Note 8 – Comprehensive Income
Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. The Company’s other comprehensive income consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges, and unrealized gains and losses on marketable securities classified as available-for-sale.
The following table shows the components of AOCI, net of taxes, as of September 28, 2013 and September 29, 2012 (in millions):
| 2013 | 2012 | |||||||
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Cumulative foreign currency translation |
$ | (105 | ) | $ | 8 | |||
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Net unrecognized gains/losses on derivative instruments |
(175 | ) | (240 | ) | ||||
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Net unrealized gains/losses on marketable securities |
(191 | ) | 731 | |||||
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Accumulated other comprehensive income/(loss) |
$ | (471 | ) | $ | 499 | |||
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