20. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Changes in each component of Citigroup’s Accumulated other comprehensive income (loss) for the three-year period ended December 31, 2013 are as follows:
|
In millions of dollars |
|
Net |
|
Cash flow |
|
Benefit plans (2) |
|
Foreign |
|
Accumulated |
| |||||
|
Balance at December 31, 2010 |
|
$ |
(2,395 |
) |
$ |
(2,650 |
) |
$ |
(4,105 |
) |
$ |
(7,127 |
) |
$ |
(16,277 |
) |
|
Change, net of taxes |
|
2,360 |
|
(170 |
) |
(177 |
) |
(3,524 |
) |
(1,511 |
) | |||||
|
Balance at December 31, 2011 |
|
$ |
(35 |
) |
$ |
(2,820 |
) |
$ |
(4,282 |
) |
$ |
(10,651 |
) |
$ |
(17,788 |
) |
|
Change, net of taxes (4)(5) |
|
632 |
|
527 |
|
(988 |
) |
721 |
|
892 |
| |||||
|
Balance at December 31, 2012 |
|
$ |
597 |
|
$ |
(2,293 |
) |
$ |
(5,270 |
) |
$ |
(9,930 |
) |
$ |
(16,896 |
) |
|
Other comprehensive income before reclassifications |
|
$ |
(2,046 |
) |
$ |
512 |
|
$ |
1,098 |
|
$ |
(2,450 |
) |
$ |
(2,886 |
) |
|
Increase (decrease) due to amounts reclassified from AOCI |
|
(275 |
) |
536 |
|
183 |
|
205 |
|
649 |
| |||||
|
Change, net of taxes (6) |
|
(2,321 |
) |
1,048 |
|
1,281 |
|
(2,245 |
) |
(2,237 |
) | |||||
|
Balance at December 31, 2013 |
|
$ |
(1,724 |
) |
$ |
(1,245 |
) |
$ |
(3,989 |
) |
$ |
(12,175 |
) |
$ |
(19,133 |
) |
(1) Primarily driven by Citigroup’s pay fixed/receive floating interest rate swap programs that hedge the floating rates on liabilities.
(2) Primarily reflects adjustments based on the final year-end actuarial valuations of the Company’s pension and postretirement plans and amortization of amounts previously recognized in other comprehensive income.
(3) Primarily reflects the movements in (by order of impact) the Japanese yen, Mexican peso, Australian dollar, and Indian rupee against the U.S. dollar, and changes in related tax effects and hedges in 2013. Primarily reflects the movements in the Mexican peso, Japanese yen, Euro, and Brazilian real against the U.S. dollar, and changes in related tax effects and hedges in 2012. Primarily reflects the movements in the Mexican peso, Turkish lira, Brazilian real, Indian rupee and Polish zloty against the U.S. dollar, and changes in related tax effects and hedges in 2011.
(4) Includes the after-tax impact of realized gains from the sales of minority investments: $672 million from the Company’s entire interest in Housing Development Finance Corporation Ltd. (HDFC); and $421 million from the Company’s entire interest in Shanghai Pudong Development Bank (SPDB).
(5) The after-tax impact due to impairment charges and the loss related to Akbank, included within the foreign currency translation adjustment, during the six months ended June 30, 2012 was $667 million. See Note 14 to the Consolidated Financial Statements.
(6) On December 20, 2013, the sale of Credicard was completed. The total impact to the gross CTA (Net CTA including hedges) was a pretax loss of $314 million ($205 million net of tax).
