Motorola 2013 Annual Report Download - page 74

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72
The following table summarizes the gains and losses recognized in the consolidated financial statements, including
immaterial amounts related to discontinued operations, for the years ended December 31, 2013, 2012 and 2011:
December 31,
Financial Statement
LocationForeign Exchange Contracts 2013 2012 2011
Derivatives in cash flow hedging relationships
Other comprehensive gains (losses) before
reclassifications $(1)$ 3 $ (1)Accumulated other
comprehensive loss
Gains (losses) reclassified from Accumulated
other comprehensive loss into Net earnings 1(1) 2 Cost of sales
Gain recognized in Net earnings on derivative
(ineffective portion and amount excluded from
effectiveness testing) —— 1 Other income (expense)
Stockholders’ Equity
Derivative instruments activity, net of tax, included in Accumulated other comprehensive loss within the consolidated
statements of stockholders’ equity for the years ended December 31, 2013, 2012 and 2011 were as follows:
2013 2012 2011
Balance at January 1 $ 1 $(3) $ —
Increase (decrease) in fair value (1)3(1)
Reclassifications to earnings, net of tax (1)1(2)
Balance at December 31 $(1)$ 1 $ (3)
6. Income Taxes
Components of earnings from continuing operations before income taxes are as follows:
Years ended December 31 2013 2012 2011
United States $ 850 $ 851 $ 462
Other nations 295 364 276
$ 1,145 $ 1,215 $ 738
Components of income tax expense (benefit) are as follows:
Years ended December 31 2013 2012 2011
United States $ 29 $ 5 $ 2
Other nations 230 89 30
States (U.S.) 12 1 3
Current income tax expense 271 95 35
United States (283)296 (118)
Other nations 40 (12) 111
States (U.S.) 12 (42)(31)
Deferred income tax expense (benefit) (231)242 (38)
Total income tax expense (benefit) $ 40 $ 337 $ (3)
Deferred tax charges that were recorded within Accumulated other comprehensive loss in the Company’s consolidated
balance sheets resulted from retirement benefit adjustments, currency translation adjustments, net gains (losses) on derivative
instruments and fair value adjustments to available-for-sale securities. The adjustments were $606 million, $(272) million and
$(259) million for the years ended December 31, 2013, 2012 and 2011, respectively.
The Company evaluates its permanent reinvestment assertions with respect to foreign earnings at each reporting period
and, except for certain earnings that the Company intends to reinvest indefinitely due to the capital requirements of the foreign
subsidiaries or due to local country restrictions, accrues for the U.S. federal and foreign income tax applicable to the earnings.
During the first quarter of 2013, the Company reassessed its unremitted earnings position and concluded that certain of its non-