Shareholders' Equity

12 Months Ended

Dec. 31, 2020

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Shareholders’ EquityThe 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, 2020 and 2019, the Company had approximately 160.0 million shares and 158.8 million shares, respectively, of its common shares in treasury. Treasury stock of $5.2 billion and $5.3 billion at December 31, 2020 and 2019, respectively, is recorded at cost as a reduction of common stock, and treasury stock of $0.3 billion and $0.1 billion at December 31, 2020 and 2019, respectively, is recorded at cost as a reduction of retained earnings.

The following tables set forth the changes in AOCI by component and the reclassifications out of AOCI for the years ended December 31, 2020 and 2019:


	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, 2018	$	(1,962)	$	61	$	(220)	$	15	$	(2,106)
Other comprehensive income before reclassifications	(220)		(191)		(89)		14		(486)
Gain (loss) on net investment hedges	35		—		—		—		35
Amounts reclassified from AOCI	7		100		(9)		(1)		97
Tax effect	(12)		18		50		(1)		55
Net of tax amount	(190)		(73)		(48)		12		(299)
Balance at December 31, 2019	$	(2,152)	$	(12)	$	(268)	$	27	$	(2,405)
Other comprehensive income before reclassifications	29		209		(120)		(27)		91
Gain (loss) on net investment hedges	(398)		—		—		—		(398)
Amounts reclassified from AOCI	—		45		7		—		52
Tax effect	97		(57)		16		—		56
Net of tax amount	(272)		197		(97)		(27)		(199)
Balance at December 31, 2020	$	(2,424)	$	185	$	(365)	$	—	$	(2,604)

The change in foreign currency translation adjustment in 2020 is primarily due to net investment hedges as discussed in Note 5 while the change in foreign currency translation adjustment in 2019 is primarily due to the U.S. dollar appreciation, impacting the Euro-denominated equities of the Company’s foreign subsidiaries.


	Amounts reclassified from AOCI Year Ended December 31						Affected line item in the consolidated statement of
Details about AOCI components	2020		2019		2018		earnings
	(In millions)
Foreign currency translation adjustment
	$	—	$	7	$	(1)	Other income/expense
	—		—		—		Tax
	$	—	$	7	$	(1)	Net of tax

Deferred loss (gain) on hedging activities
	$	(27)	$	11	$	113	Cost of products sold
	2		46		(36)		Other income/expense
	2		(1)		(1)		Interest expense
	68		44		—		Revenues
	45		100		76		Total before tax
	7		(13)		(18)		Tax on reclassifications
	$	52	$	87	$	58	Net of tax
Pension liability adjustment
Amortization of defined benefit pension items:
Prior service losses (credit)	$	(32)	$	(26)	$	(33)	Other (income) expense - net
Actuarial losses	39		17		65		Other (income) expense - net
	7		(9)		32		Total before tax
	(11)		18		(8)		Tax on reclassifications
	$	(4)	$	9	$	24	Net of tax
Unrealized loss (gain) on investments
	$	—	$	(1)	$	(2)	Other income/expense

	—		—		—		Tax on reclassifications
	$	—	$	(1)	$	(2)	Net of tax