Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2024

The following tables set forth the changes in AOCI by component for the three and nine months ended September 30, 2024 and 2023 (in millions).


	Three Months Ended September 30, 2024
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension Liability Adjustment		Unrealized Gain (Loss) on Investments		Total

Balance at June 30, 2024	$	(2,818)	$	57	$	(113)	$	(6)	$	(2,880)
Other comprehensive income (loss) before reclassifications	143		(46)		(5)		—		92
Gain (loss) on net investment hedges	(142)		—		—		—		(142)
Amounts reclassified from AOCI	—		49		(3)		—		46
Tax effect	34		8		2		—		44
Net of tax amount	35		11		(6)		—		40
Balance at September 30, 2024	$	(2,783)	$	68	$	(119)	$	(6)	$	(2,840)

	Nine Months Ended September 30, 2024
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension Liability Adjustment		Unrealized Gain (Loss) on Investments		Total

Balance at December 31, 2023	$	(2,539)	$	158	$	(108)	$	2	$	(2,487)
Other comprehensive income (loss) before reclassifications	(219)		(167)		(6)		(7)		(399)
Gain (loss) on net investment hedges	(33)		—		—		—		(33)
Amounts reclassified from AOCI	—		52		(9)		—		43
Tax effect	8		25		4		(1)		36
Net of tax amount	(244)		(90)		(11)		(8)		(353)
Balance at September 30, 2024	$	(2,783)	$	68	$	(119)	$	(6)	$	(2,840)


	Three Months Ended September 30, 2023
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension Liability Adjustment		Unrealized Gain (Loss) on Investments		Total


Balance at June 30, 2023	$	(2,402)	$	39	$	(63)	$	(7)	$	(2,433)
Other comprehensive income (loss) before reclassifications	(393)		(4)		3		5		(389)
Gain (loss) on net investment hedges	149		—		—		—		149
Amounts reclassified from AOCI	—		132		(3)		—		129
Tax effect	(36)		(28)		(3)		—		(67)
Net of tax amount	(280)		100		(3)		5		(178)
Balance at September 30, 2023	$	(2,682)	$	139	$	(66)	$	(2)	$	(2,611)

	Nine Months Ended September 30, 2023
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Hedging Activities		Pension Liability Adjustment		Unrealized Gain (Loss) on Investments		Total


Balance at December 31, 2022	$	(2,622)	$	148	$	(22)	$	(13)	$	(2,509)
Other comprehensive income (loss) before reclassifications	(71)		(290)		6		13		(342)
Gain (loss) on net investment hedges	19		—		—		—		19
Amounts reclassified from AOCI	—		277		(38)		—		239
Tax effect	(8)		4		(12)		(2)		(18)
Net of tax amount	(60)		(9)		(44)		11		(102)
Balance at September 30, 2023	$	(2,682)	$	139	$	(66)	$	(2)	$	(2,611)

The following table sets forth the reclassifications out of AOCI for the three and nine months ended September 30, 2024 and 2023 (in millions).



	Three Months Ended September 30,				Nine Months Ended September 30,				Affected line item in the Consolidated Statements of Earnings
Details about AOCI components	2024		2023		2024		2023






Deferred Gain (Loss) on Hedging Activities

	$	48	$	132	$	52	$	277	Cost of products sold


	48		132		52		277		Earnings before income tax
	(14)		(29)		(14)		(55)		Income tax expense
	$	34	$	103	$	38	$	222	Net earnings

Pension Liability Adjustment
Amortization of defined benefit pension items:
Prior service loss (credit)	$	(4)	$	(4)	$	(14)	$	(21)	Other (income) expense-net
Actuarial losses	1		1		5		(17)		Other (income) expense-net
	(3)		(3)		(9)		(38)		Earnings before income tax
	—		(3)		2		(12)		Income tax expense
	$	(3)	$	(6)	$	(7)	$	(50)	Net earnings