OTHER COMPREHENSIVE INCOME ITEMS

9 Months Ended

Jul. 28, 2019

OTHER COMPREHENSIVE INCOME ITEMS

OTHER COMPREHENSIVE INCOME ITEMS

(5) Other Comprehensive Income Items

The after-tax changes in accumulated other comprehensive income (loss) in millions of dollars follow:


														Total
								Unrealized			Unrealized			Accumulated
		Retirement			Cumulative			Gain (Loss)			Gain (Loss)			Other
		Benefits			Translation			on			on			Comprehensive
		Adjustment			Adjustment			Derivatives			Debt Securities			Income (Loss)
Balance October 29, 2017		$	(3,580)		$	(999)		$	5		$	10		$	(4,564)
Other comprehensive income (loss) items before reclassification			81			(196)			12			(7)			(110)
Amounts reclassified from accumulated other comprehensive income			124						(2)			(1)			121
Net current period other comprehensive income (loss)			205			(196)			10			(8)			11
Balance July 29, 2018		$	(3,375)		$	(1,195)		$	15		$	2		$	(4,553)

Balance October 28, 2018		$	(3,237)		$	(1,203)		$	15		$	(2)		$	(4,427)
ASU No. 2016-01 adoption*												(8)			(8)
Other comprehensive income (loss) items before reclassification			30			(218)			(33)			26			(195)
Amounts reclassified from accumulated other comprehensive income			54						(4)			(1)			49
Net current period other comprehensive income (loss)			84			(218)			(37)			25			(146)
Balance July 28, 2019		$	(3,153)		$	(1,421)		$	(22)		$	15		$	(4,581)
* See Note 3.

Following are amounts recorded in and reclassifications out of other comprehensive income (loss), and the income tax effects, in millions of dollars:


		Before			Tax			After
		Tax			(Expense)			Tax
Three Months Ended July 28, 2019		Amount			Credit			Amount
Cumulative translation adjustment		$	27		$	(1)		$	26
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)			(27)			6			(21)
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense			(1)						(1)
Net unrealized gain (loss) on derivatives			(28)			6			(22)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)			13			(2)			11
Reclassification of realized (gain) loss – Other income			(1)						(1)
Net unrealized gain (loss) on debt securities			12			(2)			10
Retirement benefits adjustment:
Pensions
Net actuarial gain (loss)			(3)			1			(2)
Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to other operating expenses: *
Actuarial (gain) loss			35			(9)			26
Prior service (credit) cost			2						2
Settlements/curtailments			1						1
OPEB
Net actuarial gain (loss)
Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to other operating expenses: *
Actuarial (gain) loss			4			(1)			3
Prior service (credit) cost			(19)			4			(15)
Net unrealized gain (loss) on retirement benefits adjustment			20			(5)			15
Total other comprehensive income (loss)		$	31		$	(2)		$	29

* These accumulated other comprehensive income amounts are included in net periodic pension and OPEB costs. See Note 8 for additional detail.


		Before			Tax			After
		Tax			(Expense)			Tax
Nine Months Ended July 28, 2019		Amount			Credit			Amount
Cumulative translation adjustment		$	(217)		$	(1)		$	(218)
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)			(42)			9			(33)
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense			(6)			2			(4)
Net unrealized gain (loss) on derivatives			(48)			11			(37)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)			32			(6)			26
Reclassification of realized (gain) loss – Other income			(1)						(1)
Net unrealized gain (loss) on debt securities			31			(6)			25
Retirement benefits adjustment:
Pensions
Net actuarial gain (loss)			(21)			5			(16)
Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to other operating expenses: *
Actuarial (gain) loss			106			(26)			80
Prior service (credit) cost			8			(2)			6
Settlements/curtailments			1						1
OPEB
Net actuarial gain (loss)			60			(14)			46
Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to other operating expenses: *
Actuarial (gain) loss			12			(3)			9
Prior service (credit) cost			(55)			13			(42)
Net unrealized gain (loss) on retirement benefits adjustment			111			(27)			84
Total other comprehensive income (loss)		$	(123)		$	(23)		$	(146)

* These accumulated other comprehensive income amounts are included in net periodic pension and OPEB costs. See Note 8 for additional detail.


		Before			Tax			After
		Tax			(Expense)			Tax
Three Months Ended July 29, 2018		Amount			Credit			Amount
Cumulative translation adjustment		$	(421)		$	1		$	(420)
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)			1						1
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense			(2)						(2)
Net unrealized gain (loss) on derivatives			(1)						(1)
Unrealized gain (loss) on investments:
Unrealized holding gain (loss)			2			(1)			1
Reclassification of realized (gain) loss – Other income
Net unrealized gain (loss) on investments			2			(1)			1
Retirement benefits adjustment:
Pensions
Net actuarial gain (loss)
Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to other operating expenses: *
Actuarial (gain) loss			53			(14)			39
Prior service (credit) cost			3			(1)			2
Settlements/curtailments			1						1
OPEB
Net actuarial gain (loss)
Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to other operating expenses: *
Actuarial (gain) loss			16			(4)			12
Prior service (credit) cost			(19)			5			(14)
Net unrealized gain (loss) on retirement benefits adjustment			54			(14)			40
Total other comprehensive income (loss)		$	(366)		$	(14)		$	(380)

* These accumulated other comprehensive income amounts are included in net periodic pension and OPEB costs. See Note 8 for additional detail.

In the third quarter of 2019 and 2018, the noncontrolling interests’ comprehensive income in both periods was none, which consisted of net income of none and $1 million and cumulative translation adjustments of none and $(1) million, respectively.


		Before			Tax			After
		Tax			(Expense)			Tax
Nine Months Ended July 29, 2018		Amount			Credit			Amount
Cumulative translation adjustment		$	(196)					$	(196)
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)			16		$	(4)			12
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense			(3)			1			(2)
Net unrealized gain (loss) on derivatives			13			(3)			10
Unrealized gain (loss) on investments:
Unrealized holding gain (loss)			(9)			2			(7)
Reclassification of realized (gain) loss – Other income			(1)						(1)
Net unrealized gain (loss) on investments			(10)			2			(8)
Retirement benefits adjustment:
Pensions
Net actuarial gain (loss)			46			(11)			35
Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to other operating expenses: *
Actuarial (gain) loss			168			(48)			120
Prior service (credit) cost			9			(3)			6
Settlements/curtailments			7			(2)			5
OPEB
Net actuarial gain (loss)			60			(14)			46
Reclassification through amortization of actuarial (gain) loss and prior service (credit) cost to other operating expenses: *
Actuarial (gain) loss			47			(13)			34
Prior service (credit) cost			(57)			16			(41)
Net unrealized gain (loss) on retirement benefits adjustment			280			(75)			205
Total other comprehensive income (loss)		$	87		$	(76)		$	11

* These accumulated other comprehensive income amounts are included in net periodic pension and OPEB costs. See Note 8 for additional detail.

In the first nine months of 2019 and 2018, the noncontrolling interests’ comprehensive income was $3 million and $1 million, respectively, which consisted of net income of $3 million and $2 million and cumulative translation adjustments of none and $(1) million, respectively.