v2.4.1.9
Comprehensive Income
 3 Months Ended
Dec. 27, 2014
Comprehensive Income

Note 8 – Comprehensive Income

Comprehensive income consists of two components, net income and OCI. OCI 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 OCI 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 gross amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations and the associated financial statement line item, for the three months ended December 27, 2014 and December 28, 2013 (in millions):

 

                                                                          

Comprehensive Income Components

  

Financial Statement Line Item

    December 27,
2014		     December 28,
2013		  

Unrecognized gains/losses on derivative instruments:

       

Foreign exchange contracts

   Revenue    $ (449 )    $ 184   
  Cost of sales      (313 )      (110 ) 
  Other income/expense, net      0        10   

Interest rate contracts

   Other income/expense, net      99        4   
    

 

 

    

 

 

  
       (663 )      88   

Unrealized gains/losses on marketable securities

   Other income/expense, net      (22 )      (17 ) 
    

 

 

    

 

 

  

Total amounts reclassified from AOCI

      $ (685 )    $ 71   
    

 

 

    

 

 

  

The following table shows the changes in AOCI by component for the three months ended December 27, 2014 (in millions):

 

                                                                                                   
     Cumulative
Foreign
Currency
Translation		     Unrecognized
Gains/Losses
on Derivative
Instruments		     Unrealized
Gains/Losses
on Marketable
Securities		     Total  

Balance at September 27, 2014

    $ (242 )    $ 1,364      $ (40 )    $ 1,082   
  

 

 

    

 

 

    

 

 

    

 

 

  

Other comprehensive income/(loss) before reclassifications

      (114 )      2,390        (707 )      1,569   

Amounts reclassified from AOCI

      0        (663 )      (22 )      (685 ) 

Tax effect

      48        (310 )      259        (3 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Other comprehensive income/(loss)

      (66 )      1,417        (470 )      881   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at December 27, 2014

    $ (308 )    $ 2,781      $ (510 )    $ 1,963