NOTE 13
ACCUMULATED OTHER COMPREHENSIVE INCOME
Comprehensive income includes all changes in shareholders’ equity that do not arise from transactions with shareholders, and consists of net income, currency translation adjustments (CTA), pension and other employee benefits, unrealized gains and losses on cash flow hedges and unrealized gains and losses on unrestricted available-for-sale marketable equity securities. The following is a net-of-tax summary of the changes in AOCI by component for the year ended December 31, 2013.
| (in millions) | Currency translation adjustments |
Pension and other employee benefits |
Hedging activities |
Other | Total | |||||||||||||||
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Gains (losses) |
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Balance as of December 31, 2012 |
($ | 1,227 | ) | ($ | 1,619 | ) | ($5 | ) | $ | 41 | ($ | 2,810 | ) | |||||||
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Other comprehensive income (loss) before reclassifications |
236 | 426 | 41 | (13 | ) | 690 | ||||||||||||||
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Amounts reclassified from AOCI(a) |
— | 166 | (26 | ) | 4 | 144 | ||||||||||||||
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Net other comprehensive income (loss) |
236 | 592 | 15 | (9 | ) | 834 | ||||||||||||||
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Balance as of December 31, 2013 |
($ | 991 | ) | ($ | 1,027 | ) | $10 | $ | 32 | ($ | 1,976 | ) | ||||||||
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| (a) | See table below for details about the reclassifications for the year ended December 31, 2013. |
The following is a summary of the amounts reclassified from AOCI to net income during the year ended December 31, 2013.
| Adjustments reclassified from AOCI (a) |
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| (in millions) | 2013 | Location of impact in income statement | ||||
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Amortization of pension and other employee benefits items |
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Actuarial losses and other |
($ | 254) | (b) | |||
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| (254 | ) | Total before tax | ||||
| 88 | Tax benefit | |||||
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| ($ | 166 | ) | Net of tax | |||
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Gains (losses) on hedging activities |
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Interest rate contracts |
$ | 10 | Net interest expense | |||
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Foreign exchange contracts |
(1 | ) | Net sales | |||
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Foreign exchange contracts |
32 | Cost of sales | ||||
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| 41 | Total before tax | |||||
| (15 | ) | Tax expense | ||||
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| $ | 26 | Net of tax | ||||
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Other |
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Other-than-temporary impairment of available-for-sale equity securities |
$ | (6 | ) | Other (income) expense, net | ||
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| (6 | ) | Total before tax | ||||
| 2 | Tax benefit | |||||
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| (4 | ) | Net of tax | ||||
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Total reclassification for the period |
($ | 144 | ) | Total net of tax | ||
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| (a) | Amounts in parentheses indicate reductions to net income. |
| (b) | These AOCI components are included in the computation of net periodic benefit cost disclosed in Note 12. |
Refer to Note 12 for additional information regarding the amortization of pension and other employee benefits items and Note 8 for additional information regarding hedging activity.