| 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 nine months ended September 30, 2015 and 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2013 |
$ |
(3,257 |
) |
|
$ |
(4 |
) |
|
$ |
(2,277 |
) |
|
$ |
(2,407 |
) |
|
$ |
(512 |
) |
|
$ |
(8,457 |
) |
Net change |
2,601 |
|
|
(1 |
) |
|
411 |
|
|
64 |
|
|
(133 |
) |
|
2,942 |
|
Balance, September 30, 2014 |
$ |
(656 |
) |
|
$ |
(5 |
) |
|
$ |
(1,866 |
) |
|
$ |
(2,343 |
) |
|
$ |
(645 |
) |
|
$ |
(5,515 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2014 |
$ |
1,343 |
|
|
$ |
17 |
|
|
$ |
(1,661 |
) |
|
$ |
(3,350 |
) |
|
$ |
(669 |
) |
|
$ |
(4,320 |
) |
Net change |
219 |
|
|
(2 |
) |
|
416 |
|
|
77 |
|
|
(84 |
) |
|
626 |
|
Balance, September 30, 2015 |
$ |
1,562 |
|
|
$ |
15 |
|
|
$ |
(1,245 |
) |
|
$ |
(3,273 |
) |
|
$ |
(753 |
) |
|
$ |
(3,694 |
) |
|
|
(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 nine months ended September 30, 2015 and 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in OCI Components Before- and After-tax |
|
Nine Months Ended September 30 |
|
2015 |
|
2014 |
(Dollars in millions) |
Before-tax |
|
Tax effect |
|
After-tax |
|
Before-tax |
|
Tax effect |
|
After-tax |
Available-for-sale debt securities: |
|
|
|
|
|
|
|
|
|
|
|
Net increase in fair value |
$ |
1,103 |
|
|
$ |
(423 |
) |
|
$ |
680 |
|
|
$ |
5,322 |
|
|
$ |
(1,990 |
) |
|
$ |
3,332 |
|
Net realized gains reclassified into earnings |
(744 |
) |
|
283 |
|
|
(461 |
) |
|
(1,179 |
) |
|
448 |
|
|
(731 |
) |
Net change |
359 |
|
|
(140 |
) |
|
219 |
|
|
4,143 |
|
|
(1,542 |
) |
|
2,601 |
|
Available-for-sale marketable equity securities: |
|
|
|
|
|
|
|
|
|
|
|
Net decrease in fair value |
(3 |
) |
|
1 |
|
|
(2 |
) |
|
(1 |
) |
|
— |
|
|
(1 |
) |
Net change |
(3 |
) |
|
1 |
|
|
(2 |
) |
|
(1 |
) |
|
— |
|
|
(1 |
) |
Derivatives: |
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in fair value |
(42 |
) |
|
14 |
|
|
(28 |
) |
|
106 |
|
|
(20 |
) |
|
86 |
|
Net realized losses reclassified into earnings |
711 |
|
|
(267 |
) |
|
444 |
|
|
521 |
|
|
(196 |
) |
|
325 |
|
Net change |
669 |
|
|
(253 |
) |
|
416 |
|
|
627 |
|
|
(216 |
) |
|
411 |
|
Employee benefit plans: |
|
|
|
|
|
|
|
|
|
|
|
Net decrease in fair value |
(2 |
) |
|
1 |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
Net realized losses reclassified into earnings |
128 |
|
|
(49 |
) |
|
79 |
|
|
37 |
|
|
(14 |
) |
|
23 |
|
Settlements, curtailments and other |
— |
|
|
(1 |
) |
|
(1 |
) |
|
— |
|
|
41 |
|
|
41 |
|
Net change |
126 |
|
|
(49 |
) |
|
77 |
|
|
37 |
|
|
27 |
|
|
64 |
|
Foreign currency: |
|
|
|
|
|
|
|
|
|
|
|
Net decrease in fair value |
482 |
|
|
(566 |
) |
|
(84 |
) |
|
258 |
|
|
(390 |
) |
|
(132 |
) |
Net realized gains reclassified into earnings |
(29 |
) |
|
29 |
|
|
— |
|
|
(2 |
) |
|
1 |
|
|
(1 |
) |
Net change |
453 |
|
|
(537 |
) |
|
(84 |
) |
|
256 |
|
|
(389 |
) |
|
(133 |
) |
Total other comprehensive income |
$ |
1,604 |
|
|
$ |
(978 |
) |
|
$ |
626 |
|
|
$ |
5,062 |
|
|
$ |
(2,120 |
) |
|
$ |
2,942 |
|
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, 2015 and 2014. There were no amounts reclassified out of AFS marketable equity securities for the nine months ended September 30, 2015 and 2014.
|
|
|
|
|
|
|
|
|
|
Reclassifications Out of Accumulated OCI |
(Dollars in millions) |
|
Nine Months Ended September 30 |
Accumulated OCI Components |
Income Statement Line Item Impacted |
2015 |
|
2014 |
Available-for-sale debt securities: |
|
|
|
|
|
Gains on sales of debt securities |
$ |
821 |
|
|
$ |
1,191 |
|
|
Other loss |
(77 |
) |
|
(12 |
) |
|
Income before income taxes |
744 |
|
|
1,179 |
|
|
Income tax expense |
283 |
|
|
448 |
|
|
Reclassification to net income |
461 |
|
|
731 |
|
Derivatives: |
|
|
|
|
Interest rate contracts |
Net interest income |
(768 |
) |
|
(831 |
) |
Equity compensation contracts |
Personnel |
57 |
|
|
310 |
|
|
Loss before income taxes |
(711 |
) |
|
(521 |
) |
|
Income tax benefit |
(267 |
) |
|
(196 |
) |
|
Reclassification to net income |
(444 |
) |
|
(325 |
) |
Employee benefit plans: |
|
|
|
|
Net actuarial losses and prior service costs |
Personnel |
(128 |
) |
|
(37 |
) |
|
Loss before income taxes |
(128 |
) |
|
(37 |
) |
|
Income tax benefit |
(49 |
) |
|
(14 |
) |
|
Reclassification to net income |
(79 |
) |
|
(23 |
) |
Foreign currency: |
|
|
|
|
Insignificant items |
Other income |
29 |
|
|
2 |
|
|
Income before income taxes |
29 |
|
|
2 |
|
|
Income tax expense |
29 |
|
|
1 |
|
|
Reclassification to net income |
— |
|
|
1 |
|
Total reclassification adjustments |
|
$ |
(62 |
) |
|
$ |
384 |
|
|