Note 21
Other comprehensive income

The following table includes amounts recorded within “Total other comprehensive income (loss)” including the related income tax effects:

 

2018

2017

2016

($ in millions)

Before
tax

Tax
effect

Net
of tax

Before
tax

Tax
effect

Net
of tax

Before
tax

Tax
effect

Net
of tax

(1)

Changes attributable to divestments are included in the computation of the net gain or loss on sale of businesses (see Note 4).

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments:

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

(641)

14

(627)

911

1

912

(469)

(12)

(481)

Gain on liquidation of foreign subsidiary

(31)

(31)

Changes attributable to divestments(1)

12

12

12

12

7

7

Net change during the year

(660)

14

(646)

923

1

924

(462)

(12)

(474)

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses) arising during the year

(5)

1

(4)

1

1

Reclassification adjustments for net (gains) losses included in net income

1

1

Net change during the year

(4)

1

(3)

1

1

 

 

 

 

 

 

 

 

 

 

Pension and other postretirement plans:

 

 

 

 

 

 

 

 

 

Prior service (costs) credits arising during the year

(11)

4

(7)

(20)

4

(16)

(46)

6

(40)

Net actuarial gains (losses) arising during the year

(411)

59

(352)

(184)

45

(139)

38

6

44

Amortization of prior service cost (credit) included in net income

(19)

(5)

(24)

6

6

28

(2)

26

Amortization of net actuarial loss included in net income

91

(22)

69

90

(27)

63

85

(23)

62

Net losses from pension settlements included in net income

23

(4)

19

13

(4)

9

37

(11)

26

Changes attributable to divestments(1)

8

(2)

6

Net change during the year

(327)

32

(295)

(87)

16

(71)

142

(24)

118

 

 

 

 

 

 

 

 

 

 

Cash flow hedge derivatives:

 

 

 

 

 

 

 

 

 

Net gains (losses) arising during the year

(51)

2

(49)

45

(7)

38

21

(5)

16

Reclassification adjustments for net (gains) losses included in net income

20

1

21

(26)

4

(22)

(7)

1

(6)

Changes attributable to divestments(1)

(4)

1

(3)

Net change during the year

(31)

3

(28)

15

(2)

13

14

(4)

10

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss)

(1,022)

50

(972)

852

15

867

(306)

(40)

(346)

The following table shows changes in “Accumulated other comprehensive loss” (OCI) attributable to ABB, by component, net of tax:

($ in millions)

Foreign currency translation adjustments

Unrealized gains (losses) on available-for-sale securities

Pension and other post­retirement plan adjustments

Unrealized gains (losses) of cash flow hedge derivatives

Accumulated other compre­hensive loss

(1)

See “New accounting pronouncements, Applicable for the current period” section of Note 2 for more details.

Balance at January 1, 2016

(3,135)

7

(1,719)

(11)

(4,858)

 

 

 

 

 

 

Other comprehensive (loss) income before reclassifications

(481)

4

16

(461)

Amounts reclassified from OCI

114

(6)

108

Changes attributable to divestments

7

7

Total other comprehensive (loss) income

(474)

118

10

(346)

 

 

 

 

 

 

Less:

 

 

 

 

 

Amounts attributable to noncontrolling interests

(17)

(17)

Balance at December 31, 2016

(3,592)

7

(1,601)

(1)

(5,187)

 

 

 

 

 

 

Other comprehensive (loss) income before reclassifications

912

1

(155)

38

796

Amounts reclassified from OCI

78

(22)

56

Changes attributable to divestments

12

6

(3)

15

Total other comprehensive (loss) income

924

1

(71)

13

867

 

 

 

 

 

 

Less:

 

 

 

 

 

Amounts attributable to noncontrolling interests

25

25

Balance at December 31, 2017

(2,693)

8

(1,672)

12

(4,345)

 

 

 

 

 

 

Cumulative effect of changes in accounting principles(1)

(9)

(9)

Other comprehensive (loss) income before reclassifications

(627)

(4)

(359)

(49)

(1,039)

Amounts reclassified from OCI

(31)

1

64

21

55

Changes attributable to divestments

12

12

Total other comprehensive (loss) income

(646)

(3)

(295)

(28)

(972)

 

 

 

 

 

 

Less:

 

 

 

 

 

Amounts attributable to noncontrolling interests

(15)

(15)

Balance at December 31, 2018

(3,324)

(4)

(1,967)

(16)

(5,311)

The following table reflects amounts reclassified out of OCI in respect of Foreign currency translation adjustments and Pension and other postretirement plan adjustments:

($ in millions)
Details about OCI components

Location of (gains) losses reclassified from OCI

2018

2017

2016

(1)

Amounts include a total of $12 million, $9 million and $0 million in 2018, 2017 and 2016, respectively, reclassified from OCI to Income from discontinued operations (see Note 3).

Foreign currency translation adjustments:

 

 

 

 

Gain on liquidation of foreign subsidiary

Other income (expense), net

(31)

 

 

 

 

 

Pension and other postretirement plan adjustments:

 

 

 

 

Amortization of prior service cost (credit)

Non-operational pension (cost) credit(1)

(19)

6

28

Amortization of net actuarial loss

Non-operational pension (cost) credit(1)

91

90

85

Net losses from pension settlements

Non-operational pension (cost) credit(1)

23

13

37

Total before tax

 

95

109

150

Tax

Provision for taxes

(31)

(31)

(36)

Amounts reclassified from OCI

 

64

78

114

The amounts reclassified out of OCI in respect of Unrealized gains (losses) on available-for-sale securities and Unrealized gains (losses) of cash flow hedge derivatives were not significant in 2018, 2017 and 2016.