Question 1 Tries remaining: 1 Marked out of 5.00 Flag question on Reporting and Analyzing Derivatives Johnson & Johnson reports the following information derived from the schedule of Accumulated Other Comprehensive Income and the Consolidation Statements of Comprehensive Income in its 2016 10-K report. Total Gains/(Losses) Accumulated Foreign Gains/(Losses) Employee on Other currency Benefit Derivatives & Comprehensive S millions translation Securities Plans Hedges Income/(Loss) December 28, 2014 $14,803) $257 $16,317) $141 $(10,722) 2015 changes Unrealized gain (loss) 471 (115) Nel amount reclassed lonel earnings (124) (62) Net 2015 changes 3,632) 347 1,019 (177) 2,443) January 3, 2016 $8,435) $604 $(5,298) $(36) $(13,165) b. How does Johnson & Johnson report its derivatives as cash-flow hedges on its balance sheet? Cash-flow hedges are reported at on the balance sheet. Changes in value are recognized on the c. By what amount have the unrealized losses of $(115) million on the cash flow hedges affected current income? Current income by 5 0 million. d. What does the $(62) million classified as "Net amount reclassed to net earnings" relate to? How has this affected Johnson & Johnson's profit? OThe unrealized gain has been reclassified from AOCI and recognized in current earnings relating to derivatives for which the underlying transaction concluded in the current year. This decrease in AOCI is offset by an increase in net income and in retained earnings). OThe unrealized loss has been reclassified from AOCI and recognized in current earnings relating to derivatives for which the underlying transaction concluded in the current year. This increase in AOCI is offset by a decrease in net income and in retained earnings). OThe unrealized gain has been reclassified from AOCI and recognized in current earnings relating to derivatives for which the underlying transaction concluded in the current year. This increase in AOCI is offset by a decrease in net income (and in retained earnings). OThe unrealized loss has been reclassified from AOCI and recognized in current earnings relating to derivatives for which the underlying transaction concluded in the current year. This increase in AOCI is offset by an increase in net income (and in retained earnings). Check Save Answers