NOTE 13: OTHER COMPREHENSIVE INCOME (LOSS)
The changes in accumulated other comprehensive income (loss) by component and related tax effects in the first nine months of 2018 were as follows:
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(In Millions) |
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Unrealized Holding Gains (Losses) on Available-for-Sale Equity Investments |
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Unrealized Holding Gains (Losses) on Derivatives |
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Actuarial Valuation and Other Pension Expenses |
|
Translation adjustments and other |
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Total |
Balance as of December 30, 2017 |
|
$ |
1,745 |
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|
$ |
106 |
|
|
$ |
(963 |
) |
|
$ |
(26 |
) |
|
$ |
862 |
|
Impact of change in accounting standards |
|
(1,745 |
) |
|
24 |
|
|
(65 |
) |
|
(4 |
) |
|
(1,790 |
) |
Opening Balance as of December 31, 2017
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|
$ |
— |
|
|
$ |
130 |
|
|
$ |
(1,028 |
) |
|
$ |
(30 |
) |
|
$ |
(928 |
) |
Other comprehensive income (loss) before reclassifications |
|
— |
|
|
(203 |
) |
|
3 |
|
|
(31 |
) |
|
(231 |
) |
Amounts reclassified out of accumulated other comprehensive income (loss) |
|
— |
|
|
(55 |
) |
|
48 |
|
|
8 |
|
|
1 |
|
Tax effects |
|
— |
|
|
59 |
|
|
(12 |
) |
|
8 |
|
|
55 |
|
Other comprehensive income (loss) |
|
— |
|
|
(199 |
) |
|
39 |
|
|
(15 |
) |
|
(175 |
) |
Balance as of September 29, 2018 |
|
$ |
— |
|
|
$ |
(69 |
) |
|
$ |
(989 |
) |
|
$ |
(45 |
) |
|
$ |
(1,103 |
) |
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 |
Comprehensive Income Components |
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Location |
|
Sep 29,
2018 |
|
Sep 30,
2017 |
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Sep 29,
2018 |
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Sep 30,
2017 |
Unrealized holding gains (losses) on available-for-sale equity investments: |
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|
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|
|
|
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|
|
Gains (losses) on equity investments, net |
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$ |
— |
|
|
$ |
916 |
|
|
$ |
— |
|
|
$ |
1,962 |
|
|
|
|
|
— |
|
|
916 |
|
|
— |
|
|
1,962 |
|
Unrealized holding gains (losses) on derivatives: |
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Foreign currency contracts |
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Cost of sales |
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(14 |
) |
|
(13 |
) |
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5 |
|
|
(60 |
) |
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|
Research and development |
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(11 |
) |
|
24 |
|
|
60 |
|
|
10 |
|
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|
Marketing, general and administrative |
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(1 |
) |
|
4 |
|
|
31 |
|
|
(2 |
) |
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|
Gains (losses) on equity investments, net |
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— |
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|
12 |
|
|
— |
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|
28 |
|
|
|
Interest and other, net |
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(6 |
) |
|
17 |
|
|
(41 |
) |
|
52 |
|
|
|
|
|
(32 |
) |
|
44 |
|
|
55 |
|
|
28 |
|
Amortization of pension and postretirement benefit components: |
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|
|
|
|
|
|
|
|
|
Actuarial valuation and other pension expenses |
|
|
|
— |
|
|
(18 |
) |
|
(48 |
) |
|
(46 |
) |
|
|
|
|
— |
|
|
(18 |
) |
|
(48 |
) |
|
(46 |
) |
Translation adjustments and other |
|
Interest and other, net |
|
(2 |
) |
|
— |
|
|
(8 |
) |
|
(507 |
) |
Total amounts reclassified out of accumulated other comprehensive income (loss) |
|
|
|
$ |
(34 |
) |
|
$ |
942 |
|
|
$ |
(1 |
) |
|
$ |
1,437 |
|
The amortization of pension and postretirement benefit components is included in the computation of net periodic benefit cost. For more information, see "Note 18: Retirement Benefit Plans" in our 2017 Form 10-K.
We estimate that we will reclassify approximately $143 million (before taxes) of net derivative losses included in accumulated other comprehensive income (loss) into earnings within the next 12 months.
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