Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Applied Materials Inc., consolidated statement of comprehensive income
US$ in millions
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
- Net Income Trend
- The net income shows a consistent upward trajectory over the six-year period. Starting at $2,706 million in 2019, it increased each year, reaching $7,177 million by 2024. This steady growth indicates improving profitability and operational effectiveness.
- Change in Unrealized Gain (Loss) on Available-for-Sale Investments
- This item fluctuates without a clear trend, with values ranging from a positive $25 million in 2023 to a negative $74 million in 2022. The variability suggests exposure to market value changes of investments, reflecting occasional volatility in this component of other comprehensive income.
- Change in Unrealized Net Gain (Loss) on Derivative Instruments
- The changes in unrealized gains and losses on derivatives exhibit high volatility. For example, there was a significant loss of $117 million in 2020 contrasted by a gain of $51 million in 2022. This indicates the company experiences fluctuating derivative instrument valuations likely tied to market conditions and hedging activities.
- Change in Defined and Postretirement Benefit Plans
- Adjustments related to defined benefit and postretirement plans also show variability, ranging from a negative $51 million in 2019 to a positive $81 million in 2022, followed by a negative adjustment again in 2024. Such oscillations reflect changes in actuarial assumptions, discount rates, or plan amendments impacting the reported figures annually.
- Change in Cumulative Translation Adjustments
- Documentation shows only a -$1 million value in 2019, with no further data in subsequent years, indicating either minimal impact or lack of reporting for this component after 2019.
- Other Comprehensive Income (Loss), Net of Tax
- Other comprehensive income/loss is inconsistent, with negative figures in certain years (-$119 million in 2020 and -$15 million in 2023) and positive in others (up to $58 million in 2022 and $49 million in 2024). This pattern mirrors the variability observed in the underlying components, contributing to fluctuating comprehensive earnings beyond net income.
- Comprehensive Income
- The comprehensive income closely follows the trend of net income, increasing steadily from $2,668 million in 2019 to $7,226 million in 2024. The minor divergence from net income, due to other comprehensive income's volatility, shows that while comprehensive results are impacted by market and actuarial adjustments, overall financial performance remains robust and growing.