Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2018

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 13 — 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, effective January 1, 2018, the Company early adopted ASU 2018-02 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 AOCI, including the reclassification of the stranded tax effects, were as follows:

	Three Months Ended
	March 31,
(in millions)	2018		2017
Securities
Beginning balance	$	328	$	362
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)		-
Adjusted beginning balance		389		362
(Depreciation) appreciation on securities		(379)		53
Tax benefit (expense)		76		(24)
Net (depreciation) appreciation on securities		(303)		29
Reclassification adjustment for losses (gains) included in shareholders' net income (net realized investment gains)		30		(35)
Tax (expense) benefit		(6)		13
Net losses (gains) reclassified from AOCI to net income		24		(22)
Other comprehensive (loss) income, net of tax		(279)		7
Ending balance	$	110	$	369

Derivatives
Beginning balance	$	-	$	3
Reclassification adjustment from retained earnings related to new hedging guidance⁽¹⁾		(6)		-
Adjusted beginning balance		(6)		3
(Depreciation) on derivatives		(6)		-
Tax benefit		1		-
Net (depreciation) on derivatives		(5)		-
Reclassification adjustment for (gains) included in shareholders' net income (net realized investment gains)		-		(4)
Tax benefit		-		1
Net (gains) reclassified from AOCI to net income		-		(3)
Other comprehensive (loss), net of tax		(5)		(3)
Ending balance	$	(11)	$	-

Translation of foreign currencies
Beginning balance	$	(65)	$	(369)
Reclassification adjustment to retained earnings related to U.S. tax reform legislation⁽¹⁾		(4)		-
Adjusted beginning balance		(69)		(369)
Translation of foreign currencies		46		111
Tax (expense) benefit		(1)		1
Net translation of foreign currencies		45		112
Ending balance	$	(24)	$	(257)

Postretirement benefits liability
Beginning balance	$	(1,345)	$	(1,378)
Reclassification adjustment to retained earnings related to U.S. tax reform legislation⁽¹⁾		(290)		-
Adjusted beginning balance		(1,635)		(1,378)
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)		17		15
Reclassification adjustment for settlement (other operating expenses)		-		6
Tax (expense)		(4)		(7)
Other comprehensive income, net of tax		13		14
Ending balance	$	(1,622)	$	(1,364)

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