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The following is an excerpt from a disclosure note from the 2016 annual report of Kaufman Chemicals, Inc.: COMPREHENSIVE INCOME (LOSS) The components of comprehensive
The following is an excerpt from a disclosure note from the 2016 annual report of Kaufman Chemicals, Inc.: |
COMPREHENSIVE INCOME (LOSS) | |||||||||
The components of comprehensive income, net of tax, are as follows (in millions): | |||||||||
Years Ended December 31 | 2016 | 2015 | 2014 | ||||||
Net income | $ | 922 | $ | 752 | $ | 607 | |||
Other comprehensive income: | |||||||||
Change in net unrealized gains on investments, net of tax of $25, ($13), and $22 in 2016, 2015, and 2014, respectively | 38 | (24 | ) | 30 | |||||
Other | (3 | ) | (1 | ) | 1 | ||||
Total comprehensive income | $ | 957 | $ | 727 | $ | 638 | |||
Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows: |
($ in millions) | ||||||
2016 | 2015 | |||||
Shareholders equity: | ||||||
Common stock | 365 | 365 | ||||
Additional paid-in capital | 8,777 | 8,777 | ||||
Retained earnings | 7,857 | 7,301 | ||||
Accumulated other comprehensive income | 119 | 84 | ||||
Total shareholders equity | $ | 17,118 | $ | 16,527 | ||
Required: |
4. | From the information provided, determine how Kaufman calculated the $119 million accumulated other comprehensive income in 2016. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) |
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