Notes to Consolidated Financial Statements continued Note 13 Comprehensive Income Comprehensive income consists of net income and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income. Significant changes in the components of Other comprehensive income, net of provision for income taxes are described below. Accumulated Other Comprehensive Income The changes in the balances of Accumulated other comprehensive income by component are as follows: (dollars in millions) Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Unrealized losses on marketable securities Defined benefit pension and postretirement plans Total Balance at January 1, 2015 $ (346) $ (84) $ 112 $ 1,429 $ 1,111 Other comprehensive loss (208) (1,063) (5) (1,276) Amounts reclassified to net income 869 (6) (148) 715 Net other comprehensive loss (208) (194) (11) (148) (561) Balance at December 31, 2015 (554) (278) 101 1,281 550 Other comprehensive (loss) income (159) (225) (13) 2,881 2,484 Amounts reclassified to net income 423 (42) (742) (361) Net other comprehensive (loss) income (159) 198 (55) 2,139 2,123 Balance at December 31, 2016 (713) (80) 46 3,420 2,673 Other comprehensive income 245 818 10 327 1,400 Amounts reclassified to net income (849) (24) (541) (1,414) Net other comprehensive income (loss) 245 (31) (14) (214) (14) Balance at December 31, 2017 $ (468) $ (111) $ 32 $ 3,206 $2,659 The amounts presented above in net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized gain (loss) on cash flow hedges in the table above are included in Other income (expense), net and Interest expense on our consolidated statements of income. See Note 8 for additional information. The amounts reclassified to net income related to unrealized gain (loss) on marketable securities in the table above are included in Other income (expense), net on our consolidated statements of income. The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Cost of services and Selling, general and administrative expense on our consolidated statements of income. See Note 10 for additional information. Note 14 Additional Financial Information The tables that follow provide additional financial information related to our consolidated financial statements: Income Statement Information (dollars in millions) Years Ended December 31, 2017 2016 2015 Depreciation expense $ 14,741 $ 14,227 $ 14,323 Interest costs on debt balances 5,256 4,961 5,391 Net amortization of debt discount 155 119 113 Capitalized interest costs (678) (704) (584) Advertising expense 2,643 2,744 2,749 Balance Sheet Information (dollars in millions) At December 31, 2017 2016 Accounts Payable and Accrued Liabilities Accounts payable $ 7,063 $ 7,084 Accrued expenses 6,756 5,717 Accrued vacation, salaries and wages 4,521 3,813 Interest payable 1,409 1,463 Taxes payable 1,483 1,516 $ 21,232 $ 19,593 Other Current Liabilities Advance billings and customer deposits $ 3,084 $ 2,914 Dividends payable 2,429 2,375 Other 2,839 2,813 $ 8,352 $ 8,102 96 verizon.com/2017AnnualReport
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