Changes in Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2023

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss)

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

AOCI is a balance sheet item in Shareholders’ equity on the Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three years ended December 31 were as follows:

(Millions), net of tax	Net Unrealized Gains (Losses) on Debt Securities		Foreign Currency Translation Adjustment Gains (Losses), Net of Hedges (a)		Net Unrealized Pension and Other Postretirement Benefit Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balances as of December 31, 2020	$	65	$	(2,229)	$	(731)	$	(2,895)
Net change	(42)		(163)		155		(50)
Balances as of December 31, 2021	23		(2,392)		(576)		(2,945)
Net change	(87)		(230)		52		(265)
Balances as of December 31, 2022	(64)		(2,622)		(524)		(3,210)
Net change	50		51		37		138
Balances as of December 31, 2023	$	(14)	$	(2,571)	$	(487)	$	(3,072)

(a)Refer to Note 13 for additional information on hedging activity.

The following table shows the tax impact for the years ended December 31 for the changes in each component of AOCI presented above:

	Tax expense (benefit)
(Millions)	2023		2022		2021
Net unrealized gains (losses) on debt securities	$	16	$	(27)	$	(13)
Foreign currency translation adjustment, net of hedges	(158)		75		51
Pension and other postretirement benefits	(3)		27		52
Total tax impact	$	(145)	$	75	$	90

Reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, for the years ended December 31, 2023, 2022 and 2021 were not significant.