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Other Comprehensive Income
 6 Months Ended
Jun. 30, 2013
Other Comprehensive Income [Abstract]  
Other Comprehensive Income
Note 9 – Other Comprehensive Income

Our other comprehensive income for the three and six months ended June 30, 2013 and 2012 was as follows:

 
Three Months Ended
June 30, 2013
 
 
  
  
Valuation
  
 
 
 
Before tax
  
Tax effect
  
allowance
  
Net of tax
 
 
(In thousands)
 
 
 
  
  
  
 
Other comprehensive income (loss):
 
  
  
  
 
Change in unrealized gains and losses on investments
 
$
(99,092
)
 
$
34,520
  
$
(33,547
)
 
$
(98,119
)
Unrealized foreign currency translation adjustment
  
(19,255
)
  
6,743
   
-
   
(12,512
)
 
                
Other comprehensive income (loss)
 
$
(118,347
)
 
$
41,263
  
$
(33,547
)
 
$
(110,631
)
 
 
Six Months Ended
June 30, 2013
 
 
  
  
Valuation
  
 
 
 
Before tax
  
Tax effect
  
allowance
  
Net of tax
 
 
(In thousands)
 
 
 
  
  
  
 
Other comprehensive income (loss):
 
  
  
  
 
Change in unrealized gains and losses on investments
 
$
(109,631
)
 
$
38,112
  
$
(36,554
)
 
$
(108,073
)
Unrealized foreign currency translation adjustment
  
(18,769
)
  
6,573
   
-
   
(12,196
)
 
                
Other comprehensive income (loss)
 
$
(128,400
)
 
$
44,685
  
$
(36,554
)
 
$
(120,269
)

 
Three Months Ended
June 30, 2012
 
 
  
  
Valuation
  
 
 
 
Before tax
  
Tax effect
  
allowance
  
Net of tax
 
 
(In thousands)
 
 
 
  
  
  
 
Other comprehensive income (loss):
 
  
  
  
 
Change in unrealized gains and losses on investments
 
$
9,801
  
$
(3,166
)
 
$
1,577
  
$
8,212
 
Unrealized foreign currency translation adjustment
  
(1,116
)
  
392
   
-
   
(724
)
 
                
Other comprehensive income (loss)
 
$
8,685
  
$
(2,774
)
 
$
1,577
  
$
7,488
 

 
Six Months Ended
June 30, 2012
 
 
  
  
Valuation
  
 
 
 
Before tax
  
Tax effect
  
allowance
  
Net of tax
 
 
(In thousands)
 
 
 
  
  
  
 
Other comprehensive income (loss):
 
  
  
  
 
Change in unrealized gains and losses on investments
 
$
(37,125
)
 
$
13,090
  
$
(13,671
)
 
$
(37,706
)
Unrealized foreign currency translation adjustment
  
551
   
(192
)
  
-
   
359
 
 
                
Other comprehensive income (loss)
 
$
(36,574
)
 
$
12,898
  
$
(13,671
)
 
$
(37,347
)

See Note 11 – “Income Taxes” for a discussion of the valuation allowance.

Total accumulated other comprehensive income and changes in accumulated other comprehensive income, including amounts reclassified from other comprehensive income, are included in the table below.
 
 
Three Months Ended
June 30, 2013
 
 
Unrealized gains and
  
  
  
 
 
 
losses on available-
  
Defined benefit
  
Foreign currency
  
 
 
 
for-sale securities
  
plans
  
translation
  
Total
 
 
(In thousands)
 
 
 
  
  
  
 
Balance at March 31, 2013, before tax
 
$
31,002
  
$
(71,804
)
 
$
33,233
  
$
(7,569
)
 
                
Other comprehensive income (loss) before reclassifications
  
(96,938
)
  
-
   
(19,255
)
  
(116,193
)
Amounts reclassified from accumulated other comprehensive income (loss)
  
2,154
(1)  
-
   
-
   
2,154
 
Net current period other comprehensive income (loss)
  
(99,092
)
  
-
   
(19,255
)
  
(118,347
)
 
                
Balance at June 30, 2013, before tax
 
$
(68,090
)
 
$
(71,804
)
 
$
13,978
  
$
(125,916
)

 
 
Six Months Ended
 
 
 
June 30, 2013
 
 
 
Unrealized gains and
  
  
  
 
 
 
losses on available-
  
Defined benefit
  
Foreign currency
  
 
 
 
for-sale securities
  
plans
  
translation
  
Total
 
 
 
(In thousands)
 
 
 
  
  
  
 
Balance at December 31, 2012, before tax
 
$
41,541
  
$
(71,804
)
 
$
32,747
  
$
2,484
 
 
                
Other comprehensive income (loss) before reclassifications
  
(104,099
)
  
-
   
(18,769
)
  
(122,868
)
Amounts reclassified from accumulated other comprehensive income (loss)
  
5,532
(1)  
-
   
-
   
5,532
 
Net current period other comprehensive income (loss)
  
(109,631
)
  
-
   
(18,769
)
  
(128,400
)
 
                
Balance at June 30, 2013, before tax
  
(68,090
)
  
(71,804
)
  
13,978
   
(125,916
)
 
                
Tax effect (2)
  
(65,082
)
  
26,940
   
(4,374
)
  
(42,516
)
 
                
Balance at June 30, 2013, net of tax
 
$
(133,172
)
 
$
(44,864
)
 
$
9,604
  
$
(168,432
)

(1) During the three and six months ended June 30, 2013, net unrealized gains of $2.2 million and $5.5 million, respectively, were reclassified to the Consolidated Statement of Operations and included in Realized investment gains.
(2) Tax effect does not approximate 35% due to amounts of tax benefits not provided in various periods due to our tax valuation allowance.