| Schedule of Accumulated OCI |
The table below presents the changes in accumulated OCI after-tax for 2011, 2012 and 2013.
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(Dollars in millions) |
Available-for-
Sale Debt
Securities
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Available-for-
Sale Marketable
Equity Securities
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Derivatives |
|
Employee
Benefit Plans (1)
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Foreign
Currency (2)
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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 |
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|
459 |
|
|
916 |
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|
(65 |
) |
|
(13 |
) |
|
2,640 |
|
Balance, December 31, 2012 |
$ |
4,443 |
|
|
$ |
462 |
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|
$ |
(2,869 |
) |
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$ |
(4,456 |
) |
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$ |
(377 |
) |
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$ |
(2,797 |
) |
Net change |
(7,700 |
) |
|
(466 |
) |
|
592 |
|
|
2,049 |
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|
(135 |
) |
|
(5,660 |
) |
Balance, December 31, 2013 |
$ |
(3,257 |
) |
|
$ |
(4 |
) |
|
$ |
(2,277 |
) |
|
$ |
(2,407 |
) |
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$ |
(512 |
) |
|
$ |
(8,457 |
) |
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(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.
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(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.
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Changes in OCI Components Before- and After-tax |
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2013 |
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2012 |
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2011 |
(Dollars in millions) |
Before-tax |
|
Tax effect |
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After-tax |
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Before-tax |
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Tax effect |
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After-tax |
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Before-tax |
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Tax effect |
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After-tax |
Available-for-sale debt securities: |
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Net change in fair value |
$ |
(10,989 |
) |
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$ |
4,077 |
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$ |
(6,912 |
) |
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$ |
3,676 |
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|
$ |
(1,319 |
) |
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$ |
2,357 |
|
|
$ |
6,913 |
|
|
$ |
(2,590 |
) |
|
$ |
4,323 |
|
Net realized gains reclassified into earnings |
(1,251 |
) |
|
463 |
|
|
(788 |
) |
|
(1,609 |
) |
|
595 |
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|
(1,014 |
) |
|
(3,075 |
) |
|
1,138 |
|
|
(1,937 |
) |
Net change |
(12,240 |
) |
|
4,540 |
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|
(7,700 |
) |
|
2,067 |
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|
(724 |
) |
|
1,343 |
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|
3,838 |
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(1,452 |
) |
|
2,386 |
|
Available-for-sale marketable equity securities: |
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Net change in fair value |
32 |
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(12 |
) |
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20 |
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|
748 |
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(277 |
) |
|
471 |
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(4,114 |
) |
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1,575 |
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(2,539 |
) |
Net realized gains reclassified into earnings |
(771 |
) |
|
285 |
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|
(486 |
) |
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(19 |
) |
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7 |
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(12 |
) |
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(6,501 |
) |
|
2,384 |
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|
(4,117 |
) |
Net change |
(739 |
) |
|
273 |
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|
(466 |
) |
|
729 |
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|
(270 |
) |
|
459 |
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(10,615 |
) |
|
3,959 |
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(6,656 |
) |
Derivatives: |
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Net change in fair value |
156 |
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(51 |
) |
|
105 |
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|
430 |
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(166 |
) |
|
264 |
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(2,490 |
) |
|
923 |
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(1,567 |
) |
Net realized losses reclassified into earnings |
773 |
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(286 |
) |
|
487 |
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1,035 |
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(383 |
) |
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652 |
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1,617 |
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(599 |
) |
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1,018 |
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Net change |
929 |
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(337 |
) |
|
592 |
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1,465 |
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(549 |
) |
|
916 |
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(873 |
) |
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324 |
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(549 |
) |
Employee benefit plans: |
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Net change in fair value |
2,985 |
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(1,128 |
) |
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1,857 |
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(1,891 |
) |
|
660 |
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(1,231 |
) |
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(1,171 |
) |
|
457 |
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(714 |
) |
Net realized losses reclassified into earnings |
237 |
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(79 |
) |
|
158 |
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|
490 |
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(192 |
) |
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298 |
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|
437 |
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(167 |
) |
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270 |
|
Settlements and curtailments |
46 |
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(12 |
) |
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34 |
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1,378 |
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(510 |
) |
|
868 |
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— |
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— |
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— |
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Net change |
3,268 |
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(1,219 |
) |
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2,049 |
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(23 |
) |
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(42 |
) |
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(65 |
) |
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(734 |
) |
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290 |
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(444 |
) |
Foreign currency: |
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Net change in fair value |
244 |
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(384 |
) |
|
(140 |
) |
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(226 |
) |
|
233 |
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7 |
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|
145 |
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(179 |
) |
|
(34 |
) |
Net realized (gains) losses reclassified into earnings |
138 |
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(133 |
) |
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5 |
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(30 |
) |
|
10 |
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(20 |
) |
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(65 |
) |
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(9 |
) |
|
(74 |
) |
Net change |
382 |
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(517 |
) |
|
(135 |
) |
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(256 |
) |
|
243 |
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(13 |
) |
|
80 |
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(188 |
) |
|
(108 |
) |
Total other comprehensive income (loss) |
$ |
(8,400 |
) |
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$ |
2,740 |
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$ |
(5,660 |
) |
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$ |
3,982 |
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$ |
(1,342 |
) |
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$ |
2,640 |
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$ |
(8,304 |
) |
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$ |
2,933 |
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$ |
(5,371 |
) |
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| Reclassification out of Accumulated Other Comprehensive Income |
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.
