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Comprehensive Income
 6 Months Ended
Mar. 26, 2016
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- and six-month periods ended March 26, 2016 and March 28, 2015 (in millions):

 

          Three Months Ended      Six Months Ended  

Comprehensive Income Components

   

Financial Statement

Line Item

    March 26,
2016		      March 28,
2015		      March 26,
2016		      March 28,
2015		  

Unrealized (gains)/losses on derivative instruments:

               

Foreign exchange contracts

    Revenue    $ (325 )     $ (558 )     $ (654 )     $ (1,007 ) 
   Cost of sales      (219 )       (608 )       (525 )       (921 ) 
   Other income/(expense), net      (131 )       348         (11 )       443   

Interest rate contracts

    Other income/(expense), net      3         4         7         8   
     

 

 

     

 

 

     

 

 

     

 

 

  
        (672 )       (814 )       (1,183 )       (1,477 ) 

Unrealized (gains)/losses on marketable securities

    Other income/(expense), net      76         56         149         34   
     

 

 

     

 

 

     

 

 

     

 

 

  

Total amounts reclassified from AOCI

       $ (596 )     $ (758 )     $ (1,034 )     $ (1,443 ) 
     

 

 

     

 

 

     

 

 

     

 

 

  

 

The following table shows the changes in AOCI by component for the six months ended March 26, 2016 (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

      18         146         69         233   

Amounts reclassified from AOCI

      0         (1,183 )       149         (1,034 ) 

Tax effect

      0         173         (75 )       98   
  

 

 

     

 

 

     

 

 

     

 

 

  

Other comprehensive income/(loss)

      18         (864 )       143         (703 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Balance at March 26, 2016

    $ (635 )     $ (92 )     $ (321 )     $ (1,048 )