Accumulated Other Comprehensive Income (AOCI)

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2021 and the reclassifications out of AOCI for the three and six months ended June 30, 2021 and 2020:

	Three months ended June 30, 2021
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension Liability Adjustment		Unrealized Gain (Loss) on Investments		Total
	(In millions)
Balance at March 31, 2021	$	(2,186)	$	261	$	(352)	$	(1)	$	(2,278)
Other comprehensive income (loss) before reclassifications	99		320		(1)		(1)		417
Gain (loss) on net investment hedges	(64)		—		—		—		(64)
Amounts reclassified from AOCI	—		(238)		72		—		(166)
Tax effect	8		(15)		(22)		(1)		(30)
Net of tax amount	43		67		49		(2)		157
Balance at June 30, 2021	$	(2,143)	$	328	$	(303)	$	(3)	$	(2,121)
	Six months ended June 30, 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	163		496		7		(2)		664
Gain (loss) on net investment hedges	166		—		—		—		166
Amounts reclassified from AOCI	—		(313)		82		—		(231)
Tax effect	(48)		(40)		(27)		(1)		(116)
Net of tax amount	281		143		62		(3)		483
Balance at June 30, 2021	$	(2,143)	$	328	$	(303)	$	(3)	$	(2,121)

	Amount reclassified from AOCI
	Three months ended June 30,				Six months ended June 30,				Affected line item in the consolidated statements of earnings
Details about AOCI components	2021		2020		2021		2020
	(In millions)
Deferred loss (gain) on hedging activities
	$	1	$	13	$	15	$	33	Revenues
	(239)		36		(328)		60		Cost of products sold
	—		8		—		8		Interest expense
	(238)		57		(313)		101		Total before tax
	57		(10)		79		(14)		Tax
	$	(181)	$	47	$	(234)	$	87	Net of tax
Pension liability adjustment
Amortization of defined benefit pension items:
Prior service credit	$	(61)	$	(8)	$	(67)	$	(16)	Other (income) expense-net
Actuarial losses	133		13		149		21		Other (income) expense-net
	72		5		82		5		Total before tax
	(22)		—		(26)		(11)		Tax
	$	50	$	5	$	56	$	(6)	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.