Intel 2006 Annual Report Download - page 82

Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 10: Comprehensive Income
The components of comprehensive income and related tax effects were as follows:
The components of accumulated other comprehensive income (loss), net of tax, were as follows:
The adjustment for initially applying SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R)” (SFAS No. 158), net of tax, was
recorded to accumulated other comprehensive income (loss) for $210 million as of December 30, 2006. See “Note 13:
Retirement Benefit Plans.”
The estimated net prior service cost, actuarial loss, and transition obligation for the defined benefit plan that will be amortized
from accumulated other comprehensive income (loss) into net periodic benefit cost during fiscal year 2007 is $4 million, $16
million, and zero, respectively.
For 2006, $6 million of net deferred holding losses on derivatives were reclassified from accumulated other comprehensive
income (loss) to cost of sales and operating expense related to the company’s non-U.S.-currency capital purchase and
operating cost hedging programs (gains of $38 million in 2005 and gains of $8 million in 2004). The company estimates that
less than $35 million of net derivative gains included in accumulated other comprehensive income (loss) will be reclassified
into earnings within the next 12 months. For all periods presented, the portion of hedging instruments’ gains or losses
excluded from the assessment of effectiveness and the ineffective portions of hedges had an insignificant impact on earnings
for both cash flow and fair value hedges. Additionally, for all periods presented, there was no significant impact on results of
operations from discontinued cash flow hedges as a result of forecasted transactions that did not occur.
71
(In Millions)
2006 2005 2004
Net income
$
5,044
$
8,664
$
7,516
Change in net unrealized holding gain on investments, net of tax of $(33), $(60), and $(17) in
2006, 2005, and 2004, respectively
61
101
31
Less: adjustment for net gain on investments included in net income, net of tax of $27, $22,
and $15 in 2006, 2005, and 2004, respectively
(48
)
(38
)
(29
)
Change in net unrealized holding gain or loss on derivatives, net of tax of $(22), $25, and
$(34) in 2006, 2005, and 2004, respectively
37
(42
)
63
Less: adjustment for amortization of net gain or loss on derivatives included in net income,
net of tax of $(3), $22, and $4 in 2006, 2005, and 2004, respectively
6
(38
)
(8
)
Minimum pension liability, net of tax of $6 in 2006 and $5 in 2005
(30
)
(8
)
(1
)
Total comprehensive income
$
5,070
$
8,639
$
7,572
(In Millions)
2006 2005
Accumulated net unrealized holding gain on
available
-
for
-
sale
investments
$
113
$
100
Accumulated net unrealized holding gain on derivatives
80
37
Accumulated minimum pension liability
—
(
10
)
Accumulated net prior service costs
(16
)
—
Accumulated net actuarial losses
(232
)
—
Accumulated transition obligation
(2
)
—
Total accumulated other comprehensive income (loss)
$
(57
)
$
127