Other Comprehensive Income

6 Months Ended

Jun. 30, 2011

8. Other Comprehensive Income

Activity in other comprehensive income (loss) for the three and six months ended June 30, 2011 and 2010 is shown in the table below. The first component of other comprehensive income is the unrealized holding gains and losses on available for sale securities. These gains and losses have been separated into two groups in the table below, as required by current accounting guidance for other-than-temporary impairment (OTTI) on debt securities. Under this guidance, credit-related losses on debt securities with OTTI are recorded in current earnings, while the noncredit-related portion of the overall gain or loss in fair value is recorded in other comprehensive income (loss). Changes in the noncredit-related gain or loss in fair value of these securities, after OTTI was initially recognized, are shown separately in the table below. The remaining unrealized holding gains and losses shown in the table apply to available for sale investment securities for which OTTI has not been recorded (and include holding gains and losses on certain securities prior to the recognition of OTTI).

In the calculation of other comprehensive income, certain reclassification adjustments are made to avoid double counting gains and losses that are included as part of net income for a period that also had been included as part of other comprehensive income in that period or earlier periods. These reclassification amounts are shown separately in the table below.

The second component of other comprehensive income is pension gains and losses that arise during the period but are not recognized as components of net periodic benefit cost, and corresponding adjustments when these gains and losses are subsequently amortized to net periodic benefit cost.


	For the						For the
	Three Months						Six Months
	Ended June 30						Ended June 30

(In thousands)	2011			2010			2011			2010

Available for sale debt securities for which a portion of OTTI has been recorded in earnings:
Unrealized holding gains (losses) subsequent to initial OTTI recognition	$	(812	)	$	5,665		$	5,663		$	11,967
Income tax (expense) benefit		309			(2,153	)		(2,152	)		(4,547	)

Net unrealized gains (losses)		(503	)		3,512			3,511			7,420

Other available for sale investment securities:
Unrealized holding gains		35,540			23,693			25,135			36,073
Reclassification adjustment for gains included in net income		(1	)		(1,362	)		(177	)		(1,770	)

Net unrealized gains on securities		35,539			22,331			24,958			34,303
Income tax expense		(13,505	)		(8,486	)		(9,484	)		(13,036	)

Net unrealized gains		22,034			13,845			15,474			21,267

Prepaid pension cost:
Amortization of accumulated pension loss		540			567			1,080			1,134
Income tax expense		(205	)		(215	)		(410	)		(431	)

Pension loss amortization		335			352			670			703

Other comprehensive income	$	21,866		$	17,709		$	19,655		$	29,390

At June 30, 2011, accumulated other comprehensive income was $83.0 million, net of tax. It was comprised of $4.0 million in unrealized holding losses on available for sale debt securities for which a portion of OTTI has been recorded in earnings, $103.3 million in unrealized holding gains on other available for sale securities, and $16.3 million in accumulated pension loss.

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

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