Available-for-Sale Securities and Comprehensive Income: A Summary

The company's available-for-sale securities portfolio primarily consists of investment-grade debt securities, aiming to preserve capital and liquidity. These securities are recorded at fair value on the balance sheet, with unrealized gains and losses reflected in accumulated other comprehensive income. The company doesn't hedge interest rate exposure on these investments, and a sensitivity analysis indicated that a 100 basis point change in interest rates wouldn't significantly affect their fair value. The company evaluates available-for-sale securities for other-than-temporary impairment quarterly. Unrealized losses are recognized in net earnings when a decline in fair value is deemed other-than-temporary. Derivative instruments qualifying as cash flow hedges have their gains or losses reported under other comprehensive income and subsequently reclassified into net earnings when the hedged exposure affects net earnings. Comprehensive income encompasses all changes in equity during the period, excluding transactions with shareholders. It includes net earnings and other comprehensive income, such as unrealized gains and losses on available-for-sale securities and cash flow hedges.