The Hartford 2007 Annual Report Download - page 247

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
F-70
16. Accumulated Other Comprehensive Income (Loss), Net of Tax
Comprehensive income is defined as all changes in stockholders’ equity, except those arising from transactions with stockholders.
Comprehensive income includes net income and other comprehensive income (loss), which for the Company consists of changes in net
unrealized appreciation or depreciation of available-for-sale investments carried at market value, changes in gains or losses on cash-
flow hedging instruments, changes in foreign currency translation gains or losses and changes in the Company’ s pension and other
postretirement plan adjustment.
The components of AOCI, net of tax, were as follows:
For the year ended December 31, 2007
Unrealized
Gain (Loss) on
Securities
Net Gain (Loss)
on Cash-Flow
Hedging
Instruments
Foreign
Currency
Translation
Adjustments
Pension and
Other
Postretirement
Plan
Adjustment
Accumulated
Other
Comprehensive
Income (Loss)
Balance, beginning of year $ 1,058 $ (234) $ (120) $ (526) $ 178
Unrealized loss on securities [1] [2] (1,417) — — — (1,417)
Net gain on cash-flow hedging instruments [1] [3] — 94 — — 94
Change in foreign currency translation adjustments [1] — — 146 — 146
Change in pension and other postretirement
plan adjustment [1] — — — 141 141
Balance, end of year $ (359) $ (140) $ 26 $ (385) $ (858)
For the year ended December 31, 2006
Balance, beginning of year $ 969 $ (110) $ (149) $ (620) $ 90
Unrealized gain on securities [1] [2] 89 — — — 89
Net loss on cash-flow hedging instruments [1] [3] — (124) — — (124)
Change in foreign currency translation adjustments [1] — — 29 — 29
Change in pension and other postretirement plan
adjustment [1] — — — 94 94
Balance, end of year $ 1,058 $ (234) $ (120) $ (526) $ 178
For the year ended December 31, 2005
Balance, beginning of year $ 2,162 $ (215) $ (42) $ (480) $ 1,425
Unrealized loss on securities [1] [2] (1,193) — — — (1,193)
Net gain on cash-flow hedging instruments [1] [3] — 105 — — 105
Change in foreign currency translation adjustments [1] — — (107) — (107)
Change in minimum pension liability adjustment [1] — — — (140) (140)
Balance, end of year $ 969 $ (110) $ (149) $ (620) $ 90
[1] Unrealized gain/loss on securities is net of tax and Life deferred acquisition costs of $(718), $137 and $(644) for the years ended December 31,
2007, 2006 and 2005, respectively. Net gain (loss) on cash-flow hedging instruments is net of tax of $51, $(67) and $57 for the years ended
December 31, 2007, 2006 and 2005, respectively. Changes in foreign currency translation adjustments are net of tax of $79, $16, and $(58) for
the years ended December 31, 2007, 2006 and 2005, respectively. Change in pension and other postretirement plan adjustment is net of tax of
$48, $51 and $(75) for the years ended December 31, 2007, 2006 and 2005, respectively.
[2] Net of reclassification adjustment for gains/losses realized in net income of $(192), $(74) and $45 for the years ended December 31, 2007, 2006
and 2005, respectively.
[3] Net of amortization adjustment of $(20), $(38) and $5 to net investment income for the years ended December 31, 2007, 2006 and 2005,
respectively.