Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Listings [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-16429 |
Entity Registrant Name | ABB Ltd |
Entity Incorporation State Country Code | V8 |
Entity Common Stock, Shares Outstanding | 1,865,003,331 |
Entity Well-known Seasoned Issuer | Yes |
Document Fiscal Period Focus | FY |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001091587 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Entity Address Address Line 1 | Affolternstrasse 44 |
Entity Address City Or Town | Zurich |
Entity Address Postal Zip Code | CH-8050 |
Entity Address Country | CH |
Icfr Auditor Attestation Flag | true |
Auditor Name | KPMG AG |
Auditor Firm Id | 3240 |
Auditor Location | Zurich, Switzerland |
American Depositary Shares | |
Entity Listings [Line Items] | |
Security 12b Title | American Depositary Shares |
Trading Symbol | ABB |
Security Exchange Name | NYSE |
Registered Shares | |
Entity Listings [Line Items] | |
Security 12b Title | Registered Shares, par value CHF 0.12 |
No Trading Symbol Flag | true |
Security Exchange Name | NYSE |
Business Contact | |
Entity Listings [Line Items] | |
Entity Address Address Line 1 | Affolternstrasse 44 |
Entity Address City Or Town | Zurich |
Entity Address Postal Zip Code | CH-8050 |
Entity Address Country | CH |
Contact Personnel Name | Richard A. Brown |
Country Region | 41 |
City Area Code | 43 |
Local Phone Number | 317-7111 |
Contact Personnel Fax Number | +41-43-317-4343 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total revenues | $ 29,446 | $ 28,945 | $ 26,134 |
Total cost of sales | (19,736) | (19,478) | (18,256) |
Gross profit | 9,710 | 9,467 | 7,878 |
Selling, general and administrative expenses | (5,132) | (5,162) | (4,895) |
Non-order related research and development expenses | (1,166) | (1,219) | (1,127) |
Impairment of goodwill | 0 | 0 | (311) |
Other income (expense), net | (75) | 2,632 | 48 |
Income from operations | 3,337 | 5,718 | 1,593 |
Interest and dividend income | 72 | 51 | 51 |
Interest and other finance expense | (130) | (148) | (240) |
Losses from extinguishment of debt | 0 | 0 | (162) |
Non-operational pension (cost) credit | 115 | 166 | (401) |
Income from continuing operations before taxes | 3,394 | 5,787 | 841 |
Income tax expense | (757) | (1,057) | (496) |
Income from continuing operations, net of tax | 2,637 | 4,730 | 345 |
Income (loss) from discontinued operations, net of tax | (43) | (80) | 4,860 |
Net income | 2,594 | 4,650 | 5,205 |
Net income attributable to noncontrolling interests and redeemable noncontrolling interests | (119) | (104) | (59) |
Net income attributable to ABB | 2,475 | 4,546 | 5,146 |
Amounts attributable to ABB shareholders: | |||
Income from continuing operations, net of tax | 2,517 | 4,625 | 294 |
Income (loss) from discontinued operations, net of tax | (42) | (79) | 4,852 |
Net income | $ 2,475 | $ 4,546 | $ 5,146 |
Basic earnings per share attributable to ABB shareholders: | |||
Income from continuing operations, net of tax (in dollars per share) | $ 1.33 | $ 2.31 | $ 0.14 |
Income (loss) from discontinued operations, net of tax (in dollars per share) | (0.02) | (0.04) | 2.30 |
Net income (in dollars per share) | 1.30 | 2.27 | 2.44 |
Diluted earnings per share attributable to ABB shareholders: | |||
Income from continuing operations, net of tax (in dollars per share) | 1.32 | 2.29 | 0.14 |
Income (loss) from discontinued operations, net of tax (in dollars per share) | (0.02) | (0.04) | 2.29 |
Net income (in dollars per share) | $ 1.30 | $ 2.25 | $ 2.43 |
Weighted-average number of shares outstanding (in millions) used to compute: | |||
Basic earnings per share attributable to ABB shareholders (in shares) | 1,899 | 2,001 | 2,111 |
Diluted earnings per share attributable to ABB shareholders (in shares) | 1,910 | 2,019 | 2,119 |
Products | |||
Total revenues | $ 24,471 | $ 23,745 | $ 21,214 |
Total cost of sales | (16,804) | (16,364) | (15,229) |
Services and other | |||
Total revenues | 4,975 | 5,200 | 4,920 |
Total cost of sales | $ (2,932) | $ (3,114) | $ (3,027) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 2,594 | $ 4,650 | $ 5,205 |
Foreign currency translation adjustments: | |||
Foreign currency translation adjustments | (685) | (521) | 498 |
Net loss on complete or substantially complete liquidation of foreign subsidiaries | 5 | 0 | 0 |
Changes attributable to divestments | 41 | (9) | 519 |
Foreign currency translation adjustments | (639) | (530) | 1,017 |
Available-for-sale securities: | |||
Net unrealized gains (losses) arising during the year | (23) | (10) | 24 |
Reclassification adjustments for net (gains) losses included in net income | 2 | (5) | (14) |
Changes attributable to divestments | 0 | 0 | (3) |
Unrealized gains (losses) on available-for-sale securities | (21) | (15) | 7 |
Pension and other postretirement plans: | |||
Prior service credits arising during the year | 0 | 0 | 43 |
Net actuarial gains (losses) arising during the year | 226 | 411 | (200) |
Amortization of prior service credit included in net income | (16) | (14) | (11) |
Amortization of net actuarial loss included in net income | 44 | 69 | 88 |
Net losses from settlements and curtailments included in net income | 9 | 7 | 518 |
Changes attributable to divestments | (8) | (6) | 151 |
Pension and other postretirement plan adjustments | 255 | 467 | 589 |
Derivative instruments and hedges: | |||
Net unrealized gains (losses) arising during the year | (12) | 8 | 2 |
Reclassification adjustments for net (gains) losses included in net income | 12 | (13) | 0 |
Changes in derivatives instruments and hedges | 0 | (5) | 2 |
Total other comprehensive income (loss), net of tax | (405) | (83) | 1,615 |
Total comprehensive income, net of tax | 2,189 | 4,567 | 6,820 |
Total comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests, net of tax | (87) | (108) | (86) |
Total comprehensive income, attributable to ABB, net of tax | $ 2,102 | $ 4,459 | $ 6,734 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Cash and equivalents | $ 4,156 | $ 4,159 |
Restricted cash | 18 | 30 |
Marketable securities and short-term investments | 725 | 1,170 |
Receivables, net | 6,858 | 6,551 |
Contract assets | 954 | 990 |
Inventories, net | 6,028 | 4,880 |
Prepaid expenses | 230 | 206 |
Other current assets | 505 | 573 |
Current assets held for sale and in discontinued operations | 96 | 136 |
Total current assets | 19,570 | 18,695 |
Restricted cash, non-current | 0 | 300 |
Property, plant and equipment, net | 3,911 | 4,045 |
Operating lease right-of-use assets | 841 | 895 |
Investments in equity-accounted companies | 130 | 1,670 |
Prepaid pension and other employee benefits | 916 | 892 |
Intangible assets, net | 1,406 | 1,561 |
Goodwill | 10,511 | 10,482 |
Deferred taxes | 1,396 | 1,177 |
Other non-current assets | 467 | 543 |
Total assets | 39,148 | 40,260 |
Accounts payable, trade | 4,904 | 4,921 |
Contract liabilities | 2,216 | 1,894 |
Short-term debt and current maturities of long-term debt | 2,535 | 1,384 |
Current operating leases | 220 | 230 |
Provisions for warranties | 1,028 | 1,005 |
Other provisions | 1,171 | 1,386 |
Other current liabilities | 4,323 | 4,367 |
Current liabilities held for sale and in discontinued operations | 132 | 381 |
Total current liabilities | 16,529 | 15,568 |
Long-term debt | 5,143 | 4,177 |
Non-current operating leases | 651 | 689 |
Pension and other employee benefits | 719 | 1,025 |
Deferred taxes | 729 | 685 |
Other non-current liabilities | 2,085 | 2,116 |
Non-current liabilities held for sale and in discontinued operations | 20 | 43 |
Total liabilities | 25,876 | 24,303 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 85 | 0 |
Stockholders' equity: | ||
Common stock, CHF 0.12 par value (1,965 million and 2,053 million shares issued at December 31, 2022 and 2021, respectively) | 171 | 178 |
Additional paid-in capital | 141 | 22 |
Retained earnings | 20,082 | 22,477 |
Accumulated other comprehensive loss | (4,556) | (4,088) |
Treasury stock, at cost (100 million and 95 million shares at December 31, 2022 and 2021, respectively) | (3,061) | (3,010) |
Total ABB stockholders' equity | 12,777 | 15,579 |
Noncontrolling interests | 410 | 378 |
Total stockholders' equity | 13,187 | 15,957 |
Total liabilities and stockholders' equity | $ 39,148 | $ 40,260 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - SFr / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Common stock, par value (in Swiss francs per share) | SFr 0.12 | SFr 0.12 |
Common stock, shares issued (in shares) | 1,965,000,000 | 2,053,000,000 |
Treasury stock (in shares) | 100,000,000 | 95,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income | $ 2,594 | $ 4,650 | $ 5,205 |
Loss (income) from discontinued operations, net of tax | 43 | 80 | (4,860) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 814 | 893 | 915 |
Impairment of goodwill | 0 | 0 | 311 |
Changes in fair values of investments | (33) | (123) | (99) |
Pension and other employee benefits | 50 | ||
Pension and other employee benefits | (125) | (216) | |
Deferred taxes | (344) | (289) | (280) |
Losses from extinguishment of debt | 0 | 0 | 162 |
Loss from equity-accounted companies | 102 | 100 | 66 |
Net loss (gain) from derivatives and foreign exchange | (23) | 49 | (2) |
Net gain from sale of property, plant and equipment | (84) | (38) | (37) |
Net loss (gain) from sale of businesses | 7 | (2,193) | 2 |
Other | 66 | 117 | 90 |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (831) | (142) | (100) |
Contract assets and liabilities | 416 | 29 | 186 |
Inventories, net | (1,599) | (771) | 196 |
Accounts payable, trade | 395 | 659 | (13) |
Accrued liabilities | 136 | 454 | (92) |
Provisions, net | (70) | (48) | 243 |
Income taxes payable and receivable | (94) | 117 | (76) |
Other assets and liabilities, net | (36) | 10 | 8 |
Net cash provided by operating activities - continuing operations | 1,334 | 3,338 | 1,875 |
Net cash used in operating activities - discontinued operations | (47) | (8) | (182) |
Net cash provided by operating activities | 1,287 | 3,330 | 1,693 |
Investing activities: | |||
Purchases of investments | (321) | (1,528) | (5,933) |
Purchases of property, plant and equipment and intangible assets | (762) | (820) | (694) |
Acquisition of businesses (net of cash acquired) and increases in cost- and equity-accounted companies | (288) | (241) | (121) |
Proceeds from sale of investments | 697 | 2,272 | 4,341 |
Proceeds from maturity of investments | 73 | 81 | 11 |
Proceeds from sales of property, plant and equipment | 127 | 93 | 114 |
Proceeds from sales of businesses (net of transaction costs and cash disposed) and cost- and equity-accounted companies | 1,541 | 2,958 | (136) |
Net cash from settlement of foreign currency derivatives | (166) | (121) | 138 |
Changes in loans receivable, net | 320 | (19) | (3) |
Other investing activities | (14) | (4) | 11 |
Net cash provided by (used in) investing activities - continuing operations | 1,207 | 2,671 | (2,272) |
Net cash provided by (used in) investing activities - discontinued operations | (226) | (364) | 9,032 |
Net cash provided by investing activities | 981 | 2,307 | 6,760 |
Financing activities: | |||
Net changes in debt with maturities of 90 days or less | 1,366 | (83) | (587) |
Increase in debt | 3,849 | 1,400 | 343 |
Repayment of debt | (2,703) | (1,538) | (3,459) |
Delivery of shares | 394 | 826 | 412 |
Purchase of treasury stock | (3,553) | (3,708) | (3,048) |
Dividends paid | (1,698) | (1,726) | (1,736) |
Cash associated with the spin-off of the Turbocharging Division | (172) | 0 | 0 |
Dividends paid to noncontrolling shareholders | (99) | (98) | (82) |
Proceeds from issuance of subsidiary shares | 216 | 0 | 0 |
Other financing activities | 6 | (41) | (49) |
Net cash used in financing activities - continuing operations | (2,394) | (4,968) | (8,206) |
Net cash provided by financing activities - discontinued operations | 0 | 0 | 31 |
Net cash used in financing activities | (2,394) | (4,968) | (8,175) |
Effects of exchange rate changes on cash and equivalents and restricted cash | (189) | (81) | 79 |
Net change in cash and equivalents and restricted cash | (315) | 588 | 357 |
Cash and equivalents and restricted cash, beginning of period | 4,489 | 3,901 | 3,544 |
Cash and equivalents and restricted cash, end of period | 4,174 | 4,489 | 3,901 |
Supplementary disclosure of cash flow information: | |||
Interest paid | 90 | 132 | 189 |
Income taxes paid | $ 1,188 | $ 1,292 | $ 905 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect Period Of Adoption Adjustment [Member] | Parent [Member] | Parent [Member] Cumulative Effect Period Of Adoption Adjustment [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member] Cumulative Effect Period Of Adoption Adjustment [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] Cumulative Effect Period Of Adoption Adjustment [Member] |
Balance at Dec. 31, 2019 | $ 13,980 | $ (91) | $ 13,526 | $ (82) | $ 188 | $ 73 | $ 19,640 | $ (82) | $ (5,590) | $ (785) | $ 454 | $ (9) |
Comprehensive income: | ||||||||||||
Net income | 5,205 | 5,146 | 5,146 | 59 | ||||||||
Foreign currency translation adjustments, net of tax | 1,017 | 990 | 990 | 27 | ||||||||
Effect of change in fair value of available-for-sale securities, net of tax | 7 | 7 | 7 | |||||||||
Unrecognized income (expense) related to pensions and other postretirement plans, net of tax | 589 | 589 | 589 | |||||||||
Change in derivative instruments and hedges, net of tax | 2 | 2 | 2 | |||||||||
Changes in noncontrolling interests | 3 | (16) | (16) | 19 | ||||||||
Changes in noncontrolling interests in connection with divestments | (138) | 0 | (138) | |||||||||
Dividends to noncontrolling shareholders | (98) | 0 | (98) | |||||||||
Dividends to shareholders | (1,758) | (1,758) | (1,758) | |||||||||
Share-based payment arrangements | 54 | 54 | 54 | |||||||||
Purchase of treasury stock | (3,181) | (3,181) | (3,181) | |||||||||
Delivery of shares | 412 | 412 | (24) | 436 | ||||||||
Call options | (3) | (3) | (3) | |||||||||
Balance at Dec. 31, 2020 | 15,999 | 15,685 | 188 | 83 | 22,946 | (4,002) | (3,530) | 314 | ||||
Comprehensive income: | ||||||||||||
Net income | 4,650 | 4,546 | 4,546 | 104 | ||||||||
Foreign currency translation adjustments, net of tax | (530) | (534) | (534) | 4 | ||||||||
Effect of change in fair value of available-for-sale securities, net of tax | (15) | (15) | (15) | |||||||||
Unrecognized income (expense) related to pensions and other postretirement plans, net of tax | 467 | 467 | 467 | |||||||||
Change in derivative instruments and hedges, net of tax | (5) | (5) | (5) | |||||||||
Changes in noncontrolling interests | (2) | (57) | (37) | (20) | 55 | |||||||
Dividends to noncontrolling shareholders | (98) | 0 | (98) | |||||||||
Dividends to shareholders | (1,730) | (1,730) | (1,730) | |||||||||
Cancellation of treasury shares | 0 | 0 | (10) | (17) | (3,130) | 3,157 | ||||||
Share-based payment arrangements | 60 | 60 | 60 | |||||||||
Purchase of treasury stock | (3,682) | (3,682) | (3,682) | |||||||||
Delivery of shares | (136) | |||||||||||
Delivery of shares | 826 | 826 | (84) | 1,046 | ||||||||
Other | 16 | 16 | 16 | |||||||||
Balance at Dec. 31, 2021 | 15,957 | 15,579 | 178 | 22 | 22,477 | (4,088) | (3,010) | 378 | ||||
Comprehensive income: | ||||||||||||
Net income | 2,599 | 2,475 | 2,475 | 124 | ||||||||
Net income | 2,594 | |||||||||||
Foreign currency translation adjustments, net of tax | (639) | (608) | (608) | (31) | ||||||||
Effect of change in fair value of available-for-sale securities, net of tax | (21) | (21) | (21) | |||||||||
Unrecognized income (expense) related to pensions and other postretirement plans, net of tax | 255 | 256 | 256 | (1) | ||||||||
Change in derivative instruments and hedges, net of tax | 0 | 0 | 0 | |||||||||
Issuance of subsidiary shares | 206 | 120 | 120 | 86 | ||||||||
Changes in noncontrolling interests | (24) | 10 | 10 | (34) | ||||||||
Dividends to noncontrolling shareholders | (100) | 0 | (100) | |||||||||
Dividends to shareholders | (1,700) | (1,700) | (1,700) | |||||||||
Spin-off of the Turbocharging Division | (284) | (272) | (177) | (95) | (12) | |||||||
Cancellation of treasury shares | 0 | 0 | (8) | (4) | (2,864) | 2,876 | ||||||
Share-based payment arrangements | 42 | 42 | 42 | |||||||||
Purchase of treasury stock | (3,502) | (3,502) | (3,502) | |||||||||
Delivery of shares | (130) | |||||||||||
Delivery of shares | 394 | 394 | (51) | 575 | ||||||||
Other | 2 | 2 | 2 | |||||||||
Balance at Dec. 31, 2022 | $ 13,187 | $ 12,777 | $ 171 | $ 141 | $ 20,082 | $ (4,556) | $ (3,061) | $ 410 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Consolidated Statements of Changes in Stockholders' Equity | |
Net losses related to redeemable noncontrolling interest | $ (5) |
The Company
The Company | 12 Months Ended |
Dec. 31, 2022 | |
The Company | |
The Company | — Note 1 The Company ABB Ltd and its subsidiaries (collectively, the Company) together and automation, enabling a more engineering know-how and operated. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Significant accounting policies | |
Significant accounting policies | — Note 2 Significant accounting policies The following is a summary of Consolidated Financial Basis of presentation The Consolidated Financial States or U.S.) generally accepted dollars ($ or USD) unless otherwise stated. provided. The par value of capital . Scope of consolidation The Consolidated Financial indirectly controlled by ABB Ltd. Additionally, the Company determined that it is the primary beneficiary. Intercompany Investments in joint ventures and affiliated significant influence over operating 20 50 the equity method of accounting. Translation of foreign currencies and foreign The functional currency for most of translation from the applicable balance sheet accounts using exchange accounts using average exchange excluded from the determination until the subsidiary is sold, substantially Foreign currency exchange gains receivables or payables, are included loans that are equity ‑ like in nature with no reasonable “Accumulated other comprehensive classified in the line item consistent Discontinued operations The Company reports a disposal, discontinued operation Company’s operations and financial area, a major line of business or segment or an operating segment, The assets and liabilities held for sale and in discontinued Interest expense that is not directly discontinued business is allocated debt that is required to be paid as a result the Company plus consolidated (see Note 3). Operating cycle A portion of the Company’s activities ‑ term system integration activities) that exceeds one year . For classification of current Company elected to use the duration accounts receivable, inventories one year Use of estimates The preparation of financial statements assumptions and estimates that Statements and the accompanying • unrecognized tax benefits, • such as trade and other receivables, • programs, • and inquiries, environmental ‑ insurance reserves, regulatory and other proceedings, • ‑ related overhead costs, used in determining ‑ of ‑ completion on projects where revenue recognized over time, as well as be entitled to, • pension plan assets, • • ‑ lived assets and in testing goodwill • in business combinations, and • interests and certain obligations The actual results and outcomes Cash and equivalents Cash and equivalents include acquisition. Currency and other local regulatory where the Company operates. readily transferred abroad from needs locally. These funds are included Cash and equivalents that are subject available are classified Marketable securities and short ‑ term investments Management determines the appropriate ‑ to ‑ maturity and available ‑ for ‑ sale debt securities at the time of purchase. ‑ to ‑ maturity when the Company has the positive intent and ability to hold ‑ to ‑ maturity debt securities are carried amortized cost, adjusted for accretion the effective interest method. Such accretion Marketable debt securities not classified ‑ to ‑ maturity are classified as available ‑ for ‑ sale and reported at fair value. Unrealized gains and losses ‑ for ‑ sale debt securities are excluded earnings and are instead recognized stockholders’ equity, net of tax, until realized. Realized ‑ for ‑ sale debt securities are computed based upon the historical Marketable debt securities are short ‑ term investments” according Marketable equity securities are generally ‑ term investments”, however, ‑ term investment rather than as liquidity are classified as “Other ‑ current assets”. Marketable with fair value changes reported in generally reported in “Interest and other equity securities classified as long-term For debt securities classified as available-for-sale credit losses, the Company records an subsequent periods in “Interest and other credit risk are reported in “Accumulated In addition, equity securities without price change in an orderly transaction the investment is impaired and other fair value changes as described change is either recorded in “Other Accounts receivable and allowance Accounts receivable are recorded ‑ wide policy on the management of credit risk. The policy creditworthiness of customers and assign ‑ party agencies’ ratings are considered, if available. For customers recent financial statements, payment to a risk category. Customers are assessed at least annually significant changes in the customer’s risk category, a credit limit per customer is set. The Company recognizes an allowance be collected at the balance sheet date. the asset’s contractual term taking into forward looking estimates. The Company’s which generally has a geographic entities. Receivables are then further characteristics to estimate expected related assets do not share similar Accounts receivable are written allowance for credit losses. Expected are considered in determining The Company, in its normal course of business, transfers recourse. The transfer is accounted receivables. Control is deemed presumptively beyond the reach of (ii) the third ‑ party transferees have the right Company has relinquished obligation to repurchase or redeem removed from the Consolidated activities in the Consolidated Statements including the related gains Transfers of receivables that do not meet secured borrowings and the related Statements of Cash Flows. Concentrations of credit risk The Company sells a broad range commercial and utility customers as ‑ governmental agencies throughout the world. Concentrations Company’s customer base is comprised evaluations of customers’ financial instruments such as guarantees, letters required. The Company maintains an and allowance for expected credit expectations. It is the Company’s policy to invest credit ratings and in high quality, low risk, liquid investments. by routinely reviewing the creditworthiness incurred significant credit losses related The Company’s exposure to credit risk fail to meet its obligations. To reduce this risk, the Company and periodic review of credit limits close ‑ out netting agreements with most ‑ out netting agreements provide the termination, valuation and net counterparties on the occurrence of ‑ defined trigger events. Derivative presented on a gross basis in the Revenue recognition A customer contract exists if collectability commercial substance, contains has been approved. The Company offers arrangements with These arrangements may involve installation and training) different periods of time. Goods and services they form distinct performance obligations The Company allocates the sales price item sold in separate transactions The Company generally recognizes ‑ customized products including breakers, modular substation packages, measurement and analytical instrumentation, basis at a point in time. Revenues are goods, which is when it has taken title products specified in the purchase order rewards of ownership are governed International Commercial Terms (as promulgated by the International products to third party customers, such (DDP). Billing terms for these point in time Payment is generally due upon The Company generally recognizes automation and electrification systems percentage ‑ of ‑ completion method of accounting. performance obligation as the Company for the customer. Revenues are recognized as the integration process and as control is payment for work performed or by uses the cost ‑ to ‑ cost method to measure progress of contracts is measured costs based on the Company’s history of Estimated costs are reviewed pricing of the inputs. The cumulative change in estimate is determined. Contract indirect costs related to contract performance, The nature of the Company’s contracts variable consideration, including amounts are estimated based upon Company will be entitled. The estimated that a significant reversal of cumulative with the variable consideration periodically. Back charges to suppliers or subcontractors determined that recovery of such Billing terms for these over ‑ time contracts vary but are The differences between the timing of contract assets and contract liabilities. 90 days or less. Contractual retention contractual warranty period. Service revenues reflect revenues primarily subsequent to the sale and maintenance type contracts, repair personnel and accompanying stand-alone service or as part of a service transactions as services are spare parts. For long-term service contracts recognized on a straight-line of the services or, if the performance pattern is other costs incurred relative to total expected In limited circumstances the Company the standard coverage offered on specific length of the warranty period based ‑ alone selling price. Billing terms for service contracts vary Payment is generally due upon Revenues are reported net of customer are estimated based on sales relate to amounts paid or credited Taxes between the Company and its customers, excluded from revenues. The Company does not adjust the contract expects, at contract inception, Sales commissions are expensed immediately contract is less than a year. Contract loss provisions Losses on contracts are recognized excess of contract costs over Shipping and handling costs Shipping and handling Inventories Inventories are stated at the lower ‑ in, first ‑ out method, the weighted ‑ average cost method, or are stated at acquisition cost or actual manufacturing overheads. Adjustments required, for decreases in sales prices, Impairment of long ‑ lived assets Long ‑ lived assets that are held and used are evaluated groups when events or circumstances may not be recoverable. If the asset cash flows expected to be generated disposition of the asset group, value. The estimated fair value is determined Property, plant and equipment Property, plant and equipment is stated at cost, less accumulated straight ‑ line • 30 40 • 15 • 3 15 • 3 8 • over the lease term, if shorter. Goodwill and intangible assets Goodwill is reviewed for impairment indicate that the carrying value Goodwill is evaluated for impairment one level below an operating units were determined to be one level When evaluating goodwill method for each reporting unit. qualitative factors, if it is more likely value. If, based on this qualitative unit’s fair value is less than its carrying further analysis is required. If the Company unit, then a quantitative impairment When performing a quantitative using an income approach represents the reporting carrying value. If the carrying value unit then the Company records an recognized does not exceed the total The cost of acquired intangible reflects the pattern of intangible reliably determined, the straight ‑ line method is used. The 3 5 software and from 5 20 ‑ , technology ‑ ‑ related intangibles. Intangible assets with a finite life are tested Derivative financial instruments The Company uses derivative exposures, arising from its global The Company recognizes all derivatives, at fair value in the Consolidated are reported at fair value with derivative with the nature of the underlying If the derivatives are designated as a of the derivatives will either be offset against risk being hedged through comprehensive loss” until the hedged Where derivative financial instruments and such forecasted transactions are any derivative gain or loss previously earnings consistent with the nature designated as hedging consistent with the nature of the underlying Certain commercial contracts may provisions that are considered to be derivatives. contract and depending on their at their fair value in the Consolidated consistent with the nature of the commercial Derivatives are classified in the Consolidated underlying item. Cash flows from different underlying items on a net basis the underlying items are primarily recorded within “Net cash provided Leases The Company leases primarily real The Company evaluates if a contract lease if it conveys the right to control for a period of time in exchange for throughout the period of use, it has use of the identified asset and the finance or operating, with the classification Consolidated Income Statements. over the lease term. Lease expense assets and lease interest expense. In many cases, the Company’s leases include extend up to 5 years . The exercise of lease renewal are included in the expected lease Certain leases also include agreements contain material residual Long-term leases (leases with terms 12 months ) are recorded in the Consolidated Sheets The present value of the lease payments available. borrowing rate is used for most lease term, currency of the lease, and Short-term leases (leases with an initial 12 months that the identified asset will not be leased 12 months ) are not recorded in the Consolidated Balance Sheets short-term leases relate to real Assets under operating lease are included are reported both as current and Company’s right to use an underlying make lease payments arising from Assets under finance lease are are included in “Long-term debt” Lease and non-lease components Income taxes The Company uses the asset and tax assets and liabilities are determined the tax bases of assets and liabilities. rates and laws that are expected records a deferred tax asset when sustained based upon the deduction’s against each other are reported on a net assets to the amount that is more likely Deferred taxes are provided on unredeemed deferred taxes are not provided earnings are permanently reinvested. these subsidiaries or upon the remittance The Company operates in numerous authorities. The Company provides tax asset has been impaired or a tax on the technical merits of the Company’s for Economic Co ‑ operation and Development facts and circumstances as of the end The Company applies a two ‑ step approach to recognize step is to evaluate the tax position that it is more likely than not that the appeals or litigation processes, which is more than 50 could be settled against existing loss Expenses expense” relating to certain items is recognized earnings. In general, the Company applies from “Accumulated other comprehensive Research and development Research and development Earnings per share Basic earnings per share is calculated ‑ average number of shares outstanding during the year. Diluted earnings weighted ‑ average number of shares outstanding securities were exercised, if dilutive. outstanding options and shares ‑ based payment arrangements. See further dilutive securities in Note 18. Share ‑ based payment arrangements The Company has various share ‑ based payment arrangements fully in Note 18. Such arrangements equity ‑ settled, total compensation is measured date, and recorded in earnings are cash ‑ settled, compensation is initially reporting period, based on the fair value changes in the liability recorded Fair value measures The Company uses fair value measurement recurring basis and, when necessary, to record certain ‑ financial assets at fair value on a non ‑ recurring basis, as well as to determine fair in the financial statements. Financial foreign currency, commodity and interest rate derivatives, ‑ settled call options and available ‑ for ‑ sale securities. Non ‑ financial assets recorded ‑ recurring basis include long ‑ lived assets that are reduced to their estimated Fair value is the price that would be transaction between market participants uses various valuation techniques or similar assets and liabilities), the income (using costs a market participant fair value of assets and liabilities ‑ level hierarchy, depending on the nature of those inputs. The Company has categorized ‑ financial assets measured at fair value within this hierarchy based unobservable. An observable unobservable input reflects the Company’s The levels of the fair value hierarchy Level 1: liabilities (observable quoted include exchange ‑ traded equity securities, listed derivatives such as commodity futures, interest securities. Level 2: quoted prices for similar assets, quoted prices such as interest rate other observable data by interpolation, adjustments applied to quoted prices observable and unobservable. Level 2 unless the unobservable the valuation model is significant, in classified as Level 3. Assets and liabilities investments in certain funds, certain rate swaps, cross-currency interest ‑ settled call options, forward foreign exchange agreements, time deposits, as well Level 3: (unobservable input). Investments in private equity, real estate and collective generally valued using the net asset certain criteria are met. The NAVs are determined the funds. These assets are not classified Whenever quoted prices involve ‑ ask spreads, the Company mid ‑ market quotes. However, for the purpose of determining ‑ settled call options serving as hedges of the Company’s management When determining fair values based of transaction activity for the financial orderly. In such cases, the resulting changes in valuation considered disorderly or if quoted technique, such as an income approach. Disclosures about the Company’s fair Contingencies The Company is subject to proceedings, related to environmental, labor, product, regulatory, tax (other than income required to assess the likelihood ranges of probable losses. A determination after analysis of each individual technical experts. The required due to new developments in the particular The Company records a provision and the amount can be reasonably undiscounted basis using an estimated range when a single able to recover a portion of the costs however, the Company records such amounts only The Company generally provides Warranty costs include calculated costs arising the Company’s products. The Company order ‑ specific conditions or guarantees sold in larger quantities. The Company may have legal ‑ up activities related to land and buildings as a result of the normal operations settlement, or both, are conditional Company, but the underlying obligation itself is unconditional provision for these obligations ‑ up activity has been incurred and a reasonable estimate of its fair incurred to settle these matters amounts are recoverable. Provisions when the timing of payments cannot be Pensions and other postretirement The Company has a number of defined termination indemnity plans. recognizes an asset for such a plan’s overfunded its Consolidated Balance Sheets. Additionally, the Company that determine its funded status as the year in which the changes occur. Those changes loss”. The Company uses actuarial The amounts calculated depend return on plan assets. Current The Company’s various pension plan in accordance with the valuation See Note 17 for further discussion Business combinations The Company accounts for assets acquired acquisition method and records fair value as an element of purchase Identifiable intangibles relationships, patented and unpatented ‑ process research and development, capitalized software; these are amortized subject to evaluation for potential be recoverable. See “Goodwill ‑ related costs are recognized separately from the acquisition equity method or cost basis investment adjusted to fair value with the related Deferred tax assets and liabilities base of assets and liabilities, deferred tax assets assumed in acquisition date based on facts and circumstances taxes, uncertain tax positions and valuation measurement period are recognized Estimated fair values of acquired assets (a period of up to 12 months after acquisition amounts) with any adjustments New accounting pronouncements Applicable for current period Business Combinations — Accounting customers In January 2022, the Company early on the accounting for revenue contracts assets and liabilities acquired acquisition in accordance Company has applied this accounting January 1, 2022. Disclosures about In January 2022, the Company adopted disclose certain types of government disclose (i) the type of the assistance accounting policy, and (iii) the effect such transactions have applied this accounting standard Company’s Consolidated Financial Applicable for future periods Facilitation of the effects of reference rate In March 2020, an accounting standard exceptions to the current guidance reporting burdens related to the expected and other interbank offered rates to alternative in subsequent updates issued later than December 31, 2024, with early during the second half of 2023 and Consolidated Financial Disclosure about supplier In September 2022, an accounting related to supplier finance programs. key terms of the program, (ii) the amount obligations are presented finance obligation program retrospectively for all in-scope transactions of the rollforward disclosures, which with early adoption permitted. Consolidated Financial payable, trade” in the Consolidated 477 |
Discontinued operations
Discontinued operations | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations [Abstract] | |
