
|
14 |
|
|
4,626 |
|
Balance, September 30, 2012 |
$ |
5,745 |
|
|
$ |
329 |
|
|
$ |
(3,250 |
) |
|
$ |
(3,285 |
) |
|
$ |
(350 |
) |
|
$ |
(811 |
) |
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|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2012 |
$ |
4,443 |
|
|
$ |
462 |
|
|
$ |
(2,869 |
) |
|
$ |
(4,456 |
) |
|
$ |
(377 |
) |
|
$ |
(2,797 |
) |
Net change |
(5,303 |
) |
|
(467 |
) |
|
365 |
|
|
1,513 |
|
|
(134 |
) |
|
(4,026 |
) |
Balance, September 30, 2013 |
$ |
(860 |
) |
|
$ |
(5 |
) |
|
$ |
(2,504 |
) |
|
$ |
(2,943 |
) |
|
$ |
(511 |
) |
|
$ |
(6,823 |
) |
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|
(1) |
During the three months ended September 30, 2013, the Corporation merged certain pension plans into one plan. For additional information, see Note 15 – Pension, Postretirement and Certain Compensation Plans.
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(2) |
Net change in fair value represents the impact of changes in spot foreign exchange rates on the Corporation's net investment in non-U.S. operations and related hedges. |
The table below presents the net change in fair value recorded in accumulated OCI and realized net gains and losses reclassified into earnings for each component of OCI before- and after-tax for the nine months ended September 30, 2013 and 2012.
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Changes in OCI Components Before- and After-tax |
|
Nine Months Ended September 30 |
|
2013 |
|
2012 |
(Dollars in millions) |
Before-tax |
|
Tax effect |
|
After-tax |
|
Before-tax |
|
Tax effect |
|
After-tax |
Available-for-sale debt securities: |
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|
|
|
|
|
|
|
|
|
|
Net change in fair value |
$ |
(7,573 |
) |
|
$ |
2,813 |
|
|
$ |
(4,760 |
) |
|
$ |
5,576 |
|
|
$ |
(2,024 |
) |
|
$ |
3,552 |
|
Net realized gains reclassified into earnings |
(861 |
) |
|
318 |
|
|
(543 |
) |
|
(1,439 |
) |
|
532 |
|
|
(907 |
) |
Net change |
(8,434 |
) |
|
3,131 |
|
|
(5,303 |
) |
|
4,137 |
|
|
(1,492 |
) |
|
2,645 |
|
Available-for-sale marketable equity securities: |
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|
Net change in fair value |
28 |
|
|
(10 |
) |
|
18 |
|
|
542 |
|
|
(200 |
) |
|
342 |
|
Net realized gains reclassified into earnings |
(765 |
) |
|
280 |
|
|
(485 |
) |
|
(25 |
) |
|
9 |
|
|
(16 |
) |
Net change |
(737 |
) |
|
270 |
|
|
(467 |
) |
|
517 |
|
|
(191 |
) |
|
326 |
|
Derivatives: |
|
|
|
|
|
|
|
|
|
|
|
Net change in fair value |
(3 |
) |
|
— |
|
|
(3 |
) |
|
123 |
|
|
(46 |
) |
|
77 |
|
Net realized losses reclassified into earnings |
584 |
|
|
(216 |
) |
|
368 |
|
|
726 |
|
|
(268 |
) |
|
458 |
|
Net change |
581 |
|
|
(216 |
) |
|
365 |
|
|
849 |
|
|
(314 |
) |
|
535 |
|
Employee benefit plans: |
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Net change in fair value related to pension plan remeasurement |
2,138 |
|
|
(795 |
) |
|
1,343 |
|
|
— |
|
|
— |
|
|
— |
|
Net realized losses reclassified into earnings |
204 |
|
|
(68 |
) |
|
136 |
|
|
371 |
|
|
(135 |
) |
|
236 |
|
Settlements and curtailments |
46 |
|
|
(12 |
) |
|
34 |
|
|
1,381 |
|
|
(511 |
) |
|
870 |
|
Net change |
2,388 |
|
|
(875 |
) |
|
1,513 |
|
|
1,752 |
|
|
(646 |
) |
|
1,106 |
|
Foreign currency: |
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|
|
|
|
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|
|
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|
Net change in fair value |
214 |
|
|
(347 |
) |
|
(133 |
) |
|
(340 |
) |
|
354 |
|
|
14 |
|
Net realized (gains) losses reclassified into earnings |
31 |
|
|
(32 |
) |
|
(1 |
) |
|
2 |
|
|
(2 |
) |
|
— |
|
Net change |
245 |
|
|
(379 |
) |
|
(134 |
) |
|
(338 |
) |
|
352 |
|
|
14 |
|
Total other comprehensive income (loss) |
$ |
(5,957 |
) |
|
$ |
1,931 |
|
|
$ |
(4,026 |
) |
|
$ |
6,917 |
|
|
$ |
(2,291 |
) |
|
$ |
4,626 |
|
The table below presents impacts on net income of significant amounts reclassified out of each component of accumulated OCI before- and after-tax for the nine months ended September 30, 2013 and 2012.
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Reclassifications Out of Accumulated OCI |
(Dollars in millions) |
|
Nine Months Ended September 30 |
Accumulated OCI Components |
Income Statement Line Item |
2013 |
|
2012 |
Available-for-sale debt securities: |
|
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|
|
|
Gain on sale of debt securities |
$ |
881 |
|
|
$ |
1,491 |
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|
Other-than-temporary impairment |
(20 |
) |
|
(52 |
) |
|
Income before income taxes |
861 |
|
|
1,439 |
|
|
Income tax expense |
318 |
|
|
532 |
|
|
Net income |
543 |
|
|
907 |
|
Available-for-sale marketable equity securities: |
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|
|
|
Equity investment income |
765 |
|
|
25 |
|
|
Income before income taxes |
765 |
|
|
25 |
|
|
Income tax expense |
280 |
|
|
9 |
|
|
Net income |
485 |
|
|
16 |
|
Derivatives: |
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|
|
Interest rate contracts |
Net interest income |
(818 |
) |
|
(637 |
) |
Commodity contracts |
Trading account profits |
(1 |
) |
|
— |
|
Interest rate contracts |
Other income |
18 |
|
|
— |
|
Equity compensation contracts |
Personnel |
217 |
|
|
(89 |
) |
|
Loss before income taxes |
(584 |
) |
|
(726 |
) |
|
Income tax benefit |
(216 |
) |
|
(268 |
) |
|
Net loss |
(368 |
) |
|
(458 |
) |
Employee benefit plans: |
|
|
|
|
Prior service cost |
Personnel |
(3 |
) |
|
(9 |
) |
Transition obligation |
Personnel |
— |
|
|
(31 |
) |
Net actuarial losses |
Personnel |
(199 |
) |
|
(329 |
) |
Settlements and curtailments |
Personnel |
(2 |
) |
|
(62 |
) |
|
Loss before income taxes |
(204 |
) |
|
(431 |
) |
|
Income tax benefit |
(68 |
) |
|
(157 |
) |
|
Net loss |
(136 |
) |
|
(274 |
) |
Foreign currency: |
|
|
|
|
Insignificant items |
Other loss |
(31 |
) |
|
(2 |
) |
|
Loss before income taxes |
(31 |
) |
|
(2 |
) |
|
Income tax benefit |
(32 |
) |
|
(2 |
) |
|
Net income |
1 |
|
|
— |
|
Total reclassification adjustments |
|
$ |
525 |
|
|
$ |
191 |
|
|