Annual report pursuant to Section 13 and 15(d)

Other Comprehensive Income (Loss)

v3.3.1.900
Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 26, 2015
Equity [Abstract]  
Other Comprehensive Income (Loss) [Text Block]
Note 24: Other Comprehensive Income (Loss)
The components of other comprehensive income (loss) and related tax effects for each period were as follows:
 
 
December 26, 2015
 
December 27, 2014
 
December 28, 2013
Years Ended
(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
 
$
(999
)
 
$
350

 
$
(649
)
 
$
1,029

 
$
(359
)
 
$
670

 
$
1,963

 
$
(687
)
 
$
1,276

Less: adjustment for (gains) losses on available-for-sale investments included in net income
 
(93
)
 
32

 
(61
)
 
(142
)
 
49

 
(93
)
 
(146
)
 
51

 
(95
)
Less: adjustment for (gains) losses on deferred tax asset valuation allowance included in net income
 
—

 
(18
)
 
(18
)
 
—

 
(41
)
 
(41
)
 
—

 
(26
)
 
(26
)
Change in unrealized holding gains (losses) on derivatives
 
(298
)
 
93

 
(205
)
 
(589
)
 
160

 
(429
)
 
(166
)
 
76

 
(90
)
Less: adjustment for (gains) losses on derivatives included in net income
 
522

 
(160
)
 
362

 
13

 
(11
)
 
2

 
30

 
(29
)
 
1

Change in net prior service (costs) credits
 
(2
)
 
1

 
(1
)
 
(42
)
 
5

 
(37
)
 
17

 
(2
)
 
15

Less: adjustment for amortization of net prior service costs (credits)
 
10

 
(2
)
 
8

 
6

 
(2
)
 
4

 
4

 
(1
)
 
3

Change in actuarial gains (losses)
 
73

 
7

 
80

 
(433
)
 
3

 
(430
)
 
725

 
(275
)
 
450

Less: adjustment for amortization of actuarial (gains) losses
 
67

 
(19
)
 
48

 
37

 
(9
)
 
28

 
101

 
(31
)
 
70

Change in net foreign currency translation adjustment
 
(187
)
 
17

 
(170
)
 
(275
)
 
24

 
(251
)
 
45

 
(7
)
 
38

Other comprehensive income (loss)
 
$
(907
)
 
$
301

 
$
(606
)
 
$
(396
)
 
$
(181
)
 
$
(577
)
 
$
2,573

 
$
(931
)
 
$
1,642


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 change in actuarial valuation in 2014 in the preceding table includes $1.4 billion in actuarial losses arising during the year offset by a $1.0 billion reduction in losses due to a freeze of future benefit accruals in the U.S. Intel Minimum Pension Plan. For further information, see "Note 16: Retirement Benefit Plans."
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 28, 2013
 
$
1,882

 
$
67

 
$
4

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

Other comprehensive income (loss) before reclassifications
 
1,029

 
—

 
(589
)
 
(42
)
 
(433
)
 
(275
)
 
(310
)
Amounts reclassified out of accumulated other comprehensive income (loss)
 
(142
)
 
—

 
13

 
6

 
37

 
—

 
(86
)
Tax effects
 
(310
)
 
(41
)
 
149

 
3

 
(6
)
 
24

 
(181
)
Other comprehensive income (loss)
 
577

 
(41
)
 
(427
)
 
(33
)
 
(402
)
 
(251
)
 
(577
)
December 27, 2014
 
2,459

 
26

 
(423
)
 
(47
)
 
(1,004
)
 
(345
)
 
666

Other comprehensive income (loss) before reclassifications
 
(999
)
 
—

 
(298
)
 
(2
)
 
73

 
(187
)
 
(1,413
)
Amounts reclassified out of accumulated other comprehensive income (loss)
 
(93
)
 
—

 
522

 
10

 
67

 
—

 
506

Tax effects
 
382

 
(18
)
 
(67
)
 
(1
)
 
(12
)
 
17

 
301

Other comprehensive income (loss)
 
(710
)
 
(18
)
 
157

 
7

 
128

 
(170
)
 
(606
)
December 26, 2015
 
$
1,749

 
$
8

 
$
(266
)
 
$
(40
)
 
$
(876
)
 
$
(515
)
 
$
60



The amounts reclassified out of accumulated other comprehensive income (loss) into the consolidated statements of income, with presentation location, for each period were as follows:
 
 
Income Before Taxes Impact for Years Ended
(In Millions)
 
 
Comprehensive Income Components
 
Dec 26,
2015
 
Dec 27,
2014
 
Dec 28,
2013
 
Location
Unrealized holding gains (losses) on available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
$
2

 
$
10

 
$
8

 
Interest and other, net
 
 
91

 
132

 
138

 
Gains (losses) on equity investments, net
 
 
93

 
142

 
146

 
 
Unrealized holding gains (losses) on derivatives:
 
 
 
 
 
 
 
 
Currency forwards
 
(290
)
 
(31
)
 
(61
)
 
Cost of Sales
 
 
(177
)
 
18

 
30

 
Research and development
 
 
(46
)
 
2

 
—

 
Marketing, general and administrative
Other instruments
 
—

 
(2
)
 
1

 
Cost of Sales
 
 
(9
)
 
—

 
—

 
Interest and other, net
 
 
(522
)
 
(13
)
 
(30
)
 
 
Amortization of pension and postretirement benefit components:
 
 
 
 
 
 
 
 
Prior service credits (costs)
 
(10
)
 
(6
)
 
(4
)
 
 
Actuarial gains (losses)
 
(67
)
 
(37
)
 
(101
)
 
 
 
 
(77
)
 
(43
)
 
(105
)
 
 
Total amounts reclassified out of accumulated other comprehensive income (loss)
 
$
(506
)
 
$
86

 
$
11

 
 

The amortization of pension and postretirement benefit components are included in the computation of net periodic benefit cost. For further information, see "Note 16: Retirement Benefit Plans." The estimated net prior service costs and net actuarial losses for the defined-benefit plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during 2016 are $7 million and $42 million, respectively.
We estimate that we will reclassify approximately $185 million (before taxes) of net derivative losses included in accumulated other comprehensive income (loss) into earnings within the next 12 months.