Note 21
Other comprehensive income

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

 

2016

2015

 

2014

($ in millions)

Before
tax

Tax
effect

Net
of tax

Before
tax

Tax
effect

Net
of tax

 

Before
tax

Tax
effect

Net
of tax

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments:

 

 

 

 

 

 

 

 

 

 

Net change during the year

(462)

(12)

(474)

(1,105)

47

(1,058)

 

(1,691)

11

(1,680)

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses) arising during the year

(8)

1

(7)

 

(14)

5

(9)

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

1

1

 

21

(6)

15

Net change during the year

(7)

1

(6)

 

7

(1)

6

 

 

 

 

 

 

 

 

 

 

 

Pension and other postretirement plans:

 

 

 

 

 

 

 

 

 

 

Prior service (costs) credits arising during the year

(46)

6

(40)

113

(25)

88

 

(5)

2

(3)

Net actuarial gains (losses) arising during the year

38

6

44

285

(75)

210

 

(826)

212

(614)

Amortization of prior service cost included in net income

28

(2)

26

29

(3)

26

 

18

(1)

17

Amortization of net actuarial loss included in net income

85

(23)

62

113

(31)

82

 

102

(21)

81

Net losses from pension settlements included in net income

37

(11)

26

15

(6)

9

 

(3)

1

(2)

Net change during the year

142

(24)

118

555

(140)

415

 

(714)

193

(521)

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedge derivatives:

 

 

 

 

 

 

 

 

 

 

Net gains (losses) arising during the year

21

(5)

16

(26)

6

(20)

 

(65)

13

(52)

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

(7)

1

(6)

39

(9)

30

 

10

(1)

9

Net change during the year

14

(4)

10

13

(3)

10

 

(55)

12

(43)

 

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss)

(306)

(40)

(346)

(544)

(95)

(639)

 

(2,453)

215

(2,238)

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

Total OCI

Balance at January 1, 2014

(431)

7

(1,610)

22

(2,012)

 

 

 

 

 

 

Other comprehensive (loss) income before reclassifications

(1,680)

(9)

(617)

(52)

(2,358)

Amounts reclassified from OCI

15

96

9

120

Total other comprehensive (loss) income

(1,680)

6

(521)

(43)

(2,238)

 

 

 

 

 

 

Less:

 

 

 

 

 

Amounts attributable to noncontrolling interests

(9)

(9)

Balance at December 31, 2014

(2,102)

13

(2,131)

(21)

(4,241)

 

 

 

 

 

 

Other comprehensive (loss) income before reclassifications

(1,058)

(7)

298

(20)

(787)

Amounts reclassified from OCI

1

117

30

148

Total other comprehensive (loss) income

(1,058)

(6)

415

10

(639)

 

 

 

 

 

 

Less:

 

 

 

 

 

Amounts attributable to noncontrolling interests

(25)

3

(22)

Balance at December 31, 2015

(3,135)

7

(1,719)

(11)

(4,858)

 

 

 

 

 

 

Other comprehensive (loss) income before reclassifications

(474)

4

16

(454)

Amounts reclassified from OCI

114

(6)

108

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)

The following table reflects amounts reclassified out of OCI in respect of Pension and other postretirement plan adjustments and Unrealized gains (losses) of cash flow hedge derivatives:

Details about OCI components ($ in millions)

Location of (gains) losses reclassified from OCI

2016

2015

2014

(1)

These components are included in the computation of net periodic benefit cost (see Note 17).

(2)

SG&A expenses represent “Selling, general and administrative expenses”.

 

 

 

 

 

Pension and other postretirement plan adjustments:

 

 

 

 

Amortization of prior service cost

Net periodic benefit cost(1)

28

29

18

Amortization of net actuarial losses

Net periodic benefit cost(1)

85

113

102

Net losses from pension settlements

Net periodic benefit cost(1)

37

15

(3)

Total before tax

 

150

157

117

Tax

Provision for taxes

(36)

(40)

(21)

Amounts reclassified from OCI

 

114

117

96

 

 

 

 

 

Unrealized gains (losses) of cash flow hedge derivatives:

 

 

 

 

Foreign exchange contracts

Total revenues

11

36

9

 

Total cost of sales

(10)

(11)

(8)

Commodity contracts

Total cost of sales

2

10

3

Cash-settled call options

SG&A expenses(2)

(10)

4

6

Total before tax

 

(7)

39

10

Tax

Provision for taxes

1

(9)

(1)

Amounts reclassified from OCI

 

(6)

30

9

The amounts reclassified out of OCI in respect of Unrealized gains (losses) on available-for-sale securities were not significant in 2016, 2015 and 2014.