| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) represents net earnings plus items that are recorded directly to shareholders’ equity, such as cumulative translation adjustments (CTA), certain gains and losses from pension and other postretirement employee benefit (OPEB) plans, certain gains and losses from hedging activities and unrealized gains and losses on available-for-sale debt securities. The following table is a net-of-tax summary of the changes in accumulated other comprehensive income (loss) (AOCI) by component for the six months ended June 30, 2026 and 2025. | | | | | | | | | | | | | | | | | | | Gains (losses) | | (in millions) | CTA | Pension and OPEB plans | Hedging activities | Available-for-sale debt securities | Total | | | | | | | Balance as of December 31, 2025 | $ | (3,133) | | $ | (514) | | $ | (110) | | $ | 3 | | $ | (3,754) | | | Other comprehensive income (loss) before reclassifications | (72) | | 1 | | — | | — | | (71) | | Amounts reclassified from AOCI (a) | — | | 4 | | 2 | | — | | 6 | | | Net other comprehensive income (loss) | (72) | | 5 | | 2 | | — | | (65) | | | Balance as of June 30, 2026 | $ | (3,205) | | $ | (509) | | $ | (108) | | $ | 3 | | $ | (3,819) | |
| | | | | | | | | | | | | | | | | | | Gains (losses) | | (in millions) | CTA | Pension and OPEB plans | Hedging activities | Available-for-sale debt securities | Total | | | | | | | | Balance as of December 31, 2024 | $ | (3,430) | | $ | (475) | | $ | (108) | | $ | 3 | | $ | (4,010) | | | | | | | | | Other comprehensive income (loss) before reclassifications | 146 | | 10 | | (1) | | — | | 155 | | Amounts reclassified from AOCI (a) | 126 | | (15) | | (2) | | — | | 109 | | | Net other comprehensive income (loss) | 272 | | (5) | | (3) | | — | | 264 | | | Balance as of June 30, 2025 | $ | (3,158) | | $ | (480) | | $ | (111) | | $ | 3 | | $ | (3,746) | |
(a) See table below for details about these reclassifications. The following is a summary of the amounts reclassified from AOCI to net income (loss) during the three and six months ended June 30, 2026 and 2025. | | | | | | | | | | | | | | | | | Amounts reclassified from AOCI (a) | | | (in millions) | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | Location of impact in income statement | | | | | | | | | | | | | | | | | | Pension and OPEB items | | | | | Amortization of net losses and prior service costs or credits | $ | (2) | | $ | (5) | | Other (income) expense, net | | | | | | | | | | Less: Tax effect | — | | 1 | | Income tax expense (benefit) | | | | | | $ | (2) | | $ | (4) | | Net of tax | | Gains (losses) on hedging activities | | | | | | | | | Interest rate contracts | (2) | | (3) | | Interest expense, net | | | | | | | | | | Less: Tax effect | 1 | | 1 | | Income tax expense (benefit) | | $ | (1) | | $ | (2) | | Net of tax | | Total reclassifications for the period | $ | (3) | | $ | (6) | | Total net of tax |
| | | | | | | | | | | | | | | | | | | Amounts reclassified from AOCI (a) | | | | (in millions) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | Location of impact in income statement | | | CTA | | | | | | Reclassification of cumulative translation loss to earnings from Kidney Care separation | $ | — | | $ | (126) | | Income from discontinued operations, net of tax | | | Less: Tax effect | — | | — | | Income from discontinued operations, net of tax | | | $ | — | | $ | (126) | | Net of tax | | | Pension and OPEB items | | | | | | Amortization of net losses and prior service costs or credits | $ | 3 | | $ | 6 | | Other (income) expense, net | | | Pension settlement from Kidney Care separation | — | | 14 | | Income from discontinued operations, net of tax | | | 3 | | 20 | | | | | Less: Tax effect | (1) | | (2) | | Income tax expense | | | Less: Tax effect on pension settlement from Kidney Care separation | — | | (3) | | Income from discontinued operations, net of tax | | | $ | 2 | | $ | 15 | | Net of tax | | | Gains (losses) on hedging activities | | | | | | Foreign exchange contracts | $ | 2 | | $ | 6 | | Cost of sales | | | Interest rate contracts | (2) | | (3) | | Interest expense, net | | | — | | 3 | | Total before tax | | | Less: Tax effect | — | | (1) | | Income tax expense (benefit) | | | $ | — | | $ | 2 | | Net of tax | | | Total reclassifications for the period | $ | 2 | | $ | (109) | | Total net of tax | |
(a) Amounts in parentheses indicate reductions to net income Refer to Note 11 for additional information regarding the amortization of pension and OPEB items and Note 14 for additional information regarding hedging activity
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