Annual report pursuant to Section 13 and 15(d)

Other Comprehensive Income (Loss)

v2.4.0.8
Other Comprehensive Income (Loss)
12 Months Ended
Dec. 28, 2013
Comprehensive Income (Loss) [Abstract]  
Comprehensive Income [Text Block]
Note 25: Other Comprehensive Income (Loss)
The components of other comprehensive income (loss) and related tax effects for each period were as follows:
  
 
2013
 
2012
 
2011
(In Millions)
 
Before
Tax
 
Tax
 
Net of
Tax
 
Before
Tax
 
Tax
 
Net of
Tax
 
Before
Tax
 
Tax
 
Net of
Tax
Change in unrealized holding gains (losses) on available-for-sale investments
 
$
1,963

 
$
(687
)
 
$
1,276

 
$
909

 
$
(318
)
 
$
591

 
$
35

 
$
(13
)
 
$
22

Less: adjustment for (gains) losses on available-for-sale investments included in net income
 
(146
)
 
51

 
(95
)
 
(187
)
 
66

 
(121
)
 
(299
)
 
107

 
(192
)
Less: adjustment for (gains) losses on deferred tax asset valuation allowance included in net income
 

 
(26
)
 
(26
)
 

 
(11
)
 
(11
)
 

 
(99
)
 
(99
)
Change in unrealized holding gains (losses) on derivatives
 
(166
)
 
76

 
(90
)
 
12

 
8

 
20

 
20

 
(16
)
 
4

Less: adjustment for amortization of (gains) losses on derivatives
 
30

 
(29
)
 
1

 
78

 
(13
)
 
65

 
(161
)
 
38

 
(123
)
Change in net prior service costs
 
17

 
(2
)
 
15

 
(4
)
 
1

 
(3
)
 

 

 

Less: adjustment for amortization of net prior service costs
 
4

 
(1
)
 
3

 
5

 
(2
)
 
3

 
7

 
(3
)
 
4

Change in actuarial valuation
 
725

 
(275
)
 
450

 
(321
)
 
91

 
(230
)
 
(900
)
 
284

 
(616
)
Less: adjustment for amortization of actuarial (gains) losses
 
101

 
(31
)
 
70

 
90

 
(32
)
 
58

 
43

 
(15
)
 
28

Change in net foreign currency translation adjustment
 
45

 
(7
)
 
38

 
12

 
(2
)
 
10

 
(155
)
 
13

 
(142
)
Other comprehensive income (loss)
 
$
2,573

 
$
(931
)
 
$
1,642

 
$
594

 
$
(212
)
 
$
382

 
$
(1,410
)
 
$
296

 
$
(1,114
)

In prior periods, we recorded a reversal of a portion of our deferred tax asset valuation allowance attributed to changes in unrealized holding gains on our available-for-sale investments. This amount is reduced and included in our provision for taxes as these investments mature or are sold, and is included in the preceding table as an adjustment for (gains) losses on deferred tax asset valuation allowance included in net income.
The changes in accumulated other comprehensive income (loss) by component and related tax effects for each period were as follows:
(In Millions)
 
Unrealized Holding Gains (Losses) on Available-for-Sale Investments
 
Deferred Tax Asset Valuation Allowance
 
Unrealized Holding Gains (Losses) on Derivatives
 
Prior Service Credits (Costs)
 
Actuarial Gains (Losses)
 
Foreign Currency Translation Adjustment
 
Total
December 31, 2011
 
$
231

 
$
104

 
$
8

 
$
(32
)
 
$
(950
)
 
$
(142
)
 
$
(781
)
Other comprehensive income before reclassifications
 
909

 

 
12

 
(4
)
 
(321
)
 
12

 
608

Amounts reclassified out of accumulated other comprehensive income
 
(187
)
 

 
78

 
5

 
90

 

 
(14
)
Tax effects
 
(252
)
 
(11
)
 
(5
)
 
(1
)
 
59

 
(2
)
 
(212
)
Other comprehensive income (loss)
 
470

 
(11
)
 
85

 

 
(172
)
 
10

 
382

December 29, 2012
 
$
701

 
$
93

 
$
93

 
$
(32
)
 
$
(1,122
)
 
$
(132
)
 
$
(399
)
Other comprehensive income before reclassifications
 
1,963

 

 
(166
)
 
17

 
725

 
45

 
2,584

Amounts reclassified out of accumulated other comprehensive income
 
(146
)
 

 
30

 
4

 
101

 

 
(11
)
Tax effects
 
(636
)
 
(26
)
 
47

 
(3
)
 
(306
)
 
(7
)
 
(931
)
Other comprehensive income (loss)
 
1,181

 
(26
)
 
(89
)
 
18

 
520

 
38

 
1,642

December 28, 2013
 
$
1,882

 
$
67

 
$
4

 
$
(14
)
 
$
(602
)
 
$
(94
)
 
$
1,243



The amounts reclassified out of accumulated other comprehensive income into the consolidated statements of income, with presentation location, for each period were as follows:
 
 
2013
 
2012
 
2011
 
 
Comprehensive Income Components
 
Income Before Taxes Impact (In Millions)
 
Location
Unrealized holding gains (losses) on available-for-sale investments
 
 
 
 
 
 
 
 
 
 
$
8

 
$
(8
)
 
$
(7
)
 
Interest and other, net
 
 
138

 
195

 
306

 
Gains (losses) on equity investments, net
 
 
146

 
187

 
299

 
 
Unrealized holding gains (losses) on derivatives
 
 
 
 
 
 
 
 
Currency forwards
 
(61
)
 
11

 
118

 
Cost of sales
 
 
30

 
(63
)
 
20

 
Research and development
 
 

 
(25
)
 
19

 
Marketing, general and administrative
Other instruments
 
1

 
(1
)
 
4

 
Cost of sales
 
 
(30
)
 
(78
)
 
161

 
 
Amortization of pension and postretirement benefit components
 
 
 
 
 
 
 
 
Prior service credits (costs)
 
(4
)
 
(5
)
 
(7
)
 
 
Actuarial gains (losses)
 
(101
)
 
(90
)
 
(43
)
 
 
 
 
(105
)
 
(95
)
 
(50
)
 
 
Total amounts reclassified out of accumulated other comprehensive income
 
$
11

 
$
14

 
$
410

 
 

The amortization of pension and postretirement benefit components are included in the "Net Periodic Benefit Cost" section of "Note 17: Retirement Benefit Plans". The estimated net prior service costs and net actuarial gains (losses) for the defined benefit plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during 2014 are $4 million and $39 million, respectively.
We estimate that we will reclassify approximately $6 million (before taxes) of net derivative losses included in accumulated other comprehensive income (loss) into earnings within the next 12 months.