Verizon Wireless 2009 Annual Report Download - page 73

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Notes to Consolidated Financial Statements continued
NOTE 15
COMPREHENSIVE INCOME
Comprehensive income (loss) consists of net income and other gains and
losses affecting equity that, under GAAP, are excluded from net income.
Significant changes in the components of Other comprehensive income
(loss), net of income tax expense (benefit), are described below.
Foreign Currency Translation
The changes in Foreign currency translation adjustments were as follows:
(dollars in millions)
Years Ended December 31, 2009 2008 2007
Foreign Currency Translation
Adjustments:
Vodafone Omnitel $ 49 $ (119) $ 397
CANTV ––412
Other international operations 29 (112) 29
$ 78 $ (231) $ 838
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, 2009 2008 2007
Unrealized Gains (Losses) on
Cash Flow Hedges
Unrealized gains (losses), net of taxes $ 112 $ (43) $ (2)
Less reclassification adjustments
for gains realized in net income,
net of taxes 25 (3) (3)
Net unrealized gains (losses) on
cash flow hedges $ 87 $ (40) $ 1
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, 2009 2008 2007
Unrealized Gains (Losses) on
Marketable Securities
Unrealized gains (losses), net of taxes $ 95 $ (142) $ 13
Less reclassification adjustments
for gains (losses) realized in net income,
net of taxes 8 (45) 17
Net unrealized gains (losses)
on marketable securities $ 87 $ (97) $ (4)
Accumulated Other Comprehensive Loss
The components of Accumulated other comprehensive loss were as
follows:
(dollars in millions)
At December 31, 2009 2008
Foreign currency translation adjustments $ 1,014 $ 936
Net unrealized gain (loss) on cash flow hedges 37 (50)
Unrealized gain (loss) on marketable securities 50 (37)
Defined benefit pension and postretirement plans (12,580) (14,221)
Accumulated Other Comprehensive Loss $ (11,479) $ (13,372)
Foreign Currency Translation Adjustments
The change in Foreign currency translation adjustments during 2009 was
primarily driven by the devaluation of the U.S. dollar against the Euro. The
change in Foreign currency translation adjustments during 2008 was pri-
marily driven by the settlement of the foreign currency forward contracts,
which hedged a portion of our net investment in Vodafone Omnitel and
the devaluation of the Euro. During 2007, we sold our interest in CANTV
(see Note 3).
Net Unrealized Gains (Losses) on Cash Flow Hedges
During 2009 and 2008, Unrealized gains on cash flow hedges, included in
Other comprehensive income attributable to noncontrolling interest, pri-
marily reflects activity related to the cross currency swap (see Note 10).
Defined Benefit Pension and Postretirement Plans
The change in Defined benefit pension and postretirement plans of $1.6
billion, net of taxes of $1.2 billion at December 31, 2009 was attributable
to the change in the funded status of the plans in connection with the
required annual pension and postretirement valuation. The funded status
was impacted by changes in asset performance, actuarial assumptions,
plan experience and settlement losses (see Note 12).
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 attribut-
able to the change in the funded status of the plans in connection with
the required annual pension and postretirement valuation. The funded
status was impacted by changes in asset performance, actuarial assump-
tions, 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 connec-
tion with the spin-off of our local exchange and related business assets in
Maine, New Hampshire and Vermont.
The change in Defined benefit pension and postretirement plans of $1.9
billion, net of taxes of $0.7 billion, at December 31, 2007 was attributable
to the change in the funded status of the plans in connection with the
required annual pension and postretirement valuation. The funded status
was impacted by changes in actuarial assumptions, asset performance
and plan experience.