Note 21 Other comprehensive income

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

 

2015

2014

2013

($ 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

(1,105)

47

(1,058)

(1,691)

11

(1,680)

133

8

141

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses) arising during the year

(8)

1

(7)

(14)

5

(9)

(4)

(4)

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

1

1

21

(6)

15

(14)

1

(13)

Net change during the year

(7)

1

(6)

7

(1)

6

(18)

1

(17)

 

 

 

 

 

 

 

 

 

 

Pension and other postretirement plans:

 

 

 

 

 

 

 

 

 

Prior service (costs) credits arising during the year

113

(25)

88

(5)

2

(3)

(20)

4

(16)

Net actuarial gains (losses) arising during the year

285

(75)

210

(826)

212

(614)

423

(132)

291

Amortization of prior service cost included in net income

29

(3)

26

18

(1)

17

25

(2)

23

Amortization of net actuarial loss included in net income

128

(37)

91

99

(20)

79

140

(41)

99

Net change during the year

555

(140)

415

(714)

193

(521)

568

(171)

397

 

 

 

 

 

 

 

 

 

 

Cash flow hedge derivatives:

 

 

 

 

 

 

 

 

 

Net gains (losses) arising during the year

(26)

6

(20)

(65)

13

(52)

33

(5)

28

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

39

(9)

30

10

(1)

9

(54)

11

(43)

Net change during the year

13

(3)

10

(55)

12

(43)

(21)

6

(15)

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss)

(544)

(95)

(639)

(2,453)

215

(2,238)

662

(156)

506

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, 2013

(580)

24

(2,004)

37

(2,523)

Other comprehensive (loss) income before reclassifications

141

(4)

275

28

440

Amounts reclassified from OCI

(13)

122

(43)

66

Total other comprehensive (loss) income

141

(17)

397

(15)

506

 

 

 

 

 

 

Less:

 

 

 

 

 

Amounts attributable to noncontrolling interests

(8)

3

(5)

Balance at December 31, 2013

(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)

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

2015

2014

2013

(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)

29

18

25

Amortization of net actuarial losses

Net periodic benefit cost(1)

128

99

140

Total before tax

 

157

117

165

Tax

Provision for taxes

(40)

(21)

(43)

Amounts reclassified from OCI

 

117

96

122

 

 

 

 

 

Unrealized gains (losses) of cash flow hedge derivatives:

 

 

 

 

Foreign exchange contracts

Total revenues

36

9

(52)

 

Total cost of sales

(11)

(8)

1

Commodity contracts

Total cost of sales

10

3

5

Cash-settled call options

SG&A expenses(2)

4

6

(8)

Total before tax

 

39

10

(54)

Tax

Provision for taxes

(9)

(1)

11

Amounts reclassified from OCI

 

30

9

(43)

The amounts reclassified out of OCI in respect of Unrealized gains (losses) on available-for-sale securities were not significant in 2015, 2014 and 2013.