PNC Bank 2014 Annual Report Download - page 217

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In millions Pretax Tax After-tax
2013 activity
Increase in net unrealized gains
(losses) on cash flow hedge
derivatives (141) 52 (89)
Less: Net gains (losses) realized as a
yield adjustment reclassified to
loan interest income (a) 284 (103) 181
Less: Net gains (losses) realized as a
yield adjustment reclassified to
investment securities interest
income (a) 53 (19) 34
Less: Net gains (losses) realized on
sales of securities reclassified to
noninterest income (a) 49 (18) 31
Net unrealized gains (losses) on cash
flow hedge derivatives (527) 192 (335)
Balance at December 31, 2013 384 (141) 243
2014 activity
Increase in net unrealized gains
(losses) on cash flow hedge
derivatives 431 (158) 273
Less: Net gains (losses) realized as a
yield adjustment reclassified to
loan interest income (a) 251 (92) 159
Less: Net gains (losses) realized as a
yield adjustment reclassified to
investment securities interest
income (a) 12 (5) 7
Net unrealized gains (losses) on cash
flow hedge derivatives 168 (61) 107
Balance at December 31, 2014 $ 552 $(202) $ 350
Pension and other postretirement
benefit plan adjustments
Balance at December 31, 2011 $(1,191) $ 436 $ (755)
2012 Activity
Net pension and other postretirement
benefit plan activity (118) 44 (74)
Amortization of actuarial loss (gain)
reclassified to other noninterest
expense 94 (35) 59
Amortization of prior service cost
(credit) reclassified to other
noninterest expense (11) 4 (7)
Total 2012 activity (35) 13 (22)
Balance at December 31, 2012 (1,226) 449 (777)
2013 Activity
Net pension and other postretirement
benefit plan activity 760 (279) 481
Amortization of actuarial loss (gain)
reclassified to other noninterest
expense 103 (37) 66
Amortization of prior service cost
(credit) reclassified to other
noninterest expense (11) 4 (7)
Total 2013 activity 852 (312) 540
Balance at December 31, 2013 (374) 137 (237)
In millions Pretax Tax After-tax
2014 Activity
Net pension and other postretirement
benefit plan activity (440) 161 (279)
Amortization of actuarial loss (gain)
reclassified to other noninterest
expense 4 (1) 3
Amortization of prior service cost
(credit) reclassified to other
noninterest expense (10) 3 (7)
Total 2014 Activity (446) 163 (283)
Balance at December 31, 2014 $ (820) $ 300 $ (520)
Other
Balance at December 31, 2011 $ (51) $ 26 $ (25)
2012 Activity
PNC’s portion of BlackRock’s OCI 3 (4) (1)
Net investment hedge derivatives (b) (27) 10 (17)
Foreign currency translation
adjustments 34 (12) 22
Total 2012 activity 10 (6) 4
Balance at December 31, 2012 (41) 20 (21)
2013 Activity
PNC’s portion of BlackRock’s OCI 15 (12) 3
Net investment hedge derivatives (b) (21) 8 (13)
Foreign currency translation
adjustments 27 1 28
Total 2013 activity 21 (3) 18
Balance at December 31, 2013 (20) 17 (3)
2014 Activity
PNC’s portion of BlackRock’s OCI (36) 14 (22)
Net investment hedge derivatives (b) 54 (20) 34
Foreign currency translation
adjustments (c) (57) – (57)
Total 2014 activity (39) (6) (45)
Balance at December 31, 2014 $ (59) $ 11 $ (48)
(a) Cash flow hedge derivatives are interest rate contract derivatives designated as
hedging instruments under GAAP.
(b) Net investment hedge derivatives are foreign exchange contracts designated as
hedging instruments under GAAP.
(c) As of September 30, 2013, PNC made an assertion under ASC 740 – Income Taxes
that the earnings of PNC’s Luxembourg-UK lending business were indefinitely
reinvested; thereafter, no U.S. deferred income tax has been recorded on the foreign
currency translation of the investment.
The PNC Financial Services Group, Inc. – Form 10-K 199