AT&T Wireless 2014 Annual Report Download - page 52

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
50 | AT&T INC.
NOTE 3. OTHER COMPREHENSIVE INCOME
Changes in the balances of each component included in accumulated OCI are presented below. For the year ended
December 31, 2014, the amounts reclassified from accumulated OCI include amounts realized upon the sale of our
investment in América Móvil, S.A. de C.V. (América Móvil) (see Note 5). All amounts are net of tax and exclude
noncontrolling interest.
At December 31, 2014 and 2013 and for the years ended
Foreign Net Unrealized Net Unrealized Defined Accumulated
Currency Gains (Losses) on Gains (Losses) Benefit Other
Translation Available-for- on Cash Flow Postretirement Comprehensive
Adjustment Sale Securities Hedges Plans Income
Balance as of December 31, 2012 $(284) $ 272 $(110) $ 5,358 $ 5,236
Other comprehensive income (loss)
before reclassifications (138) 257 525 2,765 3,409
Amounts reclassified from accumulated OCI 551 (79)2 303 (771)4 (765)
Net other comprehensive income (loss) (83) 178 555 1,994 2,644
Balance as of December 31, 2013 (367) 450 445 7,352 7,880
Other comprehensive income (loss)
before reclassifications (75) 64 260 428 677
Amounts reclassified from accumulated OCI 4161 (16)2 363 (933)4 (497)
Net other comprehensive income (loss) 341 48 296 (505) 180
Balance as of December 31, 2014 $ (26) $498 $741 $6,847 $8,060
1 Translation (gain) loss reclassifications are included in Other income (expense) – net in the consolidated statements of income.
2 (Gains) losses are included in Other income (expense) – net in the consolidated statements of income.
3 (Gains) losses are included in interest expense in the consolidated statements of income. See Note 10 for additional information.
4 The amortization of prior service credits associated with postretirement benefits, net of amounts capitalized as part of construction labor, are included in Cost of services and
sales and Selling, general and administrative in the consolidated statements of income (see Note 12). Actuarial loss reclassifications related to our equity method investees are
included in Other income (expense) – net in the consolidated statements of income.
The Wireline segment uses our regional, national and global
network to provide consumer and business customers with
data and voice communications services, AT&T U-verse®
high speed Internet, video and VoIP services and managed
networking to business customers.
The Corporate and Other column includes unallocated
corporate expenses, which includes costs to support
corporate-driven activities and operations, impacts of
corporate-wide decisions for which the individual operating
segments are not being evaluated, including interest costs
and expected return on plan assets for our pension and
postretirement benefit plans as well as our actuarial
gains and losses on our pension and postretirement
plan valuations. Results from equity method investments
in América Móvil (prior to the June 2014 disposal of
our investment), YP Holdings LLC, and Otter Media (our
joint venture with The Chernin Group), are also excluded
from our segment results as those results are not
considered in our assessment of segment performance.
We have revised our prior-period presentation to conform
to our current reporting.
NOTE 4. SEGMENT INFORMATION
Our segments are strategic business units that offer
different products and services over various technology
platforms and are managed accordingly. We analyze our
operating segments based on segment income before
income taxes. We make our capital allocation decisions
based on our strategic direction of the business, needs of
the network (wireless or wireline) providing services and
to provide emerging services to our customers. Actuarial
gains and losses from pension and other postretirement
benefits, interest expense and other income (expense)
– net, are managed only on a total company basis and
are, accordingly, reflected only in consolidated results.
Therefore, these items are not included in each segment’s
reportable results. The customers and long-lived assets
of our reportable segments are predominantly in the
United States. We have two reportable segments:
(1)Wireless and (2)Wireline. Our operating results
prior to May 9, 2012, also included our sold Advertising
Solutions segment (see Note 5).
The Wireless segment uses our nationwide network to
provide consumer and business customers with wireless
data and voice communications services. This segment
included our portion of the results from our equity
investment in the SoftcardTM mobile wallet joint venture.