Verizon Wireless 2014 Annual Report Download - page 74

Download and view the complete annual report

Please find page 74 of the 2014 Verizon Wireless 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 80

  • 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

72
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
NOTE 15
COMPREHENSIVE INCOME
Comprehensive income consists of net income and other gains and losses aecting equity that, under U.S. GAAP, are excluded from net income.
Signicant changes in the components of Other comprehensive income, net of provision for income taxes are described below.
Accumulated Other Comprehensive Income
The changes in the balances of Accumulated other comprehensive income by component are as follows:
(dollars in millions)
Foreign currency
translation
adjustments
Unrealized
loss on cash
flow hedges
Unrealized
loss on
marketable
securities
Defined benefit
pension and
postretirement
plans Total
Balance at January 1, 2014 $ 853 $ 113 $ 117 $ 1,275 $ 2,358
Other comprehensive income (loss) (288) (89) 14 – (363)
Amounts reclassied to net income (911) (108) (19) 154 (884)
Net other comprehensive income (loss) (1,199) (197) (5) 154 (1,247)
Balance at December 31, 2014 $ (346) $ (84) $ 112 $ 1,429 $ 1,111
Net Unrealized Gains (Losses) on Marketable Securities
During 2014, 2013 and 2012, reclassication adjustments on marketable
securities for gains (losses) realized in net income were not signicant.
Dened Benet Pension and Postretirement Plans
The change in Defined benefit pension and postretirement plans at
December 31, 2014 and 2013, respectively, was not signicant.
The amounts presented above in net other comprehensive income (loss)
are net of taxes and noncontrolling interests, which are not signicant.
For the year ended December 31, 2014, the amounts reclassied to net
income related to foreign currency translation adjustments are included
in Equity in earnings of unconsolidated businesses on our consolidated
statement of income and are a result of the completion of the Omnitel
transaction. See Note 2 for additional details. For the year ended
December 31, 2014, the amounts reclassied to net income related to
dened benet pension and postretirement plans in the table above are
included in Cost of services and sales and Selling, general and adminis-
trative expense on our consolidated statement of income. For the year
ended December 31, 2014, all other amounts reclassied to net income
in the table above are included in Other income and (expense), net on
our consolidated statement of income.
Foreign Currency Translation Adjustments
The change in Foreign currency translation adjustments during 2014
was primarily a result of the completion of the Omnitel transaction. The
change in Foreign currency translation adjustments during 2013 and
2012 was primarily related to our investment in Vodafone Omnitel N.V.
which was driven by the movements of the U.S. dollar against the Euro.
Net Unrealized Gains (Losses) on Cash Flow Hedges
During 2014, 2013 and 2012, Unrealized gains (losses) on cash flow
hedges included in Other comprehensive income (loss) attributable to
noncontrolling interests, primarily reect activity related to cross currency
swaps (see Note 10). Reclassication adjustments for gains (losses) real-
ized in net income were not signicant.