COMPREHENSIVE (LOSS) INCOME

12 Months Ended

Dec. 31, 2021

Other Comprehensive Income (Loss), Net of Tax [Abstract]

AOCI includes cumulative foreign currency translation adjustments related to consolidation of the Company’s foreign subsidiaries, fair value adjustments related to the Company’s derivative financial instruments, and actuarial gains and losses related to the Company's pension plans. These changes are recorded in AOCI net of any related tax adjustments. For the years ended December 31, 2021, 2020 and 2019, these tax adjustments were $168 million, $216 million and $173 million, respectively, primarily related to foreign currency translation adjustments.

The cumulative foreign currency translation adjustments included translation losses of $250 million and $25 million at December 31, 2021 and 2020, respectively, and which included losses of $116 million and $162 million, at December 31, 2021 and 2020, respectively, on inter-company loans designated as hedges of net investments.

Changes in AOCI, net of tax, by component for the years ended December 31, 2021 and 2020 were as follows:


(in millions)	Foreign Currency Translation Gain (Loss)		Gain and (Loss) on Cash Flow Hedges		Gain and (Loss) on Net Investment and Fair Value Hedges		Pension Liability Gain (Loss)		Total

Balance, net of tax, at December 31, 2020	$	(187)	$	(25)	$	(119)	$	(133)	$	(464)
Other comprehensive (loss) income before reclassifications and tax impact	(156)		3		22		26		(105)
Tax expense	(23)		(1)		(6)		(8)		(38)
Other comprehensive (loss) income, net of tax, before reclassifications	$	(179)	$	2	$	16	$	18	$	(143)
Amounts reclassified from accumulated other comprehensive income, net of tax	—		7		—		8		15
Net (decrease) increase in other comprehensive income	(179)		9		16		26		(128)

Balance, net of tax, at December 31, 2021	$	(366)	$	(16)	$	(103)	$	(107)	$	(592)


(in millions)	Foreign Currency Translation Gain (Loss)		Gain and (Loss) on Cash Flow Hedges		Gain and (Loss) on Net Investment and Fair Value Hedges		Pension Liability Gain (Loss)		Total

Balance, net of tax, at December 31, 2019	$	(368)	$	(11)	$	(101)	$	(120)	$	(600)
Other comprehensive income (loss) before reclassifications and tax impact	151		(17)		(23)		(26)		85
Tax benefit	30		1		5		7		43
Other comprehensive income (loss), net of tax, before reclassifications	$	181	$	(16)	$	(18)	$	(19)	$	128
Amounts reclassified from accumulated other comprehensive income, net of tax	—		2		—		6		8
Net increase (decrease) in other comprehensive income	181		(14)		(18)		(13)		136

Balance, net of tax, at December 31, 2020	$	(187)	$	(25)	$	(119)	$	(133)	$	(464)

Reclassification out of AOCI to the Consolidated Statements of Operations for the years ended December 31, 2021, 2020, and 2019 were as follows:



	Amounts Reclassified from AOCI						Affected Line Item in the Consolidated Statements of Operations
	Year Ended December 31,
(in millions)	2021		2020		2019




Loss on derivative financial instruments:
Interest rate swaps	$	(4)	$	(4)	$	(2)	Interest expense, net
Foreign exchange forward contracts	(3)		2		1		Cost of products sold


Net loss before tax	$	(7)	$	(2)	$	(1)
Tax impact	—		—		—		Provision for income taxes
Net loss after tax	$	(7)	$	(2)	$	(1)






Amortization of defined benefit pension and other postemployment benefit items:
Amortization of prior service benefits	$	1	$	1	$	1	(a)

Amortization of net actuarial losses	(12)		(9)		(6)		(a)
Net loss before tax	$	(11)	$	(8)	$	(5)
Tax impact	3		2		1		Provision for income taxes
Net loss after tax	$	(8)	$	(6)	$	(4)

Total reclassifications for the period	$	(15)	$	(8)	$	(5)

(a) These AOCI components are included in the computation of net periodic benefit cost for the years ended December 31, 2021, 2020, and 2019, respectively.