Year ended December 31, | Unrealized gains/(losses) on AFS securities(a) | Translation adjustments, net of hedges | Cash flow hedges | Defined benefit pension and OPEB plans | Accumulated other comprehensive income/(loss) | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 2,498 | $ | 253 | $ | 206 | $ | (1,956 | ) | $ | 1,001 | ||||||||||||||||||
Net change | 1,067 | (b) | (279 | ) | (155 | ) | (690 | ) | (57 | ) | |||||||||||||||||||
Balance at December 31, 2011 | $ | 3,565 | (c) | $ | (26 | ) | $ | 51 | $ | (2,646 | ) | $ | 944 | ||||||||||||||||
Net change | 3,303 | (d) | (69 | ) | 69 | (145 | ) | 3,158 | |||||||||||||||||||||
Balance at December 31, 2012 | $ | 6,868 | (c) | $ | (95 | ) | $ | 120 | $ | (2,791 | ) | $ | 4,102 | ||||||||||||||||
Net change | (4,070 | ) | (e) | (41 | ) | (259 | ) | 1,467 | (2,903 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | 2,798 | (c) | $ | (136 | ) | $ | (139 | ) | $ | (1,324 | ) | $ | 1,199 |
(a) | Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS. |
(b) | The net change for 2011 was due primarily to increased market value on U.S. government agency issued MBS and obligations of U.S. states and municipalities, partially offset by the widening of spreads on non-U.S. corporate debt and the realization of gains due to portfolio repositioning. |
(c) | Included after-tax unrealized losses not related to credit on debt securities for which credit losses have been recognized in income of $(56) million at December 31, 2011. There were no such losses at December 31, 2012 and 2013. |
(d) | The net change for 2012 was predominantly driven by increased market value on non-U.S. residential MBS, corporate debt securities and obligations of U.S. states and municipalities, partially offset by realized gains. |
(e) | The net change for 2013 was primarily related to the decline in fair value of U.S. government agency issued MBS and obligations of U.S. states and municipalities due to market changes, as well as net realized gains. |
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
Year ended December 31, (in millions) | Pretax | Tax effect | After-tax | Pretax | Tax effect | After-tax | Pretax | Tax effect | After-tax | ||||||||||||||||||||||||||
Unrealized gains/(losses) on AFS securities: | |||||||||||||||||||||||||||||||||||
Net unrealized gains/(losses) arising during the period | $ | (5,987 | ) | $ | 2,323 | $ | (3,664 | ) | $ | 7,521 | $ | (2,930 | ) | $ | 4,591 | $ | 3,361 | $ | (1,322 | ) | $ | 2,039 | |||||||||||||
Reclassification adjustment for realized (gains)/losses included in net income(a) | (667 | ) | 261 | (406 | ) | (2,110 | ) | 822 | (1,288 | ) | (1,593 | ) | 621 | (972 | ) | ||||||||||||||||||||
Net change | (6,654 | ) | 2,584 | (4,070 | ) | 5,411 | (2,108 | ) | 3,303 | 1,768 | (701 | ) | 1,067 | ||||||||||||||||||||||
Translation adjustments: | |||||||||||||||||||||||||||||||||||
Translation(b) | (807 | ) | 295 | (512 | ) | (26 | ) | 8 | (18 | ) | (672 | ) | 255 | (417 | ) | ||||||||||||||||||||
Hedges(b) | 773 | (302 | ) | 471 | (82 | ) | 31 | (51 | ) | 226 | (88 | ) | 138 | ||||||||||||||||||||||
Net change | (34 | ) | (7 | ) | (41 | ) | (108 | ) | 39 | (69 | ) | (446 | ) | 167 | (279 | ) | |||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||
Net unrealized gains/(losses) arising during the period | (525 | ) | 206 | (319 | ) | 141 | (55 | ) | 86 | 50 | (19 | ) | 31 | ||||||||||||||||||||||
Reclassification adjustment for realized (gains)/losses included in net income(c) | 101 | (41 | ) | 60 | (28 | ) | 11 | (17 | ) | (301 | ) | 115 | (186 | ) | |||||||||||||||||||||
Net change | (424 | ) | 165 | (259 | ) | 113 | (44 | ) | 69 | (251 | ) | 96 | (155 | ) | |||||||||||||||||||||
Defined benefit pension and OPEB plans: | |||||||||||||||||||||||||||||||||||
Prior service credits arising during the period | — | — | — | 6 | (2 | ) | 4 | — | — | — | |||||||||||||||||||||||||
Net gains/(losses) arising during the period | 2,055 | (750 | ) | 1,305 | (537 | ) | 228 | (309 | ) | (1,290 | ) | 502 | (788 | ) | |||||||||||||||||||||
Reclassification adjustments included in net income(d): | — | ||||||||||||||||||||||||||||||||||
Amortization of net loss | 321 | (124 | ) | 197 | 324 | (126 | ) | 198 | 214 | (83 | ) | 131 | |||||||||||||||||||||||
Prior service costs/(credits) | (43 | ) | 17 | (26 | ) | (41 | ) | 16 | (25 | ) | (52 | ) | 20 | (32 | ) | ||||||||||||||||||||
Foreign exchange and other | (14 | ) | 5 | (9 | ) | (21 | ) | 8 | (13 | ) | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Net change | 2,319 | (852 | ) | 1,467 | (269 | ) | 124 | (145 | ) | (1,129 | ) | 439 | (690 | ) | |||||||||||||||||||||
Total other comprehensive income/(loss) | $ | (4,793 | ) | $ | 1,890 | $ | (2,903 | ) | $ | 5,147 | $ | (1,989 | ) | $ | 3,158 | $ | (58 | ) | $ | 1 | $ | (57 | ) |
(a) | The pretax amount is reported in securities gains in the Consolidated Statements of Income. |
(b) | Reclassifications of pretax realized gains/(losses) on translation adjustments and related hedges are reported in other income in the Consolidated Statements of Income. The amounts were not material for the year ended December 31, 2013. |
(c) | The pretax amount is reported in the same line as the hedged items, which are predominantly recorded in net interest income in the Consolidated Statements of Income. |
(d) | The pretax amount is reported in compensation expense in the Consolidated Statements of Income. |