Notes to financial statements
Note 17: Comprehensive Income
We adopted the provisions of the SFAS No. 130, "Reporting Comprehensive Income," in 1997. Comprehensive income is defined as any change in our equity from transactions and other events originating from nonowner sources. In our case, those changes are composed of our reported net income, changes in the unrealized appreciation of our investment portfolio and changes in unrealized foreign currency translation adjustments. SFAS No. 130 requires that we report all components of comprehensive income. The following summaries present the components of our comprehensive income, other than net income, for the last three years.
(In thousands)
Year ended December 31,1997
Income Tax Effect
After-tax
Pretax
Unrealized depreciation arising during period
$ (182,037)
$ (314,826)
$ (132,789)
Less: reclassification adjustment for realized gains included in net income
165,972
242,138
408,110
Net change in unrealized appreciation of investments
93,284
33,183
60,101
Unrealized loss on foreign currency translation
(564)
(898)
(1,462)
Total other comprehensive income
$ 59,203
$ 32,619
$ 91,822
(In thousands)
Year ended December 31,1996
Income Tax Effect
After-tax
Pretax
Unrealized depreciation arising during period
$ 132,280
$ 208,755
$ 76,475
Less: reclassification adjustment for realized gains included in net income
75,422
143,103
218,525
Net change in unrealized appreciation of investments
1,053
(10,823)
(9,770)
Unrealized loss on foreign currency translation
48
(5,309)
(5,261)
Less: reclassification adjustment for realized loss relating to discontinued operations
2,662
(25,594)
(22,932)
Net change in unrealized loss on foreign currency translation
(2,614)
20,285
17,671
Total other comprehensive income
$ (1,561)
$ 9,462
$ 7,901
(In thousands)
Year ended December 31,1995
Income Tax Effect
After-tax
Pretax
Unrealized depreciation arising during period
$1,017,325
$ 347,125
$ 670,200
Less: reclassification adjustment for realized gains included in net income
28,215
56,357
84,572
Net change in unrealized appreciation of investments
932,753
318,910
613,843
Unrealized loss on foreign currency translation
285
3,331
3,616
Total other comprehensive income
$ 617,174
$ 319,195
$ 936,369
