ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2023

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The Company’s share of other comprehensive income (loss) includes net income plus other comprehensive income, which includes changes in fair value of certain derivatives designated as cash flow hedges, certain changes in pension and other retirement benefit plans, foreign currency translations gains and losses, changes in the fair value of available-for-sale securities, the Company’s share of other comprehensive income (loss) of entities accounted for using the equity method, and reclassifications for amounts included in net income (loss) less net income (loss) and other comprehensive income (loss) attributable to the non-controlling interest. For more information on derivative instruments, see “Note 16: Financial Instruments”. For more information on pensions and retirement benefit obligations, see “Note 6: Employee Benefit Plans and Postretirement Benefits”. The Company’s other comprehensive income (loss) amounts are aggregated within accumulated other comprehensive income (loss). The tax effect for each component of other comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022 consisted of the following (in millions of dollars):


	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
	Gross Amount		Income Taxes		Net Amount		Gross Amount		Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	(42)	$	9	$	(33)	$	(84)	$	25	$	(59)
Changes in retirement plans’ funded status	(5)		2		(3)		(16)		5		(11)
Foreign currency translation	(14)		—		(14)		70		—		70
Share of other comprehensive income (loss) of entities using the equity method	(8)		—		(8)		(23)		—		(23)
Other comprehensive income (loss)	$	(69)	$	11	$	(58)	$	(53)	$	30	$	(23)


	Three Months Ended September 30, 2022						Nine Months Ended September 30, 2022
	Gross Amount		Income Taxes		Net Amount		Gross Amount		Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	(23)	$	13	$	(10)	$	(103)	$	14	$	(89)
Changes in retirement plans’ funded status	(21)		7		(14)		(89)		25		(64)
Foreign currency translation	96		—		96		427		—		427
Share of other comprehensive income (loss) of entities using the equity method	(13)		—		(13)		(42)		—		(42)
Other comprehensive income (loss)	$	39	$	20	$	59	$	193	$	39	$	232

The changes, net of tax, in each component of accumulated other comprehensive income (loss) in the nine months ended September 30, 2023 and 2022 consisted of the following (in millions of dollars):


	Unrealized Gain (Loss) on Cash Flow Hedges		Change in Retirement Plans’ Funded Status		Foreign Currency Translation		Share of Other Comprehensive Income (Loss) of Entities Using the Equity Method		Total
Balance January 1, 2022	$	2	$	(324)	$	(1,951)	$	(224)	$	(2,497)
Other comprehensive income (loss), before reclassifications	(180)		36		428		(42)		242
Amounts reclassified from other comprehensive income	91		(100)		—		—		(9)
Other comprehensive income (loss)*	(89)		(64)		428		(42)		233
Balance September 30, 2022	$	(87)	$	(388)	$	(1,523)	$	(266)	$	(2,264)

Balance January 1, 2023	$	46	$	(285)	$	(1,800)	$	(239)	$	(2,278)
Other comprehensive income (loss), before reclassifications	(62)		(1)		71		(23)		(15)
Amounts reclassified from other comprehensive income	3		(10)		—		—		(7)
Other comprehensive income (loss)*	(59)		(11)		71		(23)		(22)
Balance September 30, 2023	$	(13)	$	(296)	$	(1,729)	$	(262)	$	(2,300)

(*)Excluded from the table above is other comprehensive income (loss) allocated to non-controlling interests of $(1) million and $1 million for the nine months ended September 30, 2023 and 2022, respectively.

Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2023 and 2022 consisted of the following (in millions of dollars):


	Amounts Reclassified from Other Comprehensive Income (Loss)								Consolidated Statement of Operations Line
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cash flow hedges	$	3	$	—	$	7	$	(2)	Net sales
	(13)		77		19		135		Cost of goods sold
	15		(8)		(10)		(4)		Other, net
	(2)		(8)		(10)		(25)		Interest expense
	—		(5)		(3)		(13)		Income taxes
	$	3	$	56	$	3	$	91
Change in retirement plans’ funded status:
Amortization of actuarial losses	$	3	$	5	$	12	$	16	*
Amortization of prior service cost	(9)		(31)		(27)		(94)		*
	3		(8)		5		(22)		Income taxes
	$	(3)	$	(34)	$	(10)	$	(100)
Total reclassifications, net of tax	$	—	$	22	$	(7)	$	(9)

(*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 6: Employee Benefit Plans and Postretirement Benefits” for additional information.