Accumulated Other Comprehensive Income (AOCI)

6 Months Ended

Jun. 30, 2023

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, 2023 and the reclassifications out of AOCI for the three and six months ended June 30, 2023 and 2022:

	Three months ended June 30, 2023
	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, 2023	$	(2,452)	$	60	$	(61)	$	(10)	$	(2,463)
Other comprehensive income (loss) before reclassifications	88		(78)		(2)		4		12
Gain (loss) on net investment hedges	(52)		—		—		—		(52)
Amounts reclassified from AOCI	—		41		(4)		—		37
Tax effect	14		16		4		(1)		33
Net of tax amount	50		(21)		(2)		3		30
Balance at June 30, 2023	$	(2,402)	$	39	$	(63)	$	(7)	$	(2,433)
	Six months ended June 30, 2023
	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, 2022	$	(2,622)	$	148	$	(22)	$	(13)	$	(2,509)
Other comprehensive income (loss) before reclassifications	322		(286)		3		8		47
Gain (loss) on net investment hedges	(130)		—		—		—		(130)
Amounts reclassified from AOCI	—		145		(35)		—		110
Tax effect	28		32		(9)		(2)		49
Net of tax amount	220		(109)		(41)		6		76
Balance at June 30, 2023	$	(2,402)	$	39	$	(63)	$	(7)	$	(2,433)

	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	2023		2022		2023		2022
	(In millions)
Deferred loss (gain) on hedging activities
	$	41	$	(150)	145		(248)		Cost of products sold
	41		(150)		145		(248)		Total before tax
	(8)		33		(26)		52		Tax
	$	33	$	(117)	$	119	$	(196)	Net of tax
Pension liability adjustment
Amortization of defined benefit pension items:
Prior service loss (credit)	$	(6)	$	(112)	$	(17)	$	(104)	Other (income) expense-net
Actuarial losses	2		104		(18)		127		Other (income) expense-net
	(4)		(8)		(35)		23		Total before tax
	3		(2)		(9)		(8)		Tax
	$	(1)	$	(10)	$	(44)	$	15	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.