Note 15: Other Comprehensive Income (Loss)
The changes in accumulated other comprehensive income (loss) by component and related tax effects in the first nine months of 2017 were as follows:
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(In Millions) |
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Unrealized Holding Gains (Losses) on Available-for-Sale Investments |
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Unrealized Holding Gains (Losses) on Derivatives |
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Prior Service Credits (Costs) |
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Actuarial Gains (Losses) |
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Foreign Currency Translation Adjustment |
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Total |
December 31, 2016 |
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$ |
2,164 |
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$ |
(259 |
) |
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$ |
(40 |
) |
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$ |
(1,240 |
) |
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$ |
(519 |
) |
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$ |
106 |
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Other comprehensive income (loss) before reclassifications1
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2,589 |
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|
528 |
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— |
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213 |
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6 |
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3,336 |
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Amounts reclassified out of accumulated other comprehensive income |
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(1,962 |
) |
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(28 |
) |
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(9 |
) |
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55 |
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|
507 |
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(1,437 |
) |
Tax effects |
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(219 |
) |
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(150 |
) |
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1 |
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(27 |
) |
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— |
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(395 |
) |
Other comprehensive income (loss) |
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408 |
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|
350 |
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(8 |
) |
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241 |
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513 |
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1,504 |
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September 30, 2017 |
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$ |
2,572 |
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$ |
91 |
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$ |
(48 |
) |
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$ |
(999 |
) |
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$ |
(6 |
) |
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$ |
1,610 |
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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:
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Income Before Taxes Impact
(In Millions) |
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Three Months Ended |
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Nine Months Ended |
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Comprehensive Income Components |
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Sep 30,
2017 |
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Oct 1,
2016 |
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Sep 30,
2017 |
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Oct 1,
2016 |
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Location |
Unrealized holding gains (losses)1 on available-for-sale investments:
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$ |
916 |
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$ |
42 |
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$ |
1,962 |
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$ |
530 |
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Gains (losses) on equity investments, net |
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|
916 |
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42 |
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1,962 |
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|
530 |
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Unrealized holding gains (losses) on derivatives: |
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Foreign currency contracts |
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(13 |
) |
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(11 |
) |
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(60 |
) |
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(70 |
) |
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Cost of sales |
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24 |
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(2 |
) |
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10 |
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(5 |
) |
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Research and development |
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4 |
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1 |
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(2 |
) |
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— |
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Marketing, general and administrative |
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12 |
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— |
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28 |
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11 |
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Gains (losses) on equity investments, net |
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17 |
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19 |
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52 |
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36 |
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Interest and other, net |
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44 |
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7 |
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28 |
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(28 |
) |
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Amortization of pension and postretirement benefit components: |
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Prior service credits (costs) |
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(3 |
) |
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(2 |
) |
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9 |
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(6 |
) |
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Actuarial gains (losses) |
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(15 |
) |
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(20 |
) |
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(55 |
) |
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(46 |
) |
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(18 |
) |
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(22 |
) |
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(46 |
) |
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(52 |
) |
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Currency translation adjustment |
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— |
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— |
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(507 |
) |
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— |
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Interest and other, net |
Total amounts reclassified out of accumulated other comprehensive income (loss) |
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$ |
942 |
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$ |
27 |
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$ |
1,437 |
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$ |
450 |
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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 $94 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 10: Acquisitions and Divestitures."
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