American Express 2014 Annual Report Download - page 110

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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 18
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),netoftax
(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, 2011 $ 288 $ (1) $ (682) $ (481) $ (876)
Net unrealized gains 106 106
(Decrease) increase due to amounts reclassified into
earnings (79) 1 1 (77)
Net translation gain of investments in foreign
operations 215 215
Net (losses) related to hedges of investment in foreign
operations (288) (288)
Pension and other postretirement (losses) benefit (7) (7)
Net change in accumulated other comprehensive
income (loss) 27 1 (72) (7) (51)
Balances as of December 31, 2012 315 — (754) (488) (927)
Net unrealized (losses) (159) (159)
(Decrease) due to amounts reclassified into earnings (93) (93)
Net translation (loss) of investments in foreign
operations (589) (589)
Net gains related to hedges of investment in foreign
operations 253 253
Pension and other postretirement benefit gains 89 89
Net change in accumulated other comprehensive
(loss) income (252) — (336) 89 (499)
Balances as of December 31, 2013 63 — (1,090) (399) (1,426)
Net unrealized gains 104 104
(Decrease) increase due to amounts reclassified into
earnings (71) 5 (66)
Net translation (loss) of investments in foreign
operations (869) (869)
Net gains related to hedges of investment in foreign
operations 455 455
Pension and other postretirement (losses) benefit (117) (117)
Net change in accumulated other comprehensive
income (loss) 33 — (409) (117) (493)
Balances as of December 31, 2014 $ 96 $ — $ (1,499) $ (516) $ (1,919)
(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) 2014 2013 2012
Investment securities $19$(142)$ 7
Cash flow hedges ——1
Foreign currency translation adjustments (64) (49) 24
Net investment hedges 273 135 (176)
Pension and other postretirement benefit losses (46) 56 —
Total tax impact $182$—$(144)
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