Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2023

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


	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	333			1,737			(304)		1,766
Tax	(75)			(332)			(119)		(526)
Other comprehensive income (loss) before reclassification adjustments, net of taxes	258			1,405			(423)		1,240
Reclassification adjustments, pretax	192		(1)	466		(2)	—		658
Tax	(40)			(102)			—		(142)
Reclassification adjustments, net of taxes	152			364			—		516
Other comprehensive income (loss), net of taxes	410			1,769			(423)		1,756
Spin-off of Organon (see Note 5)	—			28			421		449
Balance at December 31, 2021, net of taxes	144			(2,743)			(1,830)		(4,429)
Other comprehensive income (loss) before reclassification adjustments, pretax	684			70			(584)		170
Tax	(143)			12			(19)		(150)
Other comprehensive income (loss) before reclassification adjustments, net of taxes	541			82			(603)		20
Reclassification adjustments, pretax	(775)		(1)	329		(2)	—		(446)
Tax	163			(76)			—		87
Reclassification adjustments, net of taxes	(612)			253			—		(359)
Other comprehensive income (loss), net of taxes	(71)			335			(603)		(339)
Balance at December 31, 2022, net of taxes	73			(2,408)		(3)	(2,433)		(4,768)
Other comprehensive income (loss) before reclassification adjustments, pretax	114			(413)			17		(282)
Tax	(24)			86			63		125
Other comprehensive income (loss) before reclassification adjustments, net of taxes	90			(327)			80		(157)
Reclassification adjustments, pretax	(237)		(1)	(64)		(2)	9		(292)
Tax	50			6			—		56
Reclassification adjustments, net of taxes	(187)			(58)			9		(236)
Other comprehensive income (loss), net of taxes	(97)			(385)			89		(393)
Balance at December 31, 2023, net of taxes	$	(24)		$	(2,793)	(3)	$	(2,344)	$	(5,161)

(1) Primarily relates to foreign currency cash flow hedges that were reclassified from AOCL to Sales (see Note 7).

(2) Includes net amortization of prior service cost, actuarial gains and losses, settlements and curtailments included in net periodic benefit cost (see Note 14).

(3) Includes pension plan net loss of $3.5 billion and $3.1 billion at December 31, 2023 and 2022, respectively, and other postretirement benefit plan net gain of $500 million and $446 million at December 31, 2023 and 2022, respectively, as well as pension plan prior service credit of $141 million and $152 million at December 31, 2023 and 2022, respectively, and other postretirement benefit plan prior service credit of $95 million and $135 million at December 31, 2023 and 2022, respectively.