NOTE 14

ACCUMULATED OTHER COMPREHENSIVE INCOME

Comprehensive income includes all changes in shareholders’ equity that do not arise from transactions with stockholders, and consists of net income, CTA, pension and other employee benefits, unrealized gains and losses on cash flow hedges and unrealized gains and losses on available-for-sale equity securities. The following table is a net-of-tax summary of the changes in AOCI by component for the years ended December 31, 2017 and 2016.

(in millions)	CTA			Pension and other employee benefits			Hedging activities			Available- for-sale securities			Total
Gains (losses)
Balance as of December 31, 2016	$	(3,438	)	$	(1,122	)	$	3		$	1		$	(4,556	)
Other comprehensive income (loss) before reclassifications		396			50			(18	)		(1	)		427
Amounts reclassified from AOCI		29			91			5			3			128
Net other comprehensive (loss) income		425			141			(13	)		2			555
Balance as of December 31, 2017	$	(3,013	)	$	(981	)	$	(10	)	$	3		$	(4,001	)

(in millions)	CTA			Pension and other employee benefits			Hedging activities			Available- for-sale securities			Total
Gains (losses)
Balance as of December 31, 2015	$	(3,191	)	$	(1,025	)	$	7		$	4,433		$	224
Other comprehensive income (loss) before reclassifications		(247	)		(191	)		1			104			(333	)
Amounts reclassified from AOCI		—			94			(5	)		(4,536	)		(4,447	)
Net other comprehensive (loss) income		(247	)		(97	)		(4	)		(4,432	)		(4,780	)
Balance as of December 31, 2016	$	(3,438	)	$	(1,122	)	$	3		$	1		$	(4,556	)

The following table is a summary of the amounts reclassified from AOCI to net income during the years ended December 31, 2017 and 2016.

	Amounts reclassified from AOCI^(a)
(in millions)	2017			2016			Location of impact in income statement
Translation adjustments
Loss on Venezuela deconsolidation	$	(29	)	$	—		Other (income) expense, net
		(29	)		—		Total before tax
		—			—		Income tax expense (benefit)
	$	(29	)	$	—		Net of tax
Amortization of pension and other employee benefits items
Actuarial losses and other^(b)	$	(137	)	$	(130	)	Other (income) expense, net
		(137	)		(130	)	Total before tax
		46			36		Income tax expense (benefit)
	$	(91	)	$	(94	)	Net of tax
Gains (losses) on hedging activities
Interest rate contracts	$	—		$	9		Other (income) expense, net
Foreign exchange contracts		(8	)		(3	)	Cost of sales
		(8	)		6		Total before tax
		3			(1	)	Income tax expense (benefit)
	$	(5	)	$	5		Net of tax
Available-for-sale securities
Other-than-temporary impairment of equity securities	$	(5	)	$	—		Other (income) expense, net
Gain on available-for-sale equity securities		—			4,536		Other (income) expense, net
		(5	)		4,536		Total before tax
		2			—		Income tax expense (benefit)
	$	(3	)	$	4,536		Net of tax
Total reclassification for the period	$	(128	)	$	4,447		Total net of tax

(a)	Amounts in parentheses indicate reductions to net income.

(b)	These AOCI components are included in the computation of net periodic benefit cost disclosed in Note 13.

Refer to Note 9 for additional information regarding hedging activity and Note 13 for additional information regarding the amortization of pension and other employee benefits items.