Accumulated Other Comprehensive Loss and Other Comprehensive Income

9 Months Ended

Sep. 28, 2013

Accumulated Other Comprehensive Loss and Other Comprehensive Income

Accumulated Other Comprehensive Loss and Other Comprehensive Income

Note 8.  Accumulated Other Comprehensive Loss and Other Comprehensive Income

The components of Accumulated Other Comprehensive Loss are presented below:

(In millions)	Foreign Currency Translation Adjustments			Pension and Postretirement Benefits Adjustments			Deferred Gains/Losses on Hedge Contracts			Accumulated Other Comprehensive Loss
For the nine months ended September 28, 2013
Beginning balance	$	81		$	(1,857	)	$	6		$	(1,770	)
Other comprehensive income before reclassifications	3			—			(9		)	(6		)
Amounts reclassified from Accumulated Other Comprehensive Loss	—			127			(2		)	125
Other comprehensive income	3			127			(11		)	119
Ending balance	$	84		$	(1,730	)	$	(5	)	$	(1,651	)
For the nine months ended September 29, 2012
Beginning balance	$	79		$	(1,711	)	$	7		$	(1,625	)
Other comprehensive income before reclassifications	(5		)	—			15			10
Amounts reclassified from Accumulated Other Comprehensive Loss	—			63			(10		)	53
Other comprehensive income	(5		)	63			5			63
Ending balance	$	74		$	(1,648	)	$	12		$	(1,562	)

The before and after-tax components of Other Comprehensive Income are presented below:

(In millions)	Pre-Tax Amount			Tax (Expense) Benefit			After-Tax Amount
For the three months ended September 28, 2013
Pension and postretirement benefits adjustments:
Amortization of net actuarial loss*	$	48		$	(18	)	$	30
Amortization of prior service cost*	(2		)	1			(1		)
Amendment to postretirement benefit plan	55			(20		)	35
Pension and postretirement benefits adjustments, net	101			(37		)	64
Deferred gains/losses on hedge contracts:
Current deferrals	3			(1		)	2
Deferred gains/losses on hedge contracts, net	3			(1		)	2
Foreign currency translation adjustments	8			4			12
Total	$	112		$	(34	)	$	78
For the three months ended September 29, 2012
Pension and postretirement benefits adjustments:
Amortization of net actuarial loss*	$	31		$	(10	)	$	21
Amortization of prior service cost*	1			(1		)	—
Pension and postretirement benefits adjustments, net	32			(11		)	21
Deferred gains/losses on hedge contracts:
Current deferrals	12			(3		)	9
Reclassification adjustments	—			(1		)	(1		)
Deferred gains/losses on hedge contracts, net	12			(4		)	8
Foreign currency translation adjustments	1			7			8
Total	$	45		$	(8	)	$	37
For the nine months ended September 28, 2013
Pension and postretirement benefits adjustments:
Amortization of net actuarial loss*	$	143		$	(51	)	$	92
Amendment to postretirement benefit plan	55			(20		)	35
Pension and postretirement benefits adjustments, net	198			(71		)	127
Deferred gains/losses on hedge contracts:
Current deferrals	(11		)	2			(9		)
Reclassification adjustments	(3		)	1			(2		)
Deferred gains/losses on hedge contracts, net	(14		)	3			(11		)
Foreign currency translation adjustments	6			(3		)	3
Total	$	190		$	(71	)	$	119
For the nine months ended September 29, 2012
Pension and postretirement benefits adjustments:
Amortization of net actuarial loss*	$	93		$	(32	)	$	61
Amortization of prior service cost*	3			(1		)	2
Pension and postretirement benefits adjustments, net	96			(33		)	63
Deferred gains/losses on hedge contracts:
Current deferrals	19			(4		)	15
Reclassification adjustments	(12		)	2			(10		)
Deferred gains/losses on hedge contracts, net	7			(2		)	5
Foreign currency translation adjustments	(9		)	4			(5		)
Total	$	94		$	(31	)	$	63

*These components of other comprehensive income are included in the computation of net periodic pension cost.  See Note 13 of our 2012 Annual Report on Form 10-K for additional information.

In the third quarter of 2013, we amended one of our postretirement benefit plans which triggered a re-measurement of the plan’s projected benefit obligation resulting in a $55 million reduction in unrealized losses and prior service costs, as discussed in Note 2.