Note 23. Comprehensive Income
On January 1, 2013, we adopted ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This topic requires us to provide information about the amounts reclassified out of accumulated other comprehensive income by component and the line item of net income to which significant amounts are reclassified.
The following table presents the changes in accumulated other comprehensive income by component for the year ended December 31, 2013 (in millions):
| For the Year Ended December 31, 2013 (a) | ||||||||||||||||
| Cash Flow Hedges |
Defined Benefit Pension and Postretirement Benefit Plans |
Foreign Currency Translation Adjustments |
Total | |||||||||||||
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Balance at December 31, 2012 |
$ | (1 | ) | $ | (86 | ) | $ | (251 | ) | $ | (338 | ) | ||||
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Other comprehensive income before reclassifications |
— | 21 | (20 | ) | 1 | |||||||||||
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Amounts reclassified from accumulated other comprehensive income |
1 | 3 | — | 4 | ||||||||||||
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Total before tax |
1 | 24 | (20 | ) | 5 | |||||||||||
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Tax (expense) benefit |
— | (2 | ) | — | (2 | ) | ||||||||||
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Net current year other comprehensive income |
1 | 22 | (20 | ) | 3 | |||||||||||
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Balance at December 31, 2013 |
$ | — | $ | (64 | ) | $ | (271 | ) | $ | (335 | ) | |||||
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| (a) | Amounts in parentheses indicate debits. |
The following table presents the components of our other comprehensive income (loss) and related tax effects for the years ended December 31, 2013, 2012 and 2011 (in millions):
| For the Year Ended December 31, (a) | ||||||||||||||||||||||||||||||||||||
| 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
| Before- Tax Amount |
Tax (Expense) or Benefit |
Net-of- Tax Amount |
Before- Tax Amount |
Tax (Expense) or Benefit |
Net-of- Tax Amount |
Before- Tax Amount |
Tax (Expense) or Benefit |
Net-of- Tax Amount |
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Cash flow hedges: |
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Gains (losses) arising during period |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||||||||||||
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Amounts reclassified from accumulated other comprehensive income (b) |
1 | — | 1 | (4 | ) | — | (4 | ) | 2 | — | 2 | |||||||||||||||||||||||||
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Net gains (losses) on cash flow hedges |
1 | — | 1 | (4 | ) | — | (4 | ) | 3 | — | 3 | |||||||||||||||||||||||||
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Defined benefit pension and postretirement benefit plans: |
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Gains (losses) arising during the year |
21 | (2 | ) | 19 | (15 | ) | 2 | (13 | ) | (20 | ) | — | (20 | ) | ||||||||||||||||||||||
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Amounts reclassified from accumulated other comprehensive income (c) |
3 | — | 3 | 2 | — | 2 | 1 | — | 1 | |||||||||||||||||||||||||||
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Net gains (losses) on defined benefit pension and postretirement benefit plans |
24 | (2 | ) | 22 | (13 | ) | 2 | (11 | ) | (19 | ) | — | (19 | ) | ||||||||||||||||||||||
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Foreign currency translation adjustments: |
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Foreign currency translation adjustments |
(20 | ) | — | (20 | ) | 25 | — | 25 | (48 | ) | — | (48 | ) | |||||||||||||||||||||||
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Other comprehensive income |
$ | 5 | $ | (2 | ) | $ | 3 | $ | 8 | $ | 2 | $ | 10 | $ | (64 | ) | $ | — | $ | (64 | ) | |||||||||||||||
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| (a) | Amounts in parentheses indicate debits. |
| (b) | Pretax gains and losses on forward contract cash flow hedges are reclassified to management fees, franchise fees and other income. |
| (c) | Pretax amortization of defined benefit pension and postretirement benefit plans is reclassified to selling, general, administrative and other. |