NOTE 12: OTHER COMPREHENSIVE INCOME (LOSS)
The changes in accumulated other comprehensive income (loss) by component and related tax effects in the first six 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 |
|
$ |
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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|
$ |
— |
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|
$ |
130 |
|
|
$ |
(1,028 |
) |
|
$ |
(30 |
) |
|
$ |
(928 |
) |
Other comprehensive income (loss) before reclassifications |
|
— |
|
|
(134 |
) |
|
4 |
|
|
(26 |
) |
|
(156 |
) |
Amounts reclassified out of accumulated other comprehensive income (loss) |
|
— |
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|
(87 |
) |
|
32 |
|
|
6 |
|
|
(49 |
) |
Tax effects |
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— |
|
|
47 |
|
|
(10 |
) |
|
7 |
|
|
44 |
|
Other comprehensive income (loss) |
|
— |
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|
(174 |
) |
|
26 |
|
|
(13 |
) |
|
(161 |
) |
Balance as of June 30, 2018 |
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$ |
— |
|
|
$ |
(44 |
) |
|
$ |
(1,002 |
) |
|
$ |
(43 |
) |
|
$ |
(1,089 |
) |
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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Six Months Ended |
Comprehensive Income Components |
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Location |
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Jun 30,
2018 |
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Jul 1,
2017 |
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Jun 30,
2018 |
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Jul 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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$ |
— |
|
|
$ |
783 |
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|
$ |
— |
|
|
$ |
1,046 |
|
|
|
|
|
— |
|
|
783 |
|
|
— |
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|
1,046 |
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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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11 |
|
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(27 |
) |
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19 |
|
|
(47 |
) |
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|
Research and development |
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30 |
|
|
2 |
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|
71 |
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(14 |
) |
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|
Marketing, general and administrative |
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18 |
|
|
(1 |
) |
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32 |
|
|
(6 |
) |
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|
Gains (losses) on equity investments, net |
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— |
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|
12 |
|
|
— |
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|
16 |
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Interest and other, net |
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(25 |
) |
|
(3 |
) |
|
(35 |
) |
|
35 |
|
|
|
|
|
34 |
|
|
(17 |
) |
|
87 |
|
|
(16 |
) |
Amortization of pension and postretirement benefit components: |
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|
|
|
|
|
|
|
|
Actuarial valuation and other pension expenses |
|
|
|
13 |
|
|
(4 |
) |
|
(32 |
) |
|
(28 |
) |
|
|
|
|
13 |
|
|
(4 |
) |
|
(32 |
) |
|
(28 |
) |
Translation adjustments and other |
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Interest and other, net |
|
(7 |
) |
|
(507 |
) |
|
(6 |
) |
|
(507 |
) |
Total amounts reclassified out of accumulated other comprehensive income (loss) |
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|
$ |
40 |
|
|
$ |
255 |
|
|
$ |
49 |
|
|
$ |
495 |
|
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 $145 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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