Accumulated Other Comprehensive Income (AOCI)

3 Months Ended

Mar. 31, 2022

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, 2022 and the reclassifications out of AOCI for the three months ended March 31, 2022 and 2021:

	Three months ended March 31, 2022
	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, 2021	$	(2,248)	$	225	$	(147)	$	(2)	$	(2,172)
Other comprehensive income (loss) before reclassifications	31		380		6		(5)		412
Gain (loss) on net investment hedges	123		—		—		—		123
Amounts reclassified from AOCI	—		(98)		31		—		(67)
Tax effect	(31)		(47)		(7)		—		(85)
Net of tax amount	123		235		30		(5)		383
Balance at March 31, 2022	$	(2,125)	$	460	$	(117)	$	(7)	$	(1,789)

	Amount reclassified from AOCI
	Three months ended March 31,				Affected line item in the consolidated statements of earnings
Details about AOCI components	2022		2021
	(In millions)
Deferred loss (gain) on hedging activities
	$	—	$	14	Revenues
	(98)		(89)		Cost of products sold
	(98)		(75)		Total before tax
	19		21		Tax
	$	(79)	$	(54)	Net of tax
Pension liability adjustment
Amortization of defined benefit pension items:
Prior service loss (credit)	$	8	$	(6)	Other (income) expense-net
Actuarial losses	23		16		Other (income) expense-net
	31		10		Total before tax
	(6)		(4)		Tax
	$	25	$	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.