Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of the changes in components of accumulated other comprehensive income (loss) balances

The following tables present the changes in the components of AOCI balances for the three and six months ended June 30, 2020 and 2019:



($ in thousands)	AFS Debt Securities		Cash Flow Hedges		Foreign Currency Translation Adjustments ⁽¹⁾		Total
Balance, April 1, 2019	$	(23,810)	$	—	$	(9,173)	$	(32,983)
Net unrealized gains (losses) arising during the period	30,046		—		(6,016)		24,030
Amounts reclassified from AOCI	(1,019)		—		—		(1,019)
Changes, net of tax	29,027		—		(6,016)		23,011
Balance, June 30, 2019	$	5,217	$	—	$	(15,189)	$	(9,972)

Balance, April 1, 2020	$	25,034	$	—	$	(18,153)	$	6,881
Net unrealized gains (losses) arising during the period	24,606		(1,063)		(230)		23,313
Amounts reclassified from AOCI	(6,790)		(270)		—		(7,060)
Changes, net of tax	17,816		(1,333)		(230)		16,253
Balance, June 30, 2020	$	42,850	$	(1,333)	$	(18,383)	$	23,134



($ in thousands)	AFS Debt Securities		Cash Flow Hedges		Foreign Currency Translation Adjustments ⁽¹⁾		Total
Balance, January 1, 2019	$	(45,821)	$	—	$	(12,353)	$	(58,174)
Net unrealized gains (losses) arising during the period	53,157		—		(2,836)		50,321
Amounts reclassified from AOCI	(2,119)		—		—		(2,119)
Changes, net of tax	51,038		—		(2,836)		48,202
Balance, June 30, 2019	$	5,217	$	—	$	(15,189)	$	(9,972)
Balance, January 1, 2020	$	(2,419)	$	—	$	(15,989)	$	(18,408)
Net unrealized gains (losses) arising during the period	53,136		(1,063)		(2,394)		49,679
Amounts reclassified from AOCI	(7,867)		(270)		—		(8,137)
Changes, net of tax	45,269		(1,333)		(2,394)		41,542
Balance, June 30, 2020	$	42,850	$	(1,333)	$	(18,383)	$	23,134

(1)Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively.

Schedule of components of other comprehensive income (loss), reclassifications to net income and the related tax effects

The following tables present the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and six months ended June 30, 2020 and 2019:



($ in thousands)	Three Months Ended June 30,
			2020															2019
			Before-Tax			Tax Effect			Net-of-Tax			Before-Tax			Tax Effect			Net-of-Tax
AFS debt securities:
Net unrealized gains arising during the period	$	34,970		$	(10,364)		$	24,606		$	44,531		$	(14,485)		$	30,046
Net realized (gains) reclassified into net income ⁽¹⁾	(9,640)			2,850			(6,790)			(1,447)			428			(1,019)
Net change	25,330			(7,514)			17,816			43,084			(14,057)			29,027
Cash flow hedges
Net unrealized (losses) arising during the period	(1,483)			420			(1,063)			—			—			—
Net realized (gains) reclassified into net income ⁽²⁾	(377)			107			(270)			—			—			—
Net change	(1,860)			527			(1,333)			—			—			—
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) arising during the period	(379)			149			(230)			(2,989)			(3,027)			(6,016)
Net change	(379)			149			(230)			(2,989)			(3,027)			(6,016)
Other comprehensive income (loss)	$	23,091		$	(6,838)		$	16,253		$	40,095		$	(17,084)		$	23,011



($ in thousands)	Six Months Ended June 30,
			2020															2019
			Before-Tax			Tax Effect			Net-of-Tax			Before-Tax			Tax Effect			Net-of-Tax
AFS debt securities:
Net unrealized gains arising during the period	$	75,463		$	(22,327)		$	53,136		$	75,469		$	(22,312)		$	53,157
Net realized (gains) reclassified into net income⁽¹⁾	(11,169)			3,302			(7,867)			(3,008)			889			(2,119)
Net change	64,294			(19,025)			45,269			72,461			(21,423)			51,038
Cash flow hedges
Net unrealized (losses) arising during the period	(1,483)			420			(1,063)			—			—			—
Net realized (gains) reclassified into net income ⁽²⁾	(377)			107			(270)			—			—			—
Net change	(1,860)			527			(1,333)			—			—			—
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) arising during the period	(2,145)			(249)			(2,394)			191			(3,027)			(2,836)
Net change	(2,145)			(249)			(2,394)			191			(3,027)			(2,836)
Other comprehensive income (loss)	$	60,289		$	(18,747)		$	41,542		$	72,652		$	(24,450)		$	48,202

(1)For the three and six months ended June 30, 2020 and 2019, pre-tax amounts were reported in Gains on sales of AFS debt securities on the Consolidated Statement of Income.

(2)For the three and six months ended June 30, 2020 and 2019, pre-tax amounts were reported in Interest expense on the Consolidated Statement of Income.