Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2021

Changes in each component of other comprehensive income (loss) are as follows:


	Three Months Ended September 30,
($ in millions)	Derivatives			Investments		Employee Benefit Plans			Foreign Currency Translation Adjustment		Accumulated Other Comprehensive Income (Loss)
Balance July 1, 2020, net of taxes	$	15		$	—	$	(4,162)		$	(2,246)	$	(6,393)
Other comprehensive income (loss) before reclassification adjustments, pretax	(195)			—		2			50		(143)
Tax	41			—		1			35		77
Other comprehensive income (loss) before reclassification adjustments, net of taxes	(154)			—		3			85		(66)
Reclassification adjustments, pretax	22		(1)	—		72		(3)	—		94
Tax	(5)			—		(13)			—		(18)
Reclassification adjustments, net of taxes	17			—		59			—		76
Other comprehensive income (loss), net of taxes	(137)			—		62			85		10
Balance September 30, 2020, net of taxes	$	(122)		$	—	$	(4,100)		$	(2,161)	$	(6,383)
Balance July 1, 2021, net of taxes	$	(26)		$	—	$	(3,028)		$	(1,574)	$	(4,628)
Other comprehensive income (loss) before reclassification adjustments, pretax	72			—		(24)			(96)		(48)
Tax	(16)			—		16			12		12
Other comprehensive income (loss) before reclassification adjustments, net of taxes	56			—		(8)			(84)		(36)
Reclassification adjustments, pretax	36		(1)	—		68		(3)	—		104
Tax	(8)			—		(22)			—		(30)
Reclassification adjustments, net of taxes	28			—		46			—		74
Other comprehensive income (loss), net of taxes	84			—		38			(84)		38
Balance September 30, 2021, net of taxes	$	58		$	—	$	(2,990)		$	(1,658)	$	(4,590)


	Nine Months Ended September 30,
($ in millions)	Derivatives			Investments			Employee Benefit Plans			Foreign Currency Translation Adjustment		Accumulated Other Comprehensive Income (Loss)
Balance January 1, 2020, net of taxes	$	31		$	18		$	(4,261)		$	(1,981)	$	(6,193)
Other comprehensive income (loss) before reclassification adjustments, pretax	(126)			3			(19)			(220)		(362)
Tax	27			—			12			40		79
Other comprehensive income (loss) before reclassification adjustments, net of taxes	(99)			3			(7)			(180)		(283)
Reclassification adjustments, pretax	(68)		(1)	(21)		(2)	210		(3)	—		121
Tax	14			—			(42)			—		(28)
Reclassification adjustments, net of taxes	(54)			(21)			168			—		93
Other comprehensive income (loss), net of taxes	(153)			(18)			161			(180)		(190)
Balance September 30, 2020, net of taxes	$	(122)		$	—		$	(4,100)		$	(2,161)	$	(6,383)
Balance January 1, 2021, net of taxes	$	(266)		$	—		$	(4,540)		$	(1,828)	$	(6,634)
Other comprehensive income (loss) before reclassification adjustments, pretax	193			—			1,739			(167)		1,765
Tax	(41)			—			(385)			(84)		(510)
Other comprehensive income (loss) before reclassification adjustments, net of taxes	152			—			1,354			(251)		1,255
Reclassification adjustments, pretax	218		(1)	—			210		(3)	—		428
Tax	(46)			—			(42)			—		(88)
Reclassification adjustments, net of taxes	172			—			168			—		340
Other comprehensive income (loss), net of taxes	324			—			1,522			(251)		1,595
Spin-off of Organon (see Note 2)	—			—			28			421		449
Balance September 30, 2021, net of taxes	$	58		$	—		$	(2,990)		$	(1,658)	$	(4,590)

(1) Primarily relates to foreign currency cash flow hedges that were reclassified from AOCL to Sales.

(2) Represents net realized gains on the sales of available-for-sale debt securities that were reclassified from AOCL to Other (income) expense, net.

(3) Includes net amortization of prior service cost and actuarial gains and losses included in net periodic benefit cost (see Note 11).