American Express 2012 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2012 American Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 15
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
AOCI is a balance sheet item in the Shareholders’ Equity section of the Company’s Consolidated Balance Sheets. It is comprised of items
that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each
component of AOCI for the three years ended December 31 were as follows:
(Millions), net of tax(a)
Net Unrealized
Gains (Losses)
on Investment
Securities
Net Unrealized
Gains (Losses)
on Cash Flow
Hedges
Foreign Currency
Translation
Adjustments
Net Unrealized
Pension and Other
Postretirement
Benefit Losses
Accumulated Other
Comprehensive
(Loss) Income
Balances as of December 31, 2009 $ 507 $ (28) $ (722) $ (469) $ (712)
Impact of the adoption of GAAP(b) (315) (315)
Net unrealized gains (losses) (139) (2) (141)
Reclassification for realized (gains) losses into earnings 4 23 (2) 25
Net translation of investments in foreign operations 189 189
Net gains related to hedges of investment in foreign operations 32 32
Pension and other postretirement benefit losses 55
Net change in accumulated other comprehensive (loss) income (450) 21 219 5 (205)
Balances as of December 31, 2010 57 (7) (503) (464) (917)
Net unrealized gains (losses) 245 (2) 243
Reclassification for realized (gains) losses into earnings (14) 8 (6)
Net translation of investments in foreign operations (153) (153)
Net losses related to hedges of investment in foreign operations (26) (26)
Pension and other postretirement benefit losses (17) (17)
Net change in accumulated other comprehensive (loss) income 231 6 (179) (17) 41
Balances as of December 31, 2011 288 (1) (682) (481) (876)
Net unrealized gains (losses) 106 106
Reclassification for realized (gains) losses into earnings (79) 1 1 (77)
Net translation of investments in foreign operations 215 215
Net losses related to hedges of investment in foreign operations (288) (288)
Pension and other postretirement benefit losses (7) (7)
Net change in accumulated other comprehensive (loss) income 27 1 (72) (7) (51)
Balances as of December 31, 2012 $ 315 $ — $ (754) $ (488) $ (927)
(a) The following table shows the tax impact for the three years ended December 31 for the changes in each component of accumulated other comprehensive (loss)
income:
(Millions) 2012 2011 2010
Investment securities $7$ 149 $ (272)
Cash flow hedges 1311
Foreign currency translation adjustments 24 (40) 22
Net investment hedges (176) (14) (396)
Pension and other postretirement benefit losses —(7) 18
Total tax impact $ (144) $ 91 $ (617)
(b) As a result of the adoption of new GAAP governing consolidations and VIEs, the Company no longer presents within its Consolidated Financial Statements the effects
of the retained subordinated securities issued by previously unconsolidated VIEs related to the Company’s cardmember loan securitization programs.
93