COMPREHENSIVE (LOSS) INCOME |
COMPREHENSIVE (LOSS) INCOME AOCI includes foreign currency translation adjustments related to consolidation of the Company’s foreign subsidiaries, fair value adjustments related to the Company’s derivative financial instruments, and actuarial gains and losses related to the Company's pension plans. These changes are recorded in AOCI net of any related tax adjustments. For the years ended December 31, 2020, 2019 and 2018, these tax adjustments were $216 million, $173 million and $158 million, respectively, primarily related to foreign currency translation adjustments.
The cumulative foreign currency translation adjustments included translation losses of $25 million and $260 million at December 31, 2020 and 2019, respectively, and which included losses of $162 million and $108 million, at December 31, 2020 and 2019, respectively, on loans designated as hedges of net investments.
Changes in AOCI, net of tax, by component for the years ended December 31, 2020 and 2019 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | | Foreign Currency Translation Gain (Loss) | | Gain and (Loss) on Cash Flow Hedges | | Gain and (Loss) on Net Investment and Fair Value Hedges | | | | Pension Liability Gain (Loss) | | Total | | | | | | | | | | | | | | Balance, net of tax, at December 31, 2019 | | $ | (368) | | | $ | (11) | | | $ | (101) | | | | | $ | (120) | | | $ | (600) | | Other comprehensive income (loss) before reclassifications and tax impact | | 151 | | | (17) | | | (23) | | | | | (26) | | | 85 | | Tax benefit | | 30 | | | 1 | | | 5 | | | | | 7 | | | 43 | | Other comprehensive income (loss), net of tax, before reclassifications | | $ | 181 | | | $ | (16) | | | $ | (18) | | | | | $ | (19) | | | $ | 128 | | Amounts reclassified from accumulated other comprehensive income, net of tax | | — | | | 2 | | | — | | | | | 6 | | | 8 | | Net increase (decrease) in other comprehensive income | | 181 | | | (14) | | | (18) | | | | | (13) | | | 136 | | | | | | | | | | | | | | | Balance, net of tax, at December 31, 2020 | | $ | (187) | | | $ | (25) | | | $ | (119) | | | | | $ | (133) | | | $ | (464) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | | Foreign Currency Translation Gain (Loss) | | Gain and (Loss) on Cash Flow Hedges | | Gain and (Loss) on Net Investment and Fair Value Hedges | | | | Pension Liability Gain (Loss) | | Total | | | | | | | | | | | | | | Balance, net of tax, at December 31, 2018 | | $ | (284) | | | $ | 1 | | | $ | (112) | | | | | $ | (84) | | | $ | (479) | | Other comprehensive (loss) income before reclassifications and tax impact | | (88) | | | (17) | | | 18 | | | | | (54) | | | (141) | | Tax benefit (expense) | | 4 | | | 4 | | | (7) | | | | | 14 | | | 15 | | Other comprehensive (loss) income, net of tax, before reclassifications | | $ | (84) | | | $ | (13) | | | $ | 11 | | | | | $ | (40) | | | $ | (126) | | Amounts reclassified from accumulated other comprehensive income, net of tax | | — | | | 1 | | | — | | | | | 4 | | | 5 | | Net (decrease) increase in other comprehensive income | | (84) | | | (12) | | | 11 | | | | | (36) | | | (121) | | | | | | | | | | | | | | | Balance, net of tax, at December 31, 2019 | | $ | (368) | | | $ | (11) | | | $ | (101) | | | | | $ | (120) | | | $ | (600) | |
Reclassification out of AOCI to the Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Details about AOCI Components | | Amounts Reclassified from AOCI | Affected Line Item in the Consolidated Statements of Operations | | | Year Ended December 31, | (in millions) | | 2020 | | 2019 | | 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loss on derivative financial instruments: | Interest rate swaps | | $ | (4) | | | $ | (2) | | | $ | (2) | | Interest expense | Foreign exchange forward contracts | | 2 | | | 1 | | | (9) | | Cost of products sold | | | | | | | | | | | | | | | | | Net loss before tax | | $ | (2) | | | $ | (1) | | | $ | (11) | | | Tax impact | | — | | | — | | | 1 | | Provision for income taxes | Net loss after tax | | $ | (2) | | | $ | (1) | | | $ | (10) | | | | | | | | | | | | | | | Realized gain on available-for-sale securities: | Available -for-sale-securities | | $ | — | | | $ | — | | | $ | 45 | | Other expense (income), net | Tax impact | | — | | | — | | | (1) | | Provision for income taxes | Net gain after tax | | $ | — | | | $ | — | | | $ | 44 | | | | | | | | | | | | | Amortization of defined benefit pension and other postemployment benefit items: | Amortization of prior service benefits | | $ | 1 | | | $ | 1 | | | $ | — | | (a) | | | | | | | | | Amortization of net actuarial losses | | (9) | | | (6) | | | (6) | | (a) | Net loss before tax | | $ | (8) | | | $ | (5) | | | $ | (6) | | | Tax impact | | 2 | | | 1 | | | 2 | | Provision for income taxes | Net loss after tax | | $ | (6) | | | $ | (4) | | | $ | (4) | | | | | | | | | | | | | Total reclassifications for the period | | $ | (8) | | | $ | (5) | | | $ | 30 | | | | | | | | | | | | | | |
(a) These AOCI components are included in the computation of net periodic benefit cost for the years ended December 31, 2020, 2019, and 2018, respectively.
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