The pretax and after-tax changes in each component of Accumulated other comprehensive income (loss) for the three-year period ended December 31, 2013 are as follows:
|
In millions of dollars |
|
Pretax |
|
Tax effect |
|
After-tax |
| |||
|
Balance, December 31, 2010 |
|
$ |
(24,855 |
) |
$ |
8,578 |
|
$ |
(16,277 |
) |
|
Change in net unrealized gains (losses) on investment securities |
|
3,855 |
|
(1,495 |
) |
2,360 |
| |||
|
Cash flow hedges |
|
(262 |
) |
92 |
|
(170 |
) | |||
|
Benefit plans |
|
(412 |
) |
235 |
|
(177 |
) | |||
|
Foreign currency translation adjustment |
|
(4,133 |
) |
609 |
|
(3,524 |
) | |||
|
Change |
|
$ |
(952 |
) |
$ |
(559 |
) |
$ |
(1,511 |
) |
|
Balance, December 31, 2011 |
|
$ |
(25,807 |
) |
$ |
8,019 |
|
$ |
(17,788 |
) |
|
Change in net unrealized gains (losses) on investment securities |
|
1,001 |
|
(369 |
) |
632 |
| |||
|
Cash flow hedges |
|
838 |
|
(311 |
) |
527 |
| |||
|
Benefit plans |
|
(1,378 |
) |
390 |
|
(988 |
) | |||
|
Foreign currency translation adjustment |
|
12 |
|
709 |
|
721 |
| |||
|
Change |
|
$ |
473 |
|
$ |
419 |
|
$ |
892 |
|
|
Balance, December 31, 2012 |
|
$ |
(25,334 |
) |
$ |
8,438 |
|
$ |
(16,896 |
) |
|
Change in net unrealized gains (losses) on investment securities |
|
(3,674 |
) |
1,353 |
|
(2,321 |
) | |||
|
Cash flow hedges |
|
1,673 |
|
(625 |
) |
1,048 |
| |||
|
Benefit plans |
|
1,979 |
|
(698 |
) |
1,281 |
| |||
|
Foreign currency translation adjustment |
|
(2,240 |
) |
(5 |
) |
(2,245 |
) | |||
|
Change |
|
$ |
(2,262 |
) |
$ |
25 |
|
$ |
(2,237 |
) |
|
Balance, December 31, 2013 |
|
$ |
(27,596 |
) |
$ |
8,463 |
|
$ |
(19,133 |
) |
During the year ended December 31, 2013, the Company recognized a pretax loss of $1,071 million ($649 million net of tax) related to amounts reclassified out of Accumulated other comprehensive income (loss) into the Consolidated Statement of income. See details in the table below:
|
|
|
Increase (decrease) in AOCI due to |
| |
|
In millions of dollars |
|
Year ended |
| |
|
Realized (gains) losses on sales of investments |
|
$ |
(748 |
) |
|
OTTI gross impairment losses |
|
334 |
| |
|
Subtotal |
|
$ |
(414 |
) |
|
Tax effect |
|
139 |
| |
|
Net realized (gains) losses on investment securities(1) |
|
$ |
(275 |
) |
|
Interest rate contracts |
|
$ |
700 |
|
|
Foreign exchange contracts |
|
176 |
| |
|
Subtotal |
|
$ |
876 |
|
|
Tax effect |
|
(340 |
) | |
|
Amortization of cash flow hedges(2) |
|
$ |
536 |
|
|
Amortization of unrecognized |
|
|
| |
|
Prior service cost (benefit) |
|
$ |
— |
|
|
Net actuarial loss |
|
271 |
| |
|
Curtailment/settlement impact |
|
44 |
| |
|
Cumulative effect of change in accounting policy(3)(4) |
|
(20 |
) | |
|
Subtotal |
|
$ |
295 |
|
|
Tax effect |
|
(112 |
) | |
|
Amortization of benefit plans(3) |
|
$ |
183 |
|
|
Foreign currency translation adjustment |
|
$ |
314 |
|
|
Tax effect |
|
(109 |
) | |
|
Foreign currency translation adjustment (5) |
|
$ |
205 |
|
|
Total amounts reclassified out of AOCI—pretax |
|
$ |
1,071 |
|
|
Total tax effect |
|
(422 |
) | |
|
Total amounts reclassified out of AOCI—after-tax |
|
$ |
649 |
|
(1) The pretax amount is reclassified to Realized gains (losses) on sales of investments, net and Gross impairment losses on the Consolidated Statement of Income. See Note 14 to the Consolidated Financial Statements for additional details.
(2) See Note 23 to the Consolidated Financial Statements for additional details.
(3) See Note 8 to the Consolidated Financial Statements for additional details.
(4) See Note 1 to the Consolidated Financial Statements for additional details.
(5) Amount relates to the sale of Credicard, see Note 2 to the Consolidated Financial Statements for additional details.