Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2020 and 2019:



($ in thousands)	AFS Debt Securities		Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Total
Balance, July 1, 2019	$	5,217	$	—	$	(15,189)	$	(9,972)
Net unrealized gains (losses) arising during the period	11,904		—		(2,858)		9,046
Amounts reclassified from AOCI	(41)		—		—		(41)
Changes, net of tax	11,863		—		(2,858)		9,005
Balance, September 30, 2019	$	17,080	$	—	$	(18,047)	$	(967)

Balance, July 1, 2020	$	42,850	$	(1,333)	$	(18,383)	$	23,134
Net unrealized gains (losses) arising during the period	5,126		25		5,459		10,610
Amounts reclassified from AOCI	(492)		62		—		(430)
Changes, net of tax	4,634		87		5,459		10,180
Balance, September 30, 2020	$	47,484	$	(1,246)	$	(12,924)	$	33,314



($ 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	65,061		—		(5,694)		59,367
Amounts reclassified from AOCI	(2,160)		—		—		(2,160)
Changes, net of tax	62,901		—		(5,694)		57,207
Balance, September 30, 2019	$	17,080	$	—	$	(18,047)	$	(967)
Balance, January 1, 2020	$	(2,419)	$	—	$	(15,989)	$	(18,408)
Net unrealized gains (losses) arising during the period	58,262		(1,038)		3,065		60,289
Amounts reclassified from AOCI	(8,359)		(208)		—		(8,567)
Changes, net of tax	49,903		(1,246)		3,065		51,722
Balance, September 30, 2020	$	47,484	$	(1,246)	$	(12,924)	$	33,314

(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 nine months ended September 30, 2020 and 2019:



($ in thousands)	Three Months Ended September 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	$	7,304	$	(2,178)	$	5,126	$	16,900	$	(4,996)	$	11,904
Net realized (gains) reclassified into net income (1)	(698)		206		(492)		(58)		17		(41)
Net change	6,606		(1,972)		4,634		16,842		(4,979)		11,863
Cash flow hedges
Net unrealized gains arising during the period	34		(9)		25		—		—		—
Net realized losses reclassified into net income (2)	87		(25)		62		—		—		—
Net change	121		(34)		87		—		—		—
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period	4,419		1,040		5,459		(1,618)		(1,240)		(2,858)
Net change	4,419		1,040		5,459		(1,618)		(1,240)		(2,858)
Other comprehensive income (loss)	$	11,146	$	(966)	$	10,180	$	15,224	$	(6,219)	$	9,005



($ in thousands)	Nine Months Ended September 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	$	82,767	$	(24,505)	$	58,262	$	92,369	$	(27,308)	$	65,061
Net realized (gains) reclassified into net income (1)	(11,867)		3,508		(8,359)		(3,066)		906		(2,160)
Net change	70,900		(20,997)		49,903		89,303		(26,402)		62,901
Cash flow hedges
Net unrealized (losses) arising during the period	(1,449)		411		(1,038)		—		—		—
Net realized (gains) reclassified into net income (2)	(290)		82		(208)		—		—		—
Net change	(1,739)		493		(1,246)		—		—		—
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period	2,274		791		3,065		(1,427)		(4,267)		(5,694)
Net change	2,274		791		3,065		(1,427)		(4,267)		(5,694)
Other comprehensive income (loss)	$	71,435	$	(19,713)	$	51,722	$	87,876	$	(30,669)	$	57,207

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