Holy bejezzus
if true. https://www.reddit.com/r/USAA/comments/166ptur/2022_financial_statements_where_are_the_details/
If this is true and what accountant said what is valid, Usaa is sitting on a lot of unrealized losses. With rates going up still, the low rate long term gov bond Usaa purchased are worth a lot less now this year compared to last year.
Per the comment in that post:
Accountant here. Comprehensive income is different than net income. Net income is actual realized profits or losses for the year. Comprehensive income includes unrealized gains and losses, specifically from investments, foreign currency exchange fluctuations, and pension plans. In USAA’s case, this article discusses higher interest rates and that securities are under par value. What that basically means is that their investments (likely bond-heavy since bonds are heavily influenced by interest rates) have decreased in value due to rising interest rates.
That drop in value represents an unrealized loss, because they haven’t sold the bonds yet or the bonds haven’t reached maturity. In either case, if they were to sell off their securities right now, that other comprehensive loss would become a realized loss, meaning it would show up in their net income instead.
That’s the reason why companies report other comprehensive income. It’s basically a “if we were to sell off our investments at the time of this report, this is how much we’d make/lose.” That way, investors can have a better idea of the company’s future expected cash flows.