Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2018

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 12 – Accumulated Other Comprehensive Income (Loss) (“AOCI”)

AOCI includes the Company’s share from entities accounted for using the equity method. AOCI excludes amounts required to adjust future policy benefits for the run-off settlement annuity business and a portion of deferred acquisition costs associated with the corporate-owned life insurance business. Generally, tax effects in AOCI are established at the currently enacted tax rate and reclassified to net income in the same period that the related pre-tax AOCI reclassifications are recognized. As discussed in Note 2, the Company early adopted ASU 2018-02 effective January 1, 2018 and $229 million of stranded tax effects resulting from U.S. tax reform legislation enacted in 2017 were reclassified from AOCI to retained earnings. Changes in the components of accumulated other comprehensive income (loss) were as follows:

(In millions)		2018		2017		2016
Securities and Derivatives
Beginning balance	$	328	$	365	$	425
Reclassification adjustment to retained earnings related to U.S. tax reform legislation⁽¹⁾		65		-		-
Reclassification adjustment to retained earnings related to new financial instruments guidance⁽¹⁾		(4)		-		-
Reclassification adjustment from retained earnings related to new hedging guidance⁽¹⁾		(6)		-		-
Adjusted beginning balance		383		365		425
(Depreciation) appreciation on securities and derivatives		(512)		34		(48)
Tax benefit (expense)		100		(19)		6
Net (depreciation) appreciation on securities and derivatives		(412)		15		(42)
Reclassification adjustment for losses (gains) included in shareholders‘ net income (net realized investment losses (gains))		60		(81)		(29)
Reclassification adjustment for losses included in shareholders‘ net income (selling, general and administrative expenses)		-		1		1
Tax (expense) benefit		(13)		28		10
Net losses (gains) reclassified from AOCI to net income		47		(52)		(18)
Other comprehensive (loss), net of tax		(365)		(37)		(60)
Ending balance	$	18	$	328	$	365

Translation of foreign currencies
Beginning balance	$	(65)	$	(369)	$	(274)
Reclassification adjustment to retained earnings related to U.S. tax reform legislation⁽¹⁾		(4)		-		-
Adjusted beginning balance		(69)		(369)		(274)
Translation of foreign currencies		(152)		309		(95)
Tax (expense)		-		(5)		-
Net translation of foreign currencies		(152)		304		(95)
Ending balance	$	(221)	$	(65)	$	(369)



















(In millions)		2018		2017		2016
Postretirement benefits liability
Beginning balance	$	(1,345)	$	(1,378)	$	(1,401)
Reclassification adjustment to retained earnings related to U.S. tax reform legislation⁽¹⁾		(290)		-		-
Adjusted beginning balance		(1,635)		(1,378)		(1,401)
Reclassification adjustment for amortization of net losses from past experience and prior service costs (selling, general and administrative expenses)		69		64		64
Reclassification adjustment for settlement (selling, general and administrative expenses)		-		7		-
Tax (expense)		(15)		(24)		(22)
Net adjustments reclassified from AOCI to net income		54		47		42
Valuation update		93		(22)		(29)
Tax (expense) benefit		(20)		8		10
Net change due to valuation update		73		(14)		(19)
Other comprehensive income, net of tax		127		33		23
Ending balance	$	(1,508)	$	(1,345)	$	(1,378)

(1) See Note 2 for further information about adjustments resulting from the Company's adoption of new accounting standards in 2018.