Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2020

The following tables display the changes in Accumulated Other Comprehensive Loss (“AOCL”) by component, net of tax, for the three months ended March 31, 2020 (in millions):


	Cumulative Translation Adjustment		Pension and Postretirement Costs		Derivative Financial Instruments		AOCL
Balance at December 31, 2019	$	(479)	$	(399)	$	(42)	$	(920)
Other comprehensive income (loss) before reclassifications	(156)		(9)		25		(140)
Amounts reclassified to earnings	—		4		1		5
Net current period other comprehensive income (loss)	(156)		(5)		26		(135)
Balance at March 31, 2020	$	(635)	$	(404)	$	(16)	$	(1,055)

For the three months ended March 31, 2020 and 2019, reclassifications from AOCL to the results of operations for the Company’s pension and postretirement benefit plans were a pretax expense of $6 million and $2 million, respectively, and primarily represent the amortization of net actuarial losses (see Footnote 11). These costs are recorded in other expense, net. For the three months ended March 31, 2020 and 2019, reclassifications from AOCL to the results of operations for the Company’s derivative financial instruments for effective cash flow hedges were pretax expense of $1 million and income of $4 million, respectively (see Footnote 10).

The income tax (expense) benefit allocated to the components of AOCL for the periods indicated are as follows (in millions):


	Three Months Ended March 31,
	2020		2019
Foreign currency translation adjustments	$	(7)	$	—
Unrecognized pension and postretirement costs	3		4
Derivative financial instruments	(9)		2
Income tax (expense) benefit related to AOCL	$	(13)	$	6