BAXTER INTERNATIONAL INC | 2013 | FY | 3


NOTE 13

ACCUMULATED OTHER COMPREHENSIVE INCOME

 

 

Comprehensive income includes all changes in shareholders’ equity that do not arise from transactions with shareholders, and consists of net income, currency translation adjustments (CTA), pension and other employee benefits, unrealized gains and losses on cash flow hedges and unrealized gains and losses on unrestricted available-for-sale marketable equity securities. The following is a net-of-tax summary of the changes in AOCI by component for the year ended December 31, 2013.

 

(in millions)    Currency
translation
adjustments
    Pension and
other employee
benefits
    Hedging
activities
    Other     Total  

 

 

Gains (losses)

          

Balance as of December 31, 2012

   ($ 1,227   ($ 1,619     ($5   $ 41      ($ 2,810

Other comprehensive income (loss) before reclassifications

     236        426        41        (13     690   

Amounts reclassified from AOCI(a)

            166        (26     4        144   

 

 

Net other comprehensive income (loss)

     236        592        15        (9     834   

 

 

Balance as of December 31, 2013

   ($ 991   ($ 1,027     $10      $ 32      ($ 1,976

 

 

 

(a) See table below for details about the reclassifications for the year ended December 31, 2013.

 

The following is a summary of the amounts reclassified from AOCI to net income during the year ended December 31, 2013.

 

     Adjustments reclassified
from AOCI (a)
     

 

(in millions)    2013     Location of impact in income statement

 

Amortization of pension and other employee benefits items

    

Actuarial losses and other

   ($ 254) (b)   
  

 

 

   
     (254   Total before tax
     88      Tax benefit
  

 

 

   
   ($ 166   Net of tax
  

 

 

   

Gains (losses) on hedging activities

    

Interest rate contracts

   $ 10      Net interest expense

Foreign exchange contracts

     (1   Net sales

Foreign exchange contracts

     32      Cost of sales
  

 

 

   
     41      Total before tax
     (15   Tax expense
  

 

 

   
   $ 26      Net of tax
  

 

 

   

Other

    

Other-than-temporary impairment of available-for-sale equity securities

   $ (6   Other (income) expense, net
  

 

 

   
     (6   Total before tax
     2      Tax benefit
  

 

 

   
     (4   Net of tax
  

 

 

   

Total reclassification for the period

   ($ 144   Total net of tax
  

 

 

   

 

(a) Amounts in parentheses indicate reductions to net income.
(b) These AOCI components are included in the computation of net periodic benefit cost disclosed in Note 12.

Refer to Note 12 for additional information regarding the amortization of pension and other employee benefits items and Note 8 for additional information regarding hedging activity.


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