Comprehensive income

6 Months Ended

Jun. 30, 2011

9. Comprehensive income

The following table displays the components of other comprehensive income (loss):


	Six months ended June 30, 2011
	Before-tax			Income
	amount			taxes			Net
				(in thousands)
Unrealized gains (losses) on investment securities:

Available-for-sale (“AFS”) investment securities with other-than-temporary impairment (“OTTI”):

Unrealized holding losses, net	$	(11,227	)		4,501			(6,726	)
Less: reclassification adjustment for gains realized in net income		3,814			(1,497	)		2,317
Less: OTTI charges recognized in net income		(32,071	)		12,587			(19,484	)

Net change for AFS investment securities with OTTI		17,030			(6,589	)		10,441


AFS investment securities — all other:

Unrealized holding gains, net		77,869			(30,368	)		47,501
Less: reclassification adjustment for gains realized in net income		146,115			(57,257	)		88,858

Net change for AFS investment securities — all other		(68,246	)		26,889			(41,357	)


Held-to-maturity (“HTM”) investment securities with OTTI:

Unrealized holding losses, net		(8,500	)		3,336			(5,164	)
Less: reclassification to income of unrealized holding losses		(12	)		5			(7	)
Less: OTTI charges recognized in net income		(10,500	)		4,121			(6,379	)

Net change for HTM investment securities with OTTI		2,012			(790	)		1,222


Reclassification to income of unrealized holding losses on investment securities previously transferred from AFS to HTM		2,967			(1,165	)		1,802


Net unrealized losses on investment securities		(46,237	)		18,345			(27,892	)

Reclassification to income for amortization of gains on terminated cash flow hedges		(224	)		83			(141	)

Foreign currency translation adjustment		313			(117	)		196

Defined benefit plans liability adjustment		7,058			(2,770	)		4,288

	$	(39,090	)		15,541			(23,549	)


	Six months ended June 30, 2010
	Before-tax			Income
	amount			taxes			Net
				(in thousands)
Unrealized gains (losses) on investment securities:

AFS investment securities with OTTI:

Unrealized holding losses, net	$	(50,566	)		19,603			(30,963	)
Less: OTTI charges recognized in net income		(49,182	)		19,017			(30,165	)

Net change for AFS investment securities with OTTI		(1,384	)		586			(798	)


AFS investment securities — all other:

Unrealized holding gains, net		221,196			(86,386	)		134,810
Less: reclassification adjustment for losses recognized in net income		(135	)		39			(96	)

Net change for AFS investment securities — all other		221,331			(86,425	)		134,906


Reclassification to income of unrealized holding losses on investment securities previously transferred from AFS to HTM		4,374			(1,716	)		2,658


Net unrealized gains on investment securities		224,321			(87,555	)		136,766

Reclassification to income for amortization of gains on terminated cash flow hedges		(224	)		83			(141	)

Defined benefit plans liability adjustment		3,580			(1,405	)		2,175

	$	227,677			(88,877	)		138,800


										Foreign
							Cash			currency		Defined
	Investment securities						flow			translation		benefit
	With OTTI			All other			hedges			adjustment		plans			Total
							(in thousands)
Balance — January 1, 2011	$	(87,053	)		2,332			393			—		(120,892	)		(205,220	)

Net gain (loss) during period		11,663			(39,555	)		(141	)		196		4,288			(23,549	)


Balance — June 30, 2011	$	(75,390	)		(37,223	)		252			196		(116,604	)		(228,769	)


Balance — January 1, 2010	$	(76,772	)		(142,853	)		674			—		(117,046	)		(335,997	)

Net gain (loss) during period		(798	)		137,564			(141	)		—		2,175			138,800


Balance — June 30, 2010	$	(77,570	)		(5,289	)		533			—		(114,871	)		(197,197	)

- 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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