Discontinued operations | — Note 3 Discontinued operations Divestment of the Power Grids business On July 1, 2020, the Company completed 80.1 (Hitachi). The transaction was executed 80.1 formerly Hitachi ABB Power Grids Ltd $ 9,241 19.9 retained by the Company was deemed 2020. The Company also obtained 2023. $ 1,779 sale of the entire Power Grids business In connection with the divestment, future costs and other cash payments 487 business, the Company for the direct benefit expected purchase price finalization Company and Hitachi concluded difference between the agreed amounts 2021 in discontinued operations business” under the settlement agreement) of 102 364 33 connection with these liabilities. 53 As a result of the Power Grids sale, 5,141 transaction costs, for the sale of of tax, in 2020. Included in the calculation Power Grids business of $ 420 (see Note 21). Certain amounts included value and in 2021 the Company above, reducing the total net gain 65 $ 10 uncertainty and will be adjusted in impact on the Consolidated Financial In 2020, the Company recorded 262 connection with the reorganization facilitate the sale. In connection with the divestment, the indemnities (see Note 15 for additional 258 representing the fair value of the right 8 Upon closing of the sale, the Company to these TSAs, the Company and various services. The services provided human resources and certain other administrative for up to 3 additional period which is reasonably 2021 expenses incurred to perform the 162 173 91 TSA-related income for such services Discontinued operations As a result of the sale of the Power have been sold. As this divestment Company’s operations and financial as discontinued operations operations for all periods presented. to be executed by subsidiaries relating to, as well as the net financial operations until they have been Prior to the divestment, interest expense continuing business or discontinued net assets to be sold less debt that the sum of total net assets of the Company allocated to discontinued operations. Operating results of the discontinued ($ in millions) 2022 2021 2020 Total revenues — — 4,008 Total — — (3,058) Gross profit — — 950 Expenses (38) (18) (808) Change to net gain recognized (10) (65) 5,141 Income (loss) from operations (48) (83) 5,282 Net interest income (expense) — 2 (5) Non-operational pension — — (94) Income (loss) from discontinued (48) (81) 5,182 Income tax 5 1 (322) Income (loss) from discontinued (43) (80) 4,860 Of the total Income (loss) from discontinued (47) $ (80) 5,170 the remainder is attributable Until the date of the divestment, costs which were previously able $ 40 measure of segment profit for Other. In the table above, Net interest income (expense) $ 20 Company’s accounting policy election Included in the reported Total revenues of the Company for 2020 are revenues operating segments to the Power 108 that, prior to Power Grids being classified Consolidated Financial reported as third-party revenues. In addition, the Company also has businesses disposed or otherwise obligations are also included The major components of assets and Consolidated Balance December 31, 2022 ($ in millions) 2022 (1) 2021 (1) Receivables, net 92 131 Other current assets 4 5 Current assets held 96 136 Accounts payable, trade 44 71 Other liabilities 88 310 Current liabilities held 132 381 Other non-current liabilities 20 43 Non-current liabilities held 20 43 (1) other obligations . |
Acquisitions, divestments and e
Acquisitions, divestments and equity-accounted companies | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions, divestments and equity-accounted companies [Abstract] | |
Acquisitions, divestments and equity-accounted companies | — Note 4 Acquisitions, divestments and equity-accounted companies Acquisitions Acquisitions of controlling interests were ($ in millions, except number 2022 2021 2020 Purchase price for acquisitions (1) 195 212 79 Aggregate excess of purchase (2) 229 161 92 Number of acquired businesses 5 2 3 (1) (2) In the table above, the “Purchase value of net assets acquired” amounts (In-Charge) and in 2021, relate primarily there were no significant acquisitions. Acquisitions of controlling interests have included in the Company’s Consolidated On January 26, 2022, the Company increased 60 through a stock purchase agreement. turn-key commercial electric vehicle for the Company amounted to $ 134 4 market presence of the E-mobility Division American market. In connection 13.2 In-Charge was revalued to fair 32 The Company entered into an agreement to put or call the remaining 40 exercise their option is dependent change. As a result of this agreement, interest (i.e. mezzanine equity) in On August 2, 2021, the Company acquired is a global autonomous mobile amounted to $ 186 automation offering in its Robotics & While the Company uses its best to value assets acquired and acquisitions is preliminary detailed analyses are completed liabilities becomes available. Business divestments and spin-offs On September 7, 2022, the shareholders an independent, publicly traded through the distribution of common result of the spin-off of this Division, the Company 272 attributable to noncontrolling 12 In addition, total accumulated comprehensive 95 adjustment, was $ 172 The results of operations of the Process Automation operating and 2020 Income continuing 134 186 $ 139 subsidiary of Accelleron access this loan, having a principal 300 306 to the Company and subsequently collected In 2021, the Company received 2,958 relating to divestments of consolidated 2,193 (expense), net on the sales of such Mechanical Power Transmission Division gain for the sale of the Dodge business result, the Company may record to have a material impact on continuing operations before 115 96 the Dodge business which, prior In 2020, the Company completed inverters business. Divestment of the solar inverters In February 2020, the Company completed no the agreement, which was reached 143 to the buyer on the closing date. 132 145 be transferred to the buyer from 421 Other income (expense), net, $ 99 In 2020, a further loss of $ 33 this business. The loss in 2020 includes 99 the currency translation adjustment The fair value was based on the estimated agreed-upon sale terms with the buyer. The solar inverters business acquired as part of the Power-One operating segment. As this divestment does not qualify prior to its disposal are included Including the above loss of $ 33 losses of $ 63 Investments in equity-accounted companies In connection with the divestment of retained a 19.9 19.9 deemed to have been both divested 1,661 The fair value was based on a discounted business operations of Hitachi Energy average cost of capital. The Company also obtained an granting it the right to require Hitachi price equivalent to a 10 80.1 was initially valued at $ 118 the investment and the expected period investment the value has been together. Hitachi also received a call option requiring 19.9 in Hitachi Energy at any time at a price 80.1 In September 2022, the Company and Hitachi Energy to Hitachi and simultaneously initial sale of the Power Grids business, of the remaining investment was completed 1,552 and a gain of $ 43 In July 2020, the Company concluded business, including the membership Hitachi Energy. As a result, the investment (including equity method through the date of its The difference between the initial and its proportionate share of the underlying 8,570 ($ 1,705 19.9 Weighted-average ($ in millions) Allocated amounts useful life Inventories 169 5 months Order backlog 727 2 years Property, plant and equipment (1) 1,016 Intangible assets (2) 1,731 9 years Other contractual rights 251 2 years Other assets 43 Deferred tax liabilities (942) Goodwill 6,026 Less: Amount attributed (451) Basis difference 8,570 (1) Property, 686 weighted-average 14 years . (2) Intangible . For assets subject to depreciation estimated remaining useful lives of related deferred tax benefit, as a reduction assets are recorded as an expense Company determined that no The carrying value of the Company’s investments of ownership is as follows: Ownership as of Carrying value at December ($ in millions, except ownership December 31, 2021 2022 2021 Hitachi Energy Ltd 19.9% — 1,609 Others 130 61 Total 130 1,670 In 2022, 2021 and 2020, the equity method of accounting in ($ in millions) 2022 2021 2020 Income (loss) from equity-accounted (22) 38 29 Basis difference amortization (80) (138) (95) Loss from equity-accounted (102) (100) (66) |
Cash and equivalents, marketabl
Cash and equivalents, marketable securities and short-term investments | 12 Months Ended |
Dec. 31, 2022 | |
Cash and equivalents, marketable securities and short-term investments | |
Cash and equivalents, marketable securities and short-term investments | — Note 5 Cash and equivalents, marketable securities and short-term investments Cash and equivalents and ‑ term investments consisted of Marketable securities Gross Gross and unrealized unrealized Cash and short-term December 31, 2022 ($ in millions) Cost basis gains losses Fair value equivalents investments Changes in fair value net income Cash 1,715 1,715 1,715 Time deposits 2,459 2,459 2,459 Equity securities 345 10 355 355 4,519 10 — 4,529 4,174 355 Changes in fair value other comprehensive Debt securities available-for-sale: —U.S. government obligations 269 1 (15) 255 255 —Other government obligations 58 58 58 —Corporate 64 (7) 57 57 391 1 (22) 370 — 370 Total 4,910 11 (22) 4,899 4,174 725 Of which: —Restricted cash, current 18 Marketable securities Gross Gross and unrealized unrealized Cash and short-term December 31, 2021 ($ in millions) Cost basis gains losses Fair value equivalents investments Changes in fair value net income Cash 2,752 2,752 2,752 Time deposits 2,037 2,037 1,737 300 Equity securities 569 18 587 587 5,358 18 — 5,376 4,489 887 Changes in fair value other comprehensive Debt securities available-for-sale: —U.S. government obligations 203 7 (1) 209 209 —Corporate 74 1 (1) 74 74 277 8 (2) 283 — 283 Total 5,635 26 (2) 5,659 4,489 1,170 Of which: —Restricted cash, current 30 —Restricted cash, non-current 300 Contractual maturities Contractual maturities of debt securities Available-for-sale December 31, 2022 ($ in millions) Cost basis Fair value Less than one year 139 138 One to five years 157 148 Six to ten years 90 80 Due after ten years 4 4 Total 390 370 At December 31, 2022 and 2021, 69 66 available ‑ for ‑ sale marketable securities as collateral arrangements. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative financial instruments | |
Derivative financial instruments | — Note 6 Derivative financial instruments The Company is exposed to certain operating, financing and investing manage the economic impact of these Currency risk Due to the global nature of the Company’s in their operating activities from entering To currency exposures from binding forecasted foreign currency denominated denominated purchases, the Company’s 100 foreign currency denominated exposures greater than 12 instrument used to protect the Company exchange rates) of contracted and addition, within its treasury operations, foreign exchange contracts to manage management activities. Commodity risk Various commodity products are used in the Company’s manufacturing to volatility in future cash flows arising commodities, the Company’s policies from binding contracts, as well as 50 100 commodity exposure over the next 12 18 contracts are used to manage Interest rate risk The Company has issued bonds at are used to manage the interest rate such swaps are designated as fair instruments such as interest rate manage interest rate risk arising instruments as hedges. Equity risk The Company is exposed to fluctuations under its Management Incentive equal to the market price of an equivalent Company has purchased cash ‑ settled call options, indexed to Company to receive amounts equivalent Volume of derivative activity In general, while the Company’s primary from its business, certain derivatives either are not designated or do not Foreign exchange and interest rate derivatives The gross notional amounts of outstanding designated as hedges or not) were Type of derivative Total notional ($ in millions) 2022 2021 2020 Foreign exchange contracts 13,509 11,276 12,610 Embedded foreign exchange 933 815 1,134 Cross-currency interest 855 906 — Interest rate contracts 2,830 3,541 3,227 Derivative commodity contracts The Company uses derivatives commodities which are primarily copper, silver and aluminum. amounts of outstanding derivatives Company’s requirements for these commodities: Total notional Type of derivative Unit 2022 2021 2020 Copper metric tonnes 29,281 36,017 39,390 Silver swaps ounces 2,012,213 2,842,533 1,966,677 Aluminum swaps metric tonnes 6,825 7,125 8,112 Equity derivatives At December 31, 2022, 2021 and 8 9 22 ‑ settled call options indexed to ABB Ltd shares (conversion 5:1 ) with a total fair value of $ 15 29 $ 21 Cash flow hedges As noted above, the Company mainly exchange risk of its operations, commodity ‑ settled call options to hedge its WAR liabilities. The Company In these cases, the effective portion of the comprehensive loss” and subsequently period as the underlying hedged no significant amounts recorded for Fair value hedges To interest rate swaps and cross-currency value hedges, the changes in the fair the risk component of the underlying “Interest and other finance expense”. The effect of derivative instruments, designated Income Statements was as follows: ($ in millions) 2022 2021 2020 Gains (losses) recognized Interest rate contracts Designated as fair value (91) (55) 11 Hedged item 93 56 (11) Cross-currency Designated as fair value (134) (37) — interest rate swaps Hedged item 135 34 — Derivatives not designated in hedge Derivative instruments that are not hedges are economic hedges values of such derivatives are recognized hedged transaction. Furthermore, under certain circumstances, foreign currency derivatives that are denominated in a currency other than The gains (losses) recognized in hedging relationships were ($ in millions) Gains (losses) recognized Type of derivative Location 2022 2021 2020 Foreign exchange contracts Total revenues (56) 3 94 Total 21 (53) — SG&A expenses (1) 27 11 (11) Non-order related research development — (2) (2) Interest and other finance expense (128) (173) 207 Embedded foreign exchange Total revenues (3) (7) (34) Total (11) (2) (1) Commodity contracts Total (47) 78 56 Other Interest and other finance expense 4 — 1 Total (193) (145) 310 (1) The fair values of derivatives included Derivative assets Derivative liabilities Current in Non-current Current in Non-current “Other in “Other “Other in “Other current non-current current non-current December 31, 2022 ($ in millions) assets” assets” liabilities” liabilities” Derivatives designated as Foreign exchange contracts — — 4 4 Interest rate contracts — — 5 57 Cross-currency interest — — — 288 Cash-settled call options 15 — — — Total 15 — 9 349 Derivatives not designated Foreign exchange contracts 140 21 80 5 Commodity contracts 13 — 12 — Interest rate contracts 5 — 3 — Embedded foreign exchange 11 6 17 13 Total 169 27 112 18 Total fair value 184 27 121 367 Derivative assets Derivative liabilities Current in Non-current Current in Non-current “Other in “Other “Other in “Other current non-current current non-current December 31, 2021 ($ in millions) assets” assets” liabilities” liabilities” Derivatives designated as Foreign exchange contracts — — 3 5 Interest rate contracts 9 20 — — Cross-currency interest — — — 109 Cash-settled call options 29 — — — Total 38 20 3 114 Derivatives not designated Foreign exchange contracts 108 14 107 7 Commodity contracts 19 — 5 — Interest rate contracts 1 — 2 — Embedded foreign exchange 10 7 16 10 Total 138 21 130 17 Total fair value 176 41 133 131 Close ‑ out netting agreements provide for outstanding transactions between ‑ defined trigger events. Although the Company is party to ‑ out netting agreements with most values in the tables above and in been presented on a gross basis. The Company’s netting agreements and other conditions. At December 31, 2022 follows: December 31, 2022 ($ in millions) Gross amount of Derivative liabilities Cash Non-cash Type of agreement recognized eligible for set-off in collateral collateral Net asset similar arrangement assets case of default received received exposure Derivatives 194 (96) — — 98 Total 194 (96) — — 98 December 31, 2022 ($ in millions) Gross amount of Derivative liabilities Cash Non-cash Type of agreement recognized eligible for set-off in collateral collateral Net liability similar arrangement liabilities case of default pledged pledged exposure Derivatives 458 (96) — — 362 Total 458 (96) — — 362 December 31, 2021 ($ in millions) Gross amount of Derivative liabilities Cash Non-cash Type of agreement recognized eligible for set-off in collateral Net asset similar arrangement assets case of default received received exposure Derivatives 200 (104) — — 96 Total 200 (104) — — 96 December 31, 2021 ($ in millions) Gross amount of Derivative liabilities Cash Non-cash Type of agreement recognized eligible for set-off in collateral Net liability similar arrangement liabilities case of default pledged pledged exposure Derivatives 238 (104) — — 134 Total 238 (104) — — 134 |
Fair values
Fair values | 12 Months Ended |
Dec. 31, 2022 | |
Fair values | |
Fair values | — Note 7 Fair values Recurring fair value measures The fair values of financial assets and Total December 31, 2022 ($ in millions) Level 1 Level 2 Level 3 fair value Assets Securities in “Marketable Equity securities 355 355 Debt securities—U.S. government 255 255 Debt securities—Other government 58 58 Debt securities—Corporate 57 57 Derivative assets—current 184 184 Derivative assets—non-current 27 27 Total 255 681 — 936 Liabilities Derivative liabilities—current 121 121 Derivative liabilities—non-current 367 367 Total — 488 — 488 Total December 31, 2021 ($ in millions) Level 1 Level 2 Level 3 fair value Assets Securities in “Marketable Equity securities 587 587 Debt securities—U.S. government 209 209 Debt securities—Corporate 74 74 Derivative assets—current 176 176 Derivative assets—non-current 41 41 Total 209 878 — 1,087 Liabilities Derivative liabilities—current 133 133 Derivative liabilities—non-current 131 131 Total — 264 — 264 During 2022, 2021 and 2020 no between Level 1 and Level The Company uses the following liabilities measured at fair value • Securities in “Marketable securities and ‑ term investments”: markets for identical assets are available, markets are not active, these inputs available, fair value is determined techniques, applying an appropriate ‑ free interest rate adjusted for non ‑ performance risk. The inputs used in present value techniques • Derivatives: The fair values of derivative identical instruments from an active available, price quotes for similar techniques, based on available ‑ settled call options hedging the Company’s listed warrant. The fair values obtained techniques represent a Level 2 input Non ‑ recurring fair value measures The Company elects to record private impairment, adjusted for observable whether these investments continue in Other income (expense), net, net 52 108 certain of its private equity investments investment of the same issuer. The fair values were these investments at December 31, 2022 106 169 Based on valuations at July 1, 2020, 311 the third quarter of 2020. The fair income approach (discounted unobservable inputs, which information including further detailed inputs). Apart from the transactions above, no ‑ recurring fair value measurements during 2022 and 2021. Disclosure about financial instruments The fair values of financial instruments Carrying Total December 31, 2022 ($ in millions) value Level 1 Level 2 Level 3 fair value Assets Cash and equivalents (excluding with original maturities Cash 1,697 1,697 1,697 Time deposits 2,459 2,459 2,459 Restricted cash 18 18 18 Liabilities Short-term debt and current (excluding finance lease obligations) 2,500 1,068 1,432 2,500 Long-term debt (excluding 4,976 4,813 30 4,843 Carrying Total December 31, 2021 ($ in millions) value Level 1 Level 2 Level 3 fair value Assets Cash and equivalents (excluding with original maturities Cash 2,422 2,422 2,422 Time deposits 1,737 1,737 1,737 Restricted cash 30 30 30 Marketable securities and securities): Time deposits 300 300 300 Restricted cash, non-current 300 300 300 Liabilities Short-term debt and current (excluding finance lease obligations) 1,357 1,288 69 1,357 Long-term debt (excluding 4,043 4,234 58 4,292 The Company uses the following carried on a cost basis: • Cash and equivalents (excluding cash, current and non-current, and ‑ term investments (excluding securities): ‑ term in nature or, for cash held in banks, are equal to • Short ‑ term debt and current maturities ‑ term debt (excluding finance Short ‑ term debt includes commercial paper, bank borrowings amounts of short ‑ term debt and current maturities ‑ term debt, excluding finance lease obligations, approximate their • Long ‑ term debt (excluding finance lease Fair values of bonds are determined quoted market prices (Level 1 inputs), if prices and other long ‑ term debt, the fair values are determined methodology based upon adjustments for non ‑ performance risk (Level 2 inputs). |
Receivables, net and Contract a
Receivables, net and Contract assets and liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Receivables, net and Contract assets and liabilities | |
Receivables, net and Contract assets and liabilities | — Note 8 Receivables, net and Contract assets and liabilities “Receivables, net” consisted of the December 31, ($ in millions) 2022 2021 Trade receivables 6,478 6,206 Other receivables 688 684 Allowance (308) (339) Total 6,858 6,551 “Trade receivables” $ 100 119 substantial majority of related contracts retained by the customer will be 52 34 “Other receivables” non ‑ trade receivables. The reconciliation of changes in ($ in millions) 2022 2021 2020 Balance at January 1, 339 357 228 Transition adjustment — — 56 Current-period provision 37 33 115 Write-offs charged against (48) (37) (42) Exchange rate differences (20) (14) — Balance at December 31, 308 339 357 The following table provides December 31, ($ in millions) 2022 2021 2020 Contract assets 954 990 985 Contract liabilities 2,216 1,894 1,903 Contract assets primarily relate which no invoice has been rights to receive payment become unconditional. be collected within one year Contract liabilities primarily relate amounts invoiced to customers in excess Contract liabilities are reduced amounts presented as Contract liabilities 59 Other non-current liabilities The significant changes in the Contract 2022 2021 Contract Contract Contract Contract ($ in millions) assets liabilities assets liabilities Revenue recognized, which balance at January 1, 2022/2021 (1,043) (1,086) Additions to Contract revenue during the period 1,481 1,136 Receivables recognized balance at January 1, 2022/2021 (591) (566) The Company considers its order December 31, 2022, the Company 19,867 this amount, the Company expects 77 2023 , approximately 13 2024 |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, net | |
Inventories, net | — Note 9 Inventories, net “Inventories, net” consisted of the December 31, ($ in millions) 2022 2021 Raw materials 2,626 2,136 Work in process 1,189 995 Finished goods 2,036 1,594 Advances to suppliers 177 155 Total 6,028 4,880 |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment, net | |
Property, plant and equipment, net | — Note 10 Property, plant and equipment, net “Property, plant and equipment, net” consisted of the December 31, ($ in millions) 2022 2021 Land and buildings 3,622 3,925 Machinery and equipment 5,495 5,785 Construction in progress 586 522 9,703 10,232 Accumulated depreciation (5,792) (6,187) Total 3,911 4,045 Assets under finance leases included December 31, ($ in millions) 2022 2021 Land and buildings 178 164 Machinery and equipment 135 92 313 256 Accumulated depreciation (135) (123) Total 178 133 In 2022, 2021 and 2020 depreciation, $ 531 575 586 impairments of property, plant or equipment. |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and intangible assets | |
Goodwill and intangible assets | — Note 11 Goodwill and intangible assets The changes in “Goodwill” were as follows: Robotics & Process Discrete ($ in millions) Electrification Motion Automation Automation Total Balance at January 1, 2021 4,527 2,456 1,639 2,228 10,850 Goodwill acquired during 11 — — 150 161 Goodwill allocated to disposals — (338) (7) — (345) Exchange rate differences (66) (1) (19) (98) (184) Balance at December 31, (1) 4,472 2,117 1,613 2,280 10,482 Goodwill acquired during 220 9 — — 229 Goodwill allocated to (2) (2) — (6) — (8) Exchange rate differences (92) (8) (20) (72) (192) Balance at December 31, (1) 4,598 2,118 1,587 2,208 10,511 (1) 10,774 10,760 impairment 263 278 (2) 6 operating segment. The Company adopted a new operating reporting units quantitative impairment test was 2020. were substantially in excess of their reporting unit within the Robotics & reporting unit lower due to the economic with the newly allocated reporting unit exceeding its fair value. During 290 reduce the carrying value of this reporting During 2022 and 2021, certain interim quantitative impairment concluded that the fair value of the amount. At October 1, 2022 and 2021, respectively, the Company that it was not more likely than not value. As a result, the Company concluded test. Intangible assets, net consisted of 2022 2021 Gross Accumu- Net Gross Accumu- Net carrying lated amort- carrying carrying lated amort- carrying December 31, ($ in millions) amount ization amount amount ization amount Capitalized software 830 (720) 110 835 (732) 103 Capitalized software 26 (26) — 31 (29) 2 Intangibles other than software: Customer-related 1,743 (808) 935 1,716 (707) 1,009 Technology-related 997 (812) 185 1,122 (868) 254 Marketing-related 498 (347) 151 493 (327) 166 Other 55 (30) 25 56 (29) 27 Total 4,149 (2,743) 1,406 4,253 (2,692) 1,561 Additions to intangible assets other Amortization expense of intangible ($ in millions) 2022 2021 2020 Capitalized software 52 66 61 Intangibles other than software 230 252 268 Total 282 318 329 In 2022, 2021 and 2020 impairment At December 31, 2022, future amortization ($ in millions) 2023 296 2024 221 2025 174 2026 153 2027 145 Thereafter 417 Total 1,406 ($ in millions) 2022 2021 Capitalized software 53 32 Capitalized software — 2 Intangibles other than software: Customer-related 79 13 Technology-related 16 35 Marketing-related 20 11 Other 7 2 Total 175 95 There were no significant intangible additions of $ 175 116 primarily consisting of customer-related |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt | |
Debt | — Note 12 Debt The Company’s total debt at December 7,678 5,561 respectively. Short ‑ term debt and current maturities “Short ‑ term debt and current maturities ‑ term debt” consisted of the December 31, ($ in millions) 2022 2021 Short-term debt (weighted-average 1.9 % and 3.2 %, respectively) 1,448 78 Current maturities of long-term (weighted-average nominal 0.5 % and 2.8 %, respectively) 1,087 1,306 Total 2,535 1,384 Short ‑ term debt primarily represents ‑ term loans from various banks At December 31, 2022, the Company two 2 Euro ‑ commercial paper program for $ 2 in the United States. At December 1,383 2 Euro-commercial paper program and no 2 States. At December 31, 2021, no In December 2019, the Company replaced $ 2 extend the maturity of this facility The facility is for general corporate purposes. drawings under the facility are LIBOR EURIBOR for EURO drawings, plus 0.175 unused portion of the facility) amount 35 0.06125 0.075 drawings up to one ‑ third of the facility, 0.15 ‑ third but less than or equal to two ‑ thirds of the facility, or 0.30 ‑ thirds of the facility. The facility ‑ default clauses whereby default on indebtedness as defined No December 31, 2022 and 2021, under The Company amended and restated discontinuation of LIBOR. Under the amended advances in USD are referenced to overnight SARON and SONIA respectively, subject Long ‑ term debt The Company raises long-term debt certain of its debt obligations, the Company In particular, the Company uses interest rate swaps ‑ rate long ‑ term debt into floating rate obligations. currency interest rate swaps to effectively debt, designated as being hedged component of the debt being hedged. The following table summarizes the Company’s ‑ term debt considering the effect cross-currency interest rate swaps. Consequently, a fixed ‑ rate debt subject to a fixed ‑ to ‑ floating interest rate swap is included as a floating rate debt 2022 2021 December 31, Nominal Effective Nominal Effective ($ in millions, except % data) Balance rate rate Balance rate rate Floating rate 3,459 0.4 % 2.8 % 3,598 1.2 % 0.3 % Fixed rate 2,771 2.2 % 2.2 % 1,885 3.0 % 3.1 % 6,230 5,483 Current portion of long-term (1,087) 0.5 % 1.5 % (1,306) 2.8 % 1.0 % Total 5,143 4,177 At December 31, 2022, the principal ‑ term debt repayable (excluding obligations) at maturity were as follows: ($ in millions) 2023 1,058 2024 2,387 2025 193 2026 — 2027 461 Thereafter 2,194 Total 6,293 Details of outstanding bonds were 2022 2021 December 31, (in millions) Nominal Carrying Nominal Carrying outstanding value (1) outstanding value (1) Bonds: 2.875 % USD Notes, due 2022 — USD 1,250 $ 1,258 0.625 % EUR Instruments, due EUR 700 $ 742 EUR 700 $ 800 0 % CHF Bonds, due 2023 CHF 275 $ 298 — 0.625 % EUR Instruments, due EUR 700 $ 720 — Floating Rate EUR EUR 500 $ 536 — 0.75 % EUR Instruments, due EUR 750 $ 769 EUR 750 $ 860 0.3 % CHF Bonds, due 2024 CHF 280 $ 303 CHF 280 $ 306 2.1 % CHF Bonds, due 2025 CHF 150 $ 162 — 0.75 % CHF Bonds, due 2027 CHF 425 $ 460 — 3.8 % USD Notes, due 2028 (2) USD 383 $ 381 USD 383 $ 381 1.0 % CHF Bonds, due 2029 CHF 170 $ 184 CHF 170 $ 186 0 % EUR Instruments, due EUR 800 $ 677 EUR 800 $ 862 2.375 % CHF Bonds, due 2030 CHF 150 $ 162 — 4.375 % USD Notes, due 2042 (2) USD 609 $ 590 USD 609 $ 589 Total $ 5,984 $ 5,242 (1) accounting, (2) 3.8 % USD Notes, the 4.375 % USD Notes, 750 During 2022, the Company repaid 2.875 % USD Notes, which paid interest semi ‑ annually in arrears. $ 1,050 such swaps, $ 1,050 in the table of long ‑ term debt above. During 2020, in connection 250 5.625 % USD Notes, due 2021, and $ 450 3.375 % USD Notes, due 2023, and the partial cash tender offer of the 3.8 % USD Notes, due 2028, and 4.375 % USD Notes, due 2042, the Company recognized losses on extinguishment 162 early redemption, as well as the discounts and issuance costs. The 0.625 % EUR Instruments, due 2023, 0.625 annum. The Company may redeem or in part, at the greater of (i) 100 sum of the present values of remaining accrued to the redemption date) discounted interest accrued at the redemption date. after the Par call date at 100 entered into interest rate swaps such swaps, these notes effectively became shown as floating rate debt, in the ‑ term debt above. The 0.75 % EUR Instruments, due 2024, 0.75 annum and have the same early redemption 0.625 % EUR Instruments above. The Company entered into interest rate swaps such swaps, these bonds effectively became shown as floating rate debt in the table ‑ term debt above. The 0.3 % CHF Bonds, due 2024, and 1.0 % CHF Bonds, due 2029, each The Company may redeem these bonds, one month three months prior to maturity in the case Further, the Company has the option to redeem these at par plus accrued interest, if 85 issue have been redeemed The 3.8 % USD Notes, due 2028, were 300 2.8 % USD Notes, due 2020, and $ 450 3.375 % USD Notes, due 2023, each paying ‑ annually in arrears. The 2020 Notes were repaid at maturity in December 2020. three months 100 amount of the notes to be redeemed of principal and interest (excluding date at a rate defined in the Notes 2028 ( three months in part, at any time at a redemption 100 redeemed plus unpaid tender offer, the Company redeemed $ 367 750 3.8 % USD Notes, due 2028, issued. Finance (USA) Inc., a 100 ABB Ltd. There are no significant restrictions subsidiaries by dividend ‑ X, the separate financial statements of ABB Finance (USA) The 0 % EUR Instruments, due 2030, 0.625 % EUR Instruments above. Cross-currency characteristics of these instruments. the Company effectively has a floating The 4.375 % USD Notes, due 2042, pay ‑ annually in arrears at a fixed annual 4.375 (i) 100 remaining scheduled discounted to the redemption date at date. These notes, registered with Finance (USA) Inc., a 100 ABB Ltd. There are no significant restrictions subsidiaries by dividend ‑ 01 of Regulation S ‑ X, the separate financial statements of ABB Finance (USA) Company redeemed $ 141 750 4.375 % USD Notes, due 2042, issued. In March 2022, the Company issued 275 zero 2023, and (ii) CHF 425 0.75 The Company may redeem the CHF 425 one month at par plus accrued interest. Further, the Company maturity, in whole but not in part, at par plus accrued 85 amount have been redeemed aggregate net proceeds of these 699 (equivalent to approximately $ 751 Also in March 2022, the Company (i) EUR 700 0.625 (ii) EUR 500 0.7 points above the 3-month EURIBOR, subject zero may redeem the EUR 700 100 amount of the notes to be redeemed of principal and interest (excluding date at a rate defined in the note Instruments, the Company recorded fees) of EUR 1,203 1,335 been used to modify the characteristics 700 impact of these interest rate swaps, 700 obligations. In October 2022, the Company issued 150 2.1 2025, and (ii) CHF 150 2.375 annually in arrears. The Company in part, at par plus accrued interest. to maturity, in whole but not in part, at par plus accrued 85 principal amount of the relevant bond the option exercise notice. The aggregate discount and other fees, amounted 299 304 issuance). The Company’s various debt instruments ‑ default clauses which would demand repayment if the Company Furthermore, all such bonds constitute debt obligations. In addition to the bonds described above, ‑ term debt at December 31, 2022 and finance lease obligations, ‑ term debt, none of which is individually significant. |
Other provisions, other current
Other provisions, other current liabilities and other non-current liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other provisions, other current liabilities and other non-current liabilities | |
Other provisions, other current liabilities and other non-current liabilities | — Note 13 Other provisions, other current liabilities and other non-current liabilities “Other provisions” consisted of the December 31, ($ in millions) 2022 2021 Contract-related provisions 615 762 Provision for insurance-related 171 174 Restructuring and restructuring-related 145 188 Provisions for contractual 49 63 Other 191 199 Total 1,171 1,386 “Other current liabilities” consisted December 31, ($ in millions) 2022 2021 Employee-related liabilities 1,490 1,547 Accrued expenses 872 768 Non-trade payables 681 644 Accrued customer rebates 315 322 Income taxes payable 312 378 Other tax liabilities 285 298 Derivative liabilities (see Note 121 133 Deferred income 102 95 Pension and other employee 38 41 Accrued interest 38 28 Other 69 113 Total 4,323 4,367 “Other non ‑ current liabilities” consisted December 31, ($ in millions) 2022 2021 Income tax related liabilities 1,287 1,458 Derivative liabilities (see Note 367 130 Provisions for contractual 67 129 Contract liabilities (see Note 59 — Employee-related liabilities 45 59 Environmental provisions 42 39 Deferred income 33 74 Other 185 227 Total 2,085 2,116 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | — Note 14 Leases The Company’s lease obligations of lease expense were as follows: Machinery Land and buildings and equipment Total ($ in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Operating lease cost 217 240 287 71 73 89 288 313 376 Finance lease cost 15 17 13 22 20 16 37 37 29 Short-term lease cost 20 26 17 18 14 31 38 40 48 Sub-lease income (18) (24) (20) (1) (1) (1) (19) (25) (21) Total lease expense 234 259 297 110 106 135 344 365 432 The following table presents supplemental Machinery Land and buildings and equipment Total ($ in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Operating leases: Cash paid under operating 200 223 263 66 68 83 266 291 346 Right-of-use assets in exchange for new liabilities 285 267 266 50 86 57 335 353 323 In 2022, 2021 and 2020 the cash At December 31, 2022, related present value of the net minimum Operating Leases Finance Leases Land and Machinery Land and Machinery ($ in millions) buildings and equipment buildings and equipment 2023 203 54 21 23 2024 168 34 21 20 2025 138 18 21 17 2026 104 6 17 6 2027 70 1 17 1 Thereafter 151 1 68 — Total minimum lease payments 834 114 165 67 Difference between undiscounted and discounted cash flows (74) (3) (27) (3) Present value of minimum 760 111 138 64 The following table presents certain Land and buildings Machinery and equipment 2022 2021 2020 2022 2021 2020 Operating leases: Weighted-average remaining 73 73 84 31 30 29 Weighted-average discount 3.3% 2.6% 3.0% 1.9% 1.9% 2.0% Finance leases: Weighted-average remaining 135 100 107 33 40 40 Weighted-average discount 5.5% 7.7% 7.7% 2.3% 1.8% 2.3% The present value of minimum ‑ term debt and current maturities of long ‑ term debt and Long ‑ term debt in the Consolidated $ 35 167 27 $ 134 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and contingencies | |
