ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

12 Months Ended

Dec. 31, 2015

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.

(in millions)	CTA			Pension and other employee benefits			Hedging activities			Available-for- sale securities			Total
Gains (losses)
Balance as of December 31, 2014	$	(2,323	)	$	(1,427	)		$34		$	66		$	(3,650	)
Other comprehensive income before reclassifications		(1,094	)		45			46			4,461			3,458
Amounts reclassified from AOCI		—			120			(31	)		(23	)		66
Net other comprehensive (loss) income		(1,094	)		165			15			4,438			3,524
Distribution to Baxalta		226			198			(42	)		(32	)		350
Balance as of December 31, 2015	$	(3,191	)	$	(1,064	)		$7		$	4,472		$	224
(in millions)	CTA			Pension and other employee benefits			Hedging activities			Other			Total
Gains (losses)
Balance as of December 31, 2013	$	(991	)	$	(1,027	)		$10		$	32		$	(1,976	)
Other comprehensive income before reclassifications		(1,332	)		(494	)		32			(6	)		(1,800	)
Amounts reclassified from AOCI		—			94			(8	)		40			126
Net other comprehensive income (loss)		(1,332	)		(400	)		24			34			(1,674	)
Balance as of December 31, 2014	$	(2,323	)	$	(1,427	)		$34		$	66		$	(3,650	)

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.

	Amounts reclassified from AOCI(a)
(in millions)	2015			2014			Location of impact in income statement
Amortization of pension and other employee benefits items
Actuarial losses and other(b)	$	(181	)	$	(141	)
		(181	)		(141	)	Total before tax
		61			47		Tax benefit
	$	(120	)	$	(94	)	Net of tax
Gains (losses) on hedging activities
Interest rate contracts	$	—		$	(1	)	Net interest expense
Foreign exchange contracts		—			1		Net sales
Foreign exchange contracts		47			13		Cost of sales
		47			13		Total before tax
		(16	)		(5	)	Tax expense
	$	31			$8		Net of tax
Available-for-sale securities
Other-than-temporary impairment of available-for-sale equity securities	$	—		$	(45	)	Other expense (income), net
Gain on available-for-sale equity securities		38			1		Other expense (income), net
		38			(44	)	Total before tax
		(15	)		4		Tax benefit
	$	23		$	(40	)	Net of tax
Total reclassification for the period	$	(66	)	$	(126	)	Total net of tax

(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.