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Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables)
 12 Months Ended
Dec. 31, 2022
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract]  
Components of Accumulated Other Comprehensive Income (Loss)

The following table presents a summary of the changes in each component of AOCI for the years ended December 31, 2022, 2021 and 2020:

 

 

 

First American Financial Corporation

 

(in millions)

 

Unrealized
gains (losses)
on debt securities

 

 

Foreign
currency
translation
adjustment

 

 

Pension
benefit
adjustment

 

 

Accumulated
other
comprehensive
income (loss)

 

Balance at December 31, 2019

 

$

84

 

 

$

(52

)

 

$

(73

)

 

$

(41

)

Change in unrealized gains (losses) on debt securities

 

 

116

 

 

 

—

 

 

 

—

 

 

 

116

 

Change in unrealized gains (losses) on debt securities for
   which credit-related portion was recognized in earnings

 

 

1

 

 

 

—

 

 

 

—

 

 

 

1

 

Change in foreign currency translation adjustment

 

 

—

 

 

 

14

 

 

 

—

 

 

 

14

 

Net actuarial loss

 

 

—

 

 

 

—

 

 

 

(31

)

 

 

(31

)

Amortization of net actuarial loss

 

 

—

 

 

 

—

 

 

 

5

 

 

 

5

 

Amortization of prior service credit

 

 

—

 

 

 

—

 

 

 

(3

)

 

 

(3

)

Tax effect

 

 

(29

)

 

 

—

 

 

 

8

 

 

 

(21

)

Balance at December 31, 2020

 

 

172

 

 

 

(38

)

 

 

(94

)

 

 

40

 

Change in unrealized gains (losses) on debt securities

 

 

(189

)

 

 

—

 

 

 

—

 

 

 

(189

)

Change in foreign currency translation adjustment

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

(2

)

Net actuarial gain

 

 

—

 

 

 

—

 

 

 

11

 

 

 

11

 

Amortization of net actuarial loss

 

 

—

 

 

 

—

 

 

 

7

 

 

 

7

 

Amortization of prior service credit

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(1

)

Tax effect

 

 

46

 

 

 

1

 

 

 

(5

)

 

 

42

 

Balance at December 31, 2021

 

 

29

 

 

 

(39

)

 

 

(82

)

 

 

(92

)

Change in unrealized gains (losses) on debt securities

 

 

(1,045

)

 

 

—

 

 

 

—

 

 

 

(1,045

)

Change in foreign currency translation adjustment

 

 

—

 

 

 

(43

)

 

 

—

 

 

 

(43

)

Net actuarial gain

 

 

—

 

 

 

—

 

 

 

57

 

 

 

57

 

Amortization of net actuarial loss

 

 

—

 

 

 

—

 

 

 

6

 

 

 

6

 

Tax effect

 

 

264

 

 

 

1

 

 

 

(16

)

 

 

249

 

Balance at December 31, 2022

 

$

(752

)

 

$

(81

)

 

$

(35

)

 

$

(868

)

 

 
Adjustments for Reclassification of Other Comprehensive Income (Loss)

The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2022, 2021 and 2020:

 

 

 

Unrealized
gains (losses)
on debt securities

 

 

Foreign
currency
translation
adjustment

 

 

Pension
benefit
adjustment

 

 

Total
other
comprehensive
income (loss)

 

 

 

(in millions)

 

Year ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Pretax change before reclassifications

 

$

(1,182

)

 

$

(43

)

 

$

57

 

 

$

(1,168

)

Reclassifications out of AOCI

 

 

137

 

 

 

—

 

 

 

6

 

 

 

143

 

Tax effect

 

 

264

 

 

 

1

 

 

 

(16

)

 

 

249

 

Total other comprehensive income (loss), net of tax

 

$

(781

)

 

$

(42

)

 

$

47

 

 

$

(776

)

Year ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Pretax change before reclassifications

 

$

(169

)

 

$

(2

)

 

$

11

 

 

$

(160

)

Reclassifications out of AOCI

 

 

(20

)

 

 

—

 

 

 

6

 

 

 

(14

)

Tax effect

 

 

46

 

 

 

1

 

 

 

(5

)

 

 

42

 

Total other comprehensive income (loss), net of tax

 

$

(143

)

 

$

(1

)

 

$

12

 

 

$

(132

)

Year ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Pretax change before reclassifications

 

$

125

 

 

$

14

 

 

$

(31

)

 

$

108

 

Reclassifications out of AOCI

 

 

(8

)

 

 

—

 

 

 

2

 

 

 

(6

)

Tax effect

 

 

(29

)

 

 

—

 

 

 

8

 

 

 

(21

)

Total other comprehensive income (loss), net of tax

 

$

88

 

 

$

14

 

 

$

(21

)

 

$

81

 
Reclassifications out of Accumulated Other Comprehensive Income (Loss)

The following table presents the effects of the reclassifications out of AOCI on the respective line items in the consolidated statements of income:

 

 

 

Year ended December 31,

 

 

 

(in millions)

 

2022

 

 

2021

 

 

2020

 

 

Affected line items

Unrealized gains (losses) on debt securities:

 

 

 

 

 

 

 

 

 

 

 

Net realized (losses) gains on sales of debt
     securities

 

$

(137

)

 

$

20

 

 

$

15

 

 

Net investment (losses) gains

Credit losses recognized on debt securities

 

 

—

 

 

 

—

 

 

 

(7

)

 

Net investment (losses) gains

Pretax total

 

$

(137

)

 

$

20

 

 

$

8

 

 

 

Tax effect

 

$

35

 

 

$

(5

)

 

$

(2

)

 

 

Pension benefit adjustment (1):

 

 

 

 

 

 

 

 

 

 

 

Amortization of net actuarial loss

 

$

(6

)

 

$

(7

)

 

$

(5

)

 

Other operating expenses

Amortization of prior service credit

 

 

—

 

 

 

1

 

 

 

3

 

 

Other operating expenses

Pretax total

 

$

(6

)

 

$

(6

)

 

$

(2

)

 

 

Tax effect

 

$

2

 

 

$

2

 

 

$

1