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71
Note 17: Other Comprehensive Income (Loss)
The following table summarizes the activity related to each component of other comprehensive income (loss):
(Amounts presented net of taxes)
Foreign
Currency
Translation
Gains (Losses)
Unrealized Net
Gains (Losses)
on Securities
Defined Benefit
Pension and
Retiree Health
Benefit Plans
Effective
Portion of
Cash Flow
Hedges
Accumulated
Other
Comprehensive
Loss
Beginning balance at January 1, 2011 $ 510.7 $ 128.9 $ (3,175.8) $ (133.9) $ (2,670.1)
Unrealized gain (loss) . . . . . . . . . . . . (59.4) 32.6
Net amount reclassed to net income (54.7) (5.8)
Net other comprehensive income
(loss) . . . . . . . . . . . . . . . . . . . . . . . . . (244.8) (114.1) (856.4) 26.8 (1,188.5)
Balance at December 31, 2011. . . . . . 265.9 14.8 (4,032.2) (107.1) (3,858.6)
Unrealized gain (loss) . . . . . . . . . . . . 104.1 —
Net amount reclassed to net income (46.4) 5.9
Net other comprehensive income
(loss) . . . . . . . . . . . . . . . . . . . . . . . . . 160.9 57.7 (163.0) 5.9 61.5
Balance at December 31, 2012 . . . . . 426.8 72.5 (4,195.2) (101.2) (3,797.1)
Other comprehensive income (loss)
before reclassifications . . . . . . . . . . . 36.2 138.9 1,387.1 (86.5) 1,475.7
Net amount reclassified from
accumulated other comprehensive
loss . . . . . . . . . . . . . . . . . . . . . . . . . . (6.2) 319.0 5.9 318.7
Net other comprehensive income
(loss) . . . . . . . . . . . . . . . . . . . . . . . . . 36.2 132.7 1,706.1 (80.6) 1,794.4
Ending Balance at December 31,
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . $463.0 $205.2 $ (2,489.1) $ (181.8) $ (2,002.7)
The tax effect on the unrealized net gains (losses) on securities was an expense of $71.6 million in 2013, an
expense of $30.8 million in 2012, and a benefit of $64.4 million in 2011. The tax effect related to our defined
benefit pension and retiree health benefit plans (Note 15) was an expense of $886.1 million in 2013, an
expense of $34.4 million in 2012, and a benefit of $383.8 million in 2011. The tax effect on the effective
portion of cash flow hedges was a benefit of $43.2 million for the year ended December 31, 2013, and was
not significant for the years ended December 31, 2012 and 2011. Income taxes were not provided for foreign
currency translation.
Generally, the assets and liabilities of foreign operations are translated into U.S. dollars using the current
exchange rate. For those operations, changes in exchange rates generally do not affect cash flows; therefore,
resulting translation adjustments are made in shareholders' equity rather than in income.