Note 17—Accumulated Other Comprehensive Income (Loss)

Sections

NOTE 17—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss) is presented in stockholders’ equity in the Consolidated Statements of Financial Position and is comprised of amounts related to foreign currency translation adjustments and amounts related to the Company’s cash flow hedges.

The following table presents changes in accumulated other comprehensive income (loss), net of tax, by the following components for the periods indicated:

     Foreign
Currency
Translation
Adjustments
    Cash Flow
Hedges
    Accumulated
Other
Comprehensive
Income
 
     (in millions)  

Successor

      

Balances at January 31, 2014

   $ (28   $ 1      $ (27

Other comprehensive income before reclassifications

     (192     427        235   

Amounts reclassified from accumulated other comprehensive income

     —          (179     (179
  

 

 

   

 

 

   

 

 

 

Total change for the period

     (192     248        56   
  

 

 

   

 

 

   

 

 

 

Balances at January 30, 2015

   $ (220   $ 249      $ 29   
  

 

 

   

 

 

   

 

 

 

Balances at January 30, 2015

   $ (220   $ 249      $ 29   

Other comprehensive income before reclassifications

     (138     152        14   

Amounts reclassified from accumulated other comprehensive income

     —          (367     (367
  

 

 

   

 

 

   

 

 

 

Total change for the period

     (138     (215     (353
  

 

 

   

 

 

   

 

 

 

Balances at January 29, 2016

   $ (358   $ 34      $ (324
  

 

 

   

 

 

   

 

 

 

Amounts related to the Company’s cash flow hedges are reclassified to net income during the same period in which the items being hedged are recognized in earnings. In addition, any hedge ineffectiveness related to cash flow hedges is recognized currently in net income. See Note 7 of the Notes to the Audited Consolidated Financial Statements for more information on the Company’s derivative instruments. The following table presents gains and (losses) reclassified from accumulated other comprehensive loss, net of tax, to net income (loss) for the respective periods:

     Successor  
     Fiscal Year Ended
January 29, 2016
     Fiscal Year Ended
January 30, 2015
 
     Cash
Flow
Hedges
     Total
Reclassifications,
net of tax
     Cash
Flow
Hedges
     Total
Reclassifications,
net of tax
 
     (in millions)  

Net Revenue

   $ 328       $ 328       $ 163       $ 163   

Cost of net revenue

     40         40         15         15   

Interest and other, net

     (1      (1      1         1   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 367       $ 367       $ 179       $ 179   
  

 

 

    

 

 

    

 

 

    

 

 

 

- F-63 -

DENALI HOLDING INC.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

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