Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2023

Accumulated Other Comprehensive Income (Loss)

The Company’s share of 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 translation gains and losses, changes in the fair value of available-for-sale securities, the Company’s share of other comprehensive income of entities accounted for using the equity method, and reclassifications for amounts included in net income less net income and other comprehensive income attributable to the noncontrolling interest. For more information on the Company’s derivative instruments, see “Note 15: Financial Instruments”. For more information on the Company’s pensions and retirement benefit obligations, see “Note 12: 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) consisted of the following:


	Year Ended December 31, 2023
(in millions of dollars)	Gross Amount		Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	(90)	$	34	$	(56)
Changes in retirement plans’ funded status	(87)		21		(66)
Foreign currency translation	40		—		40
Share of other comprehensive loss of entities using the equity method	(11)		—		(11)
Other comprehensive income (loss)	$	(148)	$	55	$	(93)


	Year Ended December 31, 2022
(in millions of dollars)	Gross Amount		Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	56	$	(12)	$	44
Changes in retirement plans’ funded status	29		12		41
Foreign currency translation	158		—		158
Share of other comprehensive loss of entities using the equity method	(25)		—		(25)
Other comprehensive income (loss)	$	218	$	—	$	218


	Year Ended December 31, 2021
(in millions of dollars)	Gross Amount		Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	2	$	(13)	$	(11)
Changes in retirement plans’ funded status	109		(15)		94
Foreign currency translation	247		—		247
Share of other comprehensive loss of entities using the equity method	(93)		—		(93)
Other comprehensive income (loss)	$	265	$	(28)	$	237

The changes, net of tax, in each component of accumulated other comprehensive income (loss) 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 of Entities Using the Equity Method		Total
Balance, December 31, 2020	$	(6)	$	(653)	$	(1,884)	$	(133)	$	(2,676)
Other comprehensive income (loss), before reclassifications	(20)		202		241		(93)		330
Amounts reclassified from other comprehensive income	9		(108)		—		—		(99)
Other comprehensive income (loss)1	(11)		94		241		(93)		231
Balance, December 31, 2021	(17)		(559)		(1,643)		(226)		(2,445)
Demerger of Iveco Group	19		233		(316)		12		(52)
Balance, January 1, 2022	2		(326)		(1,959)		(214)		(2,497)
Other comprehensive income (loss), before reclassifications	(126)		102		159		(25)		110
Amounts reclassified from other comprehensive income	170		(61)		—		—		109
Other comprehensive income (loss)1	44		41		159		(25)		219
Balance, December 31, 2022	46		(285)		(1,800)		(239)		(2,278)
Other comprehensive income (loss), before reclassifications	(80)		(54)		37		(11)		(108)
Amounts reclassified from other comprehensive income	24		(12)		—		—		12
Other comprehensive income (loss)1	(56)		(66)		37		(11)		(96)
Balance, December 31, 2023	$	(10)	$	(351)	$	(1,763)	$	(250)	$	(2,374)

(1) Excluded from the table above is other comprehensive (income) loss allocated to noncontrolling interests of $3 million, $(1) million and $6 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) at December 31, 2023 and 2022 consisted of the following:


	Amount Reclassified from Other Comprehensive Income (Loss)				Consolidated Statement of Operations line
(in millions of dollars)	2023		2022
Cash flow hedges	$	7	$	1	Net sales
	33		219		Cost of goods sold
	(7)		(3)		Other, net
	(6)		(30)		Interest expense
	(3)		(17)		Income taxes
	24		170
Change in retirement plans’ funded status:
Amortization of actuarial losses	20		18		(1)
Amortization of prior service cost	(36)		(126)		(1)
	4		47		Income taxes
	(12)		(61)
Total reclassifications, net of tax	$	12	$	109

(1) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 12: Employee Benefit Plans and Postretirement Benefits” for additional information.