Commitments and contingencies | — Note 15 Commitments and contingencies Contingencies—Regulatory, Compliance and Legal Regulatory As a result of an internal investigation, Commission (SEC) and the Department Office (SFO) in the United Kingdom concerning including alleged improper investigation, which it originally prosecution and in December settlement. Based on findings during an United States, to the Special Investigating Africa as well as to various authorities concerns in connection with some of parties have expressed an interest cooperating fully with them. The Company 104 final settlement with Eskom and the SIU associated with the Controls and Kusile. The Company made a provision 325 (expense), net, during the third quarter DoJ as well as the authorities in South in Germany, but the Company does not believe that it matter. General The Company is aware of proceedings, private claims by customers and other practices. Also, the Company is subject carried out by various law enforcement matters, and any related proceedings, resolve them. Liabilities recognized At December 31, 2022 and 2021, 86 104 respectively, included in “Other provisions” ‑ current liabilities”, for the above regulatory, compliance and legal not possible to make an informed it is not possible, based on information liability on other matters, there Guarantees General The following table provides quantitative ‑ party guarantees. The maximum potential payments represent a “worst ‑ case scenario”, and do Maximum potential payments (1) December 31, ($ in millions) 2022 2021 Performance guarantees 4,300 4,540 Financial guarantees 96 52 Indemnification guarantees (2) — 136 Total 4,396 4,728 (1) (2) The carrying amount of liabilities estimate of future payments, which above guarantees, the carrying amounts 1 and $ 156 The Company is party to various parties. These guarantees, which guarantees whereby (i) the Company according to the terms of a contract and parties, the Company guarantees not guarantees may include guarantees does not fulfill the obligation, the Company original maturity dates for the one ten years . In conjunction with the divestment of ‑ voltage cable and cables Company has entered into various of the divested business. At December guarantees amounts to $ 843 911 maturities ranging from five ten years . The Company retained obligations sale of the Power Grids business have been indemnified by Hitachi 80.1 100 various maturities up to 2035, primarily performance guarantees and other dates ranging from one ten years . The maximum amount payable December 31, 2022 and 2021, is approximately 3.0 3.2 sale of the Company’s remaining 19.9 certain existing indemnification result, in 2022, the Company recorded 136 (recorded in discontinued Commercial commitments In addition, in the normal course standby letters of credit, bid/performance various financial institutions. Customers does not fulfill its contractual obligations. financial institution for amounts paid outstanding performance bonds 2.9 3.6 amounts, $ 0.1 to financial institutions under these Product and order ‑ related contingencies The Company calculates its provision specific review of certain contracts. The reconciliation of the “Provisions follows: ($ in millions) 2022 2021 2020 Balance at January 1, 1,005 1,035 816 Net change in warranties liabilities held for sale (1) (24) 1 8 Claims paid in cash or (157) (222) (209) Net increase in provision estimates, warranties issued 252 226 369 Exchange rate differences (48) (35) 51 Balance at December 31, 1,028 1,005 1,035 (1) In 2020, the Company determined was no longer sufficient to cover expected unexpected level of product failure, $ 143 costs relate to a divested business, in segment performance, Operational The warranty liability has been recorded in the future. Related party transactions The Company conducts business with Directors or Executive Committee Company’s Board of Directors has determined companies do not constitute material with the Company’s related party transaction Practice and the independence Exchange. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes | |
Income taxes | — Note 16 Income taxes “Income tax expense” consisted of the ($ in millions) 2022 2021 2020 Current taxes 1,101 1,346 776 Deferred taxes (344) (289) (280) Income tax expense allocated 757 1,057 496 Income tax expense (5) (1) 322 Income tax expense from continuing ‑ average global tax rate (rather than from the Group, ABB Ltd, is domiciled in Switzerland (hereafter “foreign jurisdictions”) which jurisdictions is, to a large extent, parent company of a group to pre ‑ tax income. As the Company’s consolidated outside of Switzerland, the weighted ‑ average global tax rate of the Company income tax rates in foreign jurisdictions. The reconciliation of “Income tax expense ‑ average tax rate to the effective tax rate is as follows: ($ in millions, except % data) 2022 2021 2020 Income from continuing 3,394 5,787 841 Weighted-average global 23.6% 23.7% 22.9% Income taxes at weighted-average 800 1,371 193 Items taxed at rates other 127 176 3 Unrecognized tax benefits (83) 151 (38) Changes in valuation (195) (95) 29 Effects of changes in tax laws (19) 1 23 Non-deductible / non-taxable 97 (542) 232 Other, net 30 (5) 54 Income tax expense 757 1,057 496 Effective tax rate for 22.3% 18.3% 59.0% The allocation of consolidated Switzerland, impacts the “weighted-average the weighted-average global 1 In 2022, “Items taxed at rates other than 53 received in holding entities included $ 107 amount was not significant. In 2022, “Changes in valuation Asia of $ 22 23 208 changes in certain outlooks in Europe 55 changes in certain outlooks in Europe 82 the valuation allowance due to impacts at that time on the Company’s In 2022, rates in Europe for $ 25 the impact of changes to tax rates in 16 In 2022, “Non-deductible / non-taxable 65 regulatory penalties in connection from the sale of the remaining 567 income tax benefits primarily due net gain from sale of businesses exceeded previously unrecognized $ 232 82 includes $ 62 benefit plans which were principally items that were deducted for financial certain interest expense costs, local entertainment expenses and other similar In 2022 and 2021, “Unrecognized 95 $ 150 competent tax authorities. The amount 20 In 2020 “Other, net” included an expense of $ 54 Deferred tax assets and liabilities of the following: December 31, ($ in millions) 2022 2021 Deferred tax assets: Unused tax losses and 462 551 Provisions and other accrued 756 757 Other current assets including 100 104 Pension 283 338 Inventories 304 266 Intangible assets 1,154 1,135 Other 66 57 Total gross deferred tax asset 3,125 3,208 Valuation allowance (1,000) (1,263) Total gross deferred tax asset, net 2,125 1,945 Deferred tax liabilities: Property, plant and equipment (232) (245) Intangible assets (237) (281) Other assets (91) (107) Pension (318) (302) Other liabilities (200) (175) Inventories (44) (35) Unremitted earnings of (336) (308) Total gross deferred tax liability (1,458) (1,453) Net deferred tax asset ) 667 492 Included in: “Deferred taxes”—non-current 1,396 1,177 “Deferred taxes”—non-current (729) (685) Net deferred tax asset 667 492 Certain entities have deferred tax ‑ forwards and other items. As recognition of these assets in certain allowances have been table above, included $ 80 93 valuation allowance as, due to limitations more likely than not, such deferred The valuation allowance 1,000 1,263 $ 1,518 Certain amounts included in occurring at fair market value At December 31, 2022 and 2021, 336 308 have been provided for withholding (hereafter “withholding taxes”) on unremitted event of repatriation of the foreign Switzerland and has already extent, tax exempt in Switzerland and provided for on the repatriated earnings Certain countries levy withholding reclaimed by the Company’s relevant subsidiary withheld and paid by the relevant in certain foreign jurisdictions December 31, 2022 and 2021, taxes upon distribution were approximately 100 100 considered as indefinitely business growth through working deferred tax liability was recorded. At December 31, 2022, net operating ‑ forwards of $ 1,806 57 available to reduce future income 809 loss carry-forwards and $ 47 remainder are available ‑ forwards related to the Company’s Europe operations. Unrecognized tax benefits consisted Penalties and interest related to Unrecognized unrecognized ($ in millions) tax benefits tax benefits Total Classification as unrecognized 1,106 233 1,339 Net change due to acquisitions 1 — 1 Increase relating to prior 298 96 394 Decrease relating to prior (161) (57) (218) Increase relating to current 390 5 395 Decrease due to settlements (340) (75) (415) Decrease as a result of (59) (16) (75) Exchange rate differences 63 6 69 Balance at December 31, the effective tax rate 1,298 192 1,490 Net change due to acquisitions 16 (6) 10 Increase relating to prior 240 58 298 Decrease relating to prior (42) (3) (45) Increase relating to current 98 7 105 Decrease due to settlements (175) (20) (195) Decrease as a result of (72) (22) (94) Exchange rate differences (41) (7) (48) Balance at December 31, the effective tax rate 1,322 199 1,521 Increase relating to prior 26 36 62 Decrease relating to prior (98) (12) (110) Increase relating to current 80 4 84 Decrease due to settlements (31) (14) (45) Decrease as a result of (71) (23) (94) Exchange rate differences (58) (10) (68) Balance at December 31, the effective tax rate 1,170 180 1,350 In 2022 and 2021, “Increase relating 69 $ 72 competent tax authorities. In 2020, “Increase relating to current 381 interpretation of tax law and double 301 of the $ 381 In 2022, “Increase relating to prior year 26 Europe. In 2021 “Increase relating to prior 240 interpretation of tax law and double In 2020, “Increase relating to prior year and double tax treaty agreements 73 Income tax expense in discontinued In 2022, “Decrease relating to prior 94 assessments In 2021, “Decrease relating to prior 42 33 assessments in Europe. In 2020, “Decrease relating to prior 85 interpretation of tax law in Asia and 59 In 2022, “Decrease due to settlements received in Asia and Europe. In 2021, “Decrease due to settlements received in Europe. In 2020, “Decrease due to settlements Europe. At December 31, 2022, tax benefits related to pending 63 Otherwise, the Company had not identified possible to occur within the next twelve At December 31, 2022, the earliest following: Region Year Europe 2015 United States 2019 Rest of Americas 2018 China 2013 Rest of Asia, Middle East 2017 |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefits | |
Employee benefits | Other Defined pension postretirement benefits benefits Switzerland International International ($ in millions) 2022 2021 2022 2021 2022 2021 Benefit obligation at January 3,434 3,870 5,115 5,527 71 98 Service cost 50 61 38 47 — 1 Interest cost 13 (5) 87 72 1 2 Contributions by plan participants 34 36 10 8 — — Benefit payments (96) (130) (234) (207) (7) (9) Settlements (92) (124) (36) (84) — — Benefit obligations of (328) — (2) (46) — (11) Actuarial (gain) loss (478) (140) (1,075) (15) (14) (8) Plan amendments and — — (3) 13 — (2) Exchange rate differences (80) (134) (328) (200) (1) — Benefit obligation at December 2,457 3,434 3,572 5,115 50 71 Fair value of plan assets 4,113 4,133 4,463 4,608 — — Actual return on plan (310) 279 (789) 197 — — Contributions by employer 37 63 58 124 7 9 Contributions by plan participants 34 36 10 8 — — Benefit payments (96) (130) (234) (207) (7) (9) Settlements (92) (124) (36) (84) — — Plan assets of businesses (414) — (1) (50) — — Plan amendments and — — — 14 — — Exchange rate differences (89) (144) (299) (147) — — Fair value of plan assets 3,183 4,113 3,172 4,463 — — Funded status — overfunded 726 679 (400) (652) (50) (71) The amounts recognized in "Accumulated Defined pension Other postretirement benefits benefits December 31, ($ in millions) 2022 2021 2020 2022 2021 2020 Net actuarial (loss) gain (1,183) (1,540) (2,038) 32 21 21 Prior service credit 56 72 75 5 7 11 Amount recognized (1) (2) (1,127) (1,468) (1,963) 37 28 32 Taxes associated with amount recognized in OCI and NCI 266 352 374 — — — Amount recognized (3) (861) (1,116) (1,589) 37 28 32 (1) (2) (3) (1) 0 (1) In addition, the following Defined pension Other postretirement benefits benefits Switzerland International International December 31, ($ in millions) 2022 2021 2022 2021 2022 2021 Overfunded plans 726 683 189 208 — — Underfunded plans — current — — (22) (23) (6) (7) Underfunded plans — non-current — (4) (567) (837) (44) (64) Funded status - overfunded 726 679 (400) (652) (50) (71) December 31, ($ in millions) 2022 2021 Non-current assets Overfunded pension plans 915 891 Other employee-related benefits 1 1 Pension and other employee 916 892 December 31, ($ in millions) 2022 2021 Current liabilities Underfunded pension plans (22) (23) Underfunded other postretirement (6) (10) Other employee-related benefits (10) (8) Pension and other employee (38) (41) December 31, ($ in millions) 2022 2021 Non-current liabilities Underfunded pension plans (567) (841) Underfunded other postretirement (44) (62) Other employee-related benefits (108) (122) Pension and other employee (719) (1,025) PBO exceeds fair value of plan ABO exceeds fair value of December 31, Switzerland International Switzerland International ($ in millions) 2022 2021 2022 2021 2022 2021 2022 2021 PBO 9 12 2,274 2,994 9 12 2,274 2,979 ABO 9 12 2,222 2,917 9 12 2,222 2,905 Fair value of plan assets 9 8 1,689 2,133 9 8 1,689 2,119 All of the Company's other postretirement Components of net periodic Net periodic benefit cost consisted Defined pension Other postretirement benefits benefits Switzerland International International ($ in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Operational pension cost: Service cost 50 61 74 38 47 92 — 1 1 Operational pension cost 50 61 74 38 47 92 — 1 1 Non-operational pension Interest cost 13 (5) 6 87 72 111 1 2 3 Expected return on plan (117) (116) (123) (153) (178) (253) — — — Amortization of prior service (9) (9) (11) (2) (2) 2 (2) (3) (2) Amortization of net actuarial — — 7 58 67 109 (3) (2) (3) Curtailments, settlements termination benefits 4 1 6 7 7 644 — — — Non-operational pension (109) (129) (115) (3) (34) 613 (4) (3) (2) Net periodic benefit (59) (68) (41) 35 13 705 (4) (2) (1) The components of net periodic benefit Non-operational pension (cost) credit in includes $ 121 Assumptions The following weighted-average Defined pension Other postretirement benefits benefits Switzerland International International December 31, (in %) 2022 2021 2022 2021 2022 2021 Discount rate 2.2 0.2 4.8 2.1 5.3 2.6 Rate of compensation — — 1.8 1.5 0.3 0.3 Rate of pension increase — — 1.8 1.7 — — Cash balance interest credit 2.0 1.0 2.7 2.1 — — For the Company’s significant benefit plans, on a high-quality corporate bond reputable third-party index and of the future expected benefit payments plans in each currency zone, based other countries, the discount rate the respective currency, as appropriate at each measurement respective plan’s obligations. The following weighted-average Defined pension Other postretirement benefits benefits Switzerland International International (in %) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate 0.7 — 0.3 2.1 1.6 1.9 2.0 2.1 2.8 Expected long-term rate of assets 3.3 3.0 3.0 3.7 4.0 4.3 — — — Rate of compensation increase — — — 1.5 1.0 2.2 0.1 0.2 0.2 Cash balance interest credit 1.3 1.0 1.0 2.1 2.1 1.6 — — — The “Expected long-term rate of return expected future long-term return assumption assumption is then derived for each The Company maintains other postretirement contributions adjusted annually. The assumptions used December 31, 2022 2021 Health care cost trend 5.6% 5.1% Rate to which the trend 4.5% 4.5% Year that the rate reaches the ultimate 2029 2026 Plan assets The Company has pension plans deriving from a limited number of The pension plans are typically funded plans are typically administered primary responsibilities include investment returns. The boards of decisions within a risk-controlled The pension plan assets are invested managers, in accordance with local investment guidelines, as approved Plan assets are generally segregated respective plans’ projected future pension sheet date. The boards of trustees manage risks embedded in the pension plans studies typically take place every three years . However, the risks of the plans are monitored basis. The boards of trustees’ investment goal risk parameters, while considering measures taken into account include contributions being required, a whole. The Company’s global pension which are set by the respective boards weighted-average basis is as Target (in %) Switzerland International Asset class Equity 15 16 Fixed income 54 72 Real estate 26 4 Other 5 8 Total 100 100 The actual asset allocations of the Equity securities primarily include income assets primarily include bonds. Both fixed income and equity mandates, and include an allocation real estate in Switzerland held in equity, hedge funds, commodities, and cash, and reflects Based on the above global asset allocation return on assets at December 31, 2022, 4.5 regularly review the investment performance diversified nature of the investments, exists in its pension fund assets. At December 31, 2022 and 2021, the Company’s debt instruments) with a 7 8 The fair values of the Company’s pension information on the fair value hierarchy the “Fair value measures” section of Not subject Total December 31, 2022 ($ in millions) Level 1 Level 2 to leveling (1) fair value Asset class Equity Equity securities 77 77 Mutual funds/commingled 748 748 Emerging market mutual 96 96 Fixed income Government and corporate 121 1,036 1,157 Government and corporate—mutual 2,189 2,189 Emerging market bonds—mutual 315 315 Real estate 1,172 1,172 Insurance contracts 57 57 Cash and short-term 124 129 253 Private equity 54 237 291 Total 322 4,624 1,409 6,355 Not subject Total December 31, 2021 ($ in millions) Level 1 Level 2 to leveling (1) fair value Asset class Equity Equity securities 124 1 125 Mutual funds/commingled 1,049 1,049 Emerging market mutual 218 218 Fixed income Government and corporate 314 1,366 1,680 Government and corporate—mutual 3,121 3,121 Emerging market bonds—mutual 428 428 Real estate 1,326 1,326 Insurance contracts 74 74 Cash and short-term 75 158 233 Private equity 65 257 322 Total 513 6,480 1,583 8,576 Amounts relate The Company applies accounting asset value (NAV) practical expedient. This accounting expedient from categorization within exchange-traded commingled underlying assets is determined redeemed, but instead the funds will unfunded commitments for the private 114 125 December 31, 2022 and 2021, respectively. up to three years of three to twelve months. Contributions Employer contributions were as Defined pension Other postretirement benefits benefits Switzerland International International ($ in millions) 2022 2021 2022 2021 2022 2021 Total and other postretirement 37 63 58 124 7 9 Of which, discretionary defined benefit pension — — 18 61 — — The total contributions included 12 53 2022 and 2021, of available-for-sale The Company expects to contribute 69 these contributions, $ 4 approximately $ 6 The Company also contributes plans in continuing operations 269 278 205 respectively. Contributions to multi-employer plans were Estimated future benefit payments The expected future cash flows to be postretirement benefit plans at December Defined pension Other postretirement benefits benefits ($ in millions) Switzerland International International 2023 212 245 6 2024 211 251 6 2025 195 248 6 2026 195 251 5 2027 186 258 5 Years 2028 - 2032 870 1,254 18 Note 17 Employee benefits The Company operates defined benefit indemnity plans, in accordance most significant defined benefit pension and the United States. These plans to employees in the event of death, plans are multi ‑ employer plans. The Company also postretirement health care benefits ‑ related benefits for active employees long ‑ service award plans. The measurement date December 31. The funding policies requirements. During 2020, the Company took steps three countries to external financial Two while the third plan involved with these transactions, the Company 309 pension charges of $ 520 and special termination benefits. The 143 operational pension charges 101 operations. The Company recognizes in its Consolidated plans, postretirement plans and other ‑ related benefits measured as value of the plan assets and the benefit Unless otherwise indicated, the following operations. Obligations and funded status The change in benefit obligation, Consolidated Balance The accumulated benefit obligation 5,953 $ 8,452 and fair value of plan assets, excess of fair value of plan assets, |
Share-based payment arrangement
Share-based payment arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Share-based payment arrangements | |
Share-based payment arrangements | — Note 18 Share-based payment arrangements The Company has granted share-based three ‑ based payment plans, as more fully described equity ‑ settled awards is recorded in and totaled $ 42 59 44 cost for cash ‑ settled awards, recorded in Selling, as mentioned in the WARs, LTIP and Other share ‑ based payments sections recognized in 2022, 2021 At December 31, 2022, the Company 94 capital in connection with share ‑ based payment arrangements. 25 100 shares held by the Company as ‑ based payment arrangements. As the primary trading market for traded in Swiss francs) and substantially ‑ based payment arrangements with employees based on the Swiss franc share or to the instruments granted under share ‑ based payment arrangements Management Incentive Plan Up to 2019, the Company offered, under ‑ settled WARs to key employees for no consideration. Starting in 2020, the granted shares under the LTIP (see LTIP section below) and consequently 2021 and 2020 under the MIP. The options granted under the Participants may sell the options rather listed by a third ‑ party bank on the SIX Swiss granted under this plan. The options entitle ‑ party bank purchase such options at the market price of equivalent sell the options, the options will obligation to deliver shares Each WAR gives the participant the right to receive, on the date of exercise of the vesting period, which is three years six years date of grant. In connection with the spin-off of the Turbocharging outstanding under the MIP program share price. value before and after the spin-off. New equivalent third-party bank, allowing continued effect the reduction in the exercise price, were outstanding at September 30, equivalent number of new options Options The fair value of each option was estimated previously, no 69 representing 14 amounted to approximately $ 330 of exercise) of options exercised was 143 313 38 In 2022, there were no significant were vested and exercisable. The aggregate was approximately $ 166 Presented below is a summary, by launch, related to options (1) Information (2) Information WARs As each WAR gives the holder the right to receive warrant on date of exercise, the Company at each period end, accreted on a three-year and administrative expenses, the Company the outstanding WARs. To hedge its exposure to fluctuations in the fair value Company purchased cash-settled call obligations under the outstanding at fair value (see Note 6), with subsequent administrative expenses to the extent The total impact in Selling, general At December 31, 2022, 8 significant forfeitures. The aggregate 15 29 December 31, 2022 and 2021, respectively. The fair value price of equivalent warrants listed on As mentioned previously, no $ 25 Weighted- average Number of Number of remaining options shares contractual Exercise price (in Swiss francs) (1) (in millions) (in millions) (2) term (in years) 21.23 6.6 1.3 0.6 22.05 61.5 12.3 1.7 17.63 33.8 6.8 2.7 Total number of options and shares 101.9 20.4 1.9 Employee Share Acquisition Plan The employee share acquisition ‑ option plan with a savings Employees save over a twelve‑month period, employees choose whether buy ABB Ltd shares (American Depositary Canada—each ADS representing one date, or have their savings returned a third ‑ party trustee on behalf of the participants withdraw from the ESAP at any time accumulated savings. The fair value of each option is estimated described under the MIP, using the assumptions noted in the table below. The expected granted has been determined one‑year options vest and the participants are savings returned with interest. ‑ free rate is based on one‑year the one‑year previous ESAP launches. Presented below is a summary of (1) Includes shares (2) Information (3) Computed using Swiss francs. (4) The cash received The exercise prices per ABB Ltd share 27.99 28.09 , respectively, for the 2022 grant, 30.32 33.35 , respectively, for the 2021 grant, and 22.87 $ 24.93 , respectively, for the 2020 grant were determined using SIX Swiss Exchange and ADS on with the spin-off of the Turbocharging Division in outstanding at the time of spin-off were neutralize the effect of the spin-off on the Company’s and after the spin-off. Consequently, the exercise prices per ABB were adjusted to 29.16 32.10 , respectively. At December 31, 2022, the total unrecognized ‑ vested options granted under the ESAP was not significant. ‑ average grant ‑ date fair value (per option) of options granted during 2022, 2021 2.47 1.96 1.67 respectively. The total intrinsic value (on the date of exercise) $ 14 2022 2021 2020 Expected volatility 25% 20% 24% Dividend yield 3.0% 2.9% 3.8% Expected term 1 year 1 year 1 year Risk-free interest rate 1.1% -0.6% -0.7% Weighted- Weighted- Aggregate average average intrinsic exercise remaining value Number of price contractual (in millions shares (in Swiss term of Swiss (in millions) (1) francs) (2) (in years) francs) (2)(3) Outstanding at January 1.8 30.32 Granted 1.8 27.99 Forfeited (0.2) 30.28 Exercised (4) (0.1) 29.16 Not exercised (savings (1.5) 29.16 Outstanding at December 1.8 27.99 0.8 0.1 Vested and expected to vest at 1.8 27.99 0.8 0.1 Exercisable at December — — — — Long-Term Incentive Plan The long ‑ term incentive plan (LTIP) involves annual grants of conditions (Performance Shares) senior executives, as defined in previously eligible to receive grants delivered under the LTIP’s Performance Shares grant is based as set out below, over a three-year the end of this period. In addition, three-year condition as defined in the terms The Performance Shares under the 2022 earnings per share performance 50 shareholder return (weighted 30 based on the Company’s CO 2 e emissions reductions (weighted 20 the 2021 and 2020 LTIP launches comprise of a component performance and a component based weighting. For the relative total shareholder that will be delivered at a future date to a peer group of companies over three-year shares that will ultimately be delivered achieved between a lower delivered is capped at 200 For the earnings per share performance that will be delivered at a future date three financial years, beginning delivered will vary depending interpolated between a lower delivered is capped at 200 For the ESG component of the future date is based on the Company’s scope 2 e emissions reduction over three beginning with the year of launch, that will ultimately be delivered interpolated between a lower delivered is capped at 200 Starting in 2020, key employees included in the employee Shares of the Company under the LTIP. The Restricted Shares do not have performance conditions over a three-year Under the 2022, 2021 and 2020 the award in cash, subject to legal In connection with the spin-off of the Turbocharging to employees under the LTIP launches was adjusted, neutralize the effect of the spin-off, resulting in an Presented below is a summary of The aggregate fair value, at the dates $ 26 37 shares that vested during 2022, 2021 value (per share) of shares granted 33.33 38.92 and 10.50 Presented below is a summary of The aggregate fair value, at the dates $ 27 26 22 during 2022, 2021 and 2020 shares granted during 2022 30.52 26.39 15.76 respectively. Equity-settled awards are recorded in compensation cost recorded in Selling, from grant date to the end of the vesting Cash-settled awards are recorded as a percentage vested, with changes At December 31, 2022, total unrecognized was $ 50 1.8 compensation cost recorded in 2022, For the relative total shareholder grant date, for equity-settled awards, a Monte Carlo simulation model. yield, the volatility of the Company’s and peer companies. For the earnings shares is based on the market price of reporting date for cash-settled awards, achievement, as computed using Company’s and external financial expectations. For the ESG component market price of the ABB Ltd share at cash-settled awards, as well as the probable internal modelling based on 2 e emissions. Other share-based payments The Company has other minor share-based compensation cost related to these arrangements Weighted-average Number of grant-date Performance Shares fair value per share (in millions) (Swiss francs) Nonvested at January 1.5 23.23 Granted 0.7 33.33 Turbocharging Division spin-off 0.1 Vested (0.3) 23.12 Forfeited (0.1) 26.96 Nonvested at December 1.9 27.01 Weighted-average Number of grant-date Restricted Shares fair value per share (in millions) (Swiss francs) Nonvested at January 2.0 20.61 Granted 0.8 30.52 Turbocharging Division spin-off 0.1 Vested (0.1) 19.60 Forfeited (0.2) 23.72 Nonvested at December 2.6 23.65 |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' equity | |
Stockholders' equity | — Note 19 Stockholders' equity Capital At December 31, 2022, the Company 2,469 1,965 registered and issued. At December 2,557 2,053 Dividends At the Annual General Meeting of proposal of the Board of Directors 0.82 distribution amounted to $ 1,700 remaining amounts in April 2022. Board of Directors to distribute a total 0.80 amounted to $ 1,730 amounts in April 2021. At the AGM Directors to distribute a total of 0.80 $ 1,758 Amounts available to be distributed requirements of Swiss law and presented in the unconsolidated December 31, 2022, the total unconsolidated 6,219 ($ 6,742 236 256 8,852 Swiss francs ($ 9,597 2,869 3,111 representing a reduction of equity for 2,869 ($ 3,111 47 51 20 of share capital, at December 31, 2022, Treasury stock transactions In July 2020, the Company announced 10 time represented a maximum of 180 share buyback program that started second trading line on the SIX Swiss program, the Company purchased a 129 3.5 2021 AGM, shareholders approved 115 buyback program and the cancellation in Treasury stock of $ 3,157 capital and Retained earnings. In March 2021, the Company announced 4.3 buyback program, which was launched Swiss Exchange and was completed in purchased a total of 90 3.1 approved the cancellation of 88 launched in July 2020 and resulting in a decrease in Treasury stock of $ 2,876 stock, Additional paid-in capital In March 2022, the Company announced 3 which was launched in April and is planned to run until the Company’s Under these buyback programs, 91 78 109 2,842 $ 2,651 2,835 In addition to the share buyback programs, total of 20 33 13 in connection with its employee share 660 $ 1,032 346 Obligations to issue shares relating At December 31, 2022, • 1 strike price of 21.23 • 12 strike price of 22.05 • 7 strike price of 17.63 • 2 • 8 LTIP, • 1 with employees. In addition to the above obligations, MIP, of shares represented by the MIP bank, the call options can only be exercised their WARs. In connection with the spin-off of the Turbocharging settled, for cash, the options outstanding simultaneously issued to the bank strike price of these new options was Company’s share price. At December 31, 3.3 strike prices ranging from 17.63 22.05 20.58 were held by the bank. The call options See Note 18 for a description of ‑ based payment arrangements. In 2022, 2021 and 2020, the Company 16 36 17 of treasury stock, for options exercised delivered 1.7 1.4 of shares delivered in 2022 under Issuance of subsidiary shares In November 2022, the Company received 203 216 a private placement of shares in its reducing the Company's beneficial 100 92 in an increase in Additional 120 |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share | |
Earnings per share | — Note 20 Earnings per share Basic earnings per share is calculated ‑ average number of shares outstanding during the year. Diluted earnings weighted ‑ average number of shares outstanding securities were exercised, if dilutive. and outstanding options and ‑ based payment arrangements. In 2022 and 2 79 inclusion would have been No ne were excluded in 2021. Basic earnings per share: ($ in millions, except per 2022 2021 2020 Amounts attributable to Income from continuing 2,517 4,625 294 Income (loss) from discontinued (42) (79) 4,852 Net income 2,475 4,546 5,146 Weighted-average number 1,899 2,001 2,111 Basic earnings per share Income from continuing 1.33 2.31 0.14 Income (loss) from discontinued (0.02) (0.04) 2.30 Net income 1.30 2.27 2.44 Diluted earnings per share: ($ in millions, except per 2022 2021 2020 Amounts attributable to Income from continuing 2,517 4,625 294 Income (loss) from discontinued (42) (79) 4,852 Net income 2,475 4,546 5,146 Weighted-average number 1,899 2,001 2,111 Effect of dilutive securities: Call options and shares 11 18 8 Adjusted weighted-average 1,910 2,019 2,119 Diluted earnings per share Income from continuing 1.32 2.29 0.14 Income (loss) from discontinued (0.02) (0.04) 2.29 Net income 1.30 2.25 2.43 |
Other comprehensive income
Other comprehensive income | 12 Months Ended |
Dec. 31, 2022 | |
Other comprehensive income | |
Other comprehensive income | — Note 21 Other comprehensive income The following table includes related income tax effects: 2022 2021 2020 Before Tax Net of Before Tax Net of Before Tax Net of ($ in millions) tax effect tax tax effect tax tax effect tax Foreign currency translation Foreign currency translation (685) — (685) (521) — (521) 500 (2) 498 Net loss on complete complete liquidations subsidiaries 5 — 5 — — — — — — Changes attributable 41 — 41 (9) — (9) 519 — 519 Net change during the (639) — (639) (530) — (530) 1,019 (2) 1,017 Available-for-sale securities: Net unrealized gains (losses) during the year (28) 5 (23) (13) 3 (10) 31 (7) 24 Reclassification adjustments (gains) losses included in 2 — 2 (6) 1 (5) (18) 4 (14) Changes attributable — — — — — — (3) — (3) Net change during the (26) 5 (21) (19) 4 (15) 10 (3) 7 Pension and other postretirement Prior service (costs) during the year (2) 2 — 2 (2) — 55 (12) 43 Net actuarial gains during the year 298 (72) 226 437 (26) 411 (243) 43 (200) Amortization of prior service included in net income (13) (3) (16) (14) — (14) (11) — (11) Amortization of net actuarial in net income 55 (11) 44 65 4 69 113 (25) 88 Net losses from settlements included in net income 11 (2) 9 7 — 7 650 (132) 518 Changes attributable (8) — (8) (8) 2 (6) 186 (35) 151 Net change during the 341 (86) 255 489 (22) 467 750 (161) 589 Derivative instruments Net gains (losses) arising (10) (2) (12) 7 1 8 2 — 2 Reclassification adjustments losses included in net income 12 — 12 (13) — (13) (2) 2 — Net change during the 2 (2) — (6) 1 (5) — 2 2 Total other comprehensive income (322) (83) (405) (66) (17) (83) 1,779 (164) 1,615 The following table shows changes component, net of tax: Unrealized Pension and Foreign gains (losses) other post- Accumulated currency on available- retirement other translation for-sale plan comprehensive ($ in millions) adjustments securities adjustments loss Balance at January 1, 2020 (3,450) 10 (2,145) (5) (5,590) Other comprehensive before reclassifications 498 24 (157) 2 367 Amounts reclassified from 519 (17) 746 — 1,248 Total other comprehensive (loss) 1,017 7 589 2 1,615 Less: Amounts attributable to noncontrolling interests 27 — — — 27 Balance at December 31, (2,460) 17 (1,556) (3) (4,002) Other comprehensive before reclassifications (521) (10) 411 8 (112) Amounts reclassified from (9) (5) 56 (13) 29 Total other comprehensive (loss) (530) (15) 467 (5) (83) Less: Amounts attributable to interests 4 — — — 4 Balance at December 31, (1) (2,993) 2 (1,089) (8) (4,088) Other comprehensive before reclassifications (685) (23) 226 (12) (494) Amounts reclassified from 46 2 29 12 89 Total other comprehensive (loss) (639) (21) 255 — (405) Spin-off of the Turbocharging Division (93) — (5) — (98) Less: Amounts attributable to interests and redeemable noncontrolling interests (34) — (1) — (35) Balance at December 31, (3,691) (19) (838) (8) (4,556) (1) The following table reflects amounts adjustments and Pension and other ($ in millions) Location of (gains) losses Details about OCI components reclassified from OCI 2022 2021 2020 Foreign currency translation Net loss on complete liquidations of foreign subsidiaries Other income (expense), 5 — — Changes attributable Other income (expense), — — 99 Other income (expense), 41 (9) — Income (loss) from discontinued operations, net of tax — — 420 Amounts reclassified 46 (9) 519 Pension and other postretirement Amortization of prior service Non-operational pension (1) (13) (14) (11) Amortization of net actuarial Non-operational pension (1) 55 65 113 Net losses from settlements Non-operational pension (1) 11 7 650 Changes attributable Other income (expense), (8) (8) — Income (loss) from discontinued operations, net of tax (2) — — 186 Total before tax 45 50 938 Tax Income tax expense (16) 4 (157) Changes in tax attributable Other income (expense), — 2 — Income (loss) from discontinued operations, net of tax (2) — — (35) Amounts reclassified 29 56 746 (1) 94 (2) The amounts reclassified out of ‑ for ‑ sale securities and Derivative instruments and hedges |
Restructuring and related expen
Restructuring and related expenses | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and related expenses | |
Restructuring and related expenses | — Note 22 Restructuring and related expenses OS program From December 2018 to December 2020, two-year objective of simplifying its business structure driven by its businesses. The structures within the previous matrix Committee roles. The operating businesses business support functions, while strategy, portfolio and performance management and capital As of December 31, 2020, the Company Liabilities associated with the shows the activity from the beginning Contract settlement, Employee loss order ($ in millions) severance costs Total Liability at January 1, 2018 — — — Expenses 65 — 65 Liability at December 65 — 65 Expenses 111 1 112 Cash payments (44) (1) (45) Change in estimates (30) — (30) Exchange rate differences (3) — (3) Liability at December 99 — 99 Expenses 119 17 136 Cash payments (91) (15) (106) Change in estimates (10) — (10) Exchange rate differences 4 — 4 Liability at December 121 2 123 Expenses, net of change 2 2 4 Cash payments (65) (3) (68) Exchange rate differences (6) — (6) Liability at December 52 1 53 Expenses, net of change (7) 1 (6) Cash payments (22) (1) (23) Exchange rate differences (3) — (3) Liability at December 20 1 21 The following table outlines per operating segment as well as Corporate - Cumulative costs Costs incurred in incurred up to ($ in millions) 2020 December 31, 2020 Electrification 35 85 Motion 18 25 Process Automation 37 61 Robotics & Discrete Automation 10 18 Corporate and Other 49 114 Total 149 303 The Company recorded the following Cumulative costs Costs incurred in incurred up to ($ in millions) 2020 December 31, 2020 Employee severance 109 255 Estimated contract settlement, 17 18 Inventory and long-lived asset 23 30 Total 149 303 Restructuring expenses recorded for Income Statements: ($ in millions) 2020 Total 38 Selling, general and administrative 37 Non-order related research 4 Other income (expense), 70 Total 149 Other restructuring-related activities In addition, during 2022, 2021 ‑ related activities and incurred the following charges, ($ in millions) 2022 2021 2020 Employee severance 81 101 164 Estimated contract settlement, 209 31 18 Inventory and long-lived asset 7 24 12 Total 297 156 194 Expenses associated with these activities Statements: ($ in millions) 2022 2021 2020 Total 24 71 95 Selling, general and administrative 40 21 50 Non-order related research 2 2 10 Other income (expense), 231 62 39 Total 297 156 194 In 2022, the Company completed a plan transferring the remaining contracts 195 expenses in connection with this business business, the business was reported and Other. At December 31, 2022 and 2021, 198 212 restructuring-related liabilities |
