Annual report pursuant to Section 13 and 15(d)

Accumulated Other Comprehensive Income (Loss)

v2.4.0.8
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2013
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
The table below presents the changes in accumulated OCI after-tax for 2011, 2012 and 2013.
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
Available-for-
Sale Debt
Securities
 
Available-for-
Sale Marketable
Equity Securities
 
Derivatives
 
Employee
Benefit Plans (1)
 
Foreign
Currency (2)
 
Total
Balance, December 31, 2010
$
714

 
$
6,659

 
$
(3,236
)
 
$
(3,947
)
 
$
(256
)
 
$
(66
)
Net change
2,386

 
(6,656
)
 
(549
)
 
(444
)
 
(108
)
 
(5,371
)
Balance, December 31, 2011
$
3,100

 
$
3

 
$
(3,785
)
 
$
(4,391
)
 
$
(364
)
 
$
(5,437
)
Net change
1,343

 
459

 
916

 
(65
)
 
(13
)
 
2,640

Balance, December 31, 2012
$
4,443

 
$
462

 
$
(2,869
)
 
$
(4,456
)
 
$
(377
)
 
$
(2,797
)
Net change
(7,700
)
 
(466
)
 
592

 
2,049

 
(135
)
 
(5,660
)
Balance, December 31, 2013
$
(3,257
)
 
$
(4
)
 
$
(2,277
)
 
$
(2,407
)
 
$
(512
)
 
$
(8,457
)

(1) 
During 2013, the Corporation merged certain pension plans into one plan. For more information on employee benefit plans, see Note 17 – Employee Benefit Plans.
(2) 
The 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, net realized gains and losses reclassified into earnings and other changes for each component of OCI before- and after-tax for 2013, 2012 and 2011.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in OCI Components Before- and After-tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
2012
 
2011
(Dollars in millions)
Before-tax
 
Tax effect
 
After-tax
 
Before-tax
 
Tax effect
 
After-tax
 
Before-tax
 
Tax effect
 
After-tax
Available-for-sale debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value
$
(10,989
)
 
$
4,077

 
$
(6,912
)
 
$
3,676

 
$
(1,319
)
 
$
2,357

 
$
6,913

 
$
(2,590
)
 
$
4,323

Net realized gains reclassified into earnings
(1,251
)
 
463

 
(788
)
 
(1,609
)
 
595

 
(1,014
)
 
(3,075
)
 
1,138

 
(1,937
)
Net change
(12,240
)
 
4,540

 
(7,700
)
 
2,067

 
(724
)
 
1,343

 
3,838

 
(1,452
)
 
2,386

Available-for-sale marketable equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value
32

 
(12
)
 
20

 
748

 
(277
)
 
471

 
(4,114
)
 
1,575

 
(2,539
)
Net realized gains reclassified into earnings
(771
)
 
285

 
(486
)
 
(19
)
 
7

 
(12
)
 
(6,501
)
 
2,384

 
(4,117
)
Net change
(739
)
 
273

 
(466
)
 
729

 
(270
)
 
459

 
(10,615
)
 
3,959

 
(6,656
)
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value
156

 
(51
)
 
105

 
430

 
(166
)
 
264

 
(2,490
)
 
923

 
(1,567
)
Net realized losses reclassified into earnings
773

 
(286
)
 
487

 
1,035

 
(383
)
 
652

 
1,617

 
(599
)
 
1,018

Net change
929

 
(337
)
 
592

 
1,465

 
(549
)
 
916

 
(873
)
 
324

 
(549
)
Employee benefit plans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value
2,985

 
(1,128
)
 
1,857

 
(1,891
)
 
660

 
(1,231
)
 
(1,171
)
 
457

 
(714
)
Net realized losses reclassified into earnings
237

 
(79
)
 
158

 
490

 
(192
)
 
298

 
437

 
(167
)
 
270

Settlements and curtailments
46

 
(12
)
 
34

 
1,378

 
(510
)
 
868

 
—

 
—

 
—

Net change
3,268

 
(1,219
)
 
2,049

 
(23
)
 
(42
)
 
(65
)
 
(734
)
 
290

 
(444
)
Foreign currency:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value
244

 
(384
)
 
(140
)
 
(226
)
 
233

 
7

 
145

 
(179
)
 
(34
)
Net realized (gains) losses reclassified into earnings
138

 
(133
)
 
5

 
(30
)
 
10

 
(20
)
 
(65
)
 
(9
)
 
(74
)
Net change
382

 
(517
)
 
(135
)
 
(256
)
 
243

 
(13
)
 
80

 
(188
)
 
(108
)
Total other comprehensive income (loss)
$
(8,400
)
 
$
2,740

 
$
(5,660
)
 
$
3,982

 
$
(1,342
)
 
$
2,640

 
$
(8,304
)
 
$
2,933

 
$
(5,371
)
The table below presents impacts on net income of significant amounts reclassified out of each component of accumulated OCI before- and after-tax for 2013, 2012 and 2011.
 
 
 
 
 
 
 
Reclassifications Out of Accumulated OCI
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
Accumulated OCI Components
Income Statement Line Item Impacted
2013
 
2012
 
2011
Available-for-sale debt securities:
 
 
 
 
 
 
 
Gains on sales of debt securities
$
1,271

 
$
1,662

 
$
3,374

 
Other-than-temporary impairment
(20
)
 
(53
)
 
(299
)
 
Income before income taxes
1,251

 
1,609

 
3,075

 
Income tax expense
463

 
595

 
1,138

 
Reclassification to net income
788

 
1,014

 
1,937

Available-for-sale marketable equity securities:
 
 
 
 
 
 
 
Equity investment income
771

 
19

 
6,501

 
Income before income taxes
771

 
19

 
6,501

 
Income tax expense
285

 
7

 
2,384

 
Reclassification to net income
486

 
12

 
4,117

Derivatives:
 
 
 
 
 
 
Interest rate contracts
Net interest income
(1,119
)
 
(956
)
 
(1,393
)
Commodity contracts
Trading account profits
(1
)
 
(1
)
 
7

Interest rate contracts
Other income
18

 
—

 
—

Equity compensation contracts
Personnel
329

 
(78
)
 
(231
)
 
Loss before income taxes
(773
)
 
(1,035
)
 
(1,617
)
 
Income tax benefit
(286
)
 
(383
)
 
(599
)
 
Reclassification to net income
(487
)
 
(652
)
 
(1,018
)
Employee benefit plans:
 
 
 
 
 
 
Prior service cost
Personnel
(4
)
 
(6
)
 
(16
)
Transition obligation
Personnel
—

 
(32
)
 
(31
)
Net actuarial losses
Personnel
(225
)
 
(443
)
 
(387
)
Settlements and curtailments
Personnel
(8
)
 
(58
)
 
(3
)
 
Loss before income taxes
(237
)
 
(539
)
 
(437
)
 
Income tax benefit
(79
)
 
(212
)
 
(167
)
 
Reclassification to net income
(158
)
 
(327
)
 
(270
)
Foreign currency:
 
 
 
 
 
 
 
Other income (loss)
(138
)
 
30

 
65

 
Income (loss) before income taxes
(138
)
 
30

 
65

 
Income tax expense (benefit)
(133
)
 
10

 
(9
)
 
Reclassification to net Income
(5
)
 
20

 
74

Total reclassification adjustments
 
$
624

 
$
67

 
$
4,840