Shareholders’ Equity and Comprehensive Earnings

9 Months Ended

Sep. 30, 2016

Shareholders’ Equity and Comprehensive Earnings

Shareholders’ Equity and Comprehensive Earnings

14.    Shareholders’ Equity and Comprehensive Earnings

Accumulated Other Comprehensive Earnings (Loss)

The activity related to accumulated other comprehensive earnings (loss) was as follows:

($in millions)	Foreign Currency Translation (Net of Tax)		Pension and Other Postretirement Benefits            (Net of Tax)			Effective Derivatives (Net of Tax)		Accumulated Other Comprehensive Earnings(Loss)
Balance at December 31, 2015	$	(183)	$	(445)		$	(12)	$	(640)
Other comprehensive earnings (loss) before reclassifications		(17)		(37)			(10)		(64)
Amounts reclassified from accumulated other comprehensive earnings (loss)		—		76	(a)		12		88
Balance at September 30, 2016	$	(200)	$	(406)		$	(10)	$	(616)

(a) Amount includes $60 million loss, net of tax, from plans sold in the Divestment Business.

The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive earnings (loss):

	Three Months Ended September 30,				Nine Months Ended September 30,
($  in millions)	2016		2015		2016		2015
Gains (losses) on cash flow hedges:
Commodity contracts recorded in net sales	$	(1)	$	1	$	2	$	2
Commodity contracts recorded in cost of sales		2		(8)		(8)		(11)
Currency exchange contracts recorded in selling, general and administrative		5		—		3		—
Cross currency swaps recorded in selling, general and administrative		(7)		—		(6)		—
Interest rate contracts recorded in interest expense		(1)		—		(1)
Commodity and currency exchange contracts attributable to the divestment business recorded in business consolidation and other activities		—		—		(4)		—
Total before tax effect		(2)		(7)		(14)		(9)
Tax benefit (expense) on amounts reclassified into earnings		2		3		2		4
Recognized gain (loss)	$	—	$	(4)	$	(12)	$	(5)
Amortization of pension and other postretirement benefits (a):
Prior service income (cost)	$	—	$	—	$	3	$	2
Actuarial gains (losses)		(9)		(11)		(108)		(35)
Total before tax effect		(9)		(11)		(105)		(33)
Tax benefit (expense) on amounts reclassified into earnings		3		4		29		12
Recognized gain (loss)	$	(6)	$	(7)	$	(76)	$	(21)

(a) These components are included in the computation of net periodic benefit cost included in Note 13.