Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2020

Accumulated Other Comprehensive Income (Loss)

The following table summarizes changes in Accumulated other comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
In millions	2020		2019		2020		2019
Beginning balance	$	(1,983)	$	(1,642)	$	(1,705)	$	(1,677)

Foreign currency translation adjustments during the period	47		(76)		(225)		(33)

Income taxes	17		16		2		4
Total foreign currency translation adjustments, net of tax	64		(60)		(223)		(29)


Pension and other postretirement benefit adjustments reclassified to income	12		6		24		11
Income taxes	(2)		(1)		(5)		(2)
Total pension and other postretirement benefit adjustments, net of tax	10		5		19		9

Ending balance	$	(1,909)	$	(1,697)	$	(1,909)	$	(1,697)

Pension and other postretirement benefit adjustments reclassified to income related to the amortization of actuarial gains and losses and prior service cost. Refer to Note 7. Pension and Other Postretirement Benefits for additional information.

The Company designated the €1.0 billion of Euro notes issued in May 2014, the €1.0 billion of Euro notes issued in May 2015 and the €1.6 billion of Euro notes issued in June 2019 as hedges of a portion of its net investment in Euro-denominated foreign operations to reduce foreign currency risk associated with the investment in these operations. Changes in the value of this debt resulting from fluctuations in the Euro to U.S. dollar exchange rate have been recorded as foreign currency translation adjustments within Accumulated other comprehensive income (loss). The carrying values of the 2019, 2015 and 2014 Euro notes were $1.8 billion, $1.1 billion and $1.1 billion, respectively, as of June 30, 2020. The unrealized pre-tax gain recorded in Accumulated other comprehensive income (loss) related to the net investment hedge was $232 million and $239 million as of June 30, 2020 and December 31, 2019, respectively.

The ending balance of Accumulated other comprehensive income (loss) as of June 30, 2020 and 2019 consisted of cumulative translation adjustment losses, net of tax, of $1.5 billion and $1.3 billion, respectively, and unrecognized pension and other postretirement benefits costs, net of tax, of $371 million and $355 million, respectively.