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Comprehensive Income
 3 Months Ended
Dec. 26, 2015
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 pre-tax amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, for the three months ended December 26, 2015 and December 27, 2014 (in millions):

 

                                                  

Comprehensive Income Components

  

Financial Statement

Line Item

    December 26, 2015      December 27, 2014  

Unrealized (gains)/losses on derivative instruments:

        

Foreign exchange contracts

   Revenue    $ (329 )     $ (449 ) 
  Cost of sales      (306 )       (313 ) 
  Other income/(expense), net      120         95   

Interest rate contracts

   Other income/(expense), net      4         4   
    

 

 

     

 

 

  
       (511 )       (663 ) 

Unrealized (gains)/losses on marketable securities

   Other income/(expense), net      73         (22 ) 
    

 

 

     

 

 

  

Total amounts reclassified from AOCI

    $ (438 )     $ (685 ) 
    

 

 

     

 

 

  

The following table shows the changes in AOCI by component for the three months ended December 26, 2015 (in millions):

 

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

Balance at September 26, 2015

   $ (653 )     $ 772       $ (464 )     $ (345 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Other comprehensive income/(loss) before reclassifications

     (121 )       325         (1,430 )       (1,226 ) 

Amounts reclassified from AOCI

     0         (511 )       73         (438 ) 

Tax effect

     19         28         482         529   
 

 

 

     

 

 

     

 

 

     

 

 

  

Other comprehensive income/(loss)

     (102 )       (158 )       (875 )       (1,135 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Balance at December 26, 2015

   $ (755 )     $ 614       $ (1,339 )     $ (1,480 )