Operating segment and geographi
Operating segment and geographic data | 12 Months Ended |
Dec. 31, 2022 | |
Operating segment and geographic data | |
Operating segment and geographic data | — Note 23 Operating segment and geographic data The Chief Operating Decision Maker to and assesses the performance of Company is organized into the following Process Automation and Robotics included in Corporate and A description of the types of products • Electrification: manufactures and sells electrical provide safe, smart and sustainable of increasingly digital and renewable power solutions, switchboard and panelboards, sensing devices, control products, intelligent home and building ventilation, security and data communication through seven operating Divisions: E-mobility, Installation Products, Power Conversion and • Motion: designs, manufactures, and are driving the low-carbon future for products, digital technology and efficiency, improve safety and reliability, and achieve precise control of their processes. on over 130 years of cumulative experience domain expertise and technology in all industrial segments. In addition, global service presence. These products Divisions: Large Motors and Drives, Service and Traction, as well as, prior Power Transmission Division. • Process Automation: develops and sells a broad automation, electrification and digital services, advanced industrial analytics process, marine and hybrid industries. advanced process control software measurement and analytical instrumentation, addition, the Business Area offers a comprehensive advanced services such as remote management, emission monitoring services are delivered through Marine & Ports and Measurement Turbocharging Division (Accelleron). • Robotics & Discrete Automation: operating Divisions: Robotics autonomous mobile robotics, software, services. Machine Automation specializes controllers (PLC), industrial PCs Divisions offer engineering and solutions. Corporate and Other: includes headquarter costs, the Treasury Operations, operating activities. The primary measure of profitability which represents income from operations • • • divestment date (changes in obligations • pre-acquisition estimates), • held for sale), • • • • (a) unrealized gains and derivatives), (b) realized gains and transaction has not yet been realized, receivables/payables (and Certain other non-operational asset write downs/impairments (including well as other items which are determined ‑ by ‑ case basis. The CODM primarily reviews the made on inventory sales between with a total deduction for intersegment Intersegment sales and transfers current market prices. The following tables present disaggregated and 2020: 2022 ($ in millions) Electrification Motion Process Automation Robotics & Discrete Automation Corporate and Other Total Geographical markets 4,449 2,031 2,248 1,494 63 10,285 5,332 2,148 1,566 524 3 9,573 of which: United States 3,918 1,787 943 373 2 7,023 4,123 2,101 2,199 1,155 10 9,588 of which: China 1,984 1,147 666 897 2 4,696 13,904 6,280 6,013 3,173 76 29,446 Product type 12,179 5,380 1,337 1,863 7 20,766 830 — 1,974 832 69 3,705 895 900 2,702 478 — 4,975 13,904 6,280 6,013 3,173 76 29,446 13,904 6,280 6,013 3,173 76 29,446 201 465 31 8 (705) — Total revenues 14,105 6,745 6,044 3,181 (629) 29,446 2021 ($ in millions) Electrification Motion Process Automation Robotics & Discrete Automation Corporate and Other Total Geographical markets 4,517 2,015 2,416 1,578 3 10,529 4,465 2,346 1,431 439 5 8,686 of which: United States 3,304 1,952 833 308 — 6,397 3,975 2,111 2,367 1,270 7 9,730 of which: China 2,087 1,156 740 949 — 4,932 12,957 6,472 6,214 3,287 15 28,945 Product type 10,706 5,555 1,496 2,159 4 19,920 1,367 — 1,802 645 11 3,825 884 917 2,916 483 — 5,200 12,957 6,472 6,214 3,287 15 28,945 12,957 6,472 6,214 3,287 15 28,945 230 453 45 10 (738) — Total revenues 13,187 6,925 6,259 3,297 (723) 28,945 2020 ($ in millions) Electrification Motion Process Automation Robotics & Discrete Automation Corporate and Other Total Geographical markets Europe 4,008 1,934 2,322 1,429 15 9,708 The Americas 4,050 2,173 1,321 385 7 7,936 of which: United States 3,093 1,846 805 270 5 6,019 Asia, Middle East and Africa 3,506 1,807 2,038 1,024 7 8,382 of which: China 1,820 926 628 714 3 4,091 11,564 5,914 5,681 2,838 29 26,026 Product type Products 9,951 5,040 1,263 1,635 53 17,942 Systems 743 — 1,665 780 (24) 3,164 Services and software 870 874 2,753 423 — 4,920 11,564 5,914 5,681 2,838 29 26,026 Third-party revenues 11,564 5,914 5,681 2,838 29 26,026 Intersegment revenues (1) 360 495 111 69 (927) 108 Total revenues 11,924 6,409 5,792 2,907 (898) 26,134 (1) are not eliminated Revenues by geography reflect the location China are the only countries where 10 and 2020 more than 98 Switzerland. The following tables present Operational Income from continuing operations expenditure for 2022, 2021 and ($ in millions) 2022 2021 2020 Operational EBITA: Electrification 2,328 2,121 1,681 Motion 1,163 1,183 1,075 Process Automation 848 801 451 Robotics & Discrete Automation 340 355 237 Corporate and Other: — Non-core and divested 5 (39) (133) — Stranded corporate — — (40) — Corporate costs and (174) (299) (372) Total 4,510 4,122 2,899 Acquisition-related amortization (229) (250) (263) Restructuring, related and (1) (347) (160) (410) Changes in obligations 88 (9) (218) Changes in pre-acquisition (10) 6 (11) Gains and losses from (7) 2,193 (2) Fair value adjustment on — — (33) Acquisition- (195) (132) (74) Other income/expenses (57) (34) (20) Foreign exchange/commodity Unrealized gains and losses commodities, embedded 32 (54) 67 Realized gains and losses transaction has not yet been (48) (2) 26 Unrealized foreign exchange (15) 20 (33) Certain other non-operational Costs for divestment of Power — — (86) Regulatory, compliance and legal costs (317) — (7) Business transformation (2) (152) (92) (37) Favorable resolution of an 15 6 36 Gains and losses from 43 — — Certain other fair value (3) 45 119 (239) Other non-operational items (19) (15) (2) Income from operations 3,337 5,718 1,593 Interest and dividend income 72 51 51 Interest and other finance (130) (148) (240) Losses from extinguishment — — (162) Non-operational pension 115 166 (401) Income from continuing 3,394 5,787 841 (1) 67 OS program (2) 131 80 (3) 311 Depreciation and Total assets (1), (2) amortization Capital expenditures (1) at December 31, ($ in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Electrification 406 425 411 385 345 316 13,992 12,831 12,800 Motion 141 172 182 150 230 118 6,565 5,936 6,495 Process Automation 75 83 80 100 85 75 4,598 5,009 5,008 Robotics & Discrete Automation 141 144 131 86 96 65 4,901 4,860 4,794 Corporate and Other 51 69 111 41 64 120 9,092 11,624 11,991 Consolidated 814 893 915 762 820 694 39,148 40,260 41,088 (1) (2) 96 136 282 the Power Corporate 1,609 1,710 subsequently Other geographic information Geographic information for long-lived Long-lived assets at December 31, ($ in millions) 2022 2021 Europe 2,533 2,670 The Americas 1,256 1,260 Asia, Middle East and Africa 963 1,009 Total 4,752 4,939 Long ‑ lived assets represent “Property, plant and equipment, net” and and are shown by location of the 20 13 8 ‑ lived assets were located in respectively. At December 31, 2021, approximately 19 12 11 long ‑ lived assets were located in the United States, |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent events | |
Subsequent events | — Note 24 Subsequent events Divestments On January 19, 2023, the Company Polytech Inc. for $ 505 completed in the second half of 2023. Debt On January 16, 2023, the Company issued 500 3.25 % Instruments, due 2027, and (ii) EUR 750 3.375 % Instruments, due 2031, both paying annually in arrears at a fixed rate. fees, amounted to EUR 1,235 1,338 As of February 23, 2023, the Company under the $ 2 Income taxes In February 2023, on completion for which an amount was recorded resolution of this matter, the Company expects to release 200 first quarter of 2023. Stockholders’ equity In February 2023, the Company announced shareholders to distribute 0.84 In February 2023, the Company obtained placement of new shares of ABB E-Mobility, increasing 325 Swiss francs (approximately $ 351 to 81 |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Significant accounting policies | |
Basis of presentation | Basis of presentation The Consolidated Financial States or U.S.) generally accepted dollars ($ or USD) unless otherwise stated. provided. The par value of capital |
Scope of consolidation | Scope of consolidation The Consolidated Financial indirectly controlled by ABB Ltd. Additionally, the Company determined that it is the primary beneficiary. Intercompany Investments in joint ventures and affiliated significant influence over operating 20 50 the equity method of accounting. |
Translation of foreign currencies and foreign exchange transactions | Translation of foreign currencies and foreign The functional currency for most of translation from the applicable balance sheet accounts using exchange accounts using average exchange excluded from the determination until the subsidiary is sold, substantially Foreign currency exchange gains receivables or payables, are included loans that are equity ‑ like in nature with no reasonable “Accumulated other comprehensive classified in the line item consistent |
Discontinued operations | Discontinued operations The Company reports a disposal, discontinued operation Company’s operations and financial area, a major line of business or segment or an operating segment, The assets and liabilities held for sale and in discontinued Interest expense that is not directly discontinued business is allocated debt that is required to be paid as a result the Company plus consolidated (see Note 3). |
Operating cycle | Operating cycle A portion of the Company’s activities ‑ term system integration activities) that exceeds one year . For classification of current Company elected to use the duration accounts receivable, inventories one year |
Use of estimates | Use of estimates The preparation of financial statements assumptions and estimates that Statements and the accompanying • unrecognized tax benefits, • such as trade and other receivables, • programs, • and inquiries, environmental ‑ insurance reserves, regulatory and other proceedings, • ‑ related overhead costs, used in determining ‑ of ‑ completion on projects where revenue recognized over time, as well as be entitled to, • pension plan assets, • • ‑ lived assets and in testing goodwill • in business combinations, and • interests and certain obligations The actual results and outcomes |
Cash and equivalents | Cash and equivalents Cash and equivalents include acquisition. Currency and other local regulatory where the Company operates. readily transferred abroad from needs locally. These funds are included Cash and equivalents that are subject available are classified |
Marketable securities and short-term investments | Marketable securities and short ‑ term investments Management determines the appropriate ‑ to ‑ maturity and available ‑ for ‑ sale debt securities at the time of purchase. ‑ to ‑ maturity when the Company has the positive intent and ability to hold ‑ to ‑ maturity debt securities are carried amortized cost, adjusted for accretion the effective interest method. Such accretion Marketable debt securities not classified ‑ to ‑ maturity are classified as available ‑ for ‑ sale and reported at fair value. Unrealized gains and losses ‑ for ‑ sale debt securities are excluded earnings and are instead recognized stockholders’ equity, net of tax, until realized. Realized ‑ for ‑ sale debt securities are computed based upon the historical Marketable debt securities are short ‑ term investments” according Marketable equity securities are generally ‑ term investments”, however, ‑ term investment rather than as liquidity are classified as “Other ‑ current assets”. Marketable with fair value changes reported in generally reported in “Interest and other equity securities classified as long-term For debt securities classified as available-for-sale credit losses, the Company records an subsequent periods in “Interest and other credit risk are reported in “Accumulated In addition, equity securities without price change in an orderly transaction the investment is impaired and other fair value changes as described change is either recorded in “Other |
Accounts receivable and allowance for expected credit losses | Accounts receivable and allowance Accounts receivable are recorded ‑ wide policy on the management of credit risk. The policy creditworthiness of customers and assign ‑ party agencies’ ratings are considered, if available. For customers recent financial statements, payment to a risk category. Customers are assessed at least annually significant changes in the customer’s risk category, a credit limit per customer is set. The Company recognizes an allowance be collected at the balance sheet date. the asset’s contractual term taking into forward looking estimates. The Company’s which generally has a geographic entities. Receivables are then further characteristics to estimate expected related assets do not share similar Accounts receivable are written allowance for credit losses. Expected are considered in determining The Company, in its normal course of business, transfers recourse. The transfer is accounted receivables. Control is deemed presumptively beyond the reach of (ii) the third ‑ party transferees have the right Company has relinquished obligation to repurchase or redeem removed from the Consolidated activities in the Consolidated Statements including the related gains Transfers of receivables that do not meet secured borrowings and the related Statements of Cash Flows. |
Concentrations of credit risk | Concentrations of credit risk The Company sells a broad range commercial and utility customers as ‑ governmental agencies throughout the world. Concentrations Company’s customer base is comprised evaluations of customers’ financial instruments such as guarantees, letters required. The Company maintains an and allowance for expected credit expectations. It is the Company’s policy to invest credit ratings and in high quality, low risk, liquid investments. by routinely reviewing the creditworthiness incurred significant credit losses related The Company’s exposure to credit risk fail to meet its obligations. To reduce this risk, the Company and periodic review of credit limits close ‑ out netting agreements with most ‑ out netting agreements provide the termination, valuation and net counterparties on the occurrence of ‑ defined trigger events. Derivative presented on a gross basis in the |
Revenue recognition | Revenue recognition A customer contract exists if collectability commercial substance, contains has been approved. The Company offers arrangements with These arrangements may involve installation and training) different periods of time. Goods and services they form distinct performance obligations The Company allocates the sales price item sold in separate transactions The Company generally recognizes ‑ customized products including breakers, modular substation packages, measurement and analytical instrumentation, basis at a point in time. Revenues are goods, which is when it has taken title products specified in the purchase order rewards of ownership are governed International Commercial Terms (as promulgated by the International products to third party customers, such (DDP). Billing terms for these point in time Payment is generally due upon The Company generally recognizes automation and electrification systems percentage ‑ of ‑ completion method of accounting. performance obligation as the Company for the customer. Revenues are recognized as the integration process and as control is payment for work performed or by uses the cost ‑ to ‑ cost method to measure progress of contracts is measured costs based on the Company’s history of Estimated costs are reviewed pricing of the inputs. The cumulative change in estimate is determined. Contract indirect costs related to contract performance, The nature of the Company’s contracts variable consideration, including amounts are estimated based upon Company will be entitled. The estimated that a significant reversal of cumulative with the variable consideration periodically. Back charges to suppliers or subcontractors determined that recovery of such Billing terms for these over ‑ time contracts vary but are The differences between the timing of contract assets and contract liabilities. 90 days or less. Contractual retention contractual warranty period. Service revenues reflect revenues primarily subsequent to the sale and maintenance type contracts, repair personnel and accompanying stand-alone service or as part of a service transactions as services are spare parts. For long-term service contracts recognized on a straight-line of the services or, if the performance pattern is other costs incurred relative to total expected In limited circumstances the Company the standard coverage offered on specific length of the warranty period based ‑ alone selling price. Billing terms for service contracts vary Payment is generally due upon Revenues are reported net of customer are estimated based on sales relate to amounts paid or credited Taxes between the Company and its customers, excluded from revenues. The Company does not adjust the contract expects, at contract inception, Sales commissions are expensed immediately contract is less than a year. |
Contract loss provisions | Contract loss provisions Losses on contracts are recognized excess of contract costs over |
Shipping and handling costs | Shipping and handling costs Shipping and handling |
Inventories | Inventories Inventories are stated at the lower ‑ in, first ‑ out method, the weighted ‑ average cost method, or are stated at acquisition cost or actual manufacturing overheads. Adjustments required, for decreases in sales prices, |
Impairment of long-lived assets | Impairment of long ‑ lived assets Long ‑ lived assets that are held and used are evaluated groups when events or circumstances may not be recoverable. If the asset cash flows expected to be generated disposition of the asset group, value. The estimated fair value is determined |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment is stated at cost, less accumulated straight ‑ line • 30 40 • 15 • 3 15 • 3 8 • over the lease term, if shorter. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill is reviewed for impairment indicate that the carrying value Goodwill is evaluated for impairment one level below an operating units were determined to be one level When evaluating goodwill method for each reporting unit. qualitative factors, if it is more likely value. If, based on this qualitative unit’s fair value is less than its carrying further analysis is required. If the Company unit, then a quantitative impairment When performing a quantitative using an income approach represents the reporting carrying value. If the carrying value unit then the Company records an recognized does not exceed the total The cost of acquired intangible reflects the pattern of intangible reliably determined, the straight ‑ line method is used. The 3 5 software and from 5 20 ‑ , technology ‑ ‑ related intangibles. Intangible assets with a finite life are tested |
Derivative financial instruments and hedging activities | Derivative financial instruments The Company uses derivative exposures, arising from its global The Company recognizes all derivatives, at fair value in the Consolidated are reported at fair value with derivative with the nature of the underlying If the derivatives are designated as a of the derivatives will either be offset against risk being hedged through comprehensive loss” until the hedged Where derivative financial instruments and such forecasted transactions are any derivative gain or loss previously earnings consistent with the nature designated as hedging consistent with the nature of the underlying Certain commercial contracts may provisions that are considered to be derivatives. contract and depending on their at their fair value in the Consolidated consistent with the nature of the commercial Derivatives are classified in the Consolidated underlying item. Cash flows from different underlying items on a net basis the underlying items are primarily recorded within “Net cash provided |
Leases | Leases The Company leases primarily real The Company evaluates if a contract lease if it conveys the right to control for a period of time in exchange for throughout the period of use, it has use of the identified asset and the finance or operating, with the classification Consolidated Income Statements. over the lease term. Lease expense assets and lease interest expense. In many cases, the Company’s leases include extend up to 5 years . The exercise of lease renewal are included in the expected lease Certain leases also include agreements contain material residual Long-term leases (leases with terms 12 months ) are recorded in the Consolidated Sheets The present value of the lease payments available. borrowing rate is used for most lease term, currency of the lease, and Short-term leases (leases with an initial 12 months that the identified asset will not be leased 12 months ) are not recorded in the Consolidated Balance Sheets short-term leases relate to real Assets under operating lease are included are reported both as current and Company’s right to use an underlying make lease payments arising from Assets under finance lease are are included in “Long-term debt” Lease and non-lease components |
Income taxes | Income taxes The Company uses the asset and tax assets and liabilities are determined the tax bases of assets and liabilities. rates and laws that are expected records a deferred tax asset when sustained based upon the deduction’s against each other are reported on a net assets to the amount that is more likely Deferred taxes are provided on unredeemed deferred taxes are not provided earnings are permanently reinvested. these subsidiaries or upon the remittance The Company operates in numerous authorities. The Company provides tax asset has been impaired or a tax on the technical merits of the Company’s for Economic Co ‑ operation and Development facts and circumstances as of the end The Company applies a two ‑ step approach to recognize step is to evaluate the tax position that it is more likely than not that the appeals or litigation processes, which is more than 50 could be settled against existing loss Expenses expense” relating to certain items is recognized earnings. In general, the Company applies from “Accumulated other comprehensive |
Research and development | Research and development Research and development |
Earnings per share | Earnings per share Basic earnings per share is calculated ‑ average number of shares outstanding during the year. Diluted earnings weighted ‑ average number of shares outstanding securities were exercised, if dilutive. outstanding options and shares ‑ based payment arrangements. See further dilutive securities in Note 18. |
Share-based payment arrangements | Share ‑ based payment arrangements The Company has various share ‑ based payment arrangements fully in Note 18. Such arrangements equity ‑ settled, total compensation is measured date, and recorded in earnings are cash ‑ settled, compensation is initially reporting period, based on the fair value changes in the liability recorded |
Fair value measures | Fair value measures The Company uses fair value measurement recurring basis and, when necessary, to record certain ‑ financial assets at fair value on a non ‑ recurring basis, as well as to determine fair in the financial statements. Financial foreign currency, commodity and interest rate derivatives, ‑ settled call options and available ‑ for ‑ sale securities. Non ‑ financial assets recorded ‑ recurring basis include long ‑ lived assets that are reduced to their estimated Fair value is the price that would be transaction between market participants uses various valuation techniques or similar assets and liabilities), the income (using costs a market participant fair value of assets and liabilities ‑ level hierarchy, depending on the nature of those inputs. The Company has categorized ‑ financial assets measured at fair value within this hierarchy based unobservable. An observable unobservable input reflects the Company’s The levels of the fair value hierarchy Level 1: liabilities (observable quoted include exchange ‑ traded equity securities, listed derivatives such as commodity futures, interest securities. Level 2: quoted prices for similar assets, quoted prices such as interest rate other observable data by interpolation, adjustments applied to quoted prices observable and unobservable. Level 2 unless the unobservable the valuation model is significant, in classified as Level 3. Assets and liabilities investments in certain funds, certain rate swaps, cross-currency interest ‑ settled call options, forward foreign exchange agreements, time deposits, as well Level 3: (unobservable input). Investments in private equity, real estate and collective generally valued using the net asset certain criteria are met. The NAVs are determined the funds. These assets are not classified Whenever quoted prices involve ‑ ask spreads, the Company mid ‑ market quotes. However, for the purpose of determining ‑ settled call options serving as hedges of the Company’s management When determining fair values based of transaction activity for the financial orderly. In such cases, the resulting changes in valuation considered disorderly or if quoted technique, such as an income approach. Disclosures about the Company’s fair |
Contingencies | Contingencies The Company is subject to proceedings, related to environmental, labor, product, regulatory, tax (other than income required to assess the likelihood ranges of probable losses. A determination after analysis of each individual technical experts. The required due to new developments in the particular The Company records a provision and the amount can be reasonably undiscounted basis using an estimated range when a single able to recover a portion of the costs however, the Company records such amounts only The Company generally provides Warranty costs include calculated costs arising the Company’s products. The Company order ‑ specific conditions or guarantees sold in larger quantities. The Company may have legal ‑ up activities related to land and buildings as a result of the normal operations settlement, or both, are conditional Company, but the underlying obligation itself is unconditional provision for these obligations ‑ up activity has been incurred and a reasonable estimate of its fair incurred to settle these matters amounts are recoverable. Provisions when the timing of payments cannot be |
Pensions and other postretirement benefits | Pensions and other postretirement The Company has a number of defined termination indemnity plans. recognizes an asset for such a plan’s overfunded its Consolidated Balance Sheets. Additionally, the Company that determine its funded status as the year in which the changes occur. Those changes loss”. The Company uses actuarial The amounts calculated depend return on plan assets. Current The Company’s various pension plan in accordance with the valuation See Note 17 for further discussion |
Business combinations | Business combinations The Company accounts for assets acquired acquisition method and records fair value as an element of purchase Identifiable intangibles relationships, patented and unpatented ‑ process research and development, capitalized software; these are amortized subject to evaluation for potential be recoverable. See “Goodwill ‑ related costs are recognized separately from the acquisition equity method or cost basis investment adjusted to fair value with the related Deferred tax assets and liabilities base of assets and liabilities, deferred tax assets assumed in acquisition date based on facts and circumstances taxes, uncertain tax positions and valuation measurement period are recognized Estimated fair values of acquired assets (a period of up to 12 months after acquisition amounts) with any adjustments |
New accounting pronouncements | New accounting pronouncements Applicable for current period Business Combinations — Accounting customers In January 2022, the Company early on the accounting for revenue contracts assets and liabilities acquired acquisition in accordance Company has applied this accounting January 1, 2022. Disclosures about In January 2022, the Company adopted disclose certain types of government disclose (i) the type of the assistance accounting policy, and (iii) the effect such transactions have applied this accounting standard Company’s Consolidated Financial Applicable for future periods Facilitation of the effects of reference rate In March 2020, an accounting standard exceptions to the current guidance reporting burdens related to the expected and other interbank offered rates to alternative in subsequent updates issued later than December 31, 2024, with early during the second half of 2023 and Consolidated Financial Disclosure about supplier In September 2022, an accounting related to supplier finance programs. key terms of the program, (ii) the amount obligations are presented finance obligation program retrospectively for all in-scope transactions of the rollforward disclosures, which with early adoption permitted. Consolidated Financial payable, trade” in the Consolidated 477 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Operating results of discontinued operations | ($ in millions) 2022 2021 2020 Total revenues — — 4,008 Total — — (3,058) Gross profit — — 950 Expenses (38) (18) (808) Change to net gain recognized (10) (65) 5,141 Income (loss) from operations (48) (83) 5,282 Net interest income (expense) — 2 (5) Non-operational pension — — (94) Income (loss) from discontinued (48) (81) 5,182 Income tax 5 1 (322) Income (loss) from discontinued (43) (80) 4,860 |
Discontinued operations, held for sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of changes affecting operating segments | December 31, 2022 ($ in millions) 2022 (1) 2021 (1) Receivables, net 92 131 Other current assets 4 5 Current assets held 96 136 Accounts payable, trade 44 71 Other liabilities 88 310 Current liabilities held 132 381 Other non-current liabilities 20 43 Non-current liabilities held 20 43 (1) other obligations |
Acquisitions, divestments and_2
Acquisitions, divestments and equity-accounted companies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions, divestments and equity-accounted companies [Abstract] | |
Acquisitions | ($ in millions, except number 2022 2021 2020 Purchase price for acquisitions (1) 195 212 79 Aggregate excess of purchase (2) 229 161 92 Number of acquired businesses 5 2 3 (1) (2) |
Acquisition in noncontrolling interest | Weighted-average ($ in millions) Allocated amounts useful life Inventories 169 5 months Order backlog 727 2 years Property, plant and equipment (1) 1,016 Intangible assets (2) 1,731 9 years Other contractual rights 251 2 years Other assets 43 Deferred tax liabilities (942) Goodwill 6,026 Less: Amount attributed (451) Basis difference 8,570 (1) Property, 686 weighted-average 14 years . (2) Intangible |
Summary of investments in equity-accounted companies | Ownership as of Carrying value at December ($ in millions, except ownership December 31, 2021 2022 2021 Hitachi Energy Ltd 19.9% — 1,609 Others 130 61 Total 130 1,670 ($ in millions) 2022 2021 2020 Income (loss) from equity-accounted (22) 38 29 Basis difference amortization (80) (138) (95) Loss from equity-accounted (102) (100) (66) |
Cash and equivalents, marketa_2
Cash and equivalents, marketable securities and short-term investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and equivalents, marketable securities and short-term investments | |
Cash, cash equivalents, and short-term investments | Marketable securities Gross Gross and unrealized unrealized Cash and short-term December 31, 2022 ($ in millions) Cost basis gains losses Fair value equivalents investments Changes in fair value net income Cash 1,715 1,715 1,715 Time deposits 2,459 2,459 2,459 Equity securities 345 10 355 355 4,519 10 — 4,529 4,174 355 Changes in fair value other comprehensive Debt securities available-for-sale: —U.S. government obligations 269 1 (15) 255 255 —Other government obligations 58 58 58 —Corporate 64 (7) 57 57 391 1 (22) 370 — 370 Total 4,910 11 (22) 4,899 4,174 725 Of which: —Restricted cash, current 18 Marketable securities Gross Gross and unrealized unrealized Cash and short-term December 31, 2021 ($ in millions) Cost basis gains losses Fair value equivalents investments Changes in fair value net income Cash 2,752 2,752 2,752 Time deposits 2,037 2,037 1,737 300 Equity securities 569 18 587 587 5,358 18 — 5,376 4,489 887 Changes in fair value other comprehensive Debt securities available-for-sale: —U.S. government obligations 203 7 (1) 209 209 —Corporate 74 1 (1) 74 74 277 8 (2) 283 — 283 Total 5,635 26 (2) 5,659 4,489 1,170 Of which: —Restricted cash, current 30 —Restricted cash, non-current 300 |
Contractual maturities of debt securities classified as available-for-sale and held-to-maturity | Available-for-sale December 31, 2022 ($ in millions) Cost basis Fair value Less than one year 139 138 One to five years 157 148 Six to ten years 90 80 Due after ten years 4 4 Total 390 370 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative financial instruments | |
Notional amount of outstanding derivatives | Type of derivative Total notional ($ in millions) 2022 2021 2020 Foreign exchange contracts 13,509 11,276 12,610 Embedded foreign exchange 933 815 1,134 Cross-currency interest 855 906 — Interest rate contracts 2,830 3,541 3,227 Total notional Type of derivative Unit 2022 2021 2020 Copper metric tonnes 29,281 36,017 39,390 Silver swaps ounces 2,012,213 2,842,533 1,966,677 Aluminum swaps metric tonnes 6,825 7,125 8,112 |
Gain (loss) on fair value hedges | ($ in millions) 2022 2021 2020 Gains (losses) recognized Interest rate contracts Designated as fair value (91) (55) 11 Hedged item 93 56 (11) Cross-currency Designated as fair value (134) (37) — interest rate swaps Hedged item 135 34 — |
Gain (loss) on derivatives not designated in hedge relationships | ($ in millions) Gains (losses) recognized Type of derivative Location 2022 2021 2020 Foreign exchange contracts Total revenues (56) 3 94 Total 21 (53) — SG&A expenses (1) 27 11 (11) Non-order related research development — (2) (2) Interest and other finance expense (128) (173) 207 Embedded foreign exchange Total revenues (3) (7) (34) Total (11) (2) (1) Commodity contracts Total (47) 78 56 Other Interest and other finance expense 4 — 1 Total (193) (145) 310 (1) |
Fair value of derivatives | Derivative assets Derivative liabilities Current in Non-current Current in Non-current “Other in “Other “Other in “Other current non-current current non-current December 31, 2022 ($ in millions) assets” assets” liabilities” liabilities” Derivatives designated as Foreign exchange contracts — — 4 4 Interest rate contracts — — 5 57 Cross-currency interest — — — 288 Cash-settled call options 15 — — — Total 15 — 9 349 Derivatives not designated Foreign exchange contracts 140 21 80 5 Commodity contracts 13 — 12 — Interest rate contracts 5 — 3 — Embedded foreign exchange 11 6 17 13 Total 169 27 112 18 Total fair value 184 27 121 367 Derivative assets Derivative liabilities Current in Non-current Current in Non-current “Other in “Other “Other in “Other current non-current current non-current December 31, 2021 ($ in millions) assets” assets” liabilities” liabilities” Derivatives designated as Foreign exchange contracts — — 3 5 Interest rate contracts 9 20 — — Cross-currency interest — — — 109 Cash-settled call options 29 — — — Total 38 20 3 114 Derivatives not designated Foreign exchange contracts 108 14 107 7 Commodity contracts 19 — 5 — Interest rate contracts 1 — 2 — Embedded foreign exchange 10 7 16 10 Total 138 21 130 17 Total fair value 176 41 133 131 |
Offsetting arrangements | December 31, 2022 ($ in millions) Gross amount of Derivative liabilities Cash Non-cash Type of agreement recognized eligible for set-off in collateral collateral Net asset similar arrangement assets case of default received received exposure Derivatives 194 (96) — — 98 Total 194 (96) — — 98 December 31, 2022 ($ in millions) Gross amount of Derivative liabilities Cash Non-cash Type of agreement recognized eligible for set-off in collateral collateral Net liability similar arrangement liabilities case of default pledged pledged exposure Derivatives 458 (96) — — 362 Total 458 (96) — — 362 December 31, 2021 ($ in millions) Gross amount of Derivative liabilities Cash Non-cash Type of agreement recognized eligible for set-off in collateral Net asset similar arrangement assets case of default received received exposure Derivatives 200 (104) — — 96 Total 200 (104) — — 96 December 31, 2021 ($ in millions) Gross amount of Derivative liabilities Cash Non-cash Type of agreement recognized eligible for set-off in collateral Net liability similar arrangement liabilities case of default pledged pledged exposure Derivatives 238 (104) — — 134 Total 238 (104) — — 134 |
