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Shareholders' Equity | 12 Months Ended
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Dec. 31, 2020
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] |
Shareholders' Equity | Shareholders’ EquityThe Company has authorized one billion shares of common stock and 500,000 shares of preferred stock, each with zero par value. No preferred stock has been issued. At December 31, 2020 and 2019, the Company had approximately 160.0 million shares and 158.8 million shares, respectively, of its common shares in treasury. Treasury stock of $5.2 billion and $5.3 billion at December 31, 2020 and 2019, respectively, is recorded at cost as a reduction of common stock, and treasury stock of $0.3 billion and $0.1 billion at December 31, 2020 and 2019, respectively, is recorded at cost as a reduction of retained earnings. The following tables set forth the changes in AOCI by component and the reclassifications out of AOCI for the years ended December 31, 2020 and 2019:
| Foreign Currency Translation Adjustment |  | Deferred Gain (Loss) on Hedging Activities |  | Pension and Other Postretirement Benefit Liabilities Adjustment |  | Unrealized Gain (Loss) on Investments |  | Accumulated Other Comprehensive Income (Loss)
|  |  |  |  | (In millions) |  |  |  |
Balance at December 31, 2018 | $ | (1,962) |  |  | $ | 61 |  |  | $ | (220) |  |  | $ | 15 |  |  | $ | (2,106) |
Other comprehensive income before reclassifications | (220) |  |  | (191) |  |  | (89) |  |  | 14 |  |  | (486) |
Gain (loss) on net investment hedges | 35 |  |  | — |  |  | — |  |  | — |  |  | 35 |
Amounts reclassified from AOCI | 7 |  |  | 100 |  |  | (9) |  |  | (1) |  |  | 97 |
Tax effect | (12) |  |  | 18 |  |  | 50 |  |  | (1) |  |  | 55 |
Net of tax amount | (190) |  |  | (73) |  |  | (48) |  |  | 12 |  |  | (299) |
Balance at December 31, 2019 | $ | (2,152) |  |  | $ | (12) |  |  | $ | (268) |  |  | $ | 27 |  |  | $ | (2,405) |
Other comprehensive income before reclassifications | 29 |  |  | 209 |  |  | (120) |  |  | (27) |  |  | 91 |
Gain (loss) on net investment hedges | (398) |  |  | — |  |  | — |  |  | — |  |  | (398) |
Amounts reclassified from AOCI | — |  |  | 45 |  |  | 7 |  |  | — |  |  | 52 |
Tax effect | 97 |  |  | (57) |  |  | 16 |  |  | — |  |  | 56 |
Net of tax amount | (272) |  |  | 197 |  |  | (97) |  |  | (27) |  |  | (199) |
Balance at December 31, 2020 | $ | (2,424) |  |  | $ | 185 |  |  | $ | (365) |  |  | $ | — |  |  | $ | (2,604) |
The change in foreign currency translation adjustment in 2020 is primarily due to net investment hedges as discussed in Note 5 while the change in foreign currency translation adjustment in 2019 is primarily due to the U.S. dollar appreciation, impacting the Euro-denominated equities of the Company’s foreign subsidiaries.
| Amounts reclassified from AOCI Year Ended December 31 | Affected line item in the consolidated statement of
Details about AOCI components | 2020 | 2019 | 2018 | earnings
| (In millions) |
Foreign currency translation adjustment |  |  |  |
| $ | — |  | $ | 7 |  | $ | (1) |  | Other income/expense
| — |  | — |  | — |  | Tax
| $ | — |  | $ | 7 |  | $ | (1) |  | Net of tax
Deferred loss (gain) on hedging activities |  |  |  |
| $ | (27) |  | $ | 11 |  | $ | 113 |  | Cost of products sold
| 2 |  | 46 |  | (36) |  | Other income/expense
| 2 |  | (1) |  | (1) |  | Interest expense
| 68 |  | 44 |  | — |  | Revenues
| 45 |  | 100 |  | 76 |  | Total before tax
| 7 |  | (13) |  | (18) |  | Tax on reclassifications
| $ | 52 |  | $ | 87 |  | $ | 58 |  | Net of tax
Pension liability adjustment |  |  |  |
Amortization of defined benefit pension items: |  |  |  |
Prior service losses (credit) | $ | (32) |  | $ | (26) |  | $ | (33) |  | Other (income) expense - net
Actuarial losses | 39 |  | 17 |  | 65 |  | Other (income) expense - net
| 7 |  | (9) |  | 32 |  | Total before tax
| (11) |  | 18 |  | (8) |  | Tax on reclassifications
| $ | (4) |  | $ | 9 |  | $ | 24 |  | Net of tax
Unrealized loss (gain) on investments |  |  |  |
| $ | — |  | $ | (1) |  | $ | (2) |  | Other income/expense
| — |  | — |  | — |  | Tax on reclassifications
| $ | — |  | $ | (1) |  | $ | (2) |  | Net of tax

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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