COMPREHENSIVE (LOSS) INCOME

12 Months Ended

Dec. 31, 2022

Other Comprehensive Income (Loss), Net of Tax [Abstract]

COMPREHENSIVE (LOSS) INCOME

COMPREHENSIVE (LOSS) INCOME

AOCI includes cumulative 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, 2022, 2021 and 2020, these tax adjustments were $100 million, $168 million and $216 million, respectively, primarily related to foreign currency translation adjustments.

The cumulative foreign currency translation adjustments included translation losses of $438 million and $250 million at December 31, 2022 and 2021, respectively, and which included losses of $84 million and $116 million, at December 31, 2022 and 2021, respectively, on loans designated as hedges of net investments.

Changes in AOCI, net of tax, by component for the years ended December 31, 2022 and 2021 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, 2021	$	(366)	$	(16)	$	(103)	$	(107)	$	(592)
Other comprehensive (loss) income before reclassifications and tax impact	(127)		(1)		39		116		27
Tax expense	(29)		—		(9)		(30)		(68)
Other comprehensive (loss) income, net of tax, before reclassifications	$	(156)	$	(1)	$	30	$	86	$	(41)
Amounts reclassified from accumulated other comprehensive income, net of tax	—		—		—		5		5
Net (decrease) increase in other comprehensive income	(156)		(1)		30		91		(36)
Balance, net of tax, at December 31, 2022	$	(522)	$	(17)	$	(73)	$	(16)	$	(628)

(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, 2020	$	(187)	$	(25)	$	(119)	$	(133)	$	(464)
Other comprehensive (loss) income before reclassifications and tax impact	(146)		3		22		26		(95)
Tax expense	(33)		(1)		(6)		(8)		(48)
Other comprehensive (loss) income, net of tax, before reclassifications	$	(179)	$	2	$	16	$	18	$	(143)
Amounts reclassified from accumulated other comprehensive income, net of tax	—		7		—		8		15
Net (decrease) increase in other comprehensive income	(179)		9		16		26		(128)
Balance, net of tax, at December 31, 2021	$	(366)	$	(16)	$	(103)	$	(107)	$	(592)

Reclassification out of AOCI to the Consolidated Statements of Operations for the years ended December 31, 2022, 2021, and 2020 were as follows:

	Amounts Reclassified from AOCI						Affected Line Item in the Consolidated Statements of Operations
	Year Ended December 31,
(in millions)	2022		2021		2020
Gain (Loss) on derivative financial instruments:
Interest rate swaps	$	(3)	$	(4)	$	(4)	Interest expense, net
Foreign exchange forward contracts	3		(3)		2		Cost of products sold
Net loss before tax	$	—	$	(7)	$	(2)
Tax impact	—		—		—		(Benefit) provision for income taxes
Net loss after tax	$	—	$	(7)	$	(2)
Amortization of defined benefit pension and other postemployment benefit items:
Amortization of prior service benefits	$	1	$	1	$	1	(a)
Amortization of net actuarial losses	(8)		(12)		(9)		(a)
Net loss before tax	$	(7)	$	(11)	$	(8)
Tax impact	2		3		2		(Benefit) provision for income taxes
Net loss after tax	$	(5)	$	(8)	$	(6)
Total reclassifications for the period	$	(5)	$	(15)	$	(8)

(a) These AOCI components are included in the computation of net periodic benefit cost for the years ended December 31, 2022, 2021, and 2020, respectively.