Note 17 — Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive loss 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. As required by
GAAP, the Company parenthetically identifies the income statement line item affected by reclassification adjustments in the table
below. Changes in the components of accumulated other comprehensive loss were as follows:
| Tax | ||||||
| (Expense) | After- | |||||
| (In millions) | Pre-Tax | Benefit | Tax | |||
| 2013 | ||||||
| Net unrealized depreciation securities: | ||||||
| Net unrealized depreciation on securities arising during the year | $ | (498) | $ | 166 | $ | (332) |
| Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains) | (121) | 43 | (78) | |||
| Net unrealized depreciation, securities | $ | (619) | $ | 209 | $ | (410) |
| Net unrealized appreciation, derivatives | $ | 14 | $ | (5) | $ | 9 |
| Net translation of foreign currencies | $ | - | $ | 13 | $ | 13 |
| Postretirement benefits liability adjustment: | ||||||
| Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses) | $ | 70 | $ | (25) | $ | 45 |
| Reclassification adjustment for curtailment gain (other operating expenses) | (19) | 7 | (12) | |||
| Total reclassification adjustment to shareholders' net income (other operating expenses) | 51 | (18) | 33 | |||
| Net change due to valuation update and plan amendments | 779 | (273) | 506 | |||
| Net postretirement benefits liability adjustment | $ | 830 | $ | (291) | $ | 539 |
| Tax | ||||||
| (Expense) | After- | |||||
| (In millions) | Pre-Tax | Benefit | Tax | |||
| 2012 | ||||||
| Net unrealized appreciation, securities: | ||||||
| Net unrealized appreciation on securities arising during the year | $ | 271 | $ | (90) | $ | 181 |
| Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains) | (52) | 18 | (34) | |||
| Net unrealized appreciation, securities | $ | 219 | $ | (72) | $ | 147 |
| Net unrealized depreciation, derivatives | $ | (7) | $ | 2 | $ | (5) |
| Net translation of foreign currencies | $ | 78 | $ | (12) | $ | 66 |
| Postretirement benefits liability adjustment: | ||||||
| Reclassification adjustment for amortization of net losses from past experience | ||||||
| and prior service costs and settlement charges (other operating expenses) | $ | 52 | $ | (18) | $ | 34 |
| Net change arising from assumption and plan changes and experience | (181) | 55 | (126) | |||
| Net postretirement benefits liability adjustment | $ | (129) | $ | 37 | $ | (92) |
| Tax | ||||||
| (Expense) | After- | |||||
| (In millions) | Pre-Tax | Benefit | Tax | |||
| 2011 | ||||||
| Net unrealized appreciation, securities: | ||||||
| Net unrealized appreciation on securities arising during the year | $ | 366 | $ | (127) | $ | 239 |
| Reclassification adjustment for (gains) included in net income (realized investment gains) | (49) | 18 | (31) | |||
| Net unrealized appreciation, securities | $ | 317 | $ | (109) | $ | 208 |
| Net unrealized appreciation derivatives | $ | 1 | $ | - | $ | 1 |
| Net translation of foreign currencies | $ | (21) | $ | (1) | $ | (22) |
| Postretirement benefits liability adjustment: | ||||||
| Reclassification adjustment for amortization of net losses from past experience | ||||||
| and prior service costs (other operating expenses) | $ | 22 | $ | (7) | $ | 15 |
| Net change arising from assumption and plan changes and experience | (580) | 205 | (375) | |||
| Net postretirement benefits liability adjustment | $ | (558) | $ | 198 | $ | (360) |