Shareholders' Equity

12 Months Ended

Dec. 31, 2022

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

Shareholders' Equity

Shareholders’ EquityThe Company has authorized one billion shares of common stock and 500,000 shares of preferred stock, each with zero par value.  No preferred stock has been issued.  At December 31, 2022 and 2021, the Company had approximately 169.0 million shares and 156.6 million shares, respectively, of its common shares in treasury.  Treasury stock of $4.9 billion and $5.1 billion at December 31, 2022 and 2021, respectively, is recorded at cost as a reduction of common stock, and treasury stock of $1.7 billion and $0.3 billion at December 31, 2022 and 2021, respectively, is recorded at cost as a reduction of retained earnings.

The following tables set forth the changes in AOCI by component and the reclassifications out of AOCI for the years ended December 31, 2022 and 2021:

	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension and Other Postretirement Benefit Liabilities Adjustment		Unrealized Gain (Loss) on Investments		Accumulated Other Comprehensive Income (Loss)
					(In millions)
Balance at December 31, 2020	$	(2,424)	$	185	$	(365)	$	—	$	(2,604)
Other comprehensive income before reclassifications	(119)		507		190		(2)		576
Gain (loss) on net investment hedges	398		—		—		—		398
Amounts reclassified from AOCI	—		(474)		99		—		(375)
Tax effect	(103)		7		(71)		—		(167)
Net of tax amount	176		40		218		(2)		432
Balance at December 31, 2021	$	(2,248)	$	225	$	(147)	$	(2)	$	(2,172)
Other comprehensive income before reclassifications	(609)		268		117		(12)		(236)
Gain (loss) on net investment hedges	328		—		—		—		328
Amounts reclassified from AOCI	—		(352)		23		—		(329)
Tax effect	(93)		7		(15)		1		(100)
Net of tax amount	(374)		(77)		125		(11)		(337)
Balance at December 31, 2022	$	(2,622)	$	148	$	(22)	$	(13)	$	(2,509)

The change in foreign currency translation adjustment in 2022 is due to the U.S. dollar appreciation impacting the equity value of the Company’s foreign subsidiaries, partially offset by net investment hedges as discussed in Note 5, while the change in foreign currency translation adjustment in 2021 is primarily due to net investment hedges.

	Amounts reclassified from AOCI Year Ended December 31						Affected line item in the consolidated statement of
Details about AOCI components	2022		2021		2020		earnings
	(In millions)
Deferred loss (gain) on hedging activities
	$	(1)	$	16	$	68	Revenues
	(351)		(490)		(27)		Cost of products sold
	—		—		2		Interest expense
	—		—		2		Other (income) expense - net
	(352)		(474)		45		Earnings before income taxes
	62		118		7		Income tax expense
	$	(290)	$	(356)	$	52	Net earnings
Pension liability adjustment
Amortization of defined benefit pension items:
Prior service losses (credit)	$	(119)	$	(77)	$	(32)	Other (income) expense - net
Actuarial losses	142		176		39		Other (income) expense - net
	23		99		7		Earnings before income taxes
	(4)		(26)		(11)		Income tax expense
	$	19	$	73	$	(4)	Net earnings