John Deere 2009 Annual Report Download - page 44

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Before Tax After
Tax (Expense) Tax
Amount Credit Amount
2008
Retirement benefi ts adjustment:
Net actuarial losses and
prior service cost .............................. $ (567) $ 174 $ (393)
Reclassifi cation of actuarial losses
and prior service cost
to net income .................................... 142 (54) 88
Net unrealized loss ................................ (425) 120 (305)
Cumulative translation adjustment .............. (401) (5) (406)
Unrealized loss on derivatives:
Hedging loss ......................................... (73) 24 (49)
Reclassifi cation of realized loss
to net income .................................... 24 (8) 16
Net unrealized loss ................................ (49) 16 (33)
Unrealized loss on investments:
Holding loss .......................................... (38) 13 (25)
Reclassifi cation of realized
loss to net income ............................. 29 (10) 19
Net unrealized loss ................................ (9) 3 (6)
Total other comprehensive income (loss) .... $ (884) $ 134 $ (750)
2009
Retirement benefi ts adjustment:
Net actuarial losses and
prior service cost .............................. $ (4,198) $ 1,587 $(2,611)
Reclassifi cation of actuarial losses
and prior service cost
to net income .................................... 105 (31) 74
Net unrealized loss ................................ (4,093) 1,556 (2,537)
Cumulative translation adjustment .............. 326 1 327
Unrealized loss on derivatives:
Hedging loss ......................................... (90) 31 (59)
Reclassifi cation of realized loss
to net income .................................... 84 (29) 55
Net unrealized loss ................................ (6) 2 (4)
Unrealized gain on investments:
Holding loss .......................................... (793) 278 (515)
Reclassifi cation of realized
loss to net income ............................. 805 (282) 523
Net unrealized gain ................................ 12 (4) 8
Total other comprehensive income (loss) .... $ (3,761) $ 1,555 $ (2,206)
During 2009, 2008 and 2007 the total share-based
compensation expense was $70 million, $71 million and
$82 million with an income tax benefi t recognized in net
income of $26 million, $26 million and $30 million, respec-
tively. At October 31, 2009, there was $29 million of total
unrecognized compensation cost from share-based compensation
arrangements granted under the plans, which is related to
nonvested shares. This compensation is expected to be recog-
nized over a weighted-average period of approximately 2 years.
The total fair values of stock options and restricted shares vested
during 2009, 2008 and 2007 were $66 million, $74 million and
$69 million, respectively.
Prior to adoption of a new accounting standard in 2006,
the pro-forma disclosure used a straight-line amortization of the
stock option and restricted stock expense over the vesting period,
which included employees eligible to retire. Under the new
standard, the awards granted after the adoption must be recog-
nized in expense over the requisite service period, which is either
immediate if the employee is eligible to retire, or over the vesting
period if the employee is not eligible to retire. The amount of
expense for awards granted prior to adoption of the new
standard for employees eligible to retire that continued to be
amortized over the nominal vesting period was insignifi cant in
2009 and 2008. In 2007, it was approximately $12 million
pretax, $8 million after-tax ($.02 per share, basic and diluted).
The company currently uses shares which have been
repurchased through its stock repurchase programs to satisfy
share option exercises. At October 31, 2009, the company
had 113 million shares in treasury stock and 123 million shares
remaining to be repurchased under its current publicly
announced repurchase program (see Note 23).
25. OTHER COMPREHENSIVE INCOME ITEMS
Other comprehensive income items are transactions recorded in
stockholders’ equity during the year, excluding net income and
transactions with stockholders. Following are the items included
in other comprehensive income (loss) and the related tax effects
in millions of dollars:
Before Tax After
Tax (Expense) Tax
Amount Credit Amount
2007
Minimum pension liability adjustment ......... $ 104 $ (38) $ 66
Cumulative translation adjustment .............. 325 4 329
Unrealized loss on derivatives:
Hedging loss ......................................... (16) 6 (10)
Reclassifi cation of realized gain
to net income .................................... (6) 2 (4)
Net unrealized loss ................................ (22) 8 (14)
Unrealized loss on investments:
Holding loss .......................................... (6) 2 (4)
Reclassifi cation of realized
loss to net income ............................. 4 (1) 3
Net unrealized loss ................................ (2) 1 (1)
Total other comprehensive income (loss) .... $ 405 $ (25) $ 380
(continued)