Comprehensive Income

12 Months Ended

Sep. 26, 2020

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 debt securities classified as available-for-sale.

The following table shows the pre-tax amounts reclassified from AOCI into the Consolidated Statements of Operations, and the associated financial statement line items, for 2020 and 2019 (in millions):


Comprehensive Income Components	Financial Statement Line Items	2020		2019
Unrealized (gains)/losses on derivative instruments:
Foreign exchange contracts	Total net sales	$	(365)	$	(206)
	Total cost of sales	(584)		(482)
	Other income/(expense), net	(604)		784
Interest rate contracts	Other income/(expense), net	8		7
		(1,545)		103
Unrealized (gains)/losses on marketable debt securities	Other income/(expense), net	(82)		31
Total amounts reclassified from AOCI		$	(1,627)	$	134

The following table shows the changes in AOCI by component for 2020 and 2019 (in millions):


	Cumulative Foreign Currency Translation		Unrealized Gains/Losses on Derivative Instruments		Unrealized Gains/Losses on Marketable Debt Securities		Total
Balances as of September 29, 2018	$	(1,055)	$	810	$	(3,209)	$	(3,454)
Other comprehensive income/(loss) before reclassifications	(421)		(949)		4,854		3,484
Amounts reclassified from AOCI	—		103		31		134
Tax effect	13		208		(1,058)		(837)
Other comprehensive income/(loss)	(408)		(638)		3,827		2,781
Cumulative effect of change in accounting principle	—		—		89		89
Balances as of September 28, 2019	(1,463)		172		707		(584)
Other comprehensive income/(loss) before reclassifications	91		115		1,560		1,766
Amounts reclassified from AOCI	—		(1,545)		(82)		(1,627)
Tax effect	(3)		245		(339)		(97)
Other comprehensive income/(loss)	88		(1,185)		1,139		42
Cumulative effect of change in accounting principle (1)	—		136		—		136
Balances as of September 26, 2020	$	(1,375)	$	(877)	$	1,846	$	(406)

(1)Refer to Note 1, “Summary of Significant Accounting Policies” for more information on the Company’s adoption of ASU 2017-12 in 2020.