| Accumulated Other Comprehensive Income (Loss) |
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|
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.
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(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 |
) |
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|
|
|
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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.
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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: |
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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: |
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|
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|
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: |
|
|
|
|
|
|
|
|
|
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|
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.
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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 |
) |
|