Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the components of AOCI balances for the years ended December 31, 2021, 2020 and 2019:



($ in thousands)	AFS Debt Securities		Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Total
Balance, December 31, 2018	$	(45,821)	$	—	$	(12,353)	$	(58,174)



Net unrealized gains (losses) arising during the period	46,170		—		(3,636)		42,534
Amounts reclassified from AOCI	(2,768)		—		—		(2,768)
Changes, net of tax	43,402		—		(3,636)		39,766
Balance, December 31, 2019	$	(2,419)	$	—	$	(15,989)	$	(18,408)



Net unrealized gains (losses) arising during the period	63,329		(1,149)		9,297		71,477
Amounts reclassified from AOCI	(8,663)		(81)		—		(8,744)
Changes, net of tax	54,666		(1,230)		9,297		62,733
Balance, December 31, 2020	$	52,247	$	(1,230)	$	(6,692)	$	44,325
Net unrealized (losses) gains arising during the period	(136,846)		866		1,757		(134,223)
Amounts reclassified from AOCI	(1,104)		621		—		(483)
Changes, net of tax	(137,950)		1,487		1,757		(134,706)
Balance, December 31, 2021	$	(85,703)	$	257	$	(4,935)	$	(90,381)

(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.

The following table presents the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the years ended December 31, 2021, 2020 and 2019:



($ in thousands)	Year Ended December 31,
	2021						2020						2019
	Before - Tax		Tax Effect		Net-of- Tax		Before - Tax		Tax Effect		Net-of- Tax		Before - Tax		Tax Effect		Net-of- Tax
AFS debt securities:
Net unrealized (losses) gains arising during the period	$	(194,393)	$	57,547	$	(136,846)	$	89,868	$	(26,539)	$	63,329	$	65,549	$	(19,379)	$	46,170
Net realized (gains) reclassified into net income (1)	(1,568)		464		(1,104)		(12,299)		3,636		(8,663)		(3,930)		1,162		(2,768)
Net change	(195,961)		58,011		(137,950)		77,569		(22,903)		54,666		61,619		(18,217)		43,402
Cash flow hedges
Net unrealized gains (losses) arising during the period	1,210		(344)		866		(1,604)		455		(1,149)		—		—		—
Net realized losses (gains) reclassified into net income (2)	868		(247)		621		(113)		32		(81)		—		—		—
Net change	2,078		(591)		1,487		(1,717)		487		(1,230)		—		—		—
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period (3)	463		1,294		1,757		7,398		1,899		9,297		290		(3,926)		(3,636)
Net change	463		1,294		1,757		7,398		1,899		9,297		290		(3,926)		(3,636)
Other comprehensive (loss) income	$	(193,420)	$	58,714	$	(134,706)	$	83,250	$	(20,517)	$	62,733	$	61,909	$	(22,143)	$	39,766

(1)Pre-tax amounts were reported in Net gains on sales of AFS debt securities on the Consolidated Statement of Income for the years ended December 31, 2021, 2020 and 2019.

(2)Pre-tax amounts were reported in Interest expense on the Consolidated Statement of Income for the years ended December 31, 2021 and 2020.

(3)The tax effects on foreign currency translation adjustments, net of hedges represent the cumulative net deferred tax liabilities on net investment hedges since its inception.