Accumulated Other Comprehensive Income (AOCI)

9 Months Ended

Sep. 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 nine months ended September 30, 2021 and the reclassifications out of AOCI for the three and nine months ended September 30, 2021 and 2020:

	Three months ended September 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 June 30, 2021	$	(2,143)	$	328	$	(303)	$	(3)	$	(2,121)
Other comprehensive income (loss) before reclassifications	(149)		197		5		6		59
Gain (loss) on net investment hedges	126		—		—		—		126
Amounts reclassified from AOCI	—		(122)		8		—		(114)
Tax effect	(30)		(1)		5		—		(26)
Net of tax amount	(53)		74		18		6		45
Balance at September 30, 2021	$	(2,196)	$	402	$	(285)	$	3	$	(2,076)
	Nine months ended September 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	14		693		12		4		723
Gain (loss) on net investment hedges	292		—		—		—		292
Amounts reclassified from AOCI	—		(435)		90		—		(345)
Tax effect	(78)		(41)		(22)		(1)		(142)
Net of tax amount	228		217		80		3		528
Balance at September 30, 2021	$	(2,196)	$	402	$	(285)	$	3	$	(2,076)

	Amount reclassified from AOCI
	Three months ended September 30,				Nine months ended September 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
	$	—	$	13	$	15	$	46	Revenues
	(122)		(79)		(450)		(19)		Cost of products sold
	—		—		—		8		Interest expense
	(122)		(66)		(435)		35		Total before tax
	29		19		108		5		Tax
	$	(93)	$	(47)	$	(327)	$	40	Net of tax
Pension liability adjustment
Amortization of defined benefit pension items:
Prior service credit	$	(4)	$	(9)	$	(71)	$	(25)	Other (income) expense-net
Actuarial losses	12		9		161		30		Other (income) expense-net
	8		—		90		5		Total before tax
	6		1		(20)		(10)		Tax
	$	14	$	1	$	70	$	(5)	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.