Changes in each component of accumulated other comprehensive income (loss) were as follows (dollars in millions): | |||||||||||||||||||
Unrealized Gain (Loss) on Available-for-Sale Investment Securities, Net of Tax | Gain (Loss) on Cash Flow Hedges, Net of Tax | Foreign Currency Translation Adjustments, Net of Tax(4) | Pension and Post Retirement Plan Gain (Loss), Net of Tax | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Balance at November 30, 2010 | $ | 8 | $ | 2 | $ | — | $ | (93 | ) | $ | (83 | ) | |||||||
Net unrealized gains on investment securities, net of tax expense of $28(1) | 47 | — | — | — | 47 | ||||||||||||||
Unrealized gains on cash flow hedges, net of tax expense of $3(2) | — | 5 | — | — | 5 | ||||||||||||||
Unrealized pension and postretirement plan loss, net of tax benefit of $12(3) | — | — | — | (21 | ) | (21 | ) | ||||||||||||
Balance at November 30, 2011 | 55 | 7 | — | (114 | ) | (52 | ) | ||||||||||||
Net unrealized gains on investment securities, net of tax expense of $11(1) | 19 | — | — | — | 19 | ||||||||||||||
Unrealized losses on cash flow hedges, net of tax benefit of $2(2) | — | (4 | ) | — | — | (4 | ) | ||||||||||||
Unrealized pension and postretirement plan loss, net of tax benefit of $25(3) | — | — | — | (38 | ) | (38 | ) | ||||||||||||
Balance at November 30, 2012 | 74 | 3 | — | (152 | ) | (75 | ) | ||||||||||||
Net unrealized losses on investment securities, net of tax benefit of $2(1) | (3 | ) | — | — | — | (3 | ) | ||||||||||||
Unrealized pension and postretirement plan gain, net of tax expense of $4(3) | — | — | — | 6 | 6 | ||||||||||||||
Balance at December 31, 2012 | 71 | 3 | — | (146 | ) | (72 | ) | ||||||||||||
Net change(5) | (52 | ) | 10 | 1 | 45 | 4 | |||||||||||||
Balance at December 31, 2013 | $ | 19 | $ | 13 | $ | 1 | $ | (101 | ) | $ | (68 | ) | |||||||
(1) | Represents the difference between the fair value and amortized cost of available-for-sale investment securities. |
(2) | Represents unrealized gains (losses) related to effective portion of cash flow hedges. |
(3) | Reflects adjustments to the funded status of pension and postretirement plans, which is the difference between the fair value of the plan assets and the projected benefit obligation. |
(4) | Includes unrealized losses on hedge of net investment in foreign subsidiary, net of tax benefit and net gains on foreign currency translation adjustments. |
(5) | In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in the consolidated statements of income if the amount being reclassified is required to be reclassified in its entirety to net income. For amounts that are not required to be reclassified to net income in their entirety in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. As the result, the Company has adjusted its AOCI presentation prospectively, as required, and therefore additional table was included to present the required information for the current period and the presentation has changed from historical periods. |
The table below presents the other comprehensive income (loss) before reclassifications and amounts reclassified from AOCI for each component of OCI before- and after-tax (dollars in millions): | |||||||||||
For the Calendar Year Ended December 31, 2013 | |||||||||||
Before Tax | Tax (Expense) Benefit | Net of Tax | |||||||||
Available-for-Sale Investment Securities: | |||||||||||
Net unrealized holding losses arising during the period | $ | (80 | ) | $ | 30 | $ | (50 | ) | |||
Amounts reclassified from accumulated other comprehensive income | (2 | ) | — | (2 | ) | ||||||
Net change | $ | (82 | ) | $ | 30 | $ | (52 | ) | |||
Cash Flow Hedges: | |||||||||||
Net unrealized gains arising during the period | $ | 8 | $ | (3 | ) | $ | 5 | ||||
Amounts reclassified from accumulated other comprehensive income | 8 | (3 | ) | 5 | |||||||
Net change | $ | 16 | $ | (6 | ) | $ | 10 | ||||
Foreign Currency Translation Adjustments: | |||||||||||
Net unrealized gains arising during the period | $ | 1 | $ | — | $ | 1 | |||||
Net change | $ | 1 | $ | — | $ | 1 | |||||
Pension and Postretirement Plan: | |||||||||||
Unrealized gains arising during the period | $ | 72 | $ | (27 | ) | $ | 45 | ||||
Net change | $ | 72 | $ | (27 | ) | $ | 45 | ||||