Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Income (Loss)

v2.4.0.8
Accumulated Other Comprehensive Income (Loss)
3 Months Ended
Mar. 31, 2014
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
NOTE 12 – Accumulated Other Comprehensive Income (Loss)

The table below presents the changes in accumulated OCI after-tax for the three months ended March 31, 2014 and 2013.

(Dollars in millions)
Available-for-sale Debt Securities
 
Available-for-sale
Marketable
Equity Securities
 
Derivatives
 
Employee
Benefit Plans
 
Foreign
Currency (1)
 
Total
Balance, December 31, 2012
$
4,443

 
$
462

 
$
(2,869
)
 
$
(4,456
)
 
$
(377
)
 
$
(2,797
)
Net change
(946
)
 
40

 
172

 
85

 
(42
)
 
(691
)
Balance, March 31, 2013
$
3,497

 
$
502

 
$
(2,697
)
 
$
(4,371
)
 
$
(419
)
 
$
(3,488
)
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2013
$
(3,257
)
 
$
(4
)
 
$
(2,277
)
 
$
(2,407
)
 
$
(512
)
 
$
(8,457
)
Net change
1,297

 
(8
)
 
208

 
49

 
(126
)
 
1,420

Balance, March 31, 2014
$
(1,960
)
 
$
(12
)
 
$
(2,069
)
 
$
(2,358
)
 
$
(638
)
 
$
(7,037
)
(1) 
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 the three months ended March 31, 2014 and 2013.

Changes in OCI Components Before- and After-tax
 
Three Months Ended March 31
 
2014
 
2013
(Dollars in millions)
Before-tax
 
Tax effect
 
After-tax
 
Before-tax
 
Tax effect
 
After-tax
Available-for-sale debt securities:
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value
$
2,389

 
$
(859
)
 
$
1,530

 
$
(1,444
)
 
$
535

 
$
(909
)
Net realized gains reclassified into earnings
(376
)
 
143

 
(233
)
 
(59
)
 
22

 
(37
)
Net change
2,013

 
(716
)
 
1,297

 
(1,503
)
 
557

 
(946
)
Available-for-sale marketable equity securities:
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value
(13
)
 
5

 
(8
)
 
64

 
(24
)
 
40

Net realized gains reclassified into earnings

 

 

 
(1
)
 
1

 

Net change
(13
)
 
5

 
(8
)
 
63

 
(23
)
 
40

Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value
173

 
(47
)
 
126

 
41

 
(17
)
 
24

Net realized losses reclassified into earnings
131

 
(49
)
 
82

 
235

 
(87
)
 
148

Net change
304

 
(96
)
 
208

 
276

 
(104
)
 
172

Employee benefit plans:
 
 
 
 
 
 
 
 
 
 
 
Net realized losses reclassified into earnings
13

 
(5
)
 
8

 
74

 
(21
)
 
53

Settlements, curtailments and other

 
41

 
41

 
42

 
(10
)
 
32

Net change
13

 
36

 
49

 
116

 
(31
)
 
85

Foreign currency:
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value
(96
)
 
(29
)
 
(125
)
 
528

 
(569
)
 
(41
)
Net realized gains reclassified into earnings
(2
)
 
1

 
(1
)
 
34

 
(35
)
 
(1
)
Net change
(98
)
 
(28
)
 
(126
)
 
562

 
(604
)
 
(42
)
Total other comprehensive income (loss)
$
2,219

 
$
(799
)
 
$
1,420

 
$
(486
)
 
$
(205
)
 
$
(691
)

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 three months ended March 31, 2014 and 2013. Amounts reclassified out of AFS marketable equity securities were immaterial for both the three months ended March 31, 2014 and 2013.

Reclassifications Out of Accumulated OCI
(Dollars in millions)
 
Three Months Ended March 31
Accumulated OCI Components
Income Statement Line Item Impacted
2014

2013
Available-for-sale debt securities:
 
 
 
 
 
Gains on sales of debt securities
$
377

 
$
68

 
Other-than-temporary impairment
(1
)
 
(9
)
 
Income before income taxes
376

 
59

 
Income tax expense
143

 
22

 
Reclassification to net income
233

 
37

Derivatives:
 
 
 
 
Interest rate contracts
Net interest income
(281
)
 
(275
)
Equity compensation contracts
Personnel
150

 
40

 
Loss before income taxes
(131
)
 
(235
)
 
Income tax benefit
(49
)
 
(87
)
 
Reclassification to net income
(82
)
 
(148
)
Employee benefit plans:
 
 
 
 
Prior service cost and net actuarial losses
Personnel
(13
)
 
(74
)
 
Loss before income taxes
(13
)
 
(74
)
 
Income tax benefit
(5
)
 
(21
)
 
Reclassification to net income
(8
)
 
(53
)
Foreign currency:
 
 
 
 
Insignificant items
Other income (loss)
2

 
(34
)
 
Income (loss) before income taxes
2

 
(34
)
 
Income tax expense (benefit)
1

 
(35
)
 
Reclassification to net income
1

 
1

Total reclassification adjustments
 
$
144

 
$
(163
)