Accumulated Other Comprehensive Income (AOCI)

3 Months Ended

Mar. 31, 2021

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

Accumulated Other Comprehensive Income (AOCI)

Accumulated Other Comprehensive Income

The following tables set forth the changes in AOCI by component for the three months ended March 31, 2021 and the reclassifications out of AOCI for the three months ended March 31, 2021 and 2020:

	Three months ended March 31, 2021
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension Liability Adjustment		Unrealized Gain (Loss) on Investments		Total
	(In millions)
Balance at December 31, 2020	$	(2,424)	$	185	$	(365)	$	—	$	(2,604)
Other comprehensive income (loss) before reclassifications	64		176		8		(1)		247
Gain (loss) on net investment hedges	230		—		—		—		230
Amounts reclassified from AOCI	—		(75)		10		—		(65)
Tax effect	(56)		(25)		(5)		—		(86)
Net of tax amount	238		76		13		(1)		326
Balance at March 31, 2021	$	(2,186)	$	261	$	(352)	$	(1)	$	(2,278)

	Amount reclassified from AOCI
	Three months ended March 31,				Affected line item in the consolidated statements of earnings
Details about AOCI components	2021		2020
	(In millions)
Deferred loss (gain) on hedging activities
	$	14	$	20	Revenues
	(89)		24		Cost of products sold
	(75)		44		Total before tax
	21		(5)		Tax
	$	(54)	$	39	Net of tax
Pension liability adjustment
Amortization of defined benefit pension items:
Prior service credit	$	(6)	$	(8)	Other (income) expense-net
Actuarial losses	16		8		Other (income) expense-net
	10		—		Total before tax
	(4)		(11)		Tax
	$	6	$	(11)	Net of tax

The Company’s accounting policy is to release the income tax effects from AOCI when the individual units of account are sold, terminated, or extinguished.