Note 21
Other comprehensive income

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

 

2017

2016

 

2015

($ in millions)

Before
tax

Tax
effect

Net
of tax

Before
tax

Tax
effect

Net
of tax

 

Before
tax

Tax
effect

Net
of tax

(1)

Amounts in 2017 mainly relate to the divestment of the high-voltage cable system and cable accessories businesses and are included in the net gain from sale of businesses (see Note 3).

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments:

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

911

1

912

(469)

(12)

(481)

 

(1,105)

47

(1,058)

Changes attributable to divestments(1)

12

12

7

7

 

Net change during the year

923

1

924

(462)

(12)

(474)

 

(1,105)

47

(1,058)

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses) arising during the year

1

1

 

(8)

1

(7)

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

 

1

1

Net change during the year

1

1

 

(7)

1

(6)

 

 

 

 

 

 

 

 

 

 

 

Pension and other postretirement plans:

 

 

 

 

 

 

 

 

 

 

Prior service (costs) credits arising during the year

(20)

4

(16)

(46)

6

(40)

 

113

(25)

88

Net actuarial gains (losses) arising during the year

(184)

45

(139)

38

6

44

 

285

(75)

210

Amortization of prior service cost included in net income

6

6

28

(2)

26

 

29

(3)

26

Amortization of net actuarial loss included in net income

90

(27)

63

85

(23)

62

 

113

(31)

82

Net losses from pension settlements included in net income

13

(4)

9

37

(11)

26

 

15

(6)

9

Changes attributable to divestments(1)

8

(2)

6

 

Net change during the year

(87)

16

(71)

142

(24)

118

 

555

(140)

415

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedge derivatives:

 

 

 

 

 

 

 

 

 

 

Net gains (losses) arising during the year

45

(7)

38

21

(5)

16

 

(26)

6

(20)

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

(26)

4

(22)

(7)

1

(6)

 

39

(9)

30

Changes attributable to divestments(1)

(4)

1

(3)

 

Net change during the year

15

(2)

13

14

(4)

10

 

13

(3)

10

 

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss)

852

15

867

(306)

(40)

(346)

 

(544)

(95)

(639)

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

Balance at January 1, 2015

(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

(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)

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

($ in millions)
Details about OCI components

Location of (gains) losses reclassified from OCI

2017

2016

2015

(1)

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

Pension and other postretirement plan adjustments:

 

 

 

 

Amortization of prior service cost

Net periodic benefit cost(1)

6

28

29

Amortization of net actuarial losses

Net periodic benefit cost(1)

90

85

113

Net losses from pension settlements

Net periodic benefit cost(1)

13

37

15

Total before tax

 

109

150

157

Tax

Provision for taxes

(31)

(36)

(40)

Amounts reclassified from OCI

 

78

114

117

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 2017, 2016 and 2015.