| Accumulated Other Comprehensive Income (Loss) |
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|
NOTE 13 – Accumulated Other Comprehensive Income (Loss) |
The table below presents the changes in accumulated OCI after-tax for the six months ended June 30, 2013 and 2012.
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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, 2011 |
$ |
3,100 |
|
|
$ |
3 |
|
|
$ |
(3,785 |
) |
|
$ |
(4,391 |
) |
|
$ |
(364 |
) |
|
$ |
(5,437 |
) |
Net change |
593 |
|
|
13 |
|
|
301 |
|
|
1,031 |
|
|
(1 |
) |
|
1,937 |
|
Balance, June 30, 2012 |
$ |
3,693 |
|
|
$ |
16 |
|
|
$ |
(3,484 |
) |
|
$ |
(3,360 |
) |
|
$ |
(365 |
) |
|
$ |
(3,500 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2012 |
$ |
4,443 |
|
|
$ |
462 |
|
|
$ |
(2,869 |
) |
|
$ |
(4,456 |
) |
|
$ |
(377 |
) |
|
$ |
(2,797 |
) |
Net change |
(5,088 |
) |
|
(51 |
) |
|
185 |
|
|
133 |
|
|
(91 |
) |
|
(4,912 |
) |
Balance, June 30, 2013 |
$ |
(645 |
) |
|
$ |
411 |
|
|
$ |
(2,684 |
) |
|
$ |
(4,323 |
) |
|
$ |
(468 |
) |
|
$ |
(7,709 |
) |
|
|
(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 six months ended June 30, 2013 and 2012.
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Changes in OCI Components Before- and After-tax |
|
Six Months Ended June 30 |
|
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 |
$ |
(7,565 |
) |
|
$ |
2,799 |
|
|
$ |
(4,766 |
) |
|
$ |
1,995 |
|
|
$ |
(705 |
) |
|
$ |
1,290 |
|
Net realized gains reclassified into earnings |
(512 |
) |
|
190 |
|
|
(322 |
) |
|
(1,107 |
) |
|
410 |
|
|
(697 |
) |
Net change |
(8,077 |
) |
|
2,989 |
|
|
(5,088 |
) |
|
888 |
|
|
(295 |
) |
|
593 |
|
Available-for-sale marketable equity securities: |
|
|
|
|
|
|
|
|
|
|
|
Net change in fair value recorded in accumulated OCI |
(83 |
) |
|
33 |
|
|
(50 |
) |
|
22 |
|
|
(8 |
) |
|
14 |
|
Net realized gains reclassified into earnings |
(1 |
) |
|
— |
|
|
(1 |
) |
|
(2 |
) |
|
1 |
|
|
(1 |
) |
Net change |
(84 |
) |
|
33 |
|
|
(51 |
) |
|
20 |
|
|
(7 |
) |
|
13 |
|
Derivatives: |
|
|
|
|
|
|
|
|
|
|
|
Net change in fair value recorded in accumulated OCI |
(125 |
) |
|
45 |
|
|
(80 |
) |
|
38 |
|
|
(15 |
) |
|
23 |
|
Net realized losses reclassified into earnings |
421 |
|
|
(156 |
) |
|
265 |
|
|
440 |
|
|
(162 |
) |
|
278 |
|
Net change |
296 |
|
|
(111 |
) |
|
185 |
|
|
478 |
|
|
(177 |
) |
|
301 |
|
Employee benefit plans: |
|
|
|
|
|
|
|
|
|
|
|
Net realized losses reclassified into earnings |
146 |
|
|
(45 |
) |
|
101 |
|
|
254 |
|
|
(93 |
) |
|
161 |
|
Settlements and curtailments |
42 |
|
|
(10 |
) |
|
32 |
|
|
1,381 |
|
|
(511 |
) |
|
870 |
|
Net change |
188 |
|
|
(55 |
) |
|
133 |
|
|
1,635 |
|
|
(604 |
) |
|
1,031 |
|
Foreign currency: |
|
|
|
|
|
|
|
|
|
|
|
Net change in fair value recorded in accumulated OCI |
711 |
|
|
(801 |
) |
|
(90 |
) |
|
(14 |
) |
|
16 |
|
|
2 |
|
Net realized (gains) losses reclassified into earnings |
32 |
|
|
(33 |
) |
|
(1 |
) |
|
(3 |
) |
|
— |
|
|
(3 |
) |
Net change |
743 |
|
|
(834 |
) |
|
(91 |
) |
|
(17 |
) |
|
16 |
|
|
(1 |
) |
Total other comprehensive income (loss) |
$ |
(6,934 |
) |
|
$ |
2,022 |
|
|
$ |
(4,912 |
) |
|
$ |
3,004 |
|
|
$ |
(1,067 |
) |
|
$ |
1,937 |
|
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 six months ended June 30, 2013 and 2012.
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Reclassifications Out of Accumulated OCI |
(Dollars in millions) |
|
Six Months Ended June 30 |
Accumulated OCI Components |
Income Statement Line Item |
2013 |
|
2012 |
Available-for-sale debt securities: |
|
|
|
|
|
Gain on sale of debt securities |
$ |
525 |
|
|
$ |
1,152 |
|
|
Other-than-temporary impairment |
(13 |
) |
|
(45 |
) |
|
Income before income taxes |
512 |
|
|
1,107 |
|
|
Income tax expense |
190 |
|
|
410 |
|
|
Net income |
322 |
|
|
697 |
|
Available-for-sale marketable equity securities: |
|
|
|
|
|
Equity investment income |
1 |
|
|
2 |
|
|
Income before income taxes |
1 |
|
|
2 |
|
|
Income tax expense |
— |
|
|
1 |
|
|
Net income |
1 |
|
|
1 |
|
Derivatives: |
|
|
|
|
Interest rate contracts |
Net interest income |
(547 |
) |
|
(376 |
) |
Commodity contracts |
Trading account profits |
(1 |
) |
|
(3 |
) |
Interest rate contracts |
Other income |
18 |
|
|
— |
|
Equity compensation contracts |
Personnel |
109 |
|
|
(61 |
) |
|
Loss before income taxes |
(421 |
) |
|
(440 |
) |
|
Income tax benefit |
(156 |
) |
|
(162 |
) |
|
Net loss |
(265 |
) |
|
(278 |
) |
Employee benefit plans: |
|
|
|
|
Prior service costs |
Personnel |
(2 |
) |
|
(7 |
) |
Transition obligation |
Personnel |
— |
|
|
(16 |
) |
Net actuarial gains (losses) |
Personnel |
(144 |
) |
|
(229 |
) |
Settlements and curtailments |
Personnel |
— |
|
|
(62 |
) |
|
Loss before income taxes |
(146 |
) |
|
(314 |
) |
|
Income tax benefit |
(45 |
) |
|
(115 |
) |
|
Net loss |
(101 |
) |
|
(199 |
) |
Foreign currency: |
|
|
|
|
Insignificant items |
Other income (loss) |
(32 |
) |
|
3 |
|
|
Income (loss) before income taxes |
(32 |
) |
|
3 |
|
|
Income tax benefit |
(33 |
) |
|
— |
|
|
Net income |
1 |
|
|
3 |
|
Total reclassification adjustments |
|
$ |
(42 |
) |
|
$ |
224 |
|
|