Fair values (Tables)
Fair values (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair values | |
Fair value of financial assets and liabilities measured at fair value on a recurring basis | Total December 31, 2022 ($ in millions) Level 1 Level 2 Level 3 fair value Assets Securities in “Marketable Equity securities 355 355 Debt securities—U.S. government 255 255 Debt securities—Other government 58 58 Debt securities—Corporate 57 57 Derivative assets—current 184 184 Derivative assets—non-current 27 27 Total 255 681 — 936 Liabilities Derivative liabilities—current 121 121 Derivative liabilities—non-current 367 367 Total — 488 — 488 Total December 31, 2021 ($ in millions) Level 1 Level 2 Level 3 fair value Assets Securities in “Marketable Equity securities 587 587 Debt securities—U.S. government 209 209 Debt securities—Corporate 74 74 Derivative assets—current 176 176 Derivative assets—non-current 41 41 Total 209 878 — 1,087 Liabilities Derivative liabilities—current 133 133 Derivative liabilities—non-current 131 131 Total — 264 — 264 |
Schedule of fair values of financial instruments carried on a cost basis | Carrying Total December 31, 2022 ($ in millions) value Level 1 Level 2 Level 3 fair value Assets Cash and equivalents (excluding with original maturities Cash 1,697 1,697 1,697 Time deposits 2,459 2,459 2,459 Restricted cash 18 18 18 Liabilities Short-term debt and current (excluding finance lease obligations) 2,500 1,068 1,432 2,500 Long-term debt (excluding 4,976 4,813 30 4,843 Carrying Total December 31, 2021 ($ in millions) value Level 1 Level 2 Level 3 fair value Assets Cash and equivalents (excluding with original maturities Cash 2,422 2,422 2,422 Time deposits 1,737 1,737 1,737 Restricted cash 30 30 30 Marketable securities and securities): Time deposits 300 300 300 Restricted cash, non-current 300 300 300 Liabilities Short-term debt and current (excluding finance lease obligations) 1,357 1,288 69 1,357 Long-term debt (excluding 4,043 4,234 58 4,292 |
Receivables, net and Contract_2
Receivables, net and Contract assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables, net and Contract assets and liabilities | |
Receivables, net | December 31, ($ in millions) 2022 2021 Trade receivables 6,478 6,206 Other receivables 688 684 Allowance (308) (339) Total 6,858 6,551 |
Reconciliation of changes in allowance for doubtful accounts | ($ in millions) 2022 2021 2020 Balance at January 1, 339 357 228 Transition adjustment — — 56 Current-period provision 37 33 115 Write-offs charged against (48) (37) (42) Exchange rate differences (20) (14) — Balance at December 31, 308 339 357 |
Information about contract assets and contract liabilities | December 31, ($ in millions) 2022 2021 2020 Contract assets 954 990 985 Contract liabilities 2,216 1,894 1,903 |
Significant changes in contract assets and contract liabilities | 2022 2021 Contract Contract Contract Contract ($ in millions) assets liabilities assets liabilities Revenue recognized, which balance at January 1, 2022/2021 (1,043) (1,086) Additions to Contract revenue during the period 1,481 1,136 Receivables recognized balance at January 1, 2022/2021 (591) (566) |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, net | |
Inventories, net | December 31, ($ in millions) 2022 2021 Raw materials 2,626 2,136 Work in process 1,189 995 Finished goods 2,036 1,594 Advances to suppliers 177 155 Total 6,028 4,880 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment, net | |
Property, plant and equipment, net | December 31, ($ in millions) 2022 2021 Land and buildings 3,622 3,925 Machinery and equipment 5,495 5,785 Construction in progress 586 522 9,703 10,232 Accumulated depreciation (5,792) (6,187) Total 3,911 4,045 |
Schedule of assets under finance lease included in property, plant and equipment, net | December 31, ($ in millions) 2022 2021 Land and buildings 178 164 Machinery and equipment 135 92 313 256 Accumulated depreciation (135) (123) Total 178 133 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and intangible assets | |
Changes in Goodwill | Robotics & Process Discrete ($ in millions) Electrification Motion Automation Automation Total Balance at January 1, 2021 4,527 2,456 1,639 2,228 10,850 Goodwill acquired during 11 — — 150 161 Goodwill allocated to disposals — (338) (7) — (345) Exchange rate differences (66) (1) (19) (98) (184) Balance at December 31, (1) 4,472 2,117 1,613 2,280 10,482 Goodwill acquired during 220 9 — — 229 Goodwill allocated to (2) (2) — (6) — (8) Exchange rate differences (92) (8) (20) (72) (192) Balance at December 31, (1) 4,598 2,118 1,587 2,208 10,511 (1) 10,774 10,760 impairment 263 278 (2) 6 operating segment. |
Intangible assets other than goodwill | 2022 2021 Gross Accumu- Net Gross Accumu- Net carrying lated amort- carrying carrying lated amort- carrying December 31, ($ in millions) amount ization amount amount ization amount Capitalized software 830 (720) 110 835 (732) 103 Capitalized software 26 (26) — 31 (29) 2 Intangibles other than software: Customer-related 1,743 (808) 935 1,716 (707) 1,009 Technology-related 997 (812) 185 1,122 (868) 254 Marketing-related 498 (347) 151 493 (327) 166 Other 55 (30) 25 56 (29) 27 Total 4,149 (2,743) 1,406 4,253 (2,692) 1,561 |
Schedule of additions to intangible assets other than goodwill | ($ in millions) 2022 2021 Capitalized software 53 32 Capitalized software — 2 Intangibles other than software: Customer-related 79 13 Technology-related 16 35 Marketing-related 20 11 Other 7 2 Total 175 95 |
Amortization expense of intangible assets other than goodwill | ($ in millions) 2022 2021 2020 Capitalized software 52 66 61 Intangibles other than software 230 252 268 Total 282 318 329 |
Future amortization expense of intangible assets other than goodwill | ($ in millions) 2023 296 2024 221 2025 174 2026 153 2027 145 Thereafter 417 Total 1,406 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt | |
Schedule of short-term debt | December 31, ($ in millions) 2022 2021 Short-term debt (weighted-average 1.9 % and 3.2 %, respectively) 1,448 78 Current maturities of long-term (weighted-average nominal 0.5 % and 2.8 %, respectively) 1,087 1,306 Total 2,535 1,384 |
Schedule of long-term debt | 2022 2021 December 31, Nominal Effective Nominal Effective ($ in millions, except % data) Balance rate rate Balance rate rate Floating rate 3,459 0.4 % 2.8 % 3,598 1.2 % 0.3 % Fixed rate 2,771 2.2 % 2.2 % 1,885 3.0 % 3.1 % 6,230 5,483 Current portion of long-term (1,087) 0.5 % 1.5 % (1,306) 2.8 % 1.0 % Total 5,143 4,177 |
Schedule of principal amounts of long-term debt repayable at maturity | ($ in millions) 2023 1,058 2024 2,387 2025 193 2026 — 2027 461 Thereafter 2,194 Total 6,293 |
Schedule of outstanding bonds | 2022 2021 December 31, (in millions) Nominal Carrying Nominal Carrying outstanding value (1) outstanding value (1) Bonds: 2.875 % USD Notes, due 2022 — USD 1,250 $ 1,258 0.625 % EUR Instruments, due EUR 700 $ 742 EUR 700 $ 800 0 % CHF Bonds, due 2023 CHF 275 $ 298 — 0.625 % EUR Instruments, due EUR 700 $ 720 — Floating Rate EUR EUR 500 $ 536 — 0.75 % EUR Instruments, due EUR 750 $ 769 EUR 750 $ 860 0.3 % CHF Bonds, due 2024 CHF 280 $ 303 CHF 280 $ 306 2.1 % CHF Bonds, due 2025 CHF 150 $ 162 — 0.75 % CHF Bonds, due 2027 CHF 425 $ 460 — 3.8 % USD Notes, due 2028 (2) USD 383 $ 381 USD 383 $ 381 1.0 % CHF Bonds, due 2029 CHF 170 $ 184 CHF 170 $ 186 0 % EUR Instruments, due EUR 800 $ 677 EUR 800 $ 862 2.375 % CHF Bonds, due 2030 CHF 150 $ 162 — 4.375 % USD Notes, due 2042 (2) USD 609 $ 590 USD 609 $ 589 Total $ 5,984 $ 5,242 (1) accounting, (2) 3.8 % USD Notes, the 4.375 % USD Notes, 750 |
Other provisions, other curre_2
Other provisions, other current liabilities and other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other provisions, other current liabilities and other non-current liabilities | |
Schedule of Other provisions | December 31, ($ in millions) 2022 2021 Contract-related provisions 615 762 Provision for insurance-related 171 174 Restructuring and restructuring-related 145 188 Provisions for contractual 49 63 Other 191 199 Total 1,171 1,386 |
Schedule of Other current liabilities | December 31, ($ in millions) 2022 2021 Employee-related liabilities 1,490 1,547 Accrued expenses 872 768 Non-trade payables 681 644 Accrued customer rebates 315 322 Income taxes payable 312 378 Other tax liabilities 285 298 Derivative liabilities (see Note 121 133 Deferred income 102 95 Pension and other employee 38 41 Accrued interest 38 28 Other 69 113 Total 4,323 4,367 |
Schedule of Other non-current liabilities | December 31, ($ in millions) 2022 2021 Income tax related liabilities 1,287 1,458 Derivative liabilities (see Note 367 130 Provisions for contractual 67 129 Contract liabilities (see Note 59 — Employee-related liabilities 45 59 Environmental provisions 42 39 Deferred income 33 74 Other 185 227 Total 2,085 2,116 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Components of lease expense | Machinery Land and buildings and equipment Total ($ in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Operating lease cost 217 240 287 71 73 89 288 313 376 Finance lease cost 15 17 13 22 20 16 37 37 29 Short-term lease cost 20 26 17 18 14 31 38 40 48 Sub-lease income (18) (24) (20) (1) (1) (1) (19) (25) (21) Total lease expense 234 259 297 110 106 135 344 365 432 |
Summary of additional lease expense | Machinery Land and buildings and equipment Total ($ in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Operating leases: Cash paid under operating 200 223 263 66 68 83 266 291 346 Right-of-use assets in exchange for new liabilities 285 267 266 50 86 57 335 353 323 |
Future net minimum lease payments for capital leases and the present value of the net minimum lease payments | Operating Leases Finance Leases Land and Machinery Land and Machinery ($ in millions) buildings and equipment buildings and equipment 2023 203 54 21 23 2024 168 34 21 20 2025 138 18 21 17 2026 104 6 17 6 2027 70 1 17 1 Thereafter 151 1 68 — Total minimum lease payments 834 114 165 67 Difference between undiscounted and discounted cash flows (74) (3) (27) (3) Present value of minimum 760 111 138 64 |
Lease terms and discount rates | Land and buildings Machinery and equipment 2022 2021 2020 2022 2021 2020 Operating leases: Weighted-average remaining 73 73 84 31 30 29 Weighted-average discount 3.3% 2.6% 3.0% 1.9% 1.9% 2.0% Finance leases: Weighted-average remaining 135 100 107 33 40 40 Weighted-average discount 5.5% 7.7% 7.7% 2.3% 1.8% 2.3% |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and contingencies | |
Best estimate of future payments for guarantee obligations | Maximum potential payments (1) December 31, ($ in millions) 2022 2021 Performance guarantees 4,300 4,540 Financial guarantees 96 52 Indemnification guarantees (2) — 136 Total 4,396 4,728 |
Provisions for warranties | ($ in millions) 2022 2021 2020 Balance at January 1, 1,005 1,035 816 Net change in warranties liabilities held for sale (1) (24) 1 8 Claims paid in cash or (157) (222) (209) Net increase in provision estimates, warranties issued 252 226 369 Exchange rate differences (48) (35) 51 Balance at December 31, 1,028 1,005 1,035 (1) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes | |
Schedule of income tax expense | ($ in millions) 2022 2021 2020 Current taxes 1,101 1,346 776 Deferred taxes (344) (289) (280) Income tax expense allocated 757 1,057 496 Income tax expense (5) (1) 322 |
Effective tax rate for the year | ($ in millions, except % data) 2022 2021 2020 Income from continuing 3,394 5,787 841 Weighted-average global 23.6% 23.7% 22.9% Income taxes at weighted-average 800 1,371 193 Items taxed at rates other 127 176 3 Unrecognized tax benefits (83) 151 (38) Changes in valuation (195) (95) 29 Effects of changes in tax laws (19) 1 23 Non-deductible / non-taxable 97 (542) 232 Other, net 30 (5) 54 Income tax expense 757 1,057 496 Effective tax rate for 22.3% 18.3% 59.0% |
Components of deferred income tax assets and liabilities from continued operations | December 31, ($ in millions) 2022 2021 Deferred tax assets: Unused tax losses and 462 551 Provisions and other accrued 756 757 Other current assets including 100 104 Pension 283 338 Inventories 304 266 Intangible assets 1,154 1,135 Other 66 57 Total gross deferred tax asset 3,125 3,208 Valuation allowance (1,000) (1,263) Total gross deferred tax asset, net 2,125 1,945 Deferred tax liabilities: Property, plant and equipment (232) (245) Intangible assets (237) (281) Other assets (91) (107) Pension (318) (302) Other liabilities (200) (175) Inventories (44) (35) Unremitted earnings of (336) (308) Total gross deferred tax liability (1,458) (1,453) Net deferred tax asset ) 667 492 Included in: “Deferred taxes”—non-current 1,396 1,177 “Deferred taxes”—non-current (729) (685) Net deferred tax asset 667 492 |
Unrecognized tax benefits | Penalties and interest related to Unrecognized unrecognized ($ in millions) tax benefits tax benefits Total Classification as unrecognized 1,106 233 1,339 Net change due to acquisitions 1 — 1 Increase relating to prior 298 96 394 Decrease relating to prior (161) (57) (218) Increase relating to current 390 5 395 Decrease due to settlements (340) (75) (415) Decrease as a result of (59) (16) (75) Exchange rate differences 63 6 69 Balance at December 31, the effective tax rate 1,298 192 1,490 Net change due to acquisitions 16 (6) 10 Increase relating to prior 240 58 298 Decrease relating to prior (42) (3) (45) Increase relating to current 98 7 105 Decrease due to settlements (175) (20) (195) Decrease as a result of (72) (22) (94) Exchange rate differences (41) (7) (48) Balance at December 31, the effective tax rate 1,322 199 1,521 Increase relating to prior 26 36 62 Decrease relating to prior (98) (12) (110) Increase relating to current 80 4 84 Decrease due to settlements (31) (14) (45) Decrease as a result of (71) (23) (94) Exchange rate differences (58) (10) (68) Balance at December 31, the effective tax rate 1,170 180 1,350 |
Open tax years subject to examination | Region Year Europe 2015 United States 2019 Rest of Americas 2018 China 2013 Rest of Asia, Middle East 2017 |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefits | |
Change in benefit obligations, plan assets and funded status recognized in balance sheet | Other Defined pension postretirement benefits benefits Switzerland International International ($ in millions) 2022 2021 2022 2021 2022 2021 Benefit obligation at January 3,434 3,870 5,115 5,527 71 98 Service cost 50 61 38 47 — 1 Interest cost 13 (5) 87 72 1 2 Contributions by plan participants 34 36 10 8 — — Benefit payments (96) (130) (234) (207) (7) (9) Settlements (92) (124) (36) (84) — — Benefit obligations of (328) — (2) (46) — (11) Actuarial (gain) loss (478) (140) (1,075) (15) (14) (8) Plan amendments and — — (3) 13 — (2) Exchange rate differences (80) (134) (328) (200) (1) — Benefit obligation at December 2,457 3,434 3,572 5,115 50 71 Fair value of plan assets 4,113 4,133 4,463 4,608 — — Actual return on plan (310) 279 (789) 197 — — Contributions by employer 37 63 58 124 7 9 Contributions by plan participants 34 36 10 8 — — Benefit payments (96) (130) (234) (207) (7) (9) Settlements (92) (124) (36) (84) — — Plan assets of businesses (414) — (1) (50) — — Plan amendments and — — — 14 — — Exchange rate differences (89) (144) (299) (147) — — Fair value of plan assets 3,183 4,113 3,172 4,463 — — Funded status — overfunded 726 679 (400) (652) (50) (71) |
Amount recognized in Accumulated other comprehensive loss | Defined pension Other postretirement benefits benefits December 31, ($ in millions) 2022 2021 2020 2022 2021 2020 Net actuarial (loss) gain (1,183) (1,540) (2,038) 32 21 21 Prior service credit 56 72 75 5 7 11 Amount recognized (1) (2) (1,127) (1,468) (1,963) 37 28 32 Taxes associated with amount recognized in OCI and NCI 266 352 374 — — — Amount recognized (3) (861) (1,116) (1,589) 37 28 32 (1) (2) (3) (1) 0 (1) |
Schedule of amounts recognized in balance sheet | Defined pension Other postretirement benefits benefits Switzerland International International December 31, ($ in millions) 2022 2021 2022 2021 2022 2021 Overfunded plans 726 683 189 208 — — Underfunded plans — current — — (22) (23) (6) (7) Underfunded plans — non-current — (4) (567) (837) (44) (64) Funded status - overfunded 726 679 (400) (652) (50) (71) December 31, ($ in millions) 2022 2021 Non-current assets Overfunded pension plans 915 891 Other employee-related benefits 1 1 Pension and other employee 916 892 December 31, ($ in millions) 2022 2021 Current liabilities Underfunded pension plans (22) (23) Underfunded other postretirement (6) (10) Other employee-related benefits (10) (8) Pension and other employee (38) (41) December 31, ($ in millions) 2022 2021 Non-current liabilities Underfunded pension plans (567) (841) Underfunded other postretirement (44) (62) Other employee-related benefits (108) (122) Pension and other employee (719) (1,025) |
Schedule of PBO in excess of fair value of plan assets or ABO in excess of fair value of plan assets | PBO exceeds fair value of plan ABO exceeds fair value of December 31, Switzerland International Switzerland International ($ in millions) 2022 2021 2022 2021 2022 2021 2022 2021 PBO 9 12 2,274 2,994 9 12 2,274 2,979 ABO 9 12 2,222 2,917 9 12 2,222 2,905 Fair value of plan assets 9 8 1,689 2,133 9 8 1,689 2,119 |
Component of net periodic benefit cost | Defined pension Other postretirement benefits benefits Switzerland International International ($ in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Operational pension cost: Service cost 50 61 74 38 47 92 — 1 1 Operational pension cost 50 61 74 38 47 92 — 1 1 Non-operational pension Interest cost 13 (5) 6 87 72 111 1 2 3 Expected return on plan (117) (116) (123) (153) (178) (253) — — — Amortization of prior service (9) (9) (11) (2) (2) 2 (2) (3) (2) Amortization of net actuarial — — 7 58 67 109 (3) (2) (3) Curtailments, settlements termination benefits 4 1 6 7 7 644 — — — Non-operational pension (109) (129) (115) (3) (34) 613 (4) (3) (2) Net periodic benefit (59) (68) (41) 35 13 705 (4) (2) (1) |
Weighted-average assumptions, Benefit obligation | Defined pension Other postretirement benefits benefits Switzerland International International December 31, (in %) 2022 2021 2022 2021 2022 2021 Discount rate 2.2 0.2 4.8 2.1 5.3 2.6 Rate of compensation — — 1.8 1.5 0.3 0.3 Rate of pension increase — — 1.8 1.7 — — Cash balance interest credit 2.0 1.0 2.7 2.1 — — |
Weighted-average assumptions, Net periodic benefit cost | Defined pension Other postretirement benefits benefits Switzerland International International (in %) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate 0.7 — 0.3 2.1 1.6 1.9 2.0 2.1 2.8 Expected long-term rate of assets 3.3 3.0 3.0 3.7 4.0 4.3 — — — Rate of compensation increase — — — 1.5 1.0 2.2 0.1 0.2 0.2 Cash balance interest credit 1.3 1.0 1.0 2.1 2.1 1.6 — — — |
Health care cost trend assumptions | December 31, 2022 2021 Health care cost trend 5.6% 5.1% Rate to which the trend 4.5% 4.5% Year that the rate reaches the ultimate 2029 2026 |
Target asset allocation on weighted-average basis | Target (in %) Switzerland International Asset class Equity 15 16 Fixed income 54 72 Real estate 26 4 Other 5 8 Total 100 100 |
Fair value of pension plan assets by asset category | Not subject Total December 31, 2022 ($ in millions) Level 1 Level 2 to leveling (1) fair value Asset class Equity Equity securities 77 77 Mutual funds/commingled 748 748 Emerging market mutual 96 96 Fixed income Government and corporate 121 1,036 1,157 Government and corporate—mutual 2,189 2,189 Emerging market bonds—mutual 315 315 Real estate 1,172 1,172 Insurance contracts 57 57 Cash and short-term 124 129 253 Private equity 54 237 291 Total 322 4,624 1,409 6,355 Not subject Total December 31, 2021 ($ in millions) Level 1 Level 2 to leveling (1) fair value Asset class Equity Equity securities 124 1 125 Mutual funds/commingled 1,049 1,049 Emerging market mutual 218 218 Fixed income Government and corporate 314 1,366 1,680 Government and corporate—mutual 3,121 3,121 Emerging market bonds—mutual 428 428 Real estate 1,326 1,326 Insurance contracts 74 74 Cash and short-term 75 158 233 Private equity 65 257 322 Total 513 6,480 1,583 8,576 Amounts relate . |
Schedule of employer contributions to pension and other postretirement benefit plans | Defined pension Other postretirement benefits benefits Switzerland International International ($ in millions) 2022 2021 2022 2021 2022 2021 Total and other postretirement 37 63 58 124 7 9 Of which, discretionary defined benefit pension — — 18 61 — — |
Expected future cash flows of pension and postretirement benefit plans | Defined pension Other postretirement benefits benefits ($ in millions) Switzerland International International 2023 212 245 6 2024 211 251 6 2025 195 248 6 2026 195 251 5 2027 186 258 5 Years 2028 - 2032 870 1,254 18 |
Share-based payment arrangeme_2
Share-based payment arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of options by exercise price | (1) Information (2) Information Weighted- average Number of Number of remaining options shares contractual Exercise price (in Swiss francs) (1) (in millions) (in millions) (2) term (in years) 21.23 6.6 1.3 0.6 22.05 61.5 12.3 1.7 17.63 33.8 6.8 2.7 Total number of options and shares 101.9 20.4 1.9 |
Assumptions used for ESAP fair value calculation | 2022 2021 2020 Expected volatility 25% 20% 24% Dividend yield 3.0% 2.9% 3.8% Expected term 1 year 1 year 1 year Risk-free interest rate 1.1% -0.6% -0.7% |
ESAP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of activity related to options | Weighted- Weighted- Aggregate average average intrinsic exercise remaining value Number of price contractual (in millions shares (in Swiss term of Swiss (in millions) (1) francs) (2) (in years) francs) (2)(3) Outstanding at January 1.8 30.32 Granted 1.8 27.99 Forfeited (0.2) 30.28 Exercised (4) (0.1) 29.16 Not exercised (savings (1.5) 29.16 Outstanding at December 1.8 27.99 0.8 0.1 Vested and expected to vest at 1.8 27.99 0.8 0.1 Exercisable at December — — — — |
LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of activity under Performance Shares | Weighted-average Number of grant-date Performance Shares fair value per share (in millions) (Swiss francs) Nonvested at January 1.5 23.23 Granted 0.7 33.33 Turbocharging Division spin-off 0.1 Vested (0.3) 23.12 Forfeited (0.1) 26.96 Nonvested at December 1.9 27.01 |
Summary of activity under Restricted Shares | Weighted-average Number of grant-date Restricted Shares fair value per share (in millions) (Swiss francs) Nonvested at January 2.0 20.61 Granted 0.8 30.52 Turbocharging Division spin-off 0.1 Vested (0.1) 19.60 Forfeited (0.2) 23.72 Nonvested at December 2.6 23.65 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share | |
Basic earnings per share | Basic earnings per share: ($ in millions, except per 2022 2021 2020 Amounts attributable to Income from continuing 2,517 4,625 294 Income (loss) from discontinued (42) (79) 4,852 Net income 2,475 4,546 5,146 Weighted-average number 1,899 2,001 2,111 Basic earnings per share Income from continuing 1.33 2.31 0.14 Income (loss) from discontinued (0.02) (0.04) 2.30 Net income 1.30 2.27 2.44 |
Diluted earnings per share | Diluted earnings per share: ($ in millions, except per 2022 2021 2020 Amounts attributable to Income from continuing 2,517 4,625 294 Income (loss) from discontinued (42) (79) 4,852 Net income 2,475 4,546 5,146 Weighted-average number 1,899 2,001 2,111 Effect of dilutive securities: Call options and shares 11 18 8 Adjusted weighted-average 1,910 2,019 2,119 Diluted earnings per share Income from continuing 1.32 2.29 0.14 Income (loss) from discontinued (0.02) (0.04) 2.29 Net income 1.30 2.25 2.43 |
Other comprehensive income (Tab
Other comprehensive income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other comprehensive income | |
Schedule of tax effects allocated to each component of total other comprehensive income (loss) | 2022 2021 2020 Before Tax Net of Before Tax Net of Before Tax Net of ($ in millions) tax effect tax tax effect tax tax effect tax Foreign currency translation Foreign currency translation (685) — (685) (521) — (521) 500 (2) 498 Net loss on complete complete liquidations subsidiaries 5 — 5 — — — — — — Changes attributable 41 — 41 (9) — (9) 519 — 519 Net change during the (639) — (639) (530) — (530) 1,019 (2) 1,017 Available-for-sale securities: Net unrealized gains (losses) during the year (28) 5 (23) (13) 3 (10) 31 (7) 24 Reclassification adjustments (gains) losses included in 2 — 2 (6) 1 (5) (18) 4 (14) Changes attributable — — — — — — (3) — (3) Net change during the (26) 5 (21) (19) 4 (15) 10 (3) 7 Pension and other postretirement Prior service (costs) during the year (2) 2 — 2 (2) — 55 (12) 43 Net actuarial gains during the year 298 (72) 226 437 (26) 411 (243) 43 (200) Amortization of prior service included in net income (13) (3) (16) (14) — (14) (11) — (11) Amortization of net actuarial in net income 55 (11) 44 65 4 69 113 (25) 88 Net losses from settlements included in net income 11 (2) 9 7 — 7 650 (132) 518 Changes attributable (8) — (8) (8) 2 (6) 186 (35) 151 Net change during the 341 (86) 255 489 (22) 467 750 (161) 589 Derivative instruments Net gains (losses) arising (10) (2) (12) 7 1 8 2 — 2 Reclassification adjustments losses included in net income 12 — 12 (13) — (13) (2) 2 — Net change during the 2 (2) — (6) 1 (5) — 2 2 Total other comprehensive income (322) (83) (405) (66) (17) (83) 1,779 (164) 1,615 |
Schedule of changes in component of accumulated other comprehensive loss (OCI), net of tax | Unrealized Pension and Foreign gains (losses) other post- Accumulated currency on available- retirement other translation for-sale plan comprehensive ($ in millions) adjustments securities adjustments loss Balance at January 1, 2020 (3,450) 10 (2,145) (5) (5,590) Other comprehensive before reclassifications 498 24 (157) 2 367 Amounts reclassified from 519 (17) 746 — 1,248 Total other comprehensive (loss) 1,017 7 589 2 1,615 Less: Amounts attributable to noncontrolling interests 27 — — — 27 Balance at December 31, (2,460) 17 (1,556) (3) (4,002) Other comprehensive before reclassifications (521) (10) 411 8 (112) Amounts reclassified from (9) (5) 56 (13) 29 Total other comprehensive (loss) (530) (15) 467 (5) (83) Less: Amounts attributable to interests 4 — — — 4 Balance at December 31, (1) (2,993) 2 (1,089) (8) (4,088) Other comprehensive before reclassifications (685) (23) 226 (12) (494) Amounts reclassified from 46 2 29 12 89 Total other comprehensive (loss) (639) (21) 255 — (405) Spin-off of the Turbocharging Division (93) — (5) — (98) Less: Amounts attributable to interests and redeemable noncontrolling interests (34) — (1) — (35) Balance at December 31, (3,691) (19) (838) (8) (4,556) (1) |
Schedule of amounts reclassified out of OCI in respect of Pension and other postretirement plan adjustments | ($ in millions) Location of (gains) losses Details about OCI components reclassified from OCI 2022 2021 2020 Foreign currency translation Net loss on complete liquidations of foreign subsidiaries Other income (expense), 5 — — Changes attributable Other income (expense), — — 99 Other income (expense), 41 (9) — Income (loss) from discontinued operations, net of tax — — 420 Amounts reclassified 46 (9) 519 Pension and other postretirement Amortization of prior service Non-operational pension (1) (13) (14) (11) Amortization of net actuarial Non-operational pension (1) 55 65 113 Net losses from settlements Non-operational pension (1) 11 7 650 Changes attributable Other income (expense), (8) (8) — Income (loss) from discontinued operations, net of tax (2) — — 186 Total before tax 45 50 938 Tax Income tax expense (16) 4 (157) Changes in tax attributable Other income (expense), — 2 — Income (loss) from discontinued operations, net of tax (2) — — (35) Amounts reclassified 29 56 746 (1) 94 (2) |
Restructuring and related exp_2
Restructuring and related expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OS Program | |
Restructuring cumulative costs incurred to date per operating segment | - Cumulative costs Costs incurred in incurred up to ($ in millions) 2020 December 31, 2020 Electrification 35 85 Motion 18 25 Process Automation 37 61 Robotics & Discrete Automation 10 18 Corporate and Other 49 114 Total 149 303 |
Schedule of restructuring expenses, net of changes in estimates | Cumulative costs Costs incurred in incurred up to ($ in millions) 2020 December 31, 2020 Employee severance 109 255 Estimated contract settlement, 17 18 Inventory and long-lived asset 23 30 Total 149 303 |
Schedule of allocation of restructuring and related expenses, net of changes in estimates | ($ in millions) 2020 Total 38 Selling, general and administrative 37 Non-order related research 4 Other income (expense), 70 Total 149 |
Schedule of liabilities associated with restructuring program | Contract settlement, Employee loss order ($ in millions) severance costs Total Liability at January 1, 2018 — — — Expenses 65 — 65 Liability at December 65 — 65 Expenses 111 1 112 Cash payments (44) (1) (45) Change in estimates (30) — (30) Exchange rate differences (3) — (3) Liability at December 99 — 99 Expenses 119 17 136 Cash payments (91) (15) (106) Change in estimates (10) — (10) Exchange rate differences 4 — 4 Liability at December 121 2 123 Expenses, net of change 2 2 4 Cash payments (65) (3) (68) Exchange rate differences (6) — (6) Liability at December 52 1 53 Expenses, net of change (7) 1 (6) Cash payments (22) (1) (23) Exchange rate differences (3) — (3) Liability at December 20 1 21 |
Other restructuring-related activities | |
Schedule of restructuring expenses, net of changes in estimates | ($ in millions) 2022 2021 2020 Employee severance 81 101 164 Estimated contract settlement, 209 31 18 Inventory and long-lived asset 7 24 12 Total 297 156 194 |
Schedule of allocation of restructuring and related expenses, net of changes in estimates | ($ in millions) 2022 2021 2020 Total 24 71 95 Selling, general and administrative 40 21 50 Non-order related research 2 2 10 Other income (expense), 231 62 39 Total 297 156 194 |
Operating segment and geograp_2
Operating segment and geographic data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operating segment and geographic data | |
Schedule of segment revenues | 2022 ($ in millions) Electrification Motion Process Automation Robotics & Discrete Automation Corporate and Other Total Geographical markets 4,449 2,031 2,248 1,494 63 10,285 5,332 2,148 1,566 524 3 9,573 of which: United States 3,918 1,787 943 373 2 7,023 4,123 2,101 2,199 1,155 10 9,588 of which: China 1,984 1,147 666 897 2 4,696 13,904 6,280 6,013 3,173 76 29,446 Product type 12,179 5,380 1,337 1,863 7 20,766 830 — 1,974 832 69 3,705 895 900 2,702 478 — 4,975 13,904 6,280 6,013 3,173 76 29,446 13,904 6,280 6,013 3,173 76 29,446 201 465 31 8 (705) — Total revenues 14,105 6,745 6,044 3,181 (629) 29,446 2021 ($ in millions) Electrification Motion Process Automation Robotics & Discrete Automation Corporate and Other Total Geographical markets 4,517 2,015 2,416 1,578 3 10,529 4,465 2,346 1,431 439 5 8,686 of which: United States 3,304 1,952 833 308 — 6,397 3,975 2,111 2,367 1,270 7 9,730 of which: China 2,087 1,156 740 949 — 4,932 12,957 6,472 6,214 3,287 15 28,945 Product type 10,706 5,555 1,496 2,159 4 19,920 1,367 — 1,802 645 11 3,825 884 917 2,916 483 — 5,200 12,957 6,472 6,214 3,287 15 28,945 12,957 6,472 6,214 3,287 15 28,945 230 453 45 10 (738) — Total revenues 13,187 6,925 6,259 3,297 (723) 28,945 2020 ($ in millions) Electrification Motion Process Automation Robotics & Discrete Automation Corporate and Other Total Geographical markets Europe 4,008 1,934 2,322 1,429 15 9,708 The Americas 4,050 2,173 1,321 385 7 7,936 of which: United States 3,093 1,846 805 270 5 6,019 Asia, Middle East and Africa 3,506 1,807 2,038 1,024 7 8,382 of which: China 1,820 926 628 714 3 4,091 11,564 5,914 5,681 2,838 29 26,026 Product type Products 9,951 5,040 1,263 1,635 53 17,942 Systems 743 — 1,665 780 (24) 3,164 Services and software 870 874 2,753 423 — 4,920 11,564 5,914 5,681 2,838 29 26,026 Third-party revenues 11,564 5,914 5,681 2,838 29 26,026 Intersegment revenues (1) 360 495 111 69 (927) 108 Total revenues 11,924 6,409 5,792 2,907 (898) 26,134 (1) are not eliminated |
Schedule of operational EBITA reconciliations | ($ in millions) 2022 2021 2020 Operational EBITA: Electrification 2,328 2,121 1,681 Motion 1,163 1,183 1,075 Process Automation 848 801 451 Robotics & Discrete Automation 340 355 237 Corporate and Other: — Non-core and divested 5 (39) (133) — Stranded corporate — — (40) — Corporate costs and (174) (299) (372) Total 4,510 4,122 2,899 Acquisition-related amortization (229) (250) (263) Restructuring, related and (1) (347) (160) (410) Changes in obligations 88 (9) (218) Changes in pre-acquisition (10) 6 (11) Gains and losses from (7) 2,193 (2) Fair value adjustment on — — (33) Acquisition- (195) (132) (74) Other income/expenses (57) (34) (20) Foreign exchange/commodity Unrealized gains and losses commodities, embedded 32 (54) 67 Realized gains and losses transaction has not yet been (48) (2) 26 Unrealized foreign exchange (15) 20 (33) Certain other non-operational Costs for divestment of Power — — (86) Regulatory, compliance and legal costs (317) — (7) Business transformation (2) (152) (92) (37) Favorable resolution of an 15 6 36 Gains and losses from 43 — — Certain other fair value (3) 45 119 (239) Other non-operational items (19) (15) (2) Income from operations 3,337 5,718 1,593 Interest and dividend income 72 51 51 Interest and other finance (130) (148) (240) Losses from extinguishment — — (162) Non-operational pension 115 166 (401) Income from continuing 3,394 5,787 841 (1) 67 OS program (2) 131 80 (3) 311 |
Schedule of Depreciation and amortization, Capital expenditure, and Total assets by segment | Depreciation and Total assets (1), (2) amortization Capital expenditures (1) at December 31, ($ in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Electrification 406 425 411 385 345 316 13,992 12,831 12,800 Motion 141 172 182 150 230 118 6,565 5,936 6,495 Process Automation 75 83 80 100 85 75 4,598 5,009 5,008 Robotics & Discrete Automation 141 144 131 86 96 65 4,901 4,860 4,794 Corporate and Other 51 69 111 41 64 120 9,092 11,624 11,991 Consolidated 814 893 915 762 820 694 39,148 40,260 41,088 (1) (2) 96 136 282 the Power Corporate 1,609 1,710 subsequently |
Schedule of geographic information for long-lived assets | Long-lived assets at December 31, ($ in millions) 2022 2021 Europe 2,533 2,670 The Americas 1,256 1,260 Asia, Middle East and Africa 963 1,009 Total 4,752 4,939 |
Significant accounting polici_3
Significant accounting policies - General (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Voting rights in joint ventures and affiliated companies | |
Outstanding supplier finance obligation included in accounts payable, trade | $ 477 |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Operating cycle of a portion of the Company's activities | 1 year |
Voting rights in joint ventures and affiliated companies | |
Percentage of voting rights in joint ventures and affiliated companies required for using the equity method of accounting | 20% |
Percent of tax benefit likely to be realized upon ultimate settlement | 50% |
Long-term leases terms | 12 months |
Short-term leases terms | 12 months |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Operating cycle of a portion of the Company's activities | 1 year |
Voting rights in joint ventures and affiliated companies | |
Percentage of voting rights in joint ventures and affiliated companies required for using the equity method of accounting | 50% |
Lease renewal term | 5 years |
Short-term leases terms | 12 months |
Factories and office buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment, average | 30 years |
Factories and office buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment, average | 40 years |
Other facilities [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment, average | 15 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment, average | 3 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment, average | 15 years |
Furniture and office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment, average | 3 years |
Furniture and office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment, average | 8 years |
Significant accounting polici_4
Significant accounting policies - Intangibles (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Acquired Software Intangibles [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 3 years |
Acquired Software Intangibles [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 5 years |
Customer Technology And Marketing Intangibles [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 5 years |
Customer Technology And Marketing Intangibles [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 20 years |
Discontinued operations (Detail
Discontinued operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jul. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Floor price equivalent percent discount | 10% | |||
Revenues | $ 29,446 | $ 28,945 | $ 26,134 | |
Operating results of the discontinued businesses | ||||
Income tax | 5 | 1 | (322) | |
Income (loss) from discontinued operations, net of tax | (43) | (80) | 4,860 | |
Income from discontinued operations, net of tax, attributable to parent | (42) | (79) | 4,852 | |
Current assets held for sale and in discontinued operations | ||||
Current assets held for sale and in discontinued operations | 96 | 136 | ||
Current liabilities held for sale and in discontinued operations | ||||
Current liabilities held for sale and in discontinued operations | 132 | 381 | ||
Non-current liabilities held for sale and in discontinued operations | ||||
Non-current liabilities held for sale and in discontinued operations | 20 | $ 43 | ||
Power Grids business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership interest percent | 19.90% | 19.90% | ||
Power Grids business [Member] | ||||
Current assets held for sale and in discontinued operations | ||||
Receivables, net | 92 | $ 131 | ||
Other current assets | 4 | 5 | ||