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Reclassifications Out of Accumulated OCI |
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(Dollars in millions) |
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Accumulated OCI Components |
Income Statement Line Item Impacted |
2013 |
|
2012 |
|
2011 |
Available-for-sale debt securities: |
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Gains on sales of debt securities |
$ |
1,271 |
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$ |
1,662 |
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$ |
3,374 |
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Other-than-temporary impairment |
(20 |
) |
|
(53 |
) |
|
(299 |
) |
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Income before income taxes |
1,251 |
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|
1,609 |
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|
3,075 |
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Income tax expense |
463 |
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|
595 |
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|
1,138 |
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Reclassification to net income |
788 |
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|
1,014 |
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|
1,937 |
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Available-for-sale marketable equity securities: |
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Equity investment income |
771 |
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|
19 |
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|
6,501 |
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Income before income taxes |
771 |
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|
19 |
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|
6,501 |
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Income tax expense |
285 |
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|
7 |
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|
2,384 |
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Reclassification to net income |
486 |
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|
12 |
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|
4,117 |
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Derivatives: |
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Interest rate contracts |
Net interest income |
(1,119 |
) |
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(956 |
) |
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(1,393 |
) |
Commodity contracts |
Trading account profits |
(1 |
) |
|
(1 |
) |
|
7 |
|
Interest rate contracts |
Other income |
18 |
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— |
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— |
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Equity compensation contracts |
Personnel |
329 |
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(78 |
) |
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(231 |
) |
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Loss before income taxes |
(773 |
) |
|
(1,035 |
) |
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(1,617 |
) |
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Income tax benefit |
(286 |
) |
|
(383 |
) |
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(599 |
) |
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Reclassification to net income |
(487 |
) |
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(652 |
) |
|
(1,018 |
) |
Employee benefit plans: |
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Prior service cost |
Personnel |
(4 |
) |
|
(6 |
) |
|
(16 |
) |
Transition obligation |
Personnel |
— |
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|
(32 |
) |
|
(31 |
) |
Net actuarial losses |
Personnel |
(225 |
) |
|
(443 |
) |
|
(387 |
) |
Settlements and curtailments |
Personnel |
(8 |
) |
|
(58 |
) |
|
(3 |
) |
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Loss before income taxes |
(237 |
) |
|
(539 |
) |
|
(437 |
) |
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Income tax benefit |
(79 |
) |
|
(212 |
) |
|
(167 |
) |
|
Reclassification to net income |
(158 |
) |
|
(327 |
) |
|
(270 |
) |
Foreign currency: |
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|
Other income (loss) |
(138 |
) |
|
30 |
|
|
65 |
|
|
Income (loss) before income taxes |
(138 |
) |
|
30 |
|
|
65 |
|
|
Income tax expense (benefit) |
(133 |
) |
|
10 |
|
|
(9 |
) |
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Reclassification to net Income |
(5 |
) |
|
20 |
|
|
74 |
|
Total reclassification adjustments |
|
$ |
624 |
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|
$ |
67 |
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$ |
4,840 |
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