Comprehensive Income

3 Months Ended

Dec. 28, 2013

Comprehensive Income

Note 8 – Comprehensive Income

Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income 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 other comprehensive income 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 gross amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations and the associated financial statement line item, for the three months ended December 28, 2013:

Comprehensive Income Components	Financial Statement Line Item	Amount (in  millions)
Unrecognized gains/losses on derivative instruments:
Foreign exchange contracts	Revenue	$	184
	Cost of Sales		(110	)
	Other income/expense, net		10
Interest rate contracts	Other income/expense, net		4
			88
Unrealized gains/losses on marketable securities	Other income/expense, net		(17	)
Total amounts reclassified from AOCI		$	71

The following table shows the changes in AOCI by component for the three months ended December 28, 2013 (in millions):

	Cumulative Foreign Currency Translation			Unrecognized Gains/Losses on Derivative Instruments			Unrealized Gains/Losses on Marketable Securities			Total
September 28, 2013	$	(105	)	$	(175	)	$	(191	)	$	(471	)
Other comprehensive income/(loss) before reclassifications		(90	)		261			(68	)		103
Amounts reclassified from AOCI		0			88			(17	)		71
Tax effect		23			(64	)		32			(9	)
Other comprehensive income/(loss)		(67	)		285			(53	)		165
December 28, 2013	$	(172	)	$	110		$	(244	)	$	(306	)