Johnson \& Johnson reports the following schedule of other comprehensive income in its 2011 10-K report (\$ millions):

a. Describe how firms like Johnson \& Johnson typically use derivatives.

b. How does Johnson \& Johnson report its derivatives designated as cash-flow hedges on its balance sheet?

c. By what amount have the unrealized losses of \(\$(333)\) million on the cash-flow hedges affected current income? What are the analysis implications?

d. What does the \(\$ 288\) million classified as "Net amount reclassed to net earnings" relate to? How has this affected Johnson \& Johnson's profit?

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(Dollars in Millions) January 3, 2010. 2010 changes.. Unrealized gain (loss). Net amount reclassed to net earnings.. Net 2010 changes January 2, 2011 Foreign Currency on Translation Securities $(508) $(30) (461) $(969) Gains/ (Losses) Employee Total Accumulated Other Benefit Derivatives Comprehensive Plans & Hedges Income/(Loss) $(2,665) $145 $(3,058) 99 (45) 54 $24 Gains/ (Losses) on (21) $(2,686) (333) 288 (45) $100 (473) $(3,531)