Changes in Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2020

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

Changes in Accumulated Other Comprehensive Loss

AOCI is a balance sheet item in the Shareholder’s Equity section on Credco’s 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 Foreign Currency Translation Adjustments for the three years ended December 31 were as follows:


(Millions), net of tax	Foreign Currency Translation Adjustment (losses) gains
Balance as of December 31, 2017	$	(998)
Net translation on investments in foreign operations	(189)
Net hedges of investments in foreign operations	127
Net change in accumulated other comprehensive loss	(62)
Balances as of December 31, 2018	(1,060)
Net translation on investments in foreign operations	17
Net hedges of investments in foreign operations	(44)
Net change in accumulated other comprehensive loss	(27)
Balances as of December 31, 2019	(1,087)
Net translation on investments in foreign operations	119
Net hedges of investments in foreign operations	(131)
Net change in accumulated other comprehensive loss	(12)
Balances as of December 31, 2020	$	(1,099)

The following table shows the tax impact for the three years ended December 31 for the changes in Foreign Currency Translation Adjustments presented above:


	Tax expense (benefit)
(Millions)	2020		2019		2018
Net translation on investments in foreign operations	$	21	$	5	$	(23)
Net hedges of investments in foreign operations	(41)		(14)		40
Total tax impact	$	(20)	$	(9)	$	17

No amounts were reclassified out of AOCI into the Consolidated Statements of Income associated with the sale or liquidation of a business, net of taxes for the years ended December 31, 2020, 2019 and 2018.