Verizon Wireless 2008 Annual Report Download - page 71

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Notes to Consolidated Financial Statements continued
NOTE 18
COMPREHENSIVE INCOME
Comprehensive income (loss) consists of net income and other gains
and losses affecting shareowners’ investment that, under GAAP, are
excluded from net income. Significant changes in the components of
Other comprehensive income (loss), net of income tax expense (ben-
efit), are described below.
Foreign Currency Translation
(dollars in millions)
Years Ended December 31, 2008 2007 2006
Foreign Currency Translation
Adjustments:
Vodafone Omnitel $ (119) $ 397 $ 330
CANTV –412 –
Verizon Dominicana –– 786
Other international operations (112) 29 80
$ (231) $ 838 $ 1,196
Net Unrealized Gains (Losses) on Cash Flow Hedges
The changes in Unrealized Gains (Losses) on Cash Flow Hedges were
as follows:
(dollars in millions)
Years Ended December 31, 2008 2007 2006
Unrealized Gains (Losses) on
Cash Flow Hedges
Unrealized gains (losses), net of taxes $ (43) $ (2) $ 11
Less reclassication adjustments
for losses realized in net income,
net of taxes (3) (3) (3)
Net unrealized gains (losses) on
cash ow hedges $ (40) $ 1 $ 14
Unrealized Gains (Losses) on Marketable Securities
The changes in Unrealized Gains (Losses) on Marketable Securities were
as follows:
(dollars in millions)
Years Ended December 31, 2008 2007 2006
Unrealized Gains (Losses) on
Marketable Securities
Unrealized gains (losses), net of taxes $ (142) $ 13 $ 79
Less reclassication adjustments
for gains (losses) realized in
net income, net of taxes (45) 17 25
Net unrealized gains (losses) on
marketable securities $ (97) $ (4) $ 54
Accumulated Other Comprehensive Loss
The components of Accumulated Other Comprehensive Loss are as
follows:
(dollars in millions)
At December 31, 2008 2007
Foreign currency translation adjustments $ 936 $ 1,167
Net unrealized losses on hedging (50) (10)
Unrealized gains (losses) on marketable securities (37) 60
Dened benet pension and postretirement plans (14,221) (5,723)
Accumulated Other Comprehensive Loss $ (13,372) $ (4,506)
Foreign Currency Translation Adjustments
The change in foreign currency translation adjustments at December
31, 2008 was primarily driven by the settlement of the foreign currency
forward contracts which hedged a portion of our net investment in
Vodafone Omnitel (see Note 11) and the devaluation of the Euro. During
2007 we sold our interest in CANTV. During 2006 we sold our interest in
Verizon Dominicana. See Note 3 for information on CANTV and Verizon
Dominicana.
Defined Benefit Pension and Postretirement Plans
The change in defined benefit pension and postretirement plans of
$8.5 billion, net of taxes of $5.4 billion, at December 31, 2008 was attrib-
utable to the change in the funded status of the plans in connection
with the annual pension and postretirement valuation in accordance
with SFAS No. 158. The funded status was impacted by changes in asset
performance, actuarial assumptions, and plan experience. In addition
to the pension and postretirement items, we recorded a reduction to
the beginning balance of Accumulated other comprehensive loss of
$79 million ($44 million after-tax) in connection with the spin-off of our
local exchange and related business assets in Maine, New Hampshire
and Vermont.