Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2020

Statement of Comprehensive Income [Abstract]

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income

The components of Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (“AOCI”) for the nine months ended September 30, 2020 were:


	Changes in Net Unrealized Gains (Losses) on Investment Securities
(Dollars in Millions)	Having No Credit Losses Recognized in Consolidated Statements of Income		Having Credit Losses Recognized in Consolidated Statements of Income		Net Unrecognized Postretirement Benefit Costs		Gain (Loss) on Cash Flow Hedges		Total Accumulated Other Comprehensive Income (Loss)
Balance at Beginning of Year	$	439.4	$	—	$	(100.6)	$	(2.7)	$	336.1
Other Comprehensive Income (Loss) Before Reclassification Adjustment, Net of Tax	225.8		(1.9)		1.8		0.2		225.9
Reclassification Adjustment for Amounts Included in Net Income, Net of Tax	(13.0)		—		—		—		(13.0)
Other Comprehensive Income (Loss), Net of Tax	212.8		(1.9)		1.8		0.2		212.9
Balance at End of Period	$	652.2	$	(1.9)	$	(98.8)	$	(2.5)	$	549.0

The components of Other Comprehensive Income (Loss) and AOCI for the three months ended September 30, 2020 were:


	Changes in Net Unrealized Gains (Losses) on Investment Securities
(Dollars in Millions)	Having No Credit Losses Recognized in Consolidated Statements of Income		Having Credit Losses Recognized in Consolidated Statements of Income		Net Unrecognized Postretirement Benefit Costs		Gain (Loss) on Cash Flow Hedges		Total Accumulated Other Comprehensive Income (Loss)
Balance at Beginning of Period	$	602.3	$	(2.9)	$	(99.5)	$	(2.6)	$	497.3
Other Comprehensive Income (Loss) Before Reclassification Adjustment, Net of Tax	57.0		1.0		0.7		0.1		58.8
Reclassification Adjustment for Amounts Included in Net Income, Net of Tax	(7.1)		—		—		—		(7.1)
Other Comprehensive Income (Loss), Net of Tax	49.9		1.0		0.7		0.1		51.7
Balance at End of Period	$	652.2	$	(1.9)	$	(98.8)	$	(2.5)	$	549.0

Note 8 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (continued)

The pre-tax components of the Other Comprehensive Income (Loss) and the related Income Tax Benefit (Expense) for the nine and three months ended September 30, 2020 and 2019 were:


	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2020		Sep 30, 2019		Sep 30, 2020		Sep 30, 2019
Changes in Net Unrealized Gains (Losses) on Investment Securities:
Having No Credit Losses Recognized in Condensed Consolidated Statements of Income	$	285.7	$	467.3	$	72.1	$	118.1
Income Tax Benefit (Expense)	(59.9)		(98.1)		(15.1)		(24.8)
Net of Taxes	225.8		369.2		57.0		93.3

Having Credit Losses Recognized in Condensed Consolidated Statements of Income	(2.4)		—		1.3		—
Income Tax Benefit (Expense)	0.5		—		(0.3)		—
Net of Taxes	(1.9)		—		1.0		—

Reclassification Adjustment for Amounts Included in Net Income	(16.4)		(26.9)		(9.0)		0.2
Income Tax Benefit (Expense)	3.4		5.7		1.9		—
Net of Taxes	(13.0)		(21.2)		(7.1)		0.2

Changes in Net Unrecognized Postretirement Benefit Costs	2.3		0.2		0.9		(0.4)
Income Tax Benefit (Expense)	(0.5)		(0.1)		(0.2)		—
Net of Taxes	1.8		0.1		0.7		(0.4)

Changes in Gain (Loss) on Cash Flow Hedges	0.3		0.3		0.2		0.2
Income Tax Benefit (Expense)	(0.1)		(0.1)		(0.1)		(0.1)
Net of Taxes	0.2		0.2		0.1		0.1

Total Other Comprehensive Income (Loss) Before Income Taxes	269.5		440.9		65.5		118.1
Total Income Tax Benefit (Expense)	(56.6)		(92.6)		(13.8)		(24.9)
Total Other Comprehensive Income (Loss), Net of Taxes	$	212.9	$	348.3	$	51.7	$	93.2

Note 8 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (continued)

Components of AOCI were reclassified to the following lines of the Condensed Consolidated Statements of Income for the nine and three months ended September 30, 2020 and 2019:


	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2020		Sep 30, 2019		Sep 30, 2020		Sep 30, 2019
Reclassification of AOCI from Net Unrealized Gains on Investments to:
Net Realized Gains on Sales of Investments	$	36.4	$	39.1	$	10.0	$	1.7
Impairment Losses	(20.0)		(12.2)		(1.0)		(1.9)
Total Before Income Taxes	16.4		26.9		9.0		(0.2)
Income Tax Expense	(3.4)		(5.7)		(1.9)		—
Reclassification from AOCI, Net of Income Taxes	13.0		21.2		7.1		(0.2)
Reclassification of AOCI from Unrecognized Postretirement Benefit Costs to:
Interest and Other Expenses	(2.3)		0.6		(0.9)		—
Income Tax Benefit (Expense)	0.5		(0.1)		0.2		—
Reclassification from AOCI, Net of Income Taxes	(1.8)		0.5		(0.7)		—
Reclassification of AOCI from Loss on Cash Flow Hedges to:
Interest and Other Expenses	(0.3)		—		(0.2)		(0.1)
Income Tax Benefit	0.1		—		0.1		—
Reclassification from AOCI, Net of Income Taxes	(0.2)		—		(0.1)		(0.1)
Total Reclassification from AOCI to Net Income	$	11.0	$	21.7	$	6.3	$	(0.3)