NOTE 12: OTHER COMPREHENSIVE INCOME (LOSS)
The changes in accumulated other comprehensive income (loss) by component and related tax effects in the first three 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 |
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Translation adjustments and other |
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Total |
Balance as of December 30, 2017 |
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$ |
1,745 |
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|
$ |
106 |
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|
$ |
(963 |
) |
|
$ |
(26 |
) |
|
$ |
862 |
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Impact of change in accounting principle |
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(1,745 |
) |
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24 |
|
|
(65 |
) |
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(4 |
) |
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(1,790 |
) |
Opening Balance as of December 31, 2017
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$ |
— |
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|
$ |
130 |
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|
$ |
(1,028 |
) |
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$ |
(30 |
) |
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$ |
(928 |
) |
Other comprehensive income (loss) before reclassifications |
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— |
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|
203 |
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|
140 |
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(29 |
) |
|
314 |
|
Amounts reclassified out of accumulated other comprehensive income |
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— |
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(53 |
) |
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45 |
|
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(1 |
) |
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(9 |
) |
Tax effects |
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— |
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(31 |
) |
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(37 |
) |
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8 |
|
|
(60 |
) |
Other comprehensive income (loss) |
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— |
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|
119 |
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|
148 |
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(22 |
) |
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245 |
|
Balance as of March 31, 2018 |
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$ |
— |
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|
$ |
249 |
|
|
$ |
(880 |
) |
|
$ |
(52 |
) |
|
$ |
(683 |
) |
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 |
Comprehensive Income Components |
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Location |
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Mar 31,
2018 |
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Apr 1,
2017 |
Unrealized holding gains (losses) on available-for-sale equity investments: |
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Gains (losses) on equity investments, net |
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$ |
— |
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$ |
263 |
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— |
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|
263 |
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Unrealized holding gains (losses) on derivatives: |
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Foreign currency contracts |
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Cost of sales |
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8 |
|
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(20 |
) |
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Research and development |
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41 |
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(16 |
) |
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Marketing, general and administrative |
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14 |
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(5 |
) |
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Gains (losses) on equity investments, net |
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— |
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4 |
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Interest and other, net |
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(10 |
) |
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38 |
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53 |
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|
1 |
|
Amortization of pension and postretirement benefit components: |
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Actuarial valuation and other pension expenses |
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(45 |
) |
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(24 |
) |
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(45 |
) |
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(24 |
) |
Translation adjustments and other |
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Interest and other, net |
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1 |
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— |
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Total amounts reclassified out of accumulated other comprehensive income (loss) |
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$ |
9 |
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$ |
240 |
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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 $122 million (before taxes) of net derivative gains included in accumulated other comprehensive income (loss) into earnings within the next 12 months.
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