ACCUMULATED OTHER COMPREHENSIVE INCOME

9 Months Ended

Sep. 30, 2020

Comprehensive income includes all changes in stockholders’ equity that do not arise from transactions with stockholders, and consists of net income, currency translation adjustments (CTA), certain gains and losses from pension and other postretirement employee benefit (OPEB) plans and gains and losses on cash flow hedges.

The following table is a net-of-tax summary of the changes in accumulated other comprehensive (loss) income (AOCI) by component for the nine months ended September 30, 2020 and 2019.


(in millions)	CTA		Pension and OPEB plans		Hedging activities		Total
Gains (losses)
Balance as of December 31, 2019	$	(2,954)	$	(715)	$	(41)	$	(3,710)
Other comprehensive income (loss) before reclassifications	(43)		(9)		(110)		(162)
Amounts reclassified from AOCI (a)	—		35		(2)		33
Net other comprehensive (loss) income	(43)		26		(112)		(129)
Balance as of September 30, 2020	$	(2,997)	$	(689)	$	(153)	$	(3,839)


(in millions)	CTA		Pension and OPEB plans		Hedging activities		Total
Gains (losses)
Balance as of December 31, 2018	$	(2,868)	$	(954)	$	(1)	$	(3,823)
Adoption of new accounting standard	9		(169)		(1)		(161)
Other comprehensive income (loss) before reclassifications	(272)		20		(66)		(318)
Amounts reclassified from AOCI (a)	—		17		(3)		14
Net other comprehensive (loss) income	(272)		37		(69)		(304)
Balance as of September 30, 2019	$	(3,131)	$	(1,086)	$	(71)	$	(4,288)

(a) See table below for details about these reclassifications.

The following is a summary of the amounts reclassified from AOCI to net income during the three and nine months ended September 30, 2020 and 2019.


	Amounts reclassified from AOCI (a)
(in millions)	Three months ended September 30, 2020		Nine months ended September 30, 2020		Location of impact in income statement
Amortization of pension and OPEB items
Amortization of net losses and prior service costs or credits	$	(14)	$	(44)	Other (income) expense, net
Less: Tax effect	3		9		Income tax expense
	$	(11)	$	(35)	Net of tax
Gains (losses) on hedging activities
Foreign exchange contracts	$	(2)	$	2	Cost of sales
Less: Tax effect	1		—		Income tax expense
	$	(1)	$	2	Net of tax
Total reclassifications for the period	$	(12)	$	(33)	Total net of tax




	Amounts reclassified from AOCI (a)
(in millions)	Three months ended September 30, 2019		Nine months ended September 30, 2019		Location of impact in income statement
Amortization of pension and OPEB items
Amortization of net losses and prior service costs or credits	$	(8)	$	(23)	Other (income) expense, net
Less: Tax effect	4		6		Income tax expense
	$	(4)	$	(17)	Net of tax
Gains on hedging activities
Foreign exchange contracts	$	2	$	3	Cost of sales
Less: Tax effect	—		—		Income tax expense
	$	2	$	3	Net of tax
Total reclassifications for the period	$	(2)	$	(14)	Total net of tax

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

Refer to Note 11 for additional information regarding the amortization of pension and OPEB items and Note 14 for additional information regarding hedging activity.