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Other Comprehensive Income (Loss)
9 Months Ended
Sep. 30, 2017
Equity [Abstract]  
Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss) The components of other comprehensive income (loss), including reclassification adjustments by income statement line item, were as follows:
 
 
 
 
 
 
 
Components of Changes in
Accumulated Other
Comprehensive Income (after tax)
(millions)
Pretax total
accumulated
other
comprehensive
income

 
Total tax
(provision)
benefit

 
After tax total
accumulated
other
comprehensive
income

 
Total net
unrealized
gains
 (losses)
on securities

 
Net
unrealized
gains on
forecasted
transactions

 
Foreign
currency
translation
adjustment

 
(Income)loss attributable to NCI

Balance at June 30, 2017
$
1,774.1

 
$
(623.4
)
 
$
1,150.7

 
$
1,164.6

 
$
(15.1
)
 
$
(0.9
)
 
$
2.1

Other comprehensive income (loss) before reclassifications:
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities
122.7

 
(43.0
)
 
79.7

 
79.7

 
0

 
0

 
0

Net non-credit related OTTI losses, adjusted for valuation changes
0

 
0

 
0

 
0

 
0

 
0

 
0

Forecasted transactions
0

 
0

 
0

 
0

 
0

 
0

 
0

Foreign currency translation adjustment
0.9

 
(0.3
)
 
0.6

 
0

 
0

 
0.6

 
0

Loss attributable to noncontrolling interest (NCI)
(1.1
)
 
0.4

 
(0.7
)
 
0

 
0

 
0

 
(0.7
)
Total other comprehensive income (loss) before reclassifications
122.5

 
(42.9
)
 
79.6

 
79.7

 
0

 
0.6

 
(0.7
)
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net impairment losses recognized in earnings
(9.3
)
 
3.3

 
(6.0
)
 
(6.0
)
 
0

 
0

 
0

Net realized gains (losses) on securities
15.7

 
(5.5
)
 
10.2

 
10.2

 
0

 
0

 
0

Interest expense
(0.2
)
 
0.1

 
(0.1
)
 
0

 
(0.1
)
 
0

 
0

Total reclassification adjustment for amounts realized in net income
6.2

 
(2.1
)
 
4.1

 
4.2

 
(0.1
)
 
0

 
0

Total other comprehensive income (loss)
116.3

 
(40.8
)
 
75.5

 
75.5

 
0.1

 
0.6

 
(0.7
)
Balance at September 30, 2017
$
1,890.4

 
$
(664.2
)
 
$
1,226.2

 
$
1,240.1

 
$
(15.0
)
 
$
(0.3
)
 
$
1.4

 
 
 
 
 
 
 
 
Components of Changes in
Accumulated Other
Comprehensive Income (after tax)
(millions)
Pretax total
accumulated
other
comprehensive
income

 
Total tax
(provision)
benefit

 
After tax total
accumulated
other
comprehensive
income

 
Total net
unrealized
gains
 (losses)
on securities

 
Net
unrealized
gains on
forecasted
transactions

 
Foreign
currency
translation
adjustment

 
(Income)loss attributable to NCI

Balance at December 31, 2016
$
1,439.5

 
$
(506.1
)
 
$
933.4

 
$
939.6

 
$
(9.4
)
 
$
(1.1
)
 
$
4.3

Other comprehensive income (loss) before reclassifications:
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities
554.4

 
(194.3
)
 
360.1

 
360.1

 
0

 
0

 
0

Net non-credit related OTTI losses, adjusted for valuation changes
0

 
0

 
0

 
0

 
0

 
0

 
0

Forecasted transactions
(8.0
)
 
2.8

 
(5.2
)
 
0

 
(5.2
)
 
0

 
0

Foreign currency translation adjustment
1.2

 
(0.4
)
 
0.8

 
0

 
0

 
0.8

 
0

Loss attributable to noncontrolling interest (NCI)
(4.5
)
 
1.6

 
(2.9
)
 
0

 
0

 
0

 
(2.9
)
Total other comprehensive income (loss) before reclassifications
543.1

 
(190.3
)
 
352.8

 
360.1

 
(5.2
)
 
0.8

 
(2.9
)
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net impairment losses recognized in earnings
(12.9
)
 
4.6

 
(8.3
)
 
(8.3
)
 
0

 
0

 
0

Net realized gains (losses) on securities
104.5

 
(36.6
)
 
67.9

 
67.9

 
0

 
0

 
0

Interest expense
0.6

 
(0.2
)
 
0.4

 
0

 
0.4

 
0

 
0

Total reclassification adjustment for amounts realized in net income
92.2

 
(32.2
)
 
60.0

 
59.6

 
0.4

 
0

 
0

Total other comprehensive income (loss)
450.9

 
(158.1
)
 
292.8

 
300.5

 
(5.6
)
 
0.8

 
(2.9
)
Balance at September 30, 2017
$
1,890.4

 
$
(664.2
)
 
$
1,226.2

 
$
1,240.1

 
$
(15.0
)
 
$
(0.3
)
 
$
1.4



 
 
 
 
 
 
 
Components of Changes in
Accumulated Other
Comprehensive Income (after tax)
(millions)
Pretax total
accumulated
other
comprehensive
income

