Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive Income (Loss)

v3.7.0.1
Other Comprehensive Income (Loss)
6 Months Ended
Jul. 01, 2017
Equity [Abstract]  
Other Comprehensive Income (Loss) [Text Block]
Note 14: Other Comprehensive Income (Loss)
The changes in accumulated other comprehensive income (loss) by component and related tax effects in the first six months of 2017 were as follows:
(In Millions)
 
Unrealized Holding Gains (Losses) on Available-for-Sale Investments
 
Unrealized Holding Gains (Losses) on Derivatives
 
Prior Service Credits (Costs)
 
Actuarial Gains (Losses)
 
Foreign Currency Translation Adjustment
 
Total
December 31, 2016
 
$
2,164

 
$
(259
)
 
$
(40
)
 
$
(1,240
)
 
$
(519
)
 
$
106

Other comprehensive income (loss) before reclassifications1
 
1,059

 
445

 

 
217

 
1

 
1,722

Amounts reclassified out of accumulated other comprehensive income
 
(1,046
)
 
16

 
(12
)
 
40

 
507

 
(495
)
Tax effects
 
(4
)
 
(130
)
 
2

 
(27
)
 

 
(159
)
Other comprehensive income (loss)
 
9

 
331

 
(10
)
 
230

 
508

 
1,068

July 1, 2017
 
$
2,173

 
$
72

 
$
(50
)
 
$
(1,010
)
 
$
(11
)
 
$
1,174


1 
In the second quarter of 2017, we froze future benefit accruals for our Ireland pension plan.


The amounts reclassified out of accumulated other comprehensive income (loss) into the consolidated condensed statements of income for each period were as follows:
 
 
Income Before Taxes Impact
(In Millions)
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
Comprehensive Income Components
 
Jul 1,
2017
 
Jul 2,
2016
 
Jul 1,
2017
 
Jul 2,
2016
 
Location
Unrealized holding gains (losses)1 on available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
$
783

 
$
403

 
$
1,046

 
$
488

 
Gains (losses) on equity investments, net
 
 
783

 
403

 
1,046

 
488

 
 
Unrealized holding gains (losses) on derivatives:
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts
 
(27
)
 
(17
)
 
(47
)
 
(59
)
 
Cost of sales
 
 
2

 
7

 
(14
)
 
(3
)
 
Research and development
 
 
(1
)
 
3

 
(6
)
 
(1
)
 
Marketing, general and administrative
 
 
12

 
11

 
16

 
11

 
Gains (losses) on equity investments, net
 
 
(3
)
 
(17
)
 
35

 
17

 
Interest and other, net
 
 
(17
)
 
(13
)
 
(16
)
 
(35
)
 
 
Amortization of pension and postretirement benefit components:
 
 
 
 
 
 
 
 
 
 
Prior service credits (costs)
 
14

 
(2
)
 
12

 
(4
)
 
 
Actuarial gains (losses)
 
(18
)
 
(14
)
 
(40
)
 
(26
)
 
 
 
 
(4
)
 
(16
)
 
(28
)
 
(30
)
 
 
Currency translation adjustment
 
(507
)
 

 
(507
)
 

 
Interest and other, net
Total amounts reclassified out of accumulated other comprehensive income (loss)
 
$
255

 
$
374

 
$
495

 
$
423

 
 

1 
We determine the cost of the investment sold based on an average cost basis at the individual security level.
The amortization of pension and postretirement benefit components are included in the computation of net periodic benefit cost. For further information, see "Note 18: Retirement Benefit Plans" in Part II, Item 8 of our 2016 Form 10-K.
We estimate that we will reclassify approximately $76 million (before taxes) of net derivative gains included in accumulated other comprehensive income (loss) into earnings within the next 12 months.
During the second quarter of 2017, we reclassified approximately $507 million (before taxes) of currency translation adjustment losses included in accumulated other comprehensive income (loss) into earnings as a result of our divestiture of ISecG. For more information see "Note 9: Acquisitions and Divestitures."