| Summary of Changes in AOCI by Component |
The following
table is a net-of-tax summary of the changes in AOCI by component
for the years ended December 31, 2015 and 2014.
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| (in millions) |
|
CTA |
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|
Pension and
other employee
benefits |
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|
Hedging
activities |
|
|
Available-for-
sale securities |
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|
Total |
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Gains
(losses)
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|
|
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|
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|
|
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|
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|
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Balance as of
December 31, 2014
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|
$ |
(2,323 |
) |
|
$ |
(1,427 |
) |
|
|
$34 |
|
|
$ |
66 |
|
|
$ |
(3,650 |
) |
|
Other comprehensive
income before reclassifications
|
|
|
(1,094 |
) |
|
|
45 |
|
|
|
46 |
|
|
|
4,461 |
|
|
|
3,458 |
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Amounts reclassified from
AOCI
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|
— |
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|
|
120 |
|
|
|
(31 |
) |
|
|
(23 |
) |
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|
66 |
|
|
|
|
|
Net other comprehensive
(loss) income
|
|
|
(1,094 |
) |
|
|
165 |
|
|
|
15 |
|
|
|
4,438 |
|
|
|
3,524 |
|
|
|
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Distribution to
Baxalta
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|
|
226 |
|
|
|
198 |
|
|
|
(42 |
) |
|
|
(32 |
) |
|
|
350 |
|
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Balance as of
December 31, 2015
|
|
$ |
(3,191 |
) |
|
$ |
(1,064 |
) |
|
|
$7 |
|
|
$ |
4,472 |
|
|
$ |
224 |
|
|
|
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| (in millions) |
|
CTA |
|
|
Pension and
other employee
benefits |
|
|
Hedging
activities |
|
|
Other |
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Total |
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Gains
(losses)
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|
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Balance as of
December 31, 2013
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|
$ |
(991 |
) |
|
$ |
(1,027 |
) |
|
|
$10 |
|
|
$ |
32 |
|
|
$ |
(1,976 |
) |
|
Other comprehensive
income before reclassifications
|
|
|
(1,332 |
) |
|
|
(494 |
) |
|
|
32 |
|
|
|
(6 |
) |
|
|
(1,800 |
) |
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Amounts reclassified from
AOCI
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|
|
— |
|
|
|
94 |
|
|
|
(8 |
) |
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|
40 |
|
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|
126 |
|
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Net other comprehensive
income (loss)
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|
|
(1,332 |
) |
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|
(400 |
) |
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|
24 |
|
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|
34 |
|
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|
(1,674 |
) |
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Balance as of
December 31, 2014
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|
$ |
(2,323 |
) |
|
$ |
(1,427 |
) |
|
|
$34 |
|
|
$ |
66 |
|
|
$ |
(3,650 |
) |
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|
| Summary of Reclassification from AOCI to Net Income |
The following
table is a summary of the amounts reclassified from AOCI to net
income during the years ended December 31, 2015 and
2014.
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Amounts reclassified from
AOCI(a) |
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| (in millions) |
|
2015 |
|
|
2014 |
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Location of impact in income statement |
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Amortization of pension
and other employee benefits items
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|
|
|
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Actuarial losses and
other(b)
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$ |
(181 |
) |
|
$ |
(141 |
) |
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|
(181 |
) |
|
|
(141 |
) |
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Total before tax |
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|
61 |
|
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|
47 |
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Tax benefit |
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|
|
$ |
(120 |
) |
|
$ |
(94 |
) |
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Net of tax |
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Gains (losses) on hedging
activities
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Interest rate
contracts
|
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$ |
— |
|
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$ |
(1 |
) |
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Net interest expense |
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Foreign exchange
contracts
|
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|
— |
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|
1 |
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Net sales |
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Foreign exchange
contracts
|
|
|
47 |
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|
13 |
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Cost of sales |
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47 |
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|
13 |
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Total before
tax |
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(16 |
) |
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(5 |
) |
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Tax expense |
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$ |
31 |
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$8 |
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Net of tax |
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Available-for-sale
securities
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Other-than-temporary
impairment of available-for-sale equity securities
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$ |
— |
|
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$ |
(45 |
) |
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Other expense (income), net |
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Gain on
available-for-sale equity securities
|
|
|
38 |
|
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|
1 |
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|
Other expense (income), net |
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|
|
|
38 |
|
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|
(44 |
) |
|
Total before
tax |
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|
|
(15 |
) |
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|
4 |
|
|
Tax benefit |
|
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|
|
$ |
23 |
|
|
$ |
(40 |
) |
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Net of tax |
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Total reclassification
for the period
|
|
$ |
(66 |
) |
|
$ |
(126 |
) |
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Total net of
tax |
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| (a) |
Amounts in parentheses
indicate reductions to net income. |
| (b) |
These AOCI components are
included in the computation of net periodic benefit cost disclosed
in Note 13. |
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