Raytheon 2012 Annual Report Download - page 96

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
88
Advance Payments and Billings in Excess of Costs Incurred—We receive advances, performance-based payments and
progress payments from customers that may exceed costs incurred on certain contracts. We classify advance payments and
billings in excess of costs incurred as current liabilities. Costs incurred in excess of billings are classified as contracts in
process, net.
Other Comprehensive Income (Loss)—Other comprehensive income (loss) includes foreign exchange translation
adjustments, gains and losses on derivative instruments qualified as cash flow hedges, unrealized gains (losses) on investments,
and gains and losses associated with pension and other postretirement benefits. The computation of other comprehensive
income (loss) and its components are presented in the consolidated statements of comprehensive income. The related gross,
tax and net amounts for each component were as follows:
(In millions) Year Ended December 31, 2012
Before-
Tax
Amount
Tax
(Expense)
Benefit
Net-of-
Tax
Amount
Foreign exchange translation $ 35 $ — $ 35
Cash flow hedges and interest rate locks 13 (5) 8
Unrealized gain (loss) on investments, and other, net (6) 1 (5)
Pension and other employee benefit plans:
Net change in initial net obligation 1 — 1
Prior service (cost) credit arising during period (2) 1 (1)
Net loss arising during period (2,217) 779 (1,438)
Amortization of prior service cost (credit) included in net periodic pension
expense 7(2) 5
Amortization of net actuarial loss included in net income 942 (330) 612
Effect of exchange rates (6) 2 (4)
Pension and other employee benefit plans, net (1,275) 450 (825)
Other comprehensive income (loss) $(1,233) $ 446 $ (787)
(In millions) Year Ended December 31, 2011
Before-
Tax
Amount
Tax
(Expense)
Benefit
Net-of-Tax
Amount
Foreign exchange translation $ (3)$ — $ (3)
Cash flow hedges and interest rate locks (9) 3 (6)
Unrealized gain (loss) on investments, and other, net 3 3 6
Pension and other employee benefit plans:
Net change in initial net obligation 4 (2) 2
Prior service (cost) credit arising during period 45 (17) 28
Net loss arising during period (3,688) 1,290 (2,398)
Amortization of prior service cost (credit) included in net periodic pension
expense 1 — 1
Amortization of net actuarial loss included in net income 795 (279) 516
Effect of exchange rates (2) 1 (1)
Pension and other employee benefit plans, net (2,845) 993 (1,852)
Other comprehensive income (loss) $ (2,854) $ 999 $ (1,855)