Current assets held for sale and in discontinued operations | 96 | 136 | ||
Current liabilities held for sale and in discontinued operations | ||||
Accounts payable, trade | 44 | 71 | ||
Other liabilities | 88 | 310 | ||
Current liabilities held for sale and in discontinued operations | 132 | 381 | ||
Non-current liabilities held for sale and in discontinued operations | ||||
Other non-current liabilities | 20 | 43 | ||
Non-current liabilities held for sale and in discontinued operations | 20 | 43 | ||
Held for sale and discontinued operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 108 | |||
Held for sale and discontinued operations [Member] | Power Grids business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Divestment percentage | 80.10% | |||
Divestment value | $ 9,241 | |||
Combined fair value of the retained investment and the related put option | 1,779 | |||
Liability in discontinued operations for estimated payments for various contractual items | $ 487 | $ 53 | ||
Cumulative translation loss relating to sale of business | 420 | |||
DiscontinuedOperationTaxEffectOfIncomeLossFromDisposalOfDiscontinuedOperation | 262 | |||
Fair value of the right granted for use of brand | $ 258 | |||
Transition services agreements, term | 3 years | |||
Right granted for use of brand, term | 8 years | |||
Income from transition services agreements | $ 162 | 173 | $ 91 | |
Net interest and other finance expense recorded on allocated basis | 20 | |||
Operating results of the discontinued businesses | ||||
Total revenues | 0 | 0 | 4,008 | |
Total cost of sales | 0 | 0 | (3,058) | |
Gross profit | 0 | 0 | 950 | |
Expenses | (38) | (18) | (808) | |
Change to net gain recognized on sale of business | (10) | (65) | 5,141 | |
Income (loss) from operations | (48) | (83) | 5,282 | |
Net interest income (expense) and other finance expense | 0 | 2 | (5) | |
Non-operational pension (cost) credit | 0 | 0 | (94) | |
Income (loss) from discontinued operations before taxes | (48) | (81) | 5,182 | |
Income tax | 5 | 1 | (322) | |
Income (loss) from discontinued operations, net of tax | (43) | (80) | 4,860 | |
Income from discontinued operations, net of tax, attributable to parent | (47) | (80) | 5,170 | |
Amount paid to reduce liability | 102 | 364 | 33 | |
Non-current liabilities held for sale and in discontinued operations | ||||
Gain on disposal adjustments | $ 10 | $ 65 | ||
Held for sale and discontinued operations [Member] | Power Grids business [Member] | Corporate and Other [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Allocated overhead and other management costs reclassified to another segment | $ 40 |
Acquisitions, divestments and_3
Acquisitions, divestments and equity-accounted companies - Acquisition of controlling interests (Details) $ in Millions | 12 Months Ended | ||||
Jan. 26, 2022 USD ($) | Aug. 02, 2021 USD ($) | Dec. 31, 2022 USD ($) Item | Dec. 31, 2021 USD ($) Item | Dec. 31, 2020 USD ($) Item | |
Business Acquisition [Line Items] | |||||
Purchase price for acquisitions (net of cash acquired) | $ 195 | $ 212 | $ 79 | ||
Aggregate excess of purchase price over fair value of net assets acquired | $ 229 | $ 161 | $ 92 | ||
Number of acquired businesses | Item | 5 | 2 | 3 | ||
Goodwill adjustment | $ (15) | $ (6) | $ (36) | ||
In-Charge | |||||
Allocation of the purchase consideration for business acquisitions | |||||
Ownership interest percent | 13.20% | ||||
ASTI | |||||
Business Acquisition [Line Items] | |||||
Acquisition price (net of cash acquired) | $ 186 | ||||
In-Charge | |||||
Business Acquisition [Line Items] | |||||
Percent of company owned | 60% | ||||
Acquisition price (net of cash acquired) | $ 134 | ||||
Cash acquired from acquisition | $ 4 | ||||
Revalued fair value gain recorded in other income (expense), net | $ 32 | ||||
Remaining percent in agreement allowing to put or call percent of shares | 40% |
Acquisitions, divestments and_4
Acquisitions, divestments and equity-accounted companies - Divestments and spin-offs (Details) € in Millions, SFr in Millions | 12 Months Ended | |||||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Oct. 03, 2022 CHF (SFr) | Oct. 03, 2022 USD ($) | Dec. 31, 2020 EUR (€) | Dec. 31, 2020 USD ($) | Feb. 29, 2020 USD ($) | Jul. 31, 2019 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Current assets held for sale and in discontinued operations | $ 96,000,000 | $ 136,000,000 | ||||||||
Current liabilities held for sale and in discontinued operations | 132,000,000 | 381,000,000 | ||||||||
Income from continuing operations before income taxes | 3,394,000,000 | 5,787,000,000 | $ 841,000,000 | |||||||
Accumulated other comprehensive loss | (4,556,000,000) | (4,088,000,000) | $ (5,590,000,000) | $ (4,002,000,000) | ||||||
Cash and equivalents | 4,156,000,000 | 4,159,000,000 | ||||||||
Spinoff [Member] | Noncontrolling Interest [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Net assets | $ 12,000,000 | |||||||||
Spinoff [Member] | Retained Earnings [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Net assets | 272,000,000 | |||||||||
Accumulated other comprehensive loss | 95,000,000 | |||||||||
Cash and equivalents | 172,000,000 | |||||||||
Accelleron [Member] | Spinoff [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Short-term intercompany loan | SFr 300 | $ 306,000,000 | ||||||||
Solar Inverters business | Disposal group, held for sale, not discontinued operations [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Divestment value | $ 0 | |||||||||
Amount payable to buyer | € 132 | $ 145,000,000 | $ 143,000,000 | |||||||
Loss on write down of disposal group | 33,000,000 | 421,000,000 | ||||||||
Loss from cumulative translation adjustment, disposal group | (99,000,000) | $ (99,000,000) | ||||||||
Income from continuing operations before income taxes | (63,000,000) | |||||||||
Dodge [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Income from continuing operations before income taxes | 115,000,000 | 96,000,000 | ||||||||
Recognized net gain on sale of business | 2,193,000,000 | |||||||||
Proceeds from divestments of consolidated businesses, net of transaction costs | 2,958,000,000 | |||||||||
Turbocharging Division [Member] | Spinoff [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Income from continuing operations before income taxes | $ 134,000,000 | $ 186,000,000 | $ 139,000,000 |
Acquisitions, divestments and_5
Acquisitions, divestments and equity-accounted companies - Acquisition of noncontrolling interest (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Noncontrolling Interest [Line Items] | |||||
Equity method investments | $ 130,000,000 | $ 130,000,000 | $ 1,670,000,000 | ||
Noncontrolling interests | 410,000,000 | 410,000,000 | 378,000,000 | ||
Floor price equivalent percent discount | 10% | ||||
Floor price equivalent discount value | $ 118,000,000 | ||||
Accumulated depreciation | 5,792,000,000 | 5,792,000,000 | 6,187,000,000 | ||
Income (loss) from equity accounted companies, net of taxes | (22,000,000) | 38,000,000 | 29,000,000 | ||
Basis difference amortization (net of deferred income tax benefit) | (80,000,000) | (138,000,000) | (95,000,000) | ||
Loss from equity accounted companies | (102,000,000) | $ (100,000,000) | $ (66,000,000) | ||
Equity method investment impairment | 0 | ||||
Hitachi Energy [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Net cash proceeds from sale of investment | 1,552,000,000 | ||||
Gain from sale of investment | 43,000,000 | ||||
Discontinued Operations Held-for-sale [Member] | Power Grids Business [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Divestment percentage | 80.10% | ||||
Power Grids Business [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership interest percent | 19.90% | 19.90% | |||
Equity method investments | 0 | 0 | $ 1,609,000,000 | ||
Noncontrolling interests | $ 1,661,000,000 | ||||
Basis difference, underlying net assets | 8,570,000,000 | 8,570,000,000 | |||
Basis difference, underlying net assets at noncontrolling interest percent | 1,705,000,000 | 1,705,000,000 | |||
Power Grids Business [Member] | Non-controlling interests | |||||
Noncontrolling Interest [Line Items] | |||||
Basis difference, underlying net assets | (451,000,000) | (451,000,000) | |||
Power Grids Business [Member] | Other assets | |||||
Noncontrolling Interest [Line Items] | |||||
Basis difference, underlying net assets | 43,000,000 | 43,000,000 | |||
Power Grids Business [Member] | Deferred tax liabilities | |||||
Noncontrolling Interest [Line Items] | |||||
Basis difference, underlying net assets | (942,000,000) | (942,000,000) | |||
Power Grids Business [Member] | Order backlog | |||||
Noncontrolling Interest [Line Items] | |||||
Basis difference, underlying net assets | 727,000,000 | $ 727,000,000 | |||
Weighted-average useful life | 2 years | ||||
Power Grids Business [Member] | Other contractual rights | |||||
Noncontrolling Interest [Line Items] | |||||
Basis difference, underlying net assets | 251,000,000 | $ 251,000,000 | |||
Weighted-average useful life | 2 years | ||||
Power Grids Business [Member] | Inventory | |||||
Noncontrolling Interest [Line Items] | |||||
Basis difference, underlying net assets | 169,000,000 | $ 169,000,000 | |||
Weighted-average useful life | 5 months | ||||
Power Grids Business [Member] | Property, plant and equipment | |||||
Noncontrolling Interest [Line Items] | |||||
Basis difference, underlying net assets | 1,016,000,000 | $ 1,016,000,000 | |||
Weighted average useful life | 14 years | ||||
Power Grids Business [Member] | Intangible assets | |||||
Noncontrolling Interest [Line Items] | |||||
Basis difference, underlying net assets | 1,731,000,000 | $ 1,731,000,000 | |||
Weighted-average useful life | 9 years | ||||
Power Grids Business [Member] | Goodwill | |||||
Noncontrolling Interest [Line Items] | |||||
Basis difference, underlying net assets | 6,026,000,000 | $ 6,026,000,000 | |||
Power Grids Business [Member] | PPE assets subject to amortization | |||||
Noncontrolling Interest [Line Items] | |||||
Basis difference, underlying net assets | 686,000,000 | 686,000,000 | |||
Other | |||||
Noncontrolling Interest [Line Items] | |||||
Equity method investments | $ 130,000,000 | $ 130,000,000 | $ 61,000,000 |
Cash and equivalents, marketa_3
Cash and equivalents, marketable securities and short-term investments - Unrealized gains and losses (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Cost basis | $ 4,910 | $ 5,635 |
Available-for-sale securities, Total Cost basis | 390 | |
Gross unrealized gains | 11 | 26 |
Gross unrealized losses | (22) | (2) |
AFS, fair value | 370 | |
Fair value | 4,899 | 5,659 |
Cash and equivalents | 4,174 | 4,489 |
Marketable securities and short-term investments | 725 | 1,170 |
Changes in fair value recorded in net income | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Cost basis | 4,519 | 5,358 |
Gross unrealized gains | 10 | 18 |
Gross unrealized losses | 0 | 0 |
Fair value | 4,529 | 5,376 |
Cash and equivalents | 4,174 | 4,489 |
Marketable securities and short-term investments | 355 | 887 |
Cash | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Cost basis | 1,715 | 2,752 |
Fair value | 1,715 | 2,752 |
Cash and equivalents | 1,715 | 2,752 |
Time deposits | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Cost basis | 2,459 | 2,037 |
Fair value | 2,459 | 2,037 |
Cash and equivalents | 2,459 | 1,737 |
Marketable securities and short-term investments | 300 | |
Equity securities | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Equity securities, Cost basis | 345 | 569 |
Equity securities, Gross unrealized gains | 10 | 18 |
Equity securities, Fair value | 355 | 587 |
Marketable securities and short-term investments | 355 | 587 |
Changes in fair value recorded in other comprehensive income | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Available-for-sale securities, Total Cost basis | 391 | 277 |
AFS, Gross unrealized gains | 1 | 8 |
AFS, Gross unrealized losses | (22) | (2) |
AFS, fair value | 370 | 283 |
Cash and equivalents | 0 | 0 |
Marketable securities and short-term investments | 370 | 283 |
Debt securities - U.S. government obligations | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Available-for-sale securities, Total Cost basis | 269 | 203 |
AFS, Gross unrealized gains | 1 | 7 |
AFS, Gross unrealized losses | (15) | (1) |
AFS, fair value | 255 | 209 |
Debt securities - U.S. government obligations | Available-for-sale securities | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Marketable securities and short-term investments | 255 | 209 |
Debt securities - Other government obligations | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Available-for-sale securities, Total Cost basis | 58 | |
AFS, fair value | 58 | |
Debt securities - Other government obligations | Available-for-sale securities | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Marketable securities and short-term investments | 58 | |
Debt securities - Corporate | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Available-for-sale securities, Total Cost basis | 64 | 74 |
AFS, Gross unrealized gains | 1 | |
AFS, Gross unrealized losses | (7) | (1) |
AFS, fair value | 57 | 74 |
Debt securities - Corporate | Available-for-sale securities | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Marketable securities and short-term investments | 57 | 74 |
Restricted cash, current | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Cash and equivalents | $ 18 | 30 |
Restricted cash, non-current | ||
Cash, Cash Equivalents, Marketable Securities and Short Term Investments [Line Items] | ||
Cash and equivalents | $ 300 |
Cash and equivalents, marketa_4
Cash and equivalents, marketable securities and short-term investments - Contractual maturities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Available-for-sale securities | ||
Available-for-sale securities, Less than one year, Cost basis | $ 139 | |
Available-for-sale securities, One to five years, Cost basis | 157 | |
Available-for-sale securities, Six to ten years, Cost basis | 90 | |
Available-for-sale securities, Due after ten years, Cost basis | 4 | |
Available-for-sale securities, Total Cost basis | 390 | |
Available-for-sale securities, Less than one year, Fair value | 138 | |
Available-for-sale securities, One to five years, Fair value | 148 | |
Available-for-sale securities, Six to ten years, Fair value | 80 | |
Available-for-sale securities, Due after ten years, Fair value | 4 | |
Available-for-sale securities, Total Fair value | 370 | |
Available-for-sale marketable securities pledged as collateral | $ 69 | $ 66 |
Derivative financial instrume_3
Derivative financial instruments - General information and gain or loss recognized or reclassified (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Item | Dec. 31, 2021 USD ($) Item | Dec. 31, 2020 USD ($) Item | |
Derivative [Line Items] | |||
Maximum number of months for which forecasted foreign currency exposures are hedged | 12 months | ||
Gains (losses) recognized in income, derivatives not designated in hedge relationships | $ (193,000,000) | $ (145,000,000) | $ 310,000,000 |
Amounts recorded for cash flow hedge accounting activities | $ 0 | $ 0 | $ 0 |
Minimum | |||
Derivative [Line Items] | |||
Percentage of commodity hedging on anticipated commodity exposure | 50% | ||
Commodity hedging on anticipated commodity exposure period | 12 months | ||
Maximum | |||
Derivative [Line Items] | |||
Company policy, maximum level of hedging of foreign currency risk exposure as percentage of anticipated sales and purchases over the next 12 months (as a percent) | 100% | ||
Percentage of commodity hedging on anticipated commodity exposure | 100% | ||
Commodity hedging on anticipated commodity exposure period | 18 months | ||
Copper swaps (in metric tonnes) | |||
Derivative [Line Items] | |||
Notional amounts of outstanding commodity derivatives | Item | 29,281 | 36,017 | 39,390 |
Aluminum swaps (in metric tonnes) | |||
Derivative [Line Items] | |||
Notional amounts of outstanding commodity derivatives | Item | 6,825 | 7,125 | 8,112 |
Silver swaps (in ounces) | |||
Derivative [Line Items] | |||
Notional amounts of outstanding commodity derivatives | Item | 2,012,213 | 2,842,533 | 1,966,677 |
Foreign exchange contracts | |||
Derivative [Line Items] | |||
Notional amount of derivative | $ 13,509,000,000 | $ 11,276,000,000 | $ 12,610,000,000 |
Foreign exchange contracts | Total revenues | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income, derivatives not designated in hedge relationships | (56,000,000) | 3,000,000 | 94,000,000 |
Foreign exchange contracts | Total cost of sales | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income, derivatives not designated in hedge relationships | 21,000,000 | (53,000,000) | 0 |
Foreign exchange contracts | SG&A expenses | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income, derivatives not designated in hedge relationships | 27,000,000 | 11,000,000 | (11,000,000) |
Foreign exchange contracts | Non-order related research and development | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income, derivatives not designated in hedge relationships | 0 | (2,000,000) | (2,000,000) |
Foreign exchange contracts | Interest and other finance expense | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income, derivatives not designated in hedge relationships | (128,000,000) | (173,000,000) | 207,000,000 |
Embedded foreign exchange derivatives | |||
Derivative [Line Items] | |||
Notional amount of derivative | 933,000,000 | 815,000,000 | 1,134,000,000 |
Embedded foreign exchange derivatives | Total revenues | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income, derivatives not designated in hedge relationships | (3,000,000) | (7,000,000) | (34,000,000) |
Embedded foreign exchange derivatives | Total cost of sales | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income, derivatives not designated in hedge relationships | (11,000,000) | (2,000,000) | (1,000,000) |
Cross-currency interest rate swaps | |||
Derivative [Line Items] | |||
Notional amount of derivative | 855,000,000 | 906,000,000 | 0 |
Cross-currency interest rate swaps | Interest and other finance expense | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income on derivatives designated as fair value hedges | (134,000,000) | (37,000,000) | 0 |
Gains (losses) recognized in income on hedged item | 135,000,000 | 34,000,000 | 0 |
Interest rate contracts | |||
Derivative [Line Items] | |||
Notional amount of derivative | 2,830,000,000 | 3,541,000,000 | 3,227,000,000 |
Interest rate contracts | Interest and other finance expense | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income on derivatives designated as fair value hedges | (91,000,000) | (55,000,000) | 11,000,000 |
Gains (losses) recognized in income on hedged item | 93,000,000 | 56,000,000 | (11,000,000) |
Commodity contracts | Total cost of sales | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income, derivatives not designated in hedge relationships | (47,000,000) | 78,000,000 | 56,000,000 |
Other | Interest and other finance expense | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income, derivatives not designated in hedge relationships | $ 4,000,000 | $ 0 | $ 1,000,000 |
Equity derivatives | |||
Derivative [Line Items] | |||
Cash-settled call options held on ABB Ltd shares | Item | 8,000,000 | 9,000,000 | 22,000,000 |
Conversion ratio | 5 | ||
Total fair value of cash settled call options on ABB Ltd shares | $ 15,000,000 | $ 29,000,000 | $ 21,000,000 |
Derivative financial instrume_4
Derivative financial instruments - Balance sheet location (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 194 | $ 200 |
Derivative liabilities | 458 | 238 |
Current in "Other current assets" | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 184 | 176 |
Current in "Other current assets" | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 15 | 38 |
Current in "Other current assets" | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 169 | 138 |
Current in "Other current assets" | Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Current in "Other current assets" | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 140 | 108 |
Current in "Other current assets" | Commodity contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 13 | 19 |
Current in "Other current assets" | Interest rate contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 9 |
Current in "Other current assets" | Interest rate contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 5 | 1 |
Current in "Other current assets" | Cross-currency interest rate swaps | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Current in "Other current assets" | Cash-settled call options | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 15 | 29 |
Current in "Other current assets" | Embedded foreign exchange derivatives | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 11 | 10 |
Non-current in "Other non-current assets" | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 27 | 41 |
Non-current in "Other non-current assets" | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 20 |
Non-current in "Other non-current assets" | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 27 | 21 |
Non-current in "Other non-current assets" | Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Non-current in "Other non-current assets" | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 21 | 14 |
Non-current in "Other non-current assets" | Commodity contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Non-current in "Other non-current assets" | Interest rate contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 20 |
Non-current in "Other non-current assets" | Interest rate contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Non-current in "Other non-current assets" | Cross-currency interest rate swaps | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Non-current in "Other non-current assets" | Cash-settled call options | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Non-current in "Other non-current assets" | Embedded foreign exchange derivatives | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 6 | 7 |
Current in "Other current liabilities" | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 121 | 133 |
Current in "Other current liabilities" | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 9 | 3 |
Current in "Other current liabilities" | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 112 | 130 |
Current in "Other current liabilities" | Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 4 | 3 |
Current in "Other current liabilities" | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 80 | 107 |
Current in "Other current liabilities" | Commodity contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 12 | 5 |
Current in "Other current liabilities" | Interest rate contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 5 | 0 |
Current in "Other current liabilities" | Interest rate contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 3 | 2 |
Current in "Other current liabilities" | Cross-currency interest rate swaps | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0 |
Current in "Other current liabilities" | Cash-settled call options | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0 |
Current in "Other current liabilities" | Embedded foreign exchange derivatives | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 17 | 16 |
Non-current in "Other non-current liabilities" | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 367 | 131 |
Non-current in "Other non-current liabilities" | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 349 | 114 |
Non-current in "Other non-current liabilities" | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 18 | 17 |
Non-current in "Other non-current liabilities" | Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 4 | 5 |
Non-current in "Other non-current liabilities" | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 5 | 7 |
Non-current in "Other non-current liabilities" | Commodity contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0 |
Non-current in "Other non-current liabilities" | Interest rate contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 57 | 0 |
Non-current in "Other non-current liabilities" | Interest rate contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0 |
Non-current in "Other non-current liabilities" | Cross-currency interest rate swaps | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 288 | 109 |
Non-current in "Other non-current liabilities" | Cash-settled call options | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0 |
Non-current in "Other non-current liabilities" | Embedded foreign exchange derivatives | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 13 | $ 10 |
Derivative financial instrume_5
Derivative financial instruments - Offsetting assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Gross amount of recognized assets | $ 194 | $ 200 |
Derivative liabilities eligible for set-off in case of default | (96) | (104) |
Cash collateral received | 0 | 0 |
Non-cash collateral received | 0 | 0 |
Net asset exposure | 98 | 96 |
Total | ||
Gross amount of recognized assets | 194 | 200 |
Derivative liabilities eligible for set-off in case of default | (96) | (104) |
Cash collateral received | 0 | 0 |
Non-cash collateral received | 0 | 0 |
Net asset exposure | $ 98 | $ 96 |
Derivative financial instrume_6
Derivative financial instruments - Offsetting liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Gross amount of recognized liabilities | $ 458 | $ 238 |
Derivative liabilities eligible for set-off in case of default | (96) | (104) |
Cash collateral pledged | 0 | 0 |
Non-cash collateral pledged | 0 | 0 |
Net liability exposure | 362 | 134 |
Total | ||
Gross amount of recognized liabilities | 458 | 238 |
Derivative liabilities eligible for set-off in case of default | (96) | (104) |
Cash collateral pledged | 0 | 0 |
Non-cash collateral pledged | 0 | 0 |
Net liability exposure | $ 362 | $ 134 |
Fair values - Fair value of fin
Fair values - Fair value of financial assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets. | ||||
Securities in "Marketable securities and short-term investments" | $ 725,000,000 | $ 1,170,000,000 | ||
Liabilities | ||||
Derivative liabilities-current in "Other current liabilities" | 121,000,000 | 133,000,000 | ||
Derivative liabilities-non-current in "Other non-current liabilities" | 367,000,000 | 130,000,000 | ||
Goodwill impairment charges | 0 | 0 | $ 311,000,000 | |
Assets and liabilities, transfers between levels, amount | 0 | 0 | $ 0 | |
Recurring | ||||
Assets. | ||||
Derivative assets-current in "Other current assets" | 184,000,000 | 176,000,000 | ||
Derivative assets-non-current in "Other non-current assets" | 27,000,000 | 41,000,000 | ||
Total financial assets, fair value | 936,000,000 | 1,087,000,000 | ||
Liabilities | ||||
Derivative liabilities-current in "Other current liabilities" | 121,000,000 | 133,000,000 | ||
Derivative liabilities-non-current in "Other non-current liabilities" | 367,000,000 | 131,000,000 | ||
Total financial liabilities, fair value | 488,000,000 | 264,000,000 | ||
Non-recurring | ||||
Assets. | ||||
Total financial assets, fair value | 0 | 0 | ||
Liabilities | ||||
Goodwill impairment charges | $ 311,000,000 | |||
Equity securities | Recurring | ||||
Assets. | ||||
Securities in "Marketable securities and short-term investments" | 355,000,000 | 587,000,000 | ||
Debt securities - U.S. government obligations | Recurring | ||||
Assets. | ||||
Securities in "Marketable securities and short-term investments" | 255,000,000 | 209,000,000 | ||
Debt securities - Other government obligations | Recurring | ||||
Assets. | ||||
Securities in "Marketable securities and short-term investments" | 58,000,000 | |||
Debt securities - Corporate | Recurring | ||||
Assets. | ||||
Securities in "Marketable securities and short-term investments" | 57,000,000 | 74,000,000 | ||
Private equity investment | Non-recurring | ||||
Liabilities | ||||
Net fair value gains | 52,000,000 | 108,000,000 | ||
Level 1 | Recurring | ||||
Assets. | ||||
Total financial assets, fair value | 255,000,000 | 209,000,000 | ||
Liabilities | ||||
Total financial liabilities, fair value | 0 | 0 | ||
Level 1 | Debt securities - U.S. government obligations | Recurring | ||||
Assets. | ||||
Securities in "Marketable securities and short-term investments" | 255,000,000 | 209,000,000 | ||
Level 2 | Recurring | ||||
Assets. | ||||
Derivative assets-current in "Other current assets" | 184,000,000 | 176,000,000 | ||
Derivative assets-non-current in "Other non-current assets" | 27,000,000 | 41,000,000 | ||
Total financial assets, fair value | 681,000,000 | 878,000,000 | ||
Liabilities | ||||
Derivative liabilities-current in "Other current liabilities" | 121,000,000 | 133,000,000 | ||
Derivative liabilities-non-current in "Other non-current liabilities" | 367,000,000 | 131,000,000 | ||
Total financial liabilities, fair value | 488,000,000 | 264,000,000 | ||
Level 2 | Equity securities | Recurring | ||||
Assets. | ||||
Securities in "Marketable securities and short-term investments" | 355,000,000 | 587,000,000 | ||
Level 2 | Debt securities - Other government obligations | Recurring | ||||
Assets. | ||||
Securities in "Marketable securities and short-term investments" | 58,000,000 | |||
Level 2 | Debt securities - Corporate | Recurring | ||||
Assets. | ||||
Securities in "Marketable securities and short-term investments" | 57,000,000 | 74,000,000 | ||
Level 2 | Private equity investment | Non-recurring | ||||
Assets. | ||||
Total financial assets, fair value | 106,000,000 | 169,000,000 | ||
Level 3 | Recurring | ||||
Assets. | ||||
Total financial assets, fair value | 0 | 0 | ||
Liabilities | ||||
Total financial liabilities, fair value | $ 0 | $ 0 |
Fair values - Schedule of fair
Fair values - Schedule of fair values of financial instruments carried on a cost basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and equivalents (excluding securities with original maturities up to 3 months) | ||
Restricted cash | $ 18 | $ 30 |
Restricted cash, non-current | 0 | 300 |
Carrying value | ||
Cash and equivalents (excluding securities with original maturities up to 3 months) | ||
Cash | 1,697 | 2,422 |
Time deposits | 2,459 | 1,737 |
Restricted cash | 18 | 30 |
Restricted cash, non-current | 300 | |
Marketable securities and short-term investments (excluding securities) | ||
Time deposits | 300 | |
Liabilities | ||
Short-term debt and current maturities of long-term debt (excluding finance lease obligations) | 2,500 | 1,357 |
Long-term debt (excluding finance lease obligations) | 4,976 | 4,043 |
Total fair value | ||
Cash and equivalents (excluding securities with original maturities up to 3 months) | ||
Cash | 1,697 | 2,422 |
Time deposits | 2,459 | 1,737 |
Restricted cash | 18 | 30 |
Restricted cash, non-current | 300 | |
Marketable securities and short-term investments (excluding securities) | ||
Time deposits | 300 | |
Liabilities | ||
Short-term debt and current maturities of long-term debt (excluding finance lease obligations) | 2,500 | 1,357 |
Long-term debt (excluding finance lease obligations) | 4,843 | 4,292 |
Total fair value | Level 1 | ||
Cash and equivalents (excluding securities with original maturities up to 3 months) | ||
Cash | 1,697 | 2,422 |
Restricted cash | 18 | 30 |
Restricted cash, non-current | 300 | |
Liabilities | ||
Short-term debt and current maturities of long-term debt (excluding finance lease obligations) | 1,068 | 1,288 |
Long-term debt (excluding finance lease obligations) | 4,813 | 4,234 |
Total fair value | Level 2 | ||
Cash and equivalents (excluding securities with original maturities up to 3 months) | ||
Time deposits | 2,459 | 1,737 |
Marketable securities and short-term investments (excluding securities) | ||
Time deposits | 300 | |
Liabilities | ||
Short-term debt and current maturities of long-term debt (excluding finance lease obligations) | 1,432 | 69 |
Long-term debt (excluding finance lease obligations) | $ 30 | $ 58 |
Receivables, net and Contract_3
Receivables, net and Contract assets and liabilities - Receivables, net and Allowance for doubtful accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables, net and Contract assets and liabilities | |||
Trade receivables | $ 6,478 | $ 6,206 | |
Other receivables | 688 | 684 | |
Allowance | (308) | (339) | $ (357) |
Total receivables, net | 6,858 | 6,551 | |
Contractual retention amounts billed to customers | $ 100 | 119 | |
Percent of outstanding contractual retention amounts billed to customers expected to be collected in the year following the balance sheet date | 52% | ||
Percent of outstanding contractual retention amounts billed to customers expected to be collected the second year following the balance sheet date | 34% | ||
Allowance for doubtful accounts | |||
Balance at January 1 | $ 339 | 357 | 228 |
Transition adjustment | 0 | 0 | 56 |
Current-period provision for expected credit losses | 37 | 33 | 115 |
Write-offs charged against the allowance | (48) | (37) | (42) |
Exchange rate differences | (20) | (14) | 0 |
Balance at December 31 | $ 308 | $ 339 | $ 357 |
Receivables, net and Contract_4
Receivables, net and Contract assets and liabilities - Contract assets and Contract liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables, net and Contract assets and liabilities | |||
Contract assets | $ 954 | $ 990 | $ 985 |
Contract liabilities | $ 2,216 | 1,894 | $ 1,903 |
Contract with customer, assets, expected collection term | 1 year | ||
Contract liabilities non-current | $ 59 | 0 | |
Significant changes in the Contract assets and Contract liabilities balances | |||
Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2022/2021 | (1,043) | (1,086) | |
Additions to Contract liabilities - excluding amounts recognized as revenue during the period | 1,481 | 1,136 | |
Receivables recognized that were included in the Contract assets balance at Jan 1, 2022/2021 | $ (591) | $ (566) |
Receivables, net and Contract_5
Receivables, net and Contract assets and liabilities - Performance obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Receivables, net and Contract assets and liabilities | |
Performance obligation, unfulfilled orders | $ 19,867 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period of performance obligation, unfulfilled orders | 1 year |
Percentage of performance obligation, unfulfilled orders | 77% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period of performance obligation, unfulfilled orders | 1 year |
Percentage of performance obligation, unfulfilled orders | 13% |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories, net | ||
Raw materials | $ 2,626 | $ 2,136 |
Work in process | 1,189 | 995 |
Finished goods | 2,036 | 1,594 |
Advances to suppliers | 177 | 155 |
Total inventory, net | $ 6,028 | $ 4,880 |
Property, plant and equipment_3
Property, plant and equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment, net | |||
Property, plant and equipment, gross | $ 9,703 | $ 10,232 | |
Accumulated depreciation | (5,792) | (6,187) | |
Total property, plant and equipment, net | 3,911 | 4,045 | |
Assets under capital leases included in property, plant and equipment, net | |||
Capital lease assets, gross | 313 | 256 | |
Accumulated depreciation | (135) | (123) | |
Total capital lease assets, net | 178 | 133 | |
Depreciation expense | |||
Depreciation expense including depreciation of assets under capital leases | 531 | 575 | $ 586 |
Land and buildings | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 3,622 | 3,925 | |
Assets under capital leases included in property, plant and equipment, net | |||
Capital lease assets, gross | 178 | 164 | |
Machinery and equipment [Member] | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 5,495 | 5,785 | |
Assets under capital leases included in property, plant and equipment, net | |||
Capital lease assets, gross | 135 | 92 | |
Construction in progress | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | $ 586 | $ 522 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Changes in goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | |||
Goodwill, at cost | $ 10,774 | $ 10,760 | |
Goodwill at the opening balance | 10,482 | 10,850 | |
Goodwill acquired during the year | 229 | 161 | $ 92 |
Goodwill allocated to disposals | (8) | (345) | |
Impairment of goodwill | 0 | 0 | (311) |
Exchange rate differences and other | (192) | (184) | |
Goodwill at the closing balance | 10,511 | 10,482 | 10,850 |
Electrification | |||
Goodwill | |||
Goodwill at the opening balance | 4,472 | 4,527 | |
Goodwill acquired during the year | 220 | 11 | |
Goodwill allocated to disposals | (2) | 0 | |
Exchange rate differences and other | (92) | (66) | |
Goodwill at the closing balance | 4,598 | 4,472 | 4,527 |
Motion | |||
Goodwill | |||
Goodwill at the opening balance | 2,117 | 2,456 | |
Goodwill acquired during the year | 9 | 0 | |
Goodwill allocated to disposals | 0 | (338) | |
Exchange rate differences and other | (8) | (1) | |
Goodwill at the closing balance | 2,118 | 2,117 | 2,456 |
Process Automation | |||
Goodwill | |||
Goodwill at the opening balance | 1,613 | 1,639 | |
Goodwill acquired during the year | 0 | 0 | |
Goodwill allocated to disposals | (6) | (7) | |
Exchange rate differences and other | (20) | (19) | |
Goodwill at the closing balance | 1,587 | 1,613 | 1,639 |
Robotics & Discrete Automation | |||
Goodwill | |||
Goodwill at the opening balance | 2,280 | 2,228 | |
Goodwill acquired during the year | 0 | 150 | |
Goodwill allocated to disposals | 0 | 0 | |
Exchange rate differences and other | (72) | (98) | |
Goodwill at the closing balance | 2,208 | 2,280 | 2,228 |
Accumulated impairment charges | (263) | $ (278) | |
Machine Automation [Member] | |||
Goodwill | |||
Impairment of goodwill | $ (290) | ||
Turbocharging Division [Member] | Spinoff [Member] | |||
Goodwill | |||
Goodwill at the closing balance | $ 6 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Future amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 4,149 | $ 4,253 | |
Accumulated amortization | (2,743) | (2,692) | |
Total | 1,406 | 1,561 | |
Additions to intangible assets other than goodwill | 175 | 95 | |
Amortization expense | |||