 
Total tax
(provision)
benefit

 
After tax total
accumulated
other
comprehensive
income

 
Total net
unrealized
gains
 (losses)
on securities

 
Net
unrealized
gains on
forecasted
transactions

 
Foreign
currency
translation
adjustment

 
(Income)loss attributable to NCI

Balance at June 30, 2016
$
1,477.0

 
$
(519.2
)
 
$
957.8

 
$
970.1

 
$
(8.8
)
 
$
(1.1
)
 
$
(2.4
)
Other comprehensive income (loss) before reclassifications:
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities
146.8

 
(51.4
)
 
95.4

 
95.4

 
0

 
0

 
0

Net non-credit related OTTI losses, adjusted for valuation changes
0

 
0

 
0

 
0

 
0

 
0

 
0

Forecasted transactions
0

 
0

 
0

 
0

 
0

 
0

 
0

Foreign currency translation adjustment
0.4

 
(0.1
)
 
0.3

 
0

 
0

 
0.3

 
0

Loss attributable to noncontrolling interest (NCI)
1.8

 
(0.6
)
 
1.2

 
0

 
0

 
0

 
1.2

Total other comprehensive income (loss) before reclassifications
149.0

 
(52.1
)
 
96.9

 
95.4

 
0

 
0.3

 
1.2

Less: Reclassification adjustment for amounts realized in net income by income statement line item:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net impairment losses recognized in earnings
(26.8
)
 
9.4

 
(17.4
)
 
(17.4
)
 
0

 
0

 
0

Net realized gains (losses) on securities
39.6

 
(13.9
)
 
25.7

 
25.7

 
0

 
0

 
0

Interest expense
0.5

 
(0.2
)
 
0.3

 
0

 
0.3

 
0

 
0

Total reclassification adjustment for amounts realized in net income
13.3

 
(4.7
)
 
8.6

 
8.3

 
0.3

 
0

 
0

Total other comprehensive income (loss)
135.7

 
(47.4
)
 
88.3

 
87.1

 
(0.3
)
 
0.3

 
1.2

Balance at September 30, 2016
$
1,612.7

 
$
(566.6
)
 
$
1,046.1

 
$
1,057.2

 
$
(9.1
)
 
$
(0.8
)
 
$
(1.2
)
 
 
 
 
 
 
 
Components of Changes in
Accumulated Other
Comprehensive Income (after tax)
(millions)
Pretax total
accumulated
other
comprehensive
income

 
Total tax
(provision)
benefit

 
After tax total
accumulated
other
comprehensive
income

 
Total net
unrealized
gains
 (losses)
on securities

 
Net
unrealized
gains on
forecasted
transactions

 
Foreign
currency
translation
adjustment

 
(Income)loss attributable to NCI

Balance at December 31, 2015
$
1,234.5

 
$
(434.1
)
 
$
800.4

 
$
809.0

 
$
(8.2
)
 
$
(1.5
)
 
$
1.1

Other comprehensive income (loss) before reclassifications:
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities
470.4

 
(165.2
)
 
305.2

 
305.2

 
0

 
0

 
0

Net non-credit related OTTI losses, adjusted for valuation changes
(0.1
)
 
0.1

 
0

 
0

 
0

 
0

 
0

Forecasted transactions
0

 
0

 
0

 
0

 
0

 
0

 
0

Foreign currency translation adjustment
1.0

 
(0.3
)
 
0.7

 
0

 
0

 
0.7

 
0

Loss attributable to noncontrolling interest (NCI)
(3.7
)
 
1.4

 
(2.3
)
 
0

 
0

 
0

 
(2.3
)
Total other comprehensive income (loss) before reclassifications
467.6

 
(164.0
)
 
303.6

 
305.2

 
0

 
0.7

 
(2.3
)
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net impairment losses recognized in earnings
(27.0
)
 
9.5

 
(17.5
)
 
(17.5
)
 
0

 
0

 
0

Net realized gains (losses) on securities
114.9

 
(40.4
)
 
74.5

 
74.5

 
0

 
0

 
0

Interest expense
1.5

 
(0.6
)
 
0.9

 
0

 
0.9

 
0

 
0

Total reclassification adjustment for amounts realized in net income
89.4

 
(31.5
)
 
57.9

 
57.0

 
0.9

 
0

 
0

Total other comprehensive income (loss)
378.2

 
(132.5
)
 
245.7

 
248.2

 
(0.9
)
 
0.7

 
(2.3
)
Balance at September 30, 2016
$
1,612.7

 
$
(566.6
)
 
$
1,046.1

 
$
1,057.2

 
$
(9.1
)
 
$
(0.8
)
 
$
(1.2
)

In an effort to manage interest rate risk, we entered into forecasted transactions on each of Progressive’s outstanding debt issuances. Upon issuing the debt, the gains (losses) recognized on the effective cash flow hedges are recorded as unrealized gains (losses) in accumulated other comprehensive income and amortized into interest expense over the term of the related debt issuance. We expect to reclassify $1.0 million (pretax) into interest expense during the next 12 months, related to net unrealized losses on forecasted transactions.
For the three and nine months ended September 30, 2016, the net impairment losses recognized in earnings were revised to reflect a decrease in a reclassification adjustment rather than an increase as previously disclosed. The offset was to other comprehensive income before reclassifications-investment securities.The impacts to classification within the table are immaterial. Overall, this revision had no impact on the total other comprehensive income (loss) reported for these periods.