Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2022

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


	Three Months Ended September 30,
($ in millions)	Derivatives			Employee Benefit Plans			Foreign Currency Translation Adjustment		Accumulated Other Comprehensive Loss
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		(2)	—		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)
Balance July 1, 2022, net of taxes	$	390		$	(2,465)		$	(2,252)	$	(4,327)
Other comprehensive income (loss) before reclassification adjustments, pretax	682			(294)			(618)		(230)
Tax	(143)			62			50		(31)
Other comprehensive income (loss) before reclassification adjustments, net of taxes	539			(232)			(568)		(261)
Reclassification adjustments, pretax	(254)		(1)	77		(2)	—		(177)
Tax	53			(31)			—		22
Reclassification adjustments, net of taxes	(201)			46			—		(155)
Other comprehensive income (loss), net of taxes	338			(186)			(568)		(416)
Balance September 30, 2022, net of taxes	$	728		$	(2,651)		$	(2,820)	$	(4,743)


	Nine Months Ended September 30,
($ in millions)	Derivatives			Employee Benefit Plans			Foreign Currency Translation Adjustment		Accumulated Other Comprehensive Loss
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		(2)	—		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)
Balance January 1, 2022, net of taxes	$	144		$	(2,743)		$	(1,830)	$	(4,429)
Other comprehensive income (loss) before reclassification adjustments, pretax	1,233			(125)			(1,001)		107
Tax	(259)			25			11		(223)
Other comprehensive income (loss) before reclassification adjustments, net of taxes	974			(100)			(990)		(116)
Reclassification adjustments, pretax	(493)		(1)	266		(2)	—		(227)
Tax	103			(74)			—		29
Reclassification adjustments, net of taxes	(390)			192			—		(198)
Other comprehensive income (loss), net of taxes	584			92			(990)		(314)
Balance September 30, 2022, net of taxes	$	728		$	(2,651)		$	(2,820)	$	(4,743)

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

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