Verizon Wireless 2010 Annual Report Download - page 74

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Notes to Consolidated Financial Statements continued
NOTE 15
COMPREHENSIVE INCOME
Comprehensive income consists of net income and other gains and losses
affecting equity that, under generally accepted accounting principles, are
excluded from net income. Significant changes in the components of
Other comprehensive income (loss), net of (provision) benefit for income
taxes are described below.
Foreign Currency Translation
The changes in Foreign currency translation adjustments were as follows:
(dollars in millions)
Years Ended December 31, 2010 2009 2008
Vodafone Omnitel $ (119) $ 49 $ (119)
Other international operations (52) 29 (112)
Foreign currency translation
adjustments $ (171) $ 78 $ (231)
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, 2010 2009 2008
Unrealized gains (losses) $ 38 $ 112 $ (43)
Less reclassification adjustments for gains
(losses) realized in net income (51) 25 (3)
Net unrealized gains (losses) on
cash flow hedges $ 89 $ 87 $ (40)
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, 2010 2009 2008
Unrealized gains (losses) $ 37 $ 95 $ (142)
Less reclassification adjustments for gains
(losses) realized in net income 8 8 (45)
Net unrealized gains (losses) on
marketable securities $ 29 $ 87 $ (97)
Foreign Currency Translation Adjustments
The change in Foreign currency translation adjustments during 2010 was
primarily driven by the devaluation of the Euro versus the U.S. dollar. The
change in Foreign currency translation adjustments during 2009 was pri-
marily driven by the devaluation of the U.S. dollar versus 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 versus the U.S. dollar.
Net Unrealized Gains (Losses) on Cash Flow Hedges
During 2010, 2009 and 2008, Unrealized gains (losses) on cash flow
hedges included in Other comprehensive income attributable to non-
controlling interest, primarily reflects activity related to a cross currency
swap (see Note 10).
Defined Benefit Pension and Postretirement Plans
The change in Defined benefit pension and postretirement plans of $2.5
billion, net of taxes of $1.2 billion at December 31, 2010 was attribut-
able to the change in prior service cost. The change was impacted by
a change to our Medicare Part D strategy, resulting in the adoption of
plan amendments during the fourth quarter of 2010, which will allow
the company to be eligible for greater Medicare Part D plan subsidies
over time and was also impacted by the curtailment losses associated
with the voluntary incentive program for union-represented employees
recorded in the second quarter of 2010 (see Note 12). The change in
Defined benefit pension and postretirement plans of $0.3 billion, net of
taxes of $0.4 billion at December 31, 2009 was attributable to a change
in prior service cost.
Accumulated Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive income (loss)
were as follows:
(dollars in millions)
At December 31, 2010 2009
Foreign currency translation adjustments $ 843 $ 1,014
Net unrealized gain on cash flow hedges 126 37
Unrealized gain on marketable securities 79 50
Defined benefit pension and postretirement plans 1 (2,473)
Accumulated Other Comprehensive Income (Loss) $ 1,049 $ (1,372)