Note 3—Supplemental Information About Changes to Accumulated Other Comprehensive Income
Effective during 2013, Torchmark adopted prospectively Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This statement requires an analysis of the changes in the components of accumulated other comprehensive income as well as supplemental information about the amounts reclassified out of other comprehensive income.
An analysis in the change in balance by component of Accumulated Other Comprehensive Income is as follows for the twelve months ended December 31, 2013.
Components of Accumulated Other Comprehensive Income
| For the twelve months ended December 31, 2013 | ||||||||||||||||||||
| Available for Sale Assets |
Deferred Acquisition Costs |
Foreign Exchange |
Pension Adjustments |
Total | ||||||||||||||||
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Balance at January 1, 2013 |
$ | 1,024,367 | $ | (16,417 | ) | $ | 26,608 | $ | (109,283 | ) | $ | 925,275 | ||||||||
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Other comprehensive income (loss) before reclassifications, net of tax |
(758,857 | ) | 9,689 | (1,742 | ) | 33,992 | (716,918 | ) | ||||||||||||
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Reclassifications, net of tax |
(9,314 | ) | 0 | 0 | 11,938 | 2,624 | ||||||||||||||
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Other comprehensive income (loss) |
(768,171 | ) | 9,689 | (1,742 | ) | 45,930 | (714,294 | ) | ||||||||||||
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Balance at December 31, 2013 |
$ | 256,196 | $ | (6,728 | ) | $ | 24,866 | $ | (63,353 | ) | $ | 210,981 | ||||||||
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Reclassifications out of Accumulated Other Comprehensive Income are presented below for the twelve months ended December 31, 2013.
Reclassification Adjustments
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Component Line Item |
Twelve months ended December 31, 2013 |
Affected line items in the Statement of Operations |
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Unrealized gains (losses) on available for sale assets: |
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Realized (gains) losses |
$ | (9,606 | ) | Realized investment gains (losses) | ||
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Amortization of (discount) premium |
(6,569 | ) | Net investment income | |||
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Total before tax |
(16,175 | ) | ||||
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Tax |
6,861 | Income Taxes | ||||
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Total after tax |
(9,314 | ) | ||||
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Pension adjustments: |
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Amortization of prior service cost |
2,276 | Other operating expenses | ||||
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Amortization of actuarial (gain) loss |
16,090 | Other operating expenses | ||||
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Total before tax |
18,366 | |||||
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Tax |
(6,428 | ) | Income Taxes | |||
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Total after tax |
11,938 | |||||
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Total reclassifications (after tax) |
$ | 2,624 | ||||
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