Merck & Co. Inc. | 2013 | FY | 3

Other Comprehensive Income (Loss)
In the first quarter of 2013, the Company adopted guidance issued by the FASB that requires additional disclosure related to the impact of reclassification adjustments out of AOCI on net income. Changes in AOCI by component are as follows:
 
Derivatives
 
Investments
 
Employee
Benefit
Plans
 
Cumulative
Translation
Adjustment
 
Accumulated Other
Comprehensive
Income (Loss)
Balance January 1, 2011, net of taxes
$
41

 
$
31

 
$
(2,043
)
 
$
(1,245
)
 
$
(3,216
)
Other comprehensive income (loss) before reclassification adjustments, pretax
(143
)
 
(10
)
 
(573
)
 
435

 
(291
)
Tax
56

 
5

 
187

 
(1
)
 
247

Other comprehensive income (loss) before reclassification adjustments, net of taxes
(87
)
 
(5
)
 
(386
)
 
434

 
(44
)
Reclassification adjustments, pretax
83

 
(7
)
 
151

 
—

 
227

Tax
(33
)
 
2

 
(68
)
 
—

 
(99
)
Reclassification adjustments, net of taxes
50

(1) 
(5
)
(2) 
83

(3) 
—

 
128

Other comprehensive income (loss), net of taxes
(37
)
 
(10
)
 
(303
)
 
434

 
84

Balance December 31, 2011, net of taxes
4

 
21

 
(2,346
)
 
(811
)
 
(3,132
)
Other comprehensive income (loss) before reclassification adjustments, pretax
(198
)
 
74

 
(1,852
)
 
(99
)
 
(2,075
)
Tax
77

 
(10
)
 
450

 
(81
)
 
436

Other comprehensive income (loss) before reclassification adjustments, net of taxes
(121
)
 
64

 
(1,402
)
 
(180
)
 
(1,639
)
Reclassification adjustments, pretax
33

 
(13
)
 
136

 
—

 
156

Tax
(13
)
 
1

 
(55
)
 
—

 
(67
)
Reclassification adjustments, net of taxes
20

(1) 
(12
)
(2) 
81

(3) 
—

 
89

Other comprehensive income (loss), net of taxes
(101
)
 
52

 
(1,321
)
 
(180
)
 
(1,550
)
Balance December 31, 2012, net of taxes
(97
)
 
73

 
(3,667
)
(4) 
(991
)
 
(4,682
)
Other comprehensive income (loss) before reclassification adjustments, pretax
335

 
33

 
3,917

 
(383
)
 
3,902

Tax
(132
)
 
(23
)
 
(1,365
)
 
(100
)
 
(1,620
)
Other comprehensive income (loss) before reclassification adjustments, net of taxes
203

 
10

 
2,552

 
(483
)
 
2,282

Reclassification adjustments, pretax
42

 
(39
)
 
286

 
—

 
289

Tax
(16
)
 
10

 
(80
)
 
—

 
(86
)
Reclassification adjustments, net of taxes
26

(1) 
(29
)
(2) 
206

(3) 
—

 
203

Other comprehensive income (loss), net of taxes
229

 
(19
)
 
2,758

 
(483
)
 
2,485

Balance December 31, 2013, net of taxes
$
132

 
$
54

 
$
(909
)
(4) 
$
(1,474
)
 
$
(2,197
)
(1)
Relates to foreign currency cash flow hedges that were reclassified from AOCI to Sales.
(2)
Represents net realized gains on the sales of available-for-sale investments that were reclassified from AOCI to Other (income) expense, net.
(3)
Includes net amortization of prior service cost and actuarial gains and losses included in net periodic benefit cost (see Note 13).
(4) 
Includes pension plan net loss of $(1.7) billion and $(4.1) billion at December 31, 2013 and 2012, respectively, and other postretirement benefit plan net loss of $(80) million and $(414) million at December 31, 2013 and in 2012, respectively, as well as pension plan prior service credit of $559 million and $449 million at December 31, 2013 and 2012, respectively, and other postretirement benefit plan prior service credit of $331 million and $354 million at December 31, 2013 and 2012.

Included in cumulative translation adjustment are pretax gains of approximately $392 million for 2011 relating to translation impacts of intangible assets recorded in conjunction with the Merger.

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