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.