Apple 2015 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2015 Apple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

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 Consolidated Statements of Operations, and the
associated financial statement line item, for 2015 and 2014 (in millions):
Comprehensive Income Components Financial Statement Line Item 2015 2014
Unrealized (gains)/losses on derivative instruments:
Foreign exchange contracts Revenue $ (2,432) $ 449
Cost of sales (2,168) (295)
Other income/(expense), net 456 15
Interest rate contracts Other income/(expense), net 17 16
(4,127) 185
Unrealized (gains)/losses on marketable securities Other income/(expense), net 91 (205)
Total amounts reclassified from AOCI $ (4,036) $ (20)
The following table shows the changes in AOCI by component for 2015 (in millions):
Cumulative
Foreign
Currency
Translation
Unrealized
Gains/Losses
on Derivative
Instruments
Unrealized
Gains/Losses
on Marketable
Securities Total
Balance at September 28, 2013 $ (105) $ (175) $ (191) $ (471)
Other comprehensive income/(loss) before reclassifications (187) 1,687 438 1,938
Amounts reclassified from AOCI 0 185 (205) (20)
Tax effect 50 (333) (82) (365)
Other comprehensive income/(loss) (137) 1,539 151 1,553
Balance at September 27, 2014 (242) 1,364 (40) 1,082
Other comprehensive income/(loss) before reclassifications (612) 3,346 (747) 1,987
Amounts reclassified from AOCI 0 (4,127) 91 (4,036)
Tax effect 201 189 232 622
Other comprehensive income/(loss) (411) (592) (424) (1,427)
Balance at September 26, 2015 $ (653) $ 772 $ (464) $ (345)
Apple Inc. | 2015 Form 10-K | 61