Amortization expense of intangible assets other than goodwill | 282 | 318 | $ 329 |
Future amortization expense of intangible assets | |||
2023 | 296 | ||
2024 | 221 | ||
2025 | 174 | ||
2026 | 153 | ||
2027 | 145 | ||
Thereafter | 417 | ||
Total | 1,406 | 1,561 | |
Capitalized software for internal use | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 830 | 835 | |
Accumulated amortization | (720) | (732) | |
Total | 110 | 103 | |
Additions to intangible assets other than goodwill | 53 | 32 | |
Amortization expense | |||
Amortization expense of intangible assets other than goodwill | 52 | 66 | 61 |
Future amortization expense of intangible assets | |||
Total | 110 | 103 | |
Capitalized software for sale | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 26 | 31 | |
Accumulated amortization | (26) | (29) | |
Total | 0 | 2 | |
Additions to intangible assets other than goodwill | 0 | 2 | |
Future amortization expense of intangible assets | |||
Total | 0 | 2 | |
Intangibles other than software: | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets Acquired | 116 | ||
Amortization expense | |||
Amortization expense of intangible assets other than goodwill | 230 | 252 | $ 268 |
Intangibles other than software: Customer-related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,743 | 1,716 | |
Accumulated amortization | (808) | (707) | |
Total | 935 | 1,009 | |
Additions to intangible assets other than goodwill | 79 | 13 | |
Future amortization expense of intangible assets | |||
Total | 935 | 1,009 | |
Intangibles other than software: Technology-related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 997 | 1,122 | |
Accumulated amortization | (812) | (868) | |
Total | 185 | 254 | |
Additions to intangible assets other than goodwill | 16 | 35 | |
Future amortization expense of intangible assets | |||
Total | 185 | 254 | |
Intangibles other than software: Marketing-related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 498 | 493 | |
Accumulated amortization | (347) | (327) | |
Total | 151 | 166 | |
Additions to intangible assets other than goodwill | 20 | 11 | |
Future amortization expense of intangible assets | |||
Total | 151 | 166 | |
Intangibles other than software: Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 55 | 56 | |
Accumulated amortization | (30) | (29) | |
Total | 25 | 27 | |
Additions to intangible assets other than goodwill | 7 | 2 | |
Future amortization expense of intangible assets | |||
Total | $ 25 | $ 27 |
Debt (Details)
Debt (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Oct. 31, 2022 CHF (SFr) | Oct. 31, 2022 USD ($) | Mar. 31, 2022 CHF (SFr) | Mar. 31, 2022 EUR (€) | Mar. 31, 2022 USD ($) | Apr. 30, 2018 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 CHF (SFr) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 EUR (€) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 CHF (SFr) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2019 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||||
Total debt | $ 7,678,000,000 | $ 5,561,000,000 | ||||||||||||||||
Short-term debt (weighted average interest rate of 3.2% and 3.2%, respectively) | 1,448,000,000 | 78,000,000 | ||||||||||||||||
Current maturities of long-term debt (weighted-average nominal interest rate 2.8% and 2.8%, respectively) | 1,087,000,000 | 1,306,000,000 | ||||||||||||||||
Short-term debt and current maturities of long-term debt | $ 2,535,000,000 | $ 1,384,000,000 | ||||||||||||||||
Short-term debt, weighted average interest rate (as a percent) | 1.90% | 1.90% | 1.90% | 3.20% | 3.20% | 3.20% | ||||||||||||
Current maturities of long-term debt, weighted average nominal interest rate (as a percent) | 0.50% | 0.50% | 0.50% | 2.80% | 2.80% | 2.80% | ||||||||||||
Number of commercial paper programs | 2 | 2 | 2 | |||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 6,230,000,000 | $ 5,483,000,000 | ||||||||||||||||
Current portion of long-term debt | (1,087,000,000) | (1,306,000,000) | ||||||||||||||||
Long-term debt | 5,143,000,000 | 4,177,000,000 | ||||||||||||||||
Maturities of long-term debt | ||||||||||||||||||
2023 | 1,058,000,000 | |||||||||||||||||
2024 | 2,387,000,000 | |||||||||||||||||
2025 | 193,000,000 | |||||||||||||||||
2026 | 0 | |||||||||||||||||
2027 | 461,000,000 | |||||||||||||||||
Thereafter | 2,194,000,000 | |||||||||||||||||
Total | 6,293,000,000 | |||||||||||||||||
Repurchase terms | ||||||||||||||||||
Losses from extinguishment of debt | $ 0 | $ 0 | $ (162,000,000) | |||||||||||||||
ABB Finance (USA) Inc | ||||||||||||||||||
Long-term debt: | ||||||||||||||||||
Ownership interest (as a percent) | 100% | 100% | ||||||||||||||||
Multicurrency credit facility maturing 2026 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Revolving credit facility, capacity | $ 2,000,000,000 | |||||||||||||||||
Interest cost above variable interest rate on facility (as a percent) | 0.175% | |||||||||||||||||
Commitment fee as a proportion of the margin (as a percent) | 35% | |||||||||||||||||
Commitment fee on credit facility (as a percent) | 0.06125% | |||||||||||||||||
Utilization fee on credit facility on drawings representing one-third or less of the total facility (as a percent) | 0.075% | |||||||||||||||||
Utilization fee on credit facility on drawings representing between one-third and two-thirds of the total facility (as a percent) | 0.15% | |||||||||||||||||
Utilization fee on credit facility over two-thirds of the facility, percentage | 0.30% | |||||||||||||||||
Floating rate | ||||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 3,459,000,000 | $ 3,598,000,000 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 0.40% | 0.40% | 0.40% | 1.20% | 1.20% | 1.20% | ||||||||||||
Debt effective interest rate (as a percent) | 2.80% | 2.80% | 2.80% | 0.30% | 0.30% | 0.30% | ||||||||||||
Fixed rate | ||||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 2,771,000,000 | $ 1,885,000,000 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 2.20% | 2.20% | 2.20% | 3% | 3% | 3% | ||||||||||||
Debt effective interest rate (as a percent) | 2.20% | 2.20% | 2.20% | 3.10% | 3.10% | 3.10% | ||||||||||||
Current portion of long-term debt | ||||||||||||||||||
Long-term debt: | ||||||||||||||||||
Debt nominal interest rate (as a percent) | 0.50% | 0.50% | 0.50% | 2.80% | 2.80% | 2.80% | ||||||||||||
Debt effective interest rate (as a percent) | 1.50% | 1.50% | 1.50% | 1% | 1% | 1% | ||||||||||||
Bonds | ||||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 5,984,000,000 | $ 5,242,000,000 | ||||||||||||||||
Repurchase terms | ||||||||||||||||||
Losses from extinguishment of debt | (162,000,000) | |||||||||||||||||
2.875% USD Notes, due 2022 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | 1,250,000,000 | |||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 0 | 1,258,000,000 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 2.875% | 2.875% | 2.875% | |||||||||||||||
2.875% USD Notes, due 2022 | Interest rate swaps | ||||||||||||||||||
Repurchase terms | ||||||||||||||||||
Amount of hedged item | 1,050,000,000 | |||||||||||||||||
0.625% EUR Instruments, due 2023 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | € | € 700,000,000 | € 700,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 742,000,000 | 800,000,000 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 0.625% | 0.625% | 0.625% | |||||||||||||||
Repurchase terms | ||||||||||||||||||
Percentage of principal amount of bonds used in redemption calculation | 100% | |||||||||||||||||
0% CHF Notes, due 2023 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | SFr | SFr 275,000,000 | SFr 275,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 298,000,000 | 0 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 0% | 0% | 0% | 0% | 0% | 0% | ||||||||||||
0.625% EUR Instruments, due 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | € | € 700,000,000 | € 700,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 720,000,000 | 0 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 0.625% | 0.625% | 0.625% | 0.625% | 0.625% | 0.625% | ||||||||||||
Repurchase terms | ||||||||||||||||||
Percentage of principal amount of bonds used in redemption calculation | 100% | |||||||||||||||||
Floating EUR Notes, due 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | € | € 500,000,000 | € 500,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 536,000,000 | 0 | ||||||||||||||||
Floating EUR Notes, due 2024 | EURIBOR | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest cost above variable interest rate on facility (as a percent) | 0.70% | 0.70% | 0.70% | |||||||||||||||
Debt instrument, floor rate | 0% | 0% | 0% | |||||||||||||||
0.75% EUR Instruments, due 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | € | € 750,000,000 | 750,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 769,000,000 | 860,000,000 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 0.75% | 0.75% | 0.75% | |||||||||||||||
0.3% CHF Notes, due 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | SFr | SFr 280,000,000 | SFr 280,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 303,000,000 | 306,000,000 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 0.30% | 0.30% | 0.30% | |||||||||||||||
Repurchase terms | ||||||||||||||||||
Redemption period prior to their maturity | 1 month | |||||||||||||||||
Option To Redeem If Percent of aggregate principal amount has been redeemed or purchased and cancelled | 85% | |||||||||||||||||
2.1% CHF due 2025 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | SFr | SFr 150,000,000 | SFr 150,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 162,000,000 | 0 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 2.10% | 2.10% | 2.10% | 2.10% | ||||||||||||||
0.75% CHF Instruments, due 2027 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | SFr | SFr 425,000,000 | SFr 425,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 460,000,000 | 0 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 0.75% | 0.75% | 0.75% | |||||||||||||||
Repurchase terms | ||||||||||||||||||
Coupon percent payable annually in arrears | 0.75% | 0.75% | 0.75% | |||||||||||||||
3.8% USD Notes, due 2028 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | $ 383,000,000 | 383,000,000 | |||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 381,000,000 | 381,000,000 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 3.80% | 3.80% | 3.80% | 3.80% | ||||||||||||||
Repurchase terms | ||||||||||||||||||
Percentage of principal amount of bonds used in redemption calculation | 100% | |||||||||||||||||
Minimum threshold for early redemption by the entity | 100% | |||||||||||||||||
Redemption period prior to their maturity | 3 months | |||||||||||||||||
Repayment of bonds | $ 367,000,000 | |||||||||||||||||
1.0% CHF Notes, due 2029 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | SFr | SFr 170,000,000 | SFr 170,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 184,000,000 | 186,000,000 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 1% | 1% | 1% | |||||||||||||||
Repurchase terms | ||||||||||||||||||
Redemption period prior to their maturity | 3 months | |||||||||||||||||
Option To Redeem If Percent of aggregate principal amount has been redeemed or purchased and cancelled | 85% | |||||||||||||||||
0% EUR Instruments, due 2030 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | € | € 800,000,000 | 800,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 677,000,000 | € 862,000,000 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 0% | 0% | 0% | |||||||||||||||
4.375% USD Notes, due 2042 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | $ 609,000,000 | 609,000,000 | |||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 590,000,000 | 589,000,000 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 4.375% | 4.375% | 4.375% | 4.375% | ||||||||||||||
Repurchase terms | ||||||||||||||||||
Percentage of principal amount of bonds used in redemption calculation | 100% | |||||||||||||||||
Repayment of bonds | $ 141,000,000 | |||||||||||||||||
3.375% USD Notes, due 2023 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 450,000,000 | $ 450,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Debt nominal interest rate (as a percent) | 3.375% | 3.375% | 3.375% | 3.375% | ||||||||||||||
2.8% USD note due 2020 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||||||||||
Long-term debt: | ||||||||||||||||||
Debt nominal interest rate (as a percent) | 2.80% | 2.80% | 2.80% | |||||||||||||||
2.375% CHF Bond due 2030 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | SFr | SFr 150,000,000 | SFr 150,000,000 | ||||||||||||||||
Long-term debt: | ||||||||||||||||||
Total | $ 162,000,000 | 0 | ||||||||||||||||
Debt nominal interest rate (as a percent) | 2.375% | 2.375% | 2.375% | 2.375% | ||||||||||||||
5.625% USD notes due 2021 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 250,000,000 | |||||||||||||||||
Long-term debt: | ||||||||||||||||||
Debt nominal interest rate (as a percent) | 5.625% | |||||||||||||||||
0% CHF Bonds due 2023 and 0.75% CHF bonds due 2027 | ||||||||||||||||||
Repurchase terms | ||||||||||||||||||
Redemption period prior to their maturity | 1 month | |||||||||||||||||
Proceeds from debt, net of issuance costs | SFr | SFr 699,000,000 | |||||||||||||||||
Option To Redeem If Percent of aggregate principal amount has been redeemed or purchased and cancelled | 85% | |||||||||||||||||
Amount of debt that may be redeemed one month prior to maturity | SFr | SFr 425,000,000 | |||||||||||||||||
Proceeds from debt, net of issuance costs, at date of issuance | $ 751,000,000 | |||||||||||||||||
0.625% EUR Due 2024 and EUR Floating rate note due 2024 | ||||||||||||||||||
Repurchase terms | ||||||||||||||||||
Proceeds from debt, net of issuance costs | € 1,203,000,000 | $ 1,335,000,000 | ||||||||||||||||
2.1% Bond Due 2025 And 2.375% CHF Bonds due 2030 | ||||||||||||||||||
Repurchase terms | ||||||||||||||||||
Proceeds from debt, net of issuance costs | SFr 299,000,000 | $ 304,000,000 | ||||||||||||||||
Option To Redeem If Percent of aggregate principal amount has been redeemed or purchased and cancelled | 85% | |||||||||||||||||
Commercial paper program | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Commercial paper program, capacity | $ 2,000,000,000 | |||||||||||||||||
Commercial paper, amount outstanding | 0 | 0 | ||||||||||||||||
Euro-commercial paper | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Commercial paper program, capacity | 2,000,000,000 | |||||||||||||||||
Commercial paper, amount outstanding | 1,383 | 0 | ||||||||||||||||
Line of credit | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Amount drawn | $ 0 | $ 0 |
Other provisions, other curre_3
Other provisions, other current liabilities and other non-current liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Provisions | ||
Contract-related provisions | $ 615 | $ 762 |
Provision for insurance-related reserves | 171 | 174 |
Restructuring and restructuring-related provisions | 145 | 188 |
Provisions for contractual penalties and compliance and litigation matters | 49 | 63 |
Other | 191 | 199 |
Total | 1,171 | 1,386 |
Other current liabilities | ||
Employee-related liabilities | 1,490 | 1,547 |
Accrued expenses | 872 | 768 |
Non-trade payables | 681 | 644 |
Accrued customer rebates | 315 | 322 |
Income taxes payable | 312 | 378 |
Other tax liabilities | 285 | 298 |
Derivative liabilities (see Note 6) | 121 | 133 |
Deferred income | 102 | 95 |
Pension and other employee benefits | 38 | 41 |
Accrued interest | 38 | 28 |
Other | 69 | 113 |
Total | 4,323 | 4,367 |
Other non-current liabilities: | ||
Income tax related liabilities | 1,287 | 1,458 |
Derivative liabilities (see Note 6) | 367 | 130 |
Provisions for contractual penalties and compliance and litigation matters | 67 | 129 |
Contract liabilities (see Note 8) | 59 | 0 |
Employee-related liabilities | 45 | 59 |
Environmental provisions | 42 | 39 |
Deferred income | 33 | 74 |
Other | 185 | 227 |
Total | $ 2,085 | $ 2,116 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Present value of minimum finance lease payments, current | $ 35 | $ 27 |
Present value of minimum finance lease payments, Noncurrent | $ 167 | $ 134 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee Lease Description [Line Items] | |||
Operating lease cost | $ 288 | $ 313 | $ 376 |
Finance lease cost | 37 | 37 | 29 |
Short term lease cost | 38 | 40 | 48 |
Sub-lease income | (19) | (25) | (21) |
Total lease expense | 344 | 365 | 432 |
Land And Building [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease cost | 217 | 240 | 287 |
Finance lease cost | 15 | 17 | 13 |
Short term lease cost | 20 | 26 | 17 |
Sub-lease income | (18) | (24) | (20) |
Total lease expense | 234 | 259 | 297 |
Machinery And Equipment [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease cost | 71 | 73 | 89 |
Finance lease cost | 22 | 20 | 16 |
Short term lease cost | 18 | 14 | 31 |
Sub-lease income | (1) | (1) | (1) |
Total lease expense | $ 110 | $ 106 | $ 135 |
Leases - Summary of additional
Leases - Summary of additional lease expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee Lease Description [Line Items] | |||
Operating cash flows from operating leases | $ 266 | $ 291 | $ 346 |
Right-of-use assets obtained in exchange for new liabilities: under operating leases | 335 | 353 | 323 |
Land And Building [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating cash flows from operating leases | 200 | 223 | 263 |
Right-of-use assets obtained in exchange for new liabilities: under operating leases | 285 | 267 | 266 |
Machinery And Equipment [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating cash flows from operating leases | 66 | 68 | 83 |
Right-of-use assets obtained in exchange for new liabilities: under operating leases | $ 50 | $ 86 | $ 57 |
Leases - Future net minimum lea
Leases - Future net minimum lease payments for capital leases and the present value of the net minimum lease payment (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Land And Building [Member] | |
Operating Leases | |
2023 | $ 203 |
2024 | 168 |
2025 | 138 |
2026 | 104 |
2027 | 70 |
Thereafter | 151 |
Total minimum lease payments | 834 |
Difference between undiscounted cash flows and discounted cash flows | (74) |
Present value of minimum lease payments | 760 |
Finance Leases | |
2023 | 21 |
2024 | 21 |
2025 | 21 |
2026 | 17 |
2027 | 17 |
Thereafter | 68 |
Total minimum lease payments | 165 |
Difference between undiscounted cash flows and discounted cash flows | (27) |
Present value of minimum lease payments | 138 |
Machinery And Equipment [Member] | |
Operating Leases | |
2023 | 54 |
2024 | 34 |
2025 | 18 |
2026 | 6 |
2027 | 1 |
Thereafter | 1 |
Total minimum lease payments | 114 |
Difference between undiscounted cash flows and discounted cash flows | (3) |
Present value of minimum lease payments | 111 |
Finance Leases | |
2023 | 23 |
2024 | 20 |
2025 | 17 |
2026 | 6 |
2027 | 1 |
Thereafter | 0 |
Total minimum lease payments | 67 |
Difference between undiscounted cash flows and discounted cash flows | (3) |
Present value of minimum lease payments | $ 64 |
Leases - Lease terms and discou
Leases - Lease terms and discount rates (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Land And Building [Member] | |||
Operating Lease Liabilities Payments Due [Abstract] | |||
Weighted average remaining lease term | 73 months | 73 months | 84 months |
Weighted average discount rate | 3.30% | 2.60% | 3% |
Finance Lease Liabilities Payments Due [Abstract] | |||
Weighted average remaining lease term | 135 months | 100 months | 107 months |
Weighted average discount rate | 5.50% | 7.70% | 7.70% |
Machinery And Equipment [Member] | |||
Operating Lease Liabilities Payments Due [Abstract] | |||
Weighted average remaining lease term | 31 months | 30 months | 29 months |
Weighted average discount rate | 1.90% | 1.90% | 2% |
Finance Lease Liabilities Payments Due [Abstract] | |||
Weighted average remaining lease term | 33 months | 40 months | 40 months |
Weighted average discount rate | 2.30% | 1.80% | 2.30% |
Commitments and contingencies -
Commitments and contingencies - Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contingencies - Regulatory, Compliance and Legal | |||
Final settlement amount | $ 104 | ||
Provision recorded in other income (expense), net | $ 325 | ||
Contingencies for regulatory, compliance and legal matters | |||
Contingencies - Regulatory, Compliance and Legal | |||
Accrued loss contingency related to regulatory compliance and legal contingencies | $ 86 | $ 104 |
Commitments and contingencies_2
Commitments and contingencies - Product warranty reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jul. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Guarantor Obligations [Line Items] | ||||
Maximum potential payments | $ 4,396 | $ 4,728 | ||
Performance bonds with financial institutions | 2,900 | 3,600 | ||
Reconciliation of Provisions for warranties including guarantees of product performance | ||||
Product warranties at beginning of period | 1,005 | 1,035 | $ 816 | |
Net change in warranties due to acquisitions, divestments, spin-offs and liabilities held for sale | (24) | 1 | 8 | |
Claims paid in cash or in kind | (157) | (222) | (209) | |
Net increase to provision for changes in estimates, warranties issued and warranties expired | 252 | 226 | 369 | |
Exchange rate differences | (48) | (35) | 51 | |
Product warranties at end of period | 1,028 | 1,005 | 1,035 | |
Continuing Operations [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantee Obligations accrued in the consolidated balance sheet as of the reporting period | 1 | |||
Continuing And Discontinued Operations [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantee Obligations accrued in the consolidated balance sheet as of the reporting period | $ 156 | |||
Power Grids Business [Member] | ||||
Reconciliation of Provisions for warranties including guarantees of product performance | ||||
Ownership interest percent | 19.90% | 19.90% | ||
Discontinued Operations | ||||
Guarantor Obligations [Line Items] | ||||
Performance bonds with financial institutions | $ 100 | $ 100 | ||
Held for sale and discontinued operations [Member] | Power Grids Business [Member] | ||||
Reconciliation of Provisions for warranties including guarantees of product performance | ||||
Divestment percentage | 80.10% | |||
Divestment percentage | 100% | 80.10% | ||
Performance guarantees | ||||
Guarantor Obligations [Line Items] | ||||
Maximum potential payments | $ 4,300 | $ 4,540 | ||
Performance guarantees | High Voltage Cable And Cables Accessories Businesses [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Maximum potential payments | $ 843 | 911 | ||
Performance guarantees | Minimum | High Voltage Cable And Cables Accessories Businesses [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Original maturity of performance guarantees | 5 years | |||
Performance guarantees | Maximum | High Voltage Cable And Cables Accessories Businesses [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Original maturity of performance guarantees | 10 years | |||
Performance guarantees | ABB And Consortium/Joint Venture Guarantees | Minimum | ||||
Guarantor Obligations [Line Items] | ||||
Original maturity of performance guarantees | 1 year | |||
Performance guarantees | ABB And Consortium/Joint Venture Guarantees | Maximum | ||||
Guarantor Obligations [Line Items] | ||||
Original maturity of performance guarantees | 10 years | |||
Financial guarantees | ||||
Guarantor Obligations [Line Items] | ||||
Maximum potential payments | $ 96 | 52 | ||
Indemnification guarantees | ||||
Guarantor Obligations [Line Items] | ||||
Maximum potential payments | 0 | 136 | ||
Indemnification guarantees | Discontinued Operations | Hitachi Energy [Member] | ||||
Reconciliation of Provisions for warranties including guarantees of product performance | ||||
Payment for obligation settlement | $ 136 | |||
Warranties | ||||
Reconciliation of Provisions for warranties including guarantees of product performance | ||||
Net change in warranties due to acquisitions, divestments, spin-offs and liabilities held for sale | $ 143 | |||
Performance and financial | Minimum | Hitachi Energy [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Original maturity of performance guarantees | 1 year | |||
Performance and financial | Maximum | Hitachi Energy [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Original maturity of performance guarantees | 10 years | |||
Financial, Performance And Indemnification Guarantees [Member] | Hitachi Energy [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Maximum potential payments | $ 3,000 | $ 3,200 |
Income taxes - Provision, Recon
Income taxes - Provision, Reconciliation, and Deferred Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Provision for taxes | |||
Current taxes | $ 1,101 | $ 1,346 | $ 776 |
Deferred taxes | (344) | (289) | (280) |
Income tax expense allocated to continuing operations | 757 | 1,057 | 496 |
Income tax expense (benefit) allocated to discontinued operations | (5) | (1) | 322 |
Reconciliation of taxes: | |||
Income from continuing operations before income taxes | $ 3,394 | $ 5,787 | $ 841 |
Weighted-average global tax rate (as a percent) | 23.60% | 23.70% | 22.90% |
Income taxes at weighted average tax rate | $ 800 | $ 1,371 | $ 193 |
Items taxed at rates other than the weighted-average tax rate | 127 | 176 | 3 |
Unrecognized tax benefits | (83) | 151 | (38) |
Changes in valuation allowance, net | (195) | (95) | 29 |
Effects of changes in tax laws and enacted tax rates | (19) | 1 | 23 |
Non-deductible/ non-taxable items | 97 | (542) | 232 |
Other, net | 30 | (5) | 54 |
Income tax expense allocated to continuing operations | $ 757 | $ 1,057 | $ 496 |
Effective tax rate for the year (as a percent) | 22.30% | 18.30% | 59% |
Increase in deferred tax assets | $ 16 | ||
Income tax reconciliation due to interpretation of tax law and double tax treaty agreement | $ (95) | $ (150) | (20) |
Non-deductible goodwill amount | 82 | ||
Nondeductible expense defined benefit plans | 62 | ||
Non-recoverable taxes on dividends | 53 | ||
Deferred tax assets: | |||
Unused tax losses and credits | 462 | 551 | |
Provisions and other accrued liabilities | 756 | 757 | |
Other current assets including receivables | 100 | 104 | |
Pension | 283 | 338 | |
Inventories | 304 | 266 | |
Intangible assets | 1,154 | 1,135 | |
Other | 66 | 57 | |
Total gross deferred tax asset | 3,125 | 3,208 | |
Valuation allowance | (1,000) | (1,263) | (1,518) |
Total gross deferred tax asset, net of valuation allowance | 2,125 | 1,945 | |
Deferred tax liabilities: | |||
Property, plant and equipment | (232) | (245) | |
Intangible assets | (237) | (281) | |
Other assets | (91) | (107) | |
Pension | (318) | (302) | |
Other liabilities | (200) | (175) | |
Inventories | (44) | (35) | |
Unremitted earnings of subsidiaries | (336) | (308) | |
Total gross deferred tax liability | (1,458) | (1,453) | |
Net deferred tax asset | 667 | 492 | |
Included in: | |||
"Deferred taxes"-non-current assets | 1,396 | 1,177 | |
"Deferred taxes"-non-current liabilities | (729) | (685) | |
Unused tax losses and credits, valuation allowance | 80 | 93 | |
Foreign subsidiary retained earnings permanently reinvested | 100 | 100 | |
Net operating loss carry-forwards, available to certain subsidiaries | 1,806 | ||
Tax credits, available to certain subsidiaries | $ 57 | ||
Percent increase of weighted-average global tax rate from gains on sale of business | 1% | ||
Kusile Project [Member] | |||
Reconciliation of taxes: | |||
Non-deductible/ non-taxable items | $ 65 | ||
Dodge [Member] | |||
Reconciliation of taxes: | |||
Income from continuing operations before income taxes | 115 | $ 96 | |
Items taxed at rates other than the weighted-average tax rate | 107 | ||
Divestments And Internal Reorganizations [Member] | |||
Reconciliation of taxes: | |||
Non-deductible/ non-taxable items | (567) | ||
Expiration through Year 2046 | |||
Included in: | |||
Net operating loss carry-forwards, available to certain subsidiaries | 809 | ||
Tax credits, available to certain subsidiaries | 47 | ||
Europe | |||
Reconciliation of taxes: | |||
Changes in valuation allowance, net | $ (82) | ||
Effects of changes in tax laws and enacted tax rates | (25) | ||
Europe | Positive Impacts [Member] | |||
Reconciliation of taxes: | |||
Changes in valuation allowance, net | (23) | ||
Europe | Negative Impacts [Member] | |||
Reconciliation of taxes: | |||
Changes in valuation allowance, net | 55 | ||
The Americas | |||
Reconciliation of taxes: | |||
Changes in valuation allowance, net | (208) | ||
Asia | |||
Reconciliation of taxes: | |||
Changes in valuation allowance, net | $ (22) |
Income taxes - Unrecognized tax
Income taxes - Unrecognized tax benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unrecognized tax benefits | |||
Unrecognized tax benefits, balance at beginning of period | $ 1,322 | $ 1,298 | $ 1,106 |
Net change due to acquisitions and divestments, Unrecognized tax benefits | 16 | 1 | |
Increase relating to prior year tax positions, Unrecognized tax benefits | 26 | 240 | 298 |
Decrease relating to prior year tax positions, Unrecognized tax benefits | (98) | (42) | (161) |
Increase relating to current year tax positions, Unrecognized tax benefits | 80 | 98 | 390 |
Decrease due to settlements with tax authorities, Unrecognized tax benefits | (31) | (175) | (340) |
Decrease as a result of the applicable statute of limitations, Unrecognized tax benefits | (71) | (72) | (59) |
Exchange rate differences, Unrecognized tax benefits | (58) | (41) | 63 |
Unrecognized tax benefits, balance at end of period | 1,170 | 1,322 | 1,298 |
Penalties and interest related to unrecognized tax benefits: | |||
Beginning balance of penalties and interest related to unrecognized tax benefits | 199 | 192 | 233 |
Net change due to acquisitions and divestments, penalties and interest | (6) | 0 | |
Increase relating to prior year tax positions, penalties and interest | 36 | 58 | 96 |
Decrease relating to prior year tax positions, penalties and interest | (12) | (3) | (57) |
Increase relating to current year tax positions, penalties and interest | 4 | 7 | 5 |
Decrease due to settlements with tax authorities, penalties and interest | (14) | (20) | (75) |
Decrease as a result of the applicable statute of limitations, penalties and interest | (23) | (22) | (16) |
Exchange rate differences, penalties and interest | (10) | (7) | 6 |
Ending balance of penalties and interest related to unrecognized tax benefits | 180 | 199 | 192 |
Total unrecognized tax benefits, including penalties and interest: | |||
Classification as unrecognized tax items at beginning | 1,521 | 1,490 | 1,339 |
Net change due to acquisitions and divestments | 10 | 1 | |
Increase relating to prior year tax positions | 62 | 298 | 394 |
Decrease relating to prior year tax positions | (110) | (45) | (218) |
Increase relating to current year tax positions | 84 | 105 | 395 |
Decrease due to settlements with tax authorities | (45) | (195) | (415) |
Decrease as a result of the applicable statute of limitations | (94) | (94) | (75) |
Exchange rate differences | (68) | (48) | 69 |
Balance at end, which would, if recognized, affect the effective tax rate | 1,350 | 1,521 | 1,490 |
Increase relating to current year tax positions, Unrecognized tax benefits, interpretation of tax law and double tax treaty | 69 | 72 | 381 |
Expected resolution of unrecognized tax benefit related to pending court case | 63 | ||
Increases relating to current tax year positions, interpretation of tax law and double tax agreement discontinued operations | 301 | ||
Increase relating to prior period tax positions, interpretation of tax law and double tax treaty agreement | 26 | 240 | 73 |
Decrease relating to prior year tax positions, change of interpretation of tax law in Asia | 42 | 85 | |
Decrease related to prior year tax positions change tax risk assessments | $ 94 | $ 33 | $ 59 |
Income taxes - Open tax years s
Income taxes - Open tax years subject to examination (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Europe [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2015 |
United States [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2019 |
Rest of Americas [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2018 |
China [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2013 |
Rest of Asia, Middle East and Africa [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2017 |
Employee benefits - Change in b
Employee benefits - Change in benefit obligation and fair value of plan assets (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) Item | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of countries defined benefit pension risks transferred | Item | 3 | ||
Number of defined benefit pension plans settled | Item | 2 | ||
Defined benefit plan payment for transferred plan transaction | $ 309 | ||
Charges included in net periodic benefit cost as curtailments, settlements and special termination benefits | 520 | ||
Pension charges | 143 | ||
Pension obligation in discontinued operations | 101 | ||
Amounts recognized in accumulated other comprehensive loss | |||
Amounts recognized in AOCI attributable to Noncontrolling interests | $ 1 | $ 0 | 1 |
Defined pension benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets at January 1 | 8,576 | ||
Fair value of plan assets at December 31 | 6,355 | 8,576 | |
Amounts recognized in accumulated other comprehensive loss | |||
Net actuarial (loss) gain | (1,183) | (1,540) | (2,038) |
Prior service credit | 56 | 72 | 75 |
Amount recognized in OCI and NCI | (1,127) | (1,468) | (1,963) |
Taxes associated with amount recognized in OCI and NCI | 266 | 352 | 374 |
Amount recognized in OCI and NCI, net of tax | (861) | (1,116) | (1,589) |
Defined pension benefits | Switzerland | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit obligations at January 1 | 3,434 | 3,870 | |
Service cost | 50 | 61 | 74 |
Interest cost | 13 | 6 | |
Interest cost | (5) | ||
Contributions by plan participants | 34 | 36 | |
Benefit payments | (96) | (130) | |
Settlements | (92) | (124) | |
Benefit obligations of businesses acquired (divested) | (328) | 0 | |
Actuarial (gain) loss | (478) | (140) | |
Plan amendments and other | 0 | 0 | |
Exchange rate differences | (80) | (134) | |
Benefit obligation at December 31 | 2,457 | 3,434 | 3,870 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets at January 1 | 4,113 | 4,133 | |
Actual return on plan assets | (310) | 279 | |
Contributions by employer | 37 | 63 | |
Contributions by plan participants | 34 | 36 | |
Benefit payments | (96) | (130) | |
Settlements | (92) | (124) | |
Plan assets of businesses acquired (divested) | (414) | 0 | |
Plan amendments and other | 0 | 0 | |
Exchange rate differences | (89) | (144) | |
Fair value of plan assets at December 31 | 3,183 | 4,113 | 4,133 |
Funded status-overfunded (underfunded) | 726 | 679 | |
Defined pension benefits | International | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit obligations at January 1 | 5,115 | 5,527 | |
Service cost | 38 | 47 | 92 |
Interest cost | 87 | 72 | 111 |
Contributions by plan participants | 10 | 8 | |
Benefit payments | (234) | (207) | |
Settlements | (36) | (84) | |
Benefit obligations of businesses acquired (divested) | (2) | (46) | |
Actuarial (gain) loss | (1,075) | (15) | |
Plan amendments and other | (3) | 13 | |
Exchange rate differences | (328) | (200) | |
Benefit obligation at December 31 | 3,572 | 5,115 | 5,527 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets at January 1 | 4,463 | 4,608 | |
Actual return on plan assets | (789) | 197 | |
Contributions by employer | 58 | 124 | |
Contributions by plan participants | 10 | 8 | |
Benefit payments | (234) | (207) | |
Settlements | (36) | (84) | |
Plan assets of businesses acquired (divested) | (1) | (50) | |
Plan amendments and other | 0 | 14 | |
Exchange rate differences | (299) | (147) | |
Fair value of plan assets at December 31 | 3,172 | 4,463 | 4,608 |
Funded status-overfunded (underfunded) | (400) | (652) | |
Other postretirement benefits | |||
Amounts recognized in accumulated other comprehensive loss | |||
Net actuarial (loss) gain | 32 | 21 | 21 |
Prior service credit | 5 | 7 | 11 |
Amount recognized in OCI and NCI | 37 | 28 | 32 |
Taxes associated with amount recognized in OCI and NCI | 0 | 0 | 0 |
Amount recognized in OCI and NCI, net of tax | 37 | 28 | 32 |
Other postretirement benefits | International | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit obligations at January 1 | 71 | 98 | |
Service cost | 0 | 1 | 1 |
Interest cost | 1 | 2 | 3 |
Contributions by plan participants | 0 | 0 | |
Benefit payments | (7) | (9) | |
Settlements | 0 | 0 | |
Benefit obligations of businesses acquired (divested) | 0 | (11) | |
Actuarial (gain) loss | (14) | (8) | |
Plan amendments and other | 0 | (2) | |
Exchange rate differences | (1) | 0 | |
Benefit obligation at December 31 | 50 | 71 | 98 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets at January 1 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Contributions by employer | 7 | 9 | |
Contributions by plan participants | 0 | 0 | |
Benefit payments | (7) | (9) | |
Settlements | 0 | 0 | |
Plan assets of businesses acquired (divested) | 0 | 0 | |
Plan amendments and other | 0 | 0 | |
Exchange rate differences | 0 | 0 | |
Fair value of plan assets at December 31 | 0 | 0 | $ 0 |
Funded status-overfunded (underfunded) | $ (50) | $ (71) |
Employee benefits - Balance she
Employee benefits - Balance sheet location and funded status (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Underfunded plans-Current | $ (38) | $ (41) | |
Underfunded plans-Noncurrent | (719) | (1,025) | |
Pension and other employee benefits | 916 | 892 | |
Current liabilities. | |||
Other employee-related benefits, Current | (10) | (8) | |
Pension and other employee benefits, Current | (38) | (41) | |
Non-current liabilities | |||
Other employee-related benefits, Noncurrent | (108) | (122) | |
Pension and other employee benefits, Noncurrent | (719) | (1,025) | |
Funded status, difference of benefit obligation and plan assets | |||
ABO | 5,953 | 8,452 | |
Switzerland | PBO exceeds fair value of plan assets | |||
