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Shareholders' Equity
 12 Months Ended
Dec. 31, 2016
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
Shareholders' Equity
Shareholders’ Equity

The Company has authorized one billion shares of common stock and 500,000 shares of preferred stock, each with zero par value.  No preferred stock has been issued.  At December 31, 2016 and 2015, the Company had approximately 143.2 million shares and 120.8 million shares, respectively, of its common shares in treasury.  Treasury stock of $5.5 billion and $4.7 billion at December 31, 2016 and 2015, respectively, is recorded at cost as a reduction of common stock.

At December 31, 2016 and 2015, the foreign currency translation adjustment component of AOCI included income, net of tax, of $40 million and $19 million pertaining to foreign currency-denominated debt designated as a net investment hedge, respectively (see Note 4 for more information).

The following tables set forth the changes in AOCI by component and the reclassifications out of AOCI for the years ended December 31, 2016 and 2015:
 
 
 
Foreign
Currency
Translation
Adjustment
 
 
Deferred
Gain (Loss)
on Hedging
Activities
 
Pension and
Other
Postretirement
Benefit
Liabilities
Adjustment
 
 
Unrealized
Gain (Loss)
on
Investments
 
 
Accumulated
Other
Comprehensive
Income (Loss)
 
 
 
 
 
(In millions)
 
 
 
 
Balance at December 31, 2014
$
(654
)
 
$
47

 
$
(630
)
 
$
(4
)
 
$
(1,241
)
Other comprehensive income before reclassifications
(984
)
 
(53
)
 
87

 
20

 
(930
)
Amounts reclassified from AOCI
23

 
(46
)
 
67

 
—

 
44

Tax effect
(11
)
 
37

 
(47
)
 
2

 
(19
)
Net of tax amount
(972
)
 
(62
)
 
107

 
22

 
(905
)
Balance at December 31, 2015
$
(1,626
)
 
$
(15
)
 
$
(523
)
 
$
18

 
$
(2,146
)
Other comprehensive income before reclassifications
(391
)
 
(104
)
 
(28
)
 
(3
)
 
(526
)
Amounts reclassified from AOCI
(75
)
 
137

 
27

 
6

 
95

Tax effect
(10
)
 
(12
)
 
3

 
(2
)
 
(21
)
Net of tax amount
(476
)
 
21

 
2

 
1

 
(452
)
Balance at December 31, 2016
$
(2,102
)
 
$
6

 
$
(521
)
 
$
19

 
$
(2,598
)


The change in foreign currency translation adjustment in 2016 is primarily due to the U.S. dollar appreciation, impacting the Euro and British Pound-denominated equities of the Company’s foreign subsidiaries while the change in 2015 is primarily due to the U.S. dollar appreciation, mainly impacting the Euro-denominated equity of the Company’s foreign subsidiaries.

 
Amounts reclassified from AOCI Year Ended December 31
Affected line item in the consolidated statement of earnings
Details about AOCI components
2016
2015
2014
 
 
(In millions)
 
Foreign currency translation adjustment
 
 
 
 
 
$
(75
)
$
23

$
—

Other income/expense
 
—

—

—

Tax
 
$
(75
)
$
23

$
—

Net of tax
 
 
 
 
 
Deferred loss (gain) on hedging activities
 
 
 
 
 
$
82

$
25

$
124

Cost of products sold
 
18

(29
)
(5
)
Other income/expense
 
2

(1
)
(1
)
Interest expense
 
35

(41
)
69

Revenues
 
137

(46
)
187

Total before tax
 
(52
)
17

(70
)
Tax on reclassifications
 
$
85

$
(29
)
$
117

Net of tax
Pension liability adjustment
 
 
 
 
Amortization of defined benefit pension items:
 
 
 
 
Prior service losses (credit)
$
(17
)
$
37

$
(15
)
 
Actuarial losses
44

30

36

 
 
27

67

21

Total before tax
 
(5
)
(44
)
(7
)
Tax on reclassifications
 
$
22

$
23

$
14

Net of tax
Unrealized loss on investments
 
 
 
 
 
6

—

6

Asset impairment, exit, and restructuring costs
 
—

—

(2
)
Tax on reclassifications
 
$
6

$
—

$
4

Net of tax