Discover 2015 Annual Report Download - page 143

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14. Accumulated Other Comprehensive Income
Changes in each component of AOCI were as follows (dollars in millions):
Unrealized
Gain (Loss) on
Available-for-
Sale Investment
Securities, Net
of Tax
Gain (Loss) on
Cash Flow
Hedges, Net of
Tax
Foreign
Currency
Translation
Adjustments,
Net of Tax(1)
Pension Plan
Loss, Net of
Tax AOCI
For the Year Ended December 31, 2013
Balance at December 31, 2012 ................................ $ 71 $ 3 $ — $ (146) $ (72)
Net change ............................................................ (52) 10 1 45 4
Balance at December 31, 2013 ................................ $ 19 $ 13 $ 1 $ (101) $ (68)
For the Year Ended December 31, 2014
Balance at December 31, 2013 ................................ $ 19 $ 13 $ 1 $ (101) $ (68)
Net change ............................................................ 4 (20) (1) (53)(70)
Balance at December 31, 2014 ................................ $ 23 $ (7) $ — $ (154) $ (138)
For the Year Ended December 31, 2015
Balance at December 31, 2014 ................................ $ 23 $ (7) $ — $ (154) $ (138)
Net change ............................................................ (23) (13) — 14 (22)
Balance at December 31, 2015 ................................ $ — $ (20) $ — $ (140) $ (160)
(1) Includes unrealized gains/losses on hedge of net investment in foreign subsidiary, net of tax benefit and net gains on foreign currency translation adjustments. There
was no hedge of net investment in foreign subsidiary at December 31, 2015 as a result of the sale of Diners Club Italy in 2015.
The table below presents each component of OCI before reclassifications and amounts reclassified from AOCI for
each component of OCI before- and after-tax (dollars in millions):
Before Tax Tax Benefit (Expense) Net of Tax
For the Year Ended December 31, 2015
Available-for-Sale Investment Securities
Net unrealized holding losses arising during the period ....................................................... $ (29) $ 11 $ (18)
Amounts reclassified from accumulated other comprehensive income .................................... (8) 3 (5)
Net change ................................................................................................................. $ (37) $ 14 $ (23)
Cash Flow Hedges
Net unrealized losses arising during the period ................................................................... $ (67) $ 25 $ (42)
Amounts reclassified from accumulated other comprehensive income .................................... 46 (17) 29
Net change ................................................................................................................. $ (21) $ 8 $ (13)
Foreign Currency Translation Adjustments
Net unrealized gains arising during the period ................................................................... $ 2 $ — $ 2
Amounts reclassified from accumulated other comprehensive income .................................... (2) — (2)
Net change ................................................................................................................. $ — $ — $ —
Pension Plan
Unrealized gains arising during the period ......................................................................... $ 22 $ (8) $ 14
Net change ................................................................................................................. $ 22 $ (8) $ 14