Huntington National Bank 2012 Annual Report Download - page 162

154
2010
Tax (expense)
(dollar amounts in thousands) Pretax Benefit After-tax
N
oncredi
t
-related impairment losses on debt securities not expected to be sold 23,569 (8,249) 15,320
Unrealized holding (losses) gains on available-for-sale debt securities arising during the period (14,498) 5,019 (9,479)
Less: Reclassification adjustment for net gains included in net income 274 (96) 178
Net change in unrealized holding (losses) gains on available-for-sale debt securities 9,345 (3,326) 6,019
Net change in unrealized holding (losses) gains on available-for-sale equity securities (162) 57 (105)
Unrealized gains and losses on derivatives used in cash flow hedging relationships arising
during the period 80,069 (28,126) 51,943
Less: Reclassification adjustment for net losses (gains) losses included in net income (115,692) 40,594 (75,098)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging
relationships (35,623) 12,468 (23,155)
N
et actuarial gains (losses) arising during the yea
r
(45,804) 16,031 (29,773)
Amortization of net actuarial loss and prior service cost included in income 16,541 (5,789) 10,752
Net change in pension and post-retirement obligations (29,263) 10,242 (19,021)
Total other comprehensive (loss) income $(55,703) $19,441 $(36,262)
Activity in accumulated OCI for the three years ended December 31, were as follows:
(dollar amounts in thousands)
Unrealized
g
ains and
(losses) on
debt
securities (1)
Unrealized
g
ains and
(losses) on
equit
y
securities
Unrealized
gains and
(losses) on
cash flow
hedging
derivatives
Unrealized
gains
(losses) for
pension and
other post-
retirement
obligations Total
Balance, January 1, 2010 $ (103,060) $ (322) $ 58,865 $ (112,468) $ (156,985)
Cumulative effect of change in accounting principle for
consolidation of variable interest entities, net of tax (4,249) --- --- --- (4,249)
Balance, January 1, 2010, as adjusted (107,309) (322) 58,865 (112,468) (161,234)
Period change 6,019 (105) (23,155) (19,021) (36,262)
Balance, December 31, 2010 (101,290) (427) 35,710 (131,489) (197,496)
Period change 72,023 397 5,188 (53,875) 23,733
Balance, December 31, 2011 (29,267) (30) 40,898 (185,364) (173,763)
Period change 67,571 224 6,186 (51,035) 22,946
Balance, December 31, 2012 $ 38,304 $ 194 $ 47,084 $ (236,399) $ (150,817)
(1) Amount at December 31, 2012 includes $0.2 million of net unrealized gains on securities transferred from the available-for-sale
securities portfolio to the held-to-maturity securities portfolio. The net unrealized gains will be recognized in earnings over the
remaining life of the security using the effective interest method.
14. SHAREHOLDERS’ EQUITY
Preferred Stock issued and outstanding
In 2008, Huntington issued 569,000 shares of 8.50% Series A Non-Cumulative Perpetual Convertible Preferred Stock (Series A
Preferred Stock) with a liquidation preference of $1,000 per share. Each share of the Series A Preferred Stock is non-voting and may
be converted at any time, at the option of the holder, into 83.668 shares of common stock of Huntington, which represents an
approximate initial conversion price of $11.95 per share of common stock. On or after April 15, 2013, at the option of Huntington, the
Series A Preferred Stock will be subject to mandatory conversion into Huntington's common stock at the prevailing conversion rate, if
the closing price of Huntington's common stock exceeds 130% of the conversion price for 20 trading days during any 30 consecutive
trading day period.