PNC Bank 2008 Annual Report Download - page 142

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N
OTE
20 O
THER
C
OMPREHENSIVE
I
NCOME
Details of other comprehensive income (loss) are as follows
(in millions):
Pretax Tax After-tax
Net unrealized securities gains (losses)
Balance at January 1, 2006 $ (240)
2006 activity
Increase in net unrealized gain for
securities held at year-end $ 129 $ (46) 83
Less: net losses realized in net
income (a) (101) 35 (66)
Net unrealized securities gains 230 (81) 149
Balance at December 31, 2006 (91)
2007 activity
Increase in net unrealized losses for
securities held at year-end (134) 52 (82)
Less: net losses realized in net
income (a) (9) 3 (6)
Net unrealized securities losses (125) 49 (76)
Balance at December 31, 2007 (167)
2008 activity
Increase in net unrealized losses for
securities held at year-end (5,423) 1,992 (3,431)
Less: net gains realized in net
income (a) 44 (16) 28
Net unrealized securities losses (5,467) 2,008 (3,459)
Balance at December 31, 2008 $(3,626)
(a) Pretax amounts represent net unrealized gains (losses) as of the prior year-end date
that were realized in the subsequent year when the related securities were sold.
These amounts differ from net securities losses included in the Consolidated Income
Statement primarily because they do not include gains or losses realized on
securities that were purchased and then sold during the same year.
Pretax Tax After-tax
Net unrealized gains (losses) on cash
flow hedge derivatives
Balance at January 1, 2006 $ (26)
2006 activity
Increase in net unrealized gains on cash
flow hedge derivatives $ 13 $ (5) 8
Less: net gains realized in net income (7) 2 (5)
Net unrealized gains on cash flow
hedge derivatives 20 (7) 13
Balance at December 31, 2006 (13)
2007 activity
Increase in net unrealized gains on cash
flow hedge derivatives 283 (104) 179
Less: net gains realized in net income (14) 5 (9)
Net unrealized gains on cash
flow hedge derivatives 297 (109) 188
Balance at December 31, 2007 175
2008 activity
Increase in net unrealized gains on cash
flow hedge derivatives 344 (127) 217
Less: net gains realized in net income 29 (11) 18
Net unrealized gains on cash
flow hedge derivatives 315 (116) 199
Balance at December 31, 2008 $374
Pretax Tax After-tax
Pension, other postretirement and
postemployment benefit plan
adjustments
Balance at January 1, 2006 $ (15)
2006 Activity
SFAS 87 adjustment $ (2) $ 1 (1)
SFAS 158 adjustment, net (203) 71 (132)
Total 2006 activity (205) 72 (133)
Balance at December 31, 2006 (148)
2007 Activity (49) 20 (29)
Balance at December 31, 2007 (177)
2008 Activity (775) 285 (490)
Balance at December 31, 2008 $(667)
Other (b)
Balance at January 1, 2006 $ 14
2006 Activity $ 6 $ (3) 3
Balance at December 31, 2006 17
2007 Activity 24 (19) 5
Balance at December 31, 2007 22
2008 Activity
Foreign currency translation adj. (129) 46 (83)
BlackRock deferred tax adj. 31 31
Total 2008 activity (129) 77 (52)
Balance at December 31, 2008 $ (30)
(b) Consists of foreign currency translation adjustments, deferred tax adjustments on
BlackRock’s other comprehensive income (2008 and 2007), and interest-only strip
valuation adjustments (2007 and 2006).
The accumulated balances related to each component of other
comprehensive income (loss) are as follows:
December 31 – in millions 2008 2007
Net unrealized securities gains (losses) $(3,626) $(167)
Net unrealized gains on cash flow hedge
derivatives 374 175
Pension, other postretirement and post
employment benefit plan adjustments (667) (177)
Other (30) 22
Accumulated other comprehensive (loss) $(3,949) $(147)
N
OTE
21 I
NCOME
T
AXES
The components of income taxes are as follows:
Year ended December 31
In millions 2008 2007 2006
Current
Federal $ 553 $491 $ 565
State 69 58 46
Total current 622 549 611
Deferred
Federal (235) 61 752
State (26) 17
Total deferred (261) 78 752
Total $ 361 $627 $1,363
138