Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Income (Loss)

v2.4.0.6
Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 31, 2013
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
NOTE 13 – Accumulated Other Comprehensive Income (Loss)

The table below presents the changes in accumulated OCI after-tax for the three months ended March 31, 2013 and 2012.

(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, 2011
$
3,100

 
$
3

 
$
(3,785
)
 
$
(4,391
)
 
$
(364
)
 
$
(5,437
)
Net change
(938
)
 
14

 
382

 
952

 
31

 
441

Balance, March 31, 2012
$
2,162

 
$
17

 
$
(3,403
)
 
$
(3,439
)
 
$
(333
)
 
$
(4,996
)
 
 
 
 
 
 
 
 
 
 
 
 
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
)
(1) 
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 additional information on each component of OCI before- and after-tax for the three months ended March 31, 2013 and 2012.

Changes in OCI Components Before- and After-tax
 
Three Months Ended March 31
 
2013
 
2012
(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 recorded in accumulated OCI
$
(1,444
)
 
$
535

 
$
(909
)
 
$
(780
)
 
$
291

 
$
(489
)
Net realized (gains) losses reclassified into earnings
(59
)
 
22

 
(37
)
 
(712
)
 
263

 
(449
)
Net change
(1,503
)
 
557

 
(946
)
 
(1,492
)
 
554

 
(938
)
Available-for-sale marketable equity securities:
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value recorded in accumulated OCI
64

 
(24
)
 
40

 
25

 
(10
)
 
15

Net realized (gains) losses reclassified into earnings
(1
)
 
1

 
—

 
(2
)
 
1

 
(1
)
Net change
63

 
(23
)
 
40

 
23

 
(9
)
 
14

Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value recorded in accumulated OCI
41

 
(17
)
 
24

 
413

 
(153
)
 
260

Net realized (gains) losses reclassified into earnings
235

 
(87
)
 
148

 
194

 
(72
)
 
122

Net change
276

 
(104
)
 
172

 
607

 
(225
)
 
382

Employee benefit plans:
 
 
 
 
 
 
 
 
 
 
 
Net realized (gains) losses reclassified into earnings
74

 
(21
)
 
53

 
131

 
(49
)
 
82

Settlements and curtailments
42

 
(10
)
 
32

 
1,381

 
(511
)
 
870

Net change
116

 
(31
)
 
85

 
1,512

 
(560
)
 
952

Foreign currency:
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value recorded in accumulated OCI
528

 
(569
)
 
(41
)
 
(256
)
 
287

 
31

Net realized (gains) losses reclassified into earnings
34

 
(35
)
 
(1
)
 
—

 
—

 
—

Net change
562

 
(604
)
 
(42
)
 
(256
)
 
287

 
31

Total other comprehensive income (loss)
$
(486
)
 
$
(205
)
 
$
(691
)
 
$
394

 
$
47

 
$
441


The table below presents effects 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, 2013 and 2012.

Reclassifications Out of Accumulated OCI
(Dollars in millions)
Three Months Ended March 31
 
2013
 
2012
Accumulated OCI Components
Reclassifications Out of Accumulated OCI
 
Income Statement Line Item
 
Reclassifications Out of
Accumulated OCI
 
Income Statement Line Item
 
 
 
Available-for-sale debt securities:
 
 
 
 
 
 
 
 
$
68

 
Gains on sales of debt securities
 
$
752

 
Gains on sales of debt securities
 
(9
)
 
Other-than-temporary impairment
 
(40
)
 
Other-than-temporary impairment
 
59

 
Income before income taxes
 
712

 
Income before income taxes
 
22

 
Income tax expense
 
263

 
Income tax expense
 
37

 
Net income
 
449

 
Net income
Derivatives:
 
 
 
 
 
 
 
Commodity contracts
—

 
Trading account profits
 
(5
)
 
Trading account profits
Equity compensation contracts
40

 
Personnel
 
(37
)
 
Personnel
Interest rate contracts
(275
)
 
Net interest income
 
(152
)
 
Net interest income
 
(235
)
 
Loss before income taxes
 
(194
)
 
Loss before income taxes
 
(87
)
 
Income tax benefit
 
(72
)
 
Income tax benefit
 
(148
)
 
Net loss
 
(122
)
 
Net loss
Employee benefit plans:
 
 
 
 
 
 
 
Prior service costs
(1
)
 
Personnel
 
(4
)
 
Personnel
Transition obligation
—

 
Personnel
 
(8
)
 
Personnel
Actuarial losses
(73
)
 
Personnel
 
(119
)
 
Personnel
Settlements and curtailments
—

 
Personnel
 
(61
)
 
Personnel
 
(74
)
 
Loss before income taxes
 
(192
)
 
Loss before income taxes
 
(21
)
 
Income tax benefit
 
(71
)
 
Income tax benefit
 
(53
)
 
Net loss
 
(121
)
 
Net loss
Foreign currency:
 
 
 
 
 
 
 
Insignificant items
(34
)
 
Other loss
 
—

 
Other income
 
(34
)
 
Loss before income taxes
 
—

 
Income before income taxes
 
(35
)
 
Income tax benefit
 
—

 
Income tax expense
 
1

 
Net income
 
—

 
Net income
Total reclassification adjustments
$
(163
)
 
 
 
$
206