Funded status, difference of benefit obligation and plan assets | |||
PBO | 9 | 12 | |
ABO | 9 | 12 | |
Fair value of plan assets | 9 | 8 | |
Switzerland | ABO exceeds fair value of plan assets | |||
Funded status, difference of benefit obligation and plan assets | |||
PBO | 9 | 12 | |
ABO | 9 | 12 | |
Fair value of plan assets | 9 | 8 | |
International | PBO exceeds fair value of plan assets | |||
Funded status, difference of benefit obligation and plan assets | |||
PBO | 2,274 | 2,994 | |
ABO | 2,222 | 2,917 | |
Fair value of plan assets | 1,689 | 2,133 | |
International | ABO exceeds fair value of plan assets | |||
Funded status, difference of benefit obligation and plan assets | |||
PBO | 2,274 | 2,979 | |
ABO | 2,222 | 2,905 | |
Fair value of plan assets | 1,689 | 2,119 | |
Defined pension benefits | |||
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Pension and other employee benefits | 915 | 891 | |
Funded status, difference of benefit obligation and plan assets | |||
Fair value of plan assets | 6,355 | 8,576 | |
Defined pension benefits | Underfunded Plan | |||
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Underfunded plans-Current | (22) | (23) | |
Underfunded plans-Noncurrent | (567) | (841) | |
Defined pension benefits | Switzerland | |||
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Funded status-overfunded (underfunded) | 726 | 679 | |
Funded status, difference of benefit obligation and plan assets | |||
PBO | 2,457 | 3,434 | $ 3,870 |
Fair value of plan assets | 3,183 | 4,113 | 4,133 |
Defined pension benefits | Switzerland | Overfunded Plan | |||
Funded status, difference of benefit obligation and plan assets | |||
Fair value of plan assets | 726 | 683 | |
Defined pension benefits | Switzerland | Underfunded Plan | |||
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Underfunded plans-Current | 0 | 0 | |
Underfunded plans-Noncurrent | 0 | (4) | |
Defined pension benefits | International | |||
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Funded status-overfunded (underfunded) | (400) | (652) | |
Funded status, difference of benefit obligation and plan assets | |||
PBO | 3,572 | 5,115 | 5,527 |
Fair value of plan assets | 3,172 | 4,463 | 4,608 |
Defined pension benefits | International | Overfunded Plan | |||
Funded status, difference of benefit obligation and plan assets | |||
Fair value of plan assets | 189 | 208 | |
Defined pension benefits | International | Underfunded Plan | |||
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Underfunded plans-Current | (22) | (23) | |
Underfunded plans-Noncurrent | (567) | (837) | |
Other postretirement benefits | |||
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Pension and other employee benefits | 1 | 1 | |
Other postretirement benefits | Underfunded Plan | |||
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Underfunded plans-Current | (6) | (10) | |
Underfunded plans-Noncurrent | (44) | (62) | |
Other postretirement benefits | International | |||
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Funded status-overfunded (underfunded) | (50) | (71) | |
Funded status, difference of benefit obligation and plan assets | |||
PBO | 50 | 71 | 98 |
Fair value of plan assets | 0 | 0 | $ 0 |
Other postretirement benefits | International | Overfunded Plan | |||
Funded status, difference of benefit obligation and plan assets | |||
Fair value of plan assets | 0 | 0 | |
Other postretirement benefits | International | Underfunded Plan | |||
Defined Benefit Plan Amounts Recognized in Balance Sheet | |||
Underfunded plans-Current | (6) | (7) | |
Underfunded plans-Noncurrent | $ (44) | $ (64) |
Employee benefits - Net periodi
Employee benefits - Net periodic benefit costs and assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net periodic benefit cost: | |||
Non-operational pension cost (credit) | $ (115) | $ (166) | $ 401 |
Discontinued Operations | |||
Net periodic benefit cost: | |||
Net periodic benefit cost | 121 | ||
Defined pension benefits | Switzerland | |||
Net periodic benefit cost: | |||
Service cost | 50 | 61 | 74 |
Operational pension cost | 50 | 61 | 74 |
Interest cost | (5) | ||
Interest cost | 13 | 6 | |
Expected return on plan assets | (117) | (116) | (123) |
Amortization of prior service cost (credit) | (9) | (9) | (11) |
Amortization of net actuarial loss | 0 | 0 | 7 |
Curtailments, settlements and special termination benefits | 4 | 1 | 6 |
Non-operational pension cost (credit) | (109) | (129) | (115) |
Net periodic benefit cost | $ (59) | $ (68) | $ (41) |
Weighted-average assumptions to determine benefit obligations | |||
Discount rate (as a percent) | 2.20% | 0.20% | |
Rate of compensation increase (as a percent) | 0% | 0% | |
Rate of pension increase (as a percent) | 0% | 0% | |
Cash balance interest credit rate (as a percent) | 2% | 1% | |
Weighted-average assumptions to determine the Net periodic benefit cost | |||
Discount rate (as a percent) | 0.70% | 0% | 0.30% |
Expected long-term rate of return on plan assets (as a percent) | 3.30% | 3% | 3% |
Rate of compensation increase (as a percent) | 0% | 0% | 0% |
Cash balance interest credit rate (as a percent) | 1.30% | 1% | 1% |
Defined pension benefits | International | |||
Net periodic benefit cost: | |||
Service cost | $ 38 | $ 47 | $ 92 |
Operational pension cost | 38 | 47 | 92 |
Interest cost | 87 | 72 | 111 |
Expected return on plan assets | (153) | (178) | (253) |
Amortization of prior service cost (credit) | (2) | (2) | 2 |
Amortization of net actuarial loss | 58 | 67 | 109 |
Curtailments, settlements and special termination benefits | 7 | 7 | 644 |
Non-operational pension cost (credit) | (3) | (34) | 613 |
Net periodic benefit cost | $ 35 | $ 13 | $ 705 |
Weighted-average assumptions to determine benefit obligations | |||
Discount rate (as a percent) | 4.80% | 2.10% | |
Rate of compensation increase (as a percent) | 1.80% | 1.50% | |
Rate of pension increase (as a percent) | 1.80% | 1.70% | |
Cash balance interest credit rate (as a percent) | 2.70% | 2.10% | |
Weighted-average assumptions to determine the Net periodic benefit cost | |||
Discount rate (as a percent) | 2.10% | 1.60% | 1.90% |
Expected long-term rate of return on plan assets (as a percent) | 3.70% | 4% | 4.30% |
Rate of compensation increase (as a percent) | 1.50% | 1% | 2.20% |
Cash balance interest credit rate (as a percent) | 2.10% | 2.10% | 1.60% |
Other postretirement benefits | |||
Non-pension postretirement benefit plans, participant contributions | |||
Health care cost trend rate assumed for next year (as a percent) | 5.60% | 5.10% | |
Rate to which the trend rate is assumed to decline (the ultimate trend rate), (as a percent) | 4.50% | 4.50% | |
Year that the rate reaches the ultimate trend rate | 2029 | 2026 | |
Other postretirement benefits | International | |||
Net periodic benefit cost: | |||
Service cost | $ 0 | $ 1 | $ 1 |
Operational pension cost | 0 | 1 | 1 |
Interest cost | 1 | 2 | 3 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (2) | (3) | (2) |
Amortization of net actuarial loss | (3) | (2) | (3) |
Curtailments, settlements and special termination benefits | 0 | 0 | 0 |
Non-operational pension cost (credit) | (4) | (3) | (2) |
Net periodic benefit cost | $ (4) | $ (2) | $ (1) |
Weighted-average assumptions to determine benefit obligations | |||
Discount rate (as a percent) | 5.30% | 2.60% | |
Rate of compensation increase (as a percent) | 0.30% | 0.30% | |
Rate of pension increase (as a percent) | 0% | 0% | |
Cash balance interest credit rate (as a percent) | 0% | 0% | |
Weighted-average assumptions to determine the Net periodic benefit cost | |||
Discount rate (as a percent) | 2% | 2.10% | 2.80% |
Expected long-term rate of return on plan assets (as a percent) | 0% | 0% | 0% |
Rate of compensation increase (as a percent) | 0.10% | 0.20% | 0.20% |
Cash balance interest credit rate (as a percent) | 0% | 0% | 0% |
Employee benefits - Target asse
Employee benefits - Target asset allocation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Expected long-term return on global asset allocation (as a percent) | 4.50% | |
Company's capital stock and debit instruments included in plan assets | $ 7 | $ 8 |
Period of asset/liability management studies | 3 years | |
Switzerland | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation (as a percent) | 100% | |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation (as a percent) | 100% | |
Equity securities | Switzerland | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation (as a percent) | 15% | |
Equity securities | International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation (as a percent) | 16% | |
Fixed income | Switzerland | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation (as a percent) | 54% | |
Fixed income | International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation (as a percent) | 72% | |
Real estate | Switzerland | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation (as a percent) | 26% | |
Real estate | International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation (as a percent) | 4% | |
Other | Switzerland | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation (as a percent) | 5% | |
Other | International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target asset allocation (as a percent) | 8% |
Employee benefits - Fair value
Employee benefits - Fair value of plan assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Real estate funds lock-in period | 3 years | |
Private equity | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Total unfunded commitments | $ 114 | $ 125 |
Defined pension benefits | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 6,355 | 8,576 |
Defined pension benefits | Equity securities | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 77 | 125 |
Defined pension benefits | Mutual funds/commingled funds | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 748 | 1,049 |
Defined pension benefits | Emerging market mutual funds/commingled funds | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 96 | 218 |
Defined pension benefits | Government and corporate securities | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 1,157 | 1,680 |
Defined pension benefits | Government and corporate mutual funds/commingled funds | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 2,189 | 3,121 |
Defined pension benefits | Emerging market bonds - mutual funds/commingled funds | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 315 | 428 |
Defined pension benefits | Real estate | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 1,172 | 1,326 |
Defined pension benefits | Insurance contracts | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 57 | 74 |
Defined pension benefits | Cash and short-term investments | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 253 | 233 |
Defined pension benefits | Private equity | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 291 | 322 |
Defined pension benefits | Level 1 | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 322 | 513 |
Defined pension benefits | Level 1 | Equity securities | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 77 | 124 |
Defined pension benefits | Level 1 | Government and corporate securities | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 121 | 314 |
Defined pension benefits | Level 1 | Cash and short-term investments | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 124 | 75 |
Defined pension benefits | Level 2 | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 4,624 | 6,480 |
Defined pension benefits | Level 2 | Equity securities | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 1 | |
Defined pension benefits | Level 2 | Mutual funds/commingled funds | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 748 | 1,049 |
Defined pension benefits | Level 2 | Emerging market mutual funds/commingled funds | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 96 | 218 |
Defined pension benefits | Level 2 | Government and corporate securities | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 1,036 | 1,366 |
Defined pension benefits | Level 2 | Government and corporate mutual funds/commingled funds | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 2,189 | 3,121 |
Defined pension benefits | Level 2 | Emerging market bonds - mutual funds/commingled funds | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 315 | 428 |
Defined pension benefits | Level 2 | Insurance contracts | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 57 | 74 |
Defined pension benefits | Level 2 | Cash and short-term investments | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 129 | 158 |
Defined pension benefits | Level 2 | Private equity | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 54 | 65 |
Defined pension benefits | Not subject to leveling | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 1,409 | 1,583 |
Defined pension benefits | Not subject to leveling | Real estate | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | 1,172 | 1,326 |
Defined pension benefits | Not subject to leveling | Private equity | ||
Defined Benefit Plan, Fair Value of Pension Plan Assets | ||
Assets | $ 237 | $ 257 |
Employee benefits - Contributio
Employee benefits - Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contributions | |||
Contributions by employer, noncash, next fiscal year | $ 4 | ||
Expense of defined contribution plans | 269 | $ 278 | $ 205 |
Defined pension benefits | |||
Contributions | |||
Contributions by employer, noncash | 12 | 53 | |
Estimated contribution by employer, next fiscal year | 69 | ||
Defined pension benefits | Switzerland | |||
Contributions | |||
Total contributions to defined benefit pension and other postretirement benefit plans | 37 | 63 | |
Of which, discretionary contributions to defined benefit pension plans | 0 | 0 | |
Expected future cash flows in respect of pension and other postretirement benefit plans | |||
2023 | 212 | ||
2024 | 211 | ||
2025 | 195 | ||
2026 | 195 | ||
2027 | 186 | ||
Years 2028-2032 | 870 | ||
Defined pension benefits | International | |||
Contributions | |||
Total contributions to defined benefit pension and other postretirement benefit plans | 58 | 124 | |
Of which, discretionary contributions to defined benefit pension plans | 18 | 61 | |
Expected future cash flows in respect of pension and other postretirement benefit plans | |||
2023 | 245 | ||
2024 | 251 | ||
2025 | 248 | ||
2026 | 251 | ||
2027 | 258 | ||
Years 2028-2032 | 1,254 | ||
Other postretirement benefits | |||
Contributions | |||
Estimated contribution by employer, next fiscal year | 6 | ||
Other postretirement benefits | International | |||
Contributions | |||
Total contributions to defined benefit pension and other postretirement benefit plans | 7 | 9 | |
Of which, discretionary contributions to defined benefit pension plans | 0 | $ 0 | |
Expected future cash flows in respect of pension and other postretirement benefit plans | |||
2023 | 6 | ||
2024 | 6 | ||
2025 | 6 | ||
2026 | 5 | ||
2027 | 5 | ||
Years 2028-2032 | $ 18 |
Share-based payment arrangeme_3
Share-based payment arrangements - General and MIP (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) SFr / shares Item shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2019 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based payment plans | Item | 3 | |||
Share-based payment arrangements | $ | $ 42,000,000 | $ 59,000,000 | $ 44,000,000 | |
Shares that could be issued out of contingent capital for share-based payment arrangements (in shares) | 94,000,000 | |||
Treasury stock that could be used to settle share-based payment arrangements (in shares) | 25,000,000 | |||
Treasury stock (in shares) | 100,000,000 | 95,000,000 | ||
Consideration from key employees from options and cash-settled WARs | $ | $ 0 | |||
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting period | 3 years | |||
Expiration period after date of grant | 6 years | |||
Summary of the activity related to share-based compensation arrangement | ||||
Number of options Granted | 0 | 0 | 0 | |
Number of options Exercised | (69,000,000) | |||
Number of shares outstanding at end | 101,900,000 | |||
Weighted-average remaining contractual term, Outstanding | 1 year 10 months 24 days | |||
Options outstanding, Intrinsic value | $ | $ 166,000,000 | |||
Cash received upon exercise of options and warrants | $ | 330,000,000 | |||
Aggregate intrinsic value of instruments exercised | $ | $ 143,000,000 | $ 313,000,000 | $ 38,000,000 | |
Shares delivered out of treasury stock exercised | 14,000,000 | |||
Options conversion with ratio of 5:1 [Member] | ||||
Summary of the activity related to share-based compensation arrangement | ||||
Number of shares outstanding at end | 20,400,000 | |||
Exercise price of 21.23 | Options | ||||
Summary of the activity related to share-based compensation arrangement | ||||
Number of shares outstanding at end | 6,600,000 | |||
Weighted-average remaining contractual term, Outstanding | 7 months 6 days | |||
Exercise price (in Swiss francs) | SFr / shares | 21.23 | |||
Exercise price of 21.23 | Options conversion with ratio of 5:1 [Member] | ||||
Summary of the activity related to share-based compensation arrangement | ||||
Number of shares outstanding at end | 1,300,000 | |||
Exercise price of 22.05 | Options | ||||
Summary of the activity related to share-based compensation arrangement | ||||
Number of shares outstanding at end | 61,500,000 | |||
Weighted-average remaining contractual term, Outstanding | 1 year 8 months 12 days | |||
Exercise price (in Swiss francs) | SFr / shares | 22.05 | |||
Exercise price of 22.05 | Options conversion with ratio of 5:1 [Member] | ||||
Summary of the activity related to share-based compensation arrangement | ||||
Number of shares outstanding at end | 12,300,000 | |||
Exercise price of 17.63 | Options | ||||
Summary of the activity related to share-based compensation arrangement | ||||
Number of shares outstanding at end | 33,800,000 | |||
Weighted-average remaining contractual term, Outstanding | 2 years 8 months 12 days | |||
Exercise price (in Swiss francs) | SFr / shares | 17.63 | |||
Exercise price of 17.63 | Options conversion with ratio of 5:1 [Member] | ||||
Summary of the activity related to share-based compensation arrangement | ||||
Number of shares outstanding at end | 6,800,000 |
Share-based payment arrangeme_4
Share-based payment arrangements - WARs (Details) - WARs - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Aggregate fair value of outstanding WARs | $ 15 | $ 29 | |
Summary of the activity related to share-based compensation arrangements. | |||
Granted (in number of WARs) | 0 | 0 | 0 |
End of period (in number of shares) | 8,000,000 | ||
Share-based liabilities paid upon exercise of WARs | $ 25 |
Share-based payment arrangeme_5
Share-based payment arrangements - ESAP (Details) - ESAP SFr / shares in Units, $ / shares in Units, shares in Millions, SFr in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2022 $ / shares | Oct. 31, 2022 SFr / shares | Dec. 31, 2022 CHF (SFr) Item $ / shares SFr / shares shares | Dec. 31, 2022 CHF (SFr) SFr / shares Item shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 SFr / shares | Dec. 31, 2020 $ / shares | Dec. 31, 2020 SFr / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Length of each savings period under the employee share acquisition plan (ESAP) | 12 months | 12 months | ||||||
Number of ABB Ltd shares representing each ADS in the United States | Item | 1 | 1 | ||||||
Contractual term | 1 year | 1 year | ||||||
Time period of interest rate used as the basis for the risk-free rate | 1 year | 1 year | ||||||
Expected volatility (as a percent) | 25% | 25% | 20% | 24% | 24% | |||
Dividend yield (as a percent) | 3% | 3% | 2.90% | 3.80% | 3.80% | |||
Expected term | 1 year | 1 year | 1 year | 1 year | 1 year | |||
Risk-free interest rate (as a percent) | 1.10% | 1.10% | (0.60%) | (0.70%) | (0.70%) | |||
Summary of the activity related to share-based compensation arrangement | ||||||||
Number of shares outstanding at beginning | shares | 1.8 | 1.8 | ||||||
Number of shares Granted | shares | 1.8 | 1.8 | ||||||
Number of shares Forfeited | shares | (0.2) | (0.2) | ||||||
Number of options Exercised | shares | (0.1) | (0.1) | ||||||
Number of shares not exercised (savings returned plus interest) | shares | (1.5) | (1.5) | ||||||
Number of shares outstanding at end | shares | 1.8 | 1.8 | 1.8 | |||||
Number of shares vested and expected to vest | shares | 1.8 | 1.8 | ||||||
Number of shares exercisable, vested and expected to vest | shares | 0 | 0 | ||||||
Weighted-average exercise price, Outstanding at beginning of period (in Swiss francs per share) | SFr / shares | SFr 30.32 | |||||||
Weighted-average exercise price, Granted (in Swiss francs per share) | (per share) | $ 32.10 | SFr 29.16 | $ 28.09 | 27.99 | $ 33.35 | SFr 30.32 | $ 24.93 | SFr 22.87 |
Weighted-average exercise price, Forfeited (in Swiss francs per share) | SFr / shares | 30.28 | |||||||
Weighted-average exercise price, Exercised (in Swiss francs per share) | SFr / shares | SFr 29.16 | |||||||
Weighted-average exercise price, Not exercised (savings returned plus interest) (in Swiss francs per share) | SFr / shares | 29.16 | |||||||
Weighted-average exercise price, Outstanding at end of period (in Swiss francs per share) | SFr / shares | SFr 27.99 | 30.32 | ||||||
Weighted-average exercise price, Vested and expected to vest (in Swiss francs per share) | SFr / shares | $ 27.99 | 27.99 | ||||||
Weighted-average exercise price, Vested and expected to vest, Exercisable (in Swiss francs per share) | SFr / shares | $ 0 | SFr 0 | ||||||
Weighted-average remaining contractual term, Outstanding | 9 months 18 days | 9 months 18 days | ||||||
Weighted-average remaining contractual term, Vested and expected to vest | 9 months 18 days | 9 months 18 days | ||||||
Options outstanding, Intrinsic value | SFr | $ 0.1 | SFr 0.1 | ||||||
Vested and expected to vest, Aggregate intrinsic value | SFr | 0.1 | 0.1 | ||||||
Vested and expected to vest, Exercisable, Aggregate intrinsic value | SFr | $ 0 | SFr 0 | ||||||
Aggregate intrinsic value of instruments exercised | $ | $ 14 | |||||||
Weighted-average grant-date fair value (per option) | SFr / shares | SFr 2.47 | SFr 1.96 | SFr 1.67 | |||||
Spinoff [Member] | ||||||||
Summary of the activity related to share-based compensation arrangement | ||||||||
Weighted-average exercise price, Granted (in Swiss francs per share) | (per share) | $ 32.10 | SFr 29.16 |
Share-based payment arrangeme_6
Share-based payment arrangements - LTIP (Details) shares in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) SFr / shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2021 SFr / shares | Dec. 31, 2020 USD ($) | Dec. 31, 2020 SFr / shares | |
Restricted shares | ||||||
Summary of the activity related to share-based compensation arrangements. | ||||||
Vesting period | 3 years | |||||
LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Service condition period for eligibility | 3 years | |||||
Component based on earnings per share, weighted percent | 50% | |||||
Component based on shareholder return, weighted percent | 30% | |||||
Component based on CO2e reductions, weighted percent | 20% | |||||
Summary of the activity related to share-based compensation arrangements. | ||||||
Unrecognized compensation cost at end of period | $ | $ 50 | $ 50 | ||||
Weighted average period over which unrecognized share-based compensation costs are expected to be reported | 1 year 9 months 18 days | |||||
LTIP | Performance shares | ||||||
Summary of the activity related to share-based compensation arrangements. | ||||||
Beginning of period (in number of shares) | 1.5 | |||||
Granted (in number of shares) | 0.7 | |||||
Turbocharging Division spin-off (in number of shares) | 0.1 | |||||
Vested (in number of shares) | (0.3) | |||||
Forfeited (in number of shares) | (0.1) | |||||
End of period (in number of shares) | 1.9 | 1.5 | ||||
Weighted-average grant-date fair value of shares Nonvested at beginning of period (in Swiss francs per share) | SFr / shares | $ 23.23 | |||||
Weighted-average grant-date fair value of shares Granted (in Swiss francs per share) | SFr / shares | 33.33 | SFr 38.92 | SFr 10.50 | |||
Weighted-average grant-date fair value of shares Vested (in Swiss francs per share) | SFr / shares | 23.12 | |||||
Weighted-average grant-date fair value of shares Forfeited (in Swiss francs per share) | SFr / shares | 26.96 | |||||
Weighted-average grant-date fair value of shares Nonvested at end of period (in Swiss francs per share) | SFr / shares | 27.01 | 23.23 | ||||
Aggregate fair value of shares, at the dates of grant | $ | $ 26 | $ 37 | ||||
LTIP | Restricted shares | ||||||
Summary of the activity related to share-based compensation arrangements. | ||||||
Beginning of period (in number of shares) | 2 | |||||
Granted (in number of shares) | 0.8 | |||||
Turbocharging Division spin-off (in number of shares) | 0.1 | |||||
Vested (in number of shares) | (0.1) | |||||
Forfeited (in number of shares) | (0.2) | |||||
End of period (in number of shares) | 2.6 | 2 | ||||
Weighted-average grant-date fair value of shares Nonvested at beginning of period (in Swiss francs per share) | SFr / shares | 20.61 | |||||
Weighted-average grant-date fair value of shares Granted (in Swiss francs per share) | SFr / shares | 30.52 | 26.39 | SFr 15.76 | |||
Weighted-average grant-date fair value of shares Vested (in Swiss francs per share) | SFr / shares | 19.60 | |||||
Weighted-average grant-date fair value of shares Forfeited (in Swiss francs per share) | SFr / shares | 23.72 | |||||
Weighted-average grant-date fair value of shares Nonvested at end of period (in Swiss francs per share) | SFr / shares | $ 23.65 | SFr 20.61 | ||||
Aggregate fair value of shares, at the dates of grant | $ | $ 27 | $ 26 | $ 22 | |||
TSR component of LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period when shares will be delivered based on Company results | 3 years | |||||
Limit on the actual number of shares received after the evaluation period, as a percentage of the conditional grant | 200% | |||||
EPS component of LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period of weighted cumulative earnings per share performance | 3 years | |||||
Limit on the actual number of shares received after the evaluation period, as a percentage of the conditional grant | 200% | |||||
ESG component of LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Limit on the actual number of shares received after the evaluation period, as a percentage of the conditional grant | 200% | |||||
Summary of the activity related to share-based compensation arrangements. | ||||||
Share-based compensation arrangement by share-based payment award period of ESG scope 1 and 2 CO2 emissions calculation of performance component | 3 years |
Stockholders' equity - General
Stockholders' equity - General and dividends (Details) $ in Millions | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2022 SFr / shares | Mar. 31, 2021 USD ($) | Mar. 31, 2021 SFr / shares | Jul. 31, 2020 shares | Apr. 30, 2020 USD ($) | Mar. 31, 2020 SFr / shares | Apr. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | |
Equity | ||||||||||
Company's authorized shares | 2,469,000,000 | 2,557,000,000 | ||||||||
Company's registered and issued shares | 1,965,000,000 | 2,053,000,000 | ||||||||
Distribution declared to ABB Ltd's shareholders (in Swiss francs per share) | SFr / shares | SFr 0.82 | SFr 0.80 | SFr 0.80 | |||||||
Distribution to ABB Ltd's shareholders | $ | $ 1,730 | $ 1,758 | $ 1,700 | $ 1,700 | $ 1,730 | $ 1,758 | ||||
Percent of share capital intended to purchase | 10% | |||||||||
Additional Maximum Share Intended On Purchasing | 180,000,000 | |||||||||
Retained earnings | ||||||||||
Equity | ||||||||||
Distribution to ABB Ltd's shareholders | $ | $ 1,700 | $ 1,730 | $ 1,758 |
Stockholders' equity - Treasury
Stockholders' equity - Treasury stock activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares repurchased/cancelled | 129,000,000 | 90,000,000 | |||||
Value of shares repurchased | $ 3,500 | $ 3,502 | $ 3,682 | $ 3,181 | $ 3,100 | ||
Treasury stock (in shares) | 100,000,000 | 95,000,000 | |||||
Cancellation of treasury shares (in shares) | 88,000,000 | 115,000,000 | |||||
Value of shares cancelled under the buyback program | $ 2,876 | $ 3,157 | |||||
Open market stock repurchases | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares repurchased/cancelled | 20,000,000 | 33,000,000 | 13,000,000 | ||||
Value of shares repurchased | $ 660 | $ 1,032 | $ 346 | ||||
Share buyback program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares repurchased/cancelled | 91,000,000 | 78,000,000 | 109,000,000 | ||||
Value of shares repurchased | $ 2,842 | $ 2,651 | $ 2,835 | ||||
Authorized amount of share buyback program | $ 3,000 | ||||||
Follow-up share buyback program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized amount of share buyback program | $ 4,300 |
Stockholders' equity - Obligati
Stockholders' equity - Obligations to deliver (Details) SFr / shares in Units, SFr in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | |||||||
Nov. 30, 2022 CHF (SFr) | Nov. 30, 2022 USD ($) | Jun. 30, 2022 shares | Jun. 30, 2021 shares | Mar. 31, 2021 shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 CHF (SFr) SFr / shares shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Mar. 31, 2022 shares | Dec. 31, 2022 USD ($) shares | Oct. 31, 2022 | |
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Call options held by bank (in shares) | 3,300,000 | 3,300,000 | ||||||||||
Call options held by the bank, weighted-average strike price (in Swiss francs per share) | SFr / shares | SFr 20.58 | |||||||||||
Shares repurchased/cancelled | 129,000,000 | 90,000,000 | ||||||||||
Cancellation of treasury shares (in shares) | 88,000,000 | 115,000,000 | ||||||||||
Sale of subsidiary shares | $ | $ 216 | $ 0 | $ 0 | |||||||||
ABB E-Mobility [Member] | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Percent of company owned | 92% | 92% | 100% | |||||||||
Minimum | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Call options held by the bank, strike price (in Swiss francs per share) | SFr / shares | SFr 17.63 | |||||||||||
Maximum | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Call options held by the bank, strike price (in Swiss francs per share) | SFr / shares | SFr 22.05 | |||||||||||
ABB Ltd (unconsolidated) | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Total statutory stockholders' equity | SFr 6,219 | $ 6,742 | ||||||||||
Share capital of ABB Ltd, Zurich | 236 | 256 | ||||||||||
Reserves of ABB Ltd, Zurich | 8,852 | 9,597 | ||||||||||
Restricted legal reserves for own shares of ABB Ltd, Zurich | 2,869 | 3,111 | ||||||||||
Share capital restricted and not available for distribution | SFr 47 | $ 51 | ||||||||||
Percentage of share capital restricted | 20% | 20% | ||||||||||
ABB E-Mobility [Member] | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Sale of subsidiary shares | SFr 203 | $ 216 | ||||||||||
Increase to additional paid in capital | $ | $ 120 | |||||||||||
Options under 2017 launch of MIP | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Strike price of options granted (in Swiss francs per share) | SFr / shares | SFr 21.23 | |||||||||||
Options under 2017 launch of MIP | Maximum | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Outstanding obligation of options granted (in shares) | 1,000,000 | 1,000,000 | ||||||||||
Options under 2018 launch of MIP | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Strike price of options granted (in Swiss francs per share) | SFr / shares | SFr 22.05 | |||||||||||
Options under 2018 launch of MIP | Maximum | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Outstanding obligation of options granted (in shares) | 12,000,000 | 12,000,000 | ||||||||||
Options under 2019 launch of MIP | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Strike price of options granted (in Swiss francs per share) | SFr / shares | SFr 17.63 | |||||||||||
Options under 2019 launch of MIP | Maximum | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Outstanding obligation of options granted (in shares) | 7,000,000 | 7,000,000 | ||||||||||
ESAP | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Shares issued from treasury stock (in shares) | 1,700,000 | 1,400,000 | ||||||||||
ESAP | Maximum | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Outstanding obligation of options granted (in shares) | 2,000,000 | 2,000,000 | ||||||||||
Other share-based payment arrangements | Maximum | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Outstanding obligation of options and shares granted (in shares) | 1,000,000 | 1,000,000 | ||||||||||
MIP | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Shares issued relating to call options (in shares) | 16,000,000 | 36,000,000 | 17,000,000 | |||||||||
LTIP 2022, 2021 and 2020 Launches | ||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||
Outstanding obligation of shares granted (in shares) | 8,000,000 | 8,000,000 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share | |||
Shares excluded from the calculation of diluted earnings (loss) per share | 2,000,000 | 0 | 79,000,000 |
Amounts attributable to ABB shareholders: | |||
Income from continuing operations, net of tax | $ 2,517 | $ 4,625 | $ 294 |
Income (loss) from discontinued operations, net of tax | (42) | (79) | 4,852 |
Net income attributable to ABB | $ 2,475 | $ 4,546 | $ 5,146 |
Weighted-average number of shares outstanding (in shares) | 1,899,000,000 | 2,001,000,000 | 2,111,000,000 |
Income from continuing operations, net of tax (in dollars per share) | $ 1.33 | $ 2.31 | $ 0.14 |
Income (loss) from discontinued operations, net of tax (in dollars per share) | (0.02) | (0.04) | 2.30 |
Net income (in dollars per share) | $ 1.30 | $ 2.27 | $ 2.44 |
Amounts attributable to ABB shareholders: | |||
Income from continuing operations, net of tax | $ 2,517 | $ 4,625 | $ 294 |
Income (loss) from discontinued operations, net of tax | (42) | (79) | 4,852 |
Net income attributable to ABB | $ 2,475 | $ 4,546 | $ 5,146 |
Weighted-average number of shares outstanding (in shares) | 1,899,000,000 | 2,001,000,000 | 2,111,000,000 |
Effect of dilutive securities: | |||
Call options and shares | 11,000,000 | 18,000,000 | 8,000,000 |
Adjusted weighted-average number of shares outstanding (in shares) | 1,910,000,000 | 2,019,000,000 | 2,119,000,000 |
Income from continued operations, net of tax (in dollars per share) | $ 1.32 | $ 2.29 | $ 0.14 |
Income (loss) from discontinued operations, net of tax (in dollars per share) | (0.02) | (0.04) | 2.29 |
Net income (in dollars per share) | $ 1.30 | $ 2.25 | $ 2.43 |
Other comprehensive income - Am
Other comprehensive income - Amounts recorded within "Total other comprehensive income (loss)" (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign currency translation adjustments, before tax: | |||
Foreign currency translation adjustments, before tax | $ (685) | $ (521) | $ 500 |
Net loss on complete or substantially complete liquidations of foreign subsidiaries, before tax | 5 | 0 | 0 |
Changes attributable to divestments, before tax | 41 | (9) | 519 |
Net change during the year | (639) | (530) | 1,019 |
Available-for-sale securities, before tax | |||
Net unrealized gains (losses) arising during the year, before tax | (28) | (13) | 31 |
Reclassification adjustments for net (gains) losses included in net income, before tax | 2 | (6) | (18) |
Changes attributable to divestments | 0 | 0 | (3) |
Net change during the year | (26) | (19) | 10 |
Pension and other postretirement plans: | |||
Prior service (costs) credits arising during the year, before tax | (2) | 2 | 55 |
Net actuarial gains (losses) arising during the year, before tax | 298 | 437 | (243) |
Amortization of prior service cost (credit) included in net income, before tax | (13) | (14) | (11) |
Amortization of net actuarial loss included in net income, before tax | 55 | 65 | 113 |
Net losses from pension settlements included in net income, before tax | (11) | (7) | (650) |
Changes attributable to divestments, before tax | (8) | (8) | 186 |
Net change during the year | 341 | 489 | 750 |
Cash flow hedge derivatives, before tax | |||
Net gains (losses) arising during the year, before tax | (10) | 7 | 2 |
Reclassification adjustments for net (gains) losses included in net income, before tax | 12 | (13) | (2) |
Net change during the year | 2 | (6) | 0 |
Total other comprehensive income (loss), before tax | (322) | (66) | 1,779 |
Foreign currency translation adjustments, tax effect | |||
Foreign currency translation adjustments, tax effect | 0 | 0 | (2) |
Net loss on complete or substantially complete liquidations of foreign subsidiaries, tax effect | 0 | 0 | 0 |
Changes attributable to divestments, tax effect | 0 | 0 | (2) |
Net change during the year, tax effect | 0 | 0 | 0 |
Available-for-sale securities, tax effect | |||
Net unrealized gains (losses) arising during the year, tax effect | 5 | 3 | (7) |
Reclassification adjustments for net (gains) losses included in net income | 0 | 1 | 4 |
Changes attributable to divestments | 0 | 0 | 0 |
Unrealized gains (losses) on available-for-sale securities, tax effect | 5 | 4 | (3) |
Pension and other postretirement plans, tax effect | |||
Prior service (costs) credits arising during the year, tax effect | 2 | (2) | (12) |
Net actuarial gains (losses) arising during the year, tax effect | (72) | (26) | 43 |
Amortization of prior service cost included in net income, tax effect | (3) | 0 | 0 |
Amortization of net actuarial loss included in net income, tax effect | (11) | 4 | (25) |
Net losses from settlements and curtailments included in net income, tax effect | 2 | 0 | 132 |
Changes attributable to divestments, tax effect | 0 | 2 | 35 |
Net change during the year | (86) | (22) | (161) |
Cash flow hedge derivatives, tax effect | |||
Net gains (losses) arising during the year, tax effect | (2) | 1 | 0 |
Reclassification adjustments for net (gains) losses included in net income, tax effect | 0 | 0 | 2 |
Net change during year, tax effect | (2) | 1 | 2 |
Total other comprehensive income (loss), tax effect | (83) | (17) | (164) |
Foreign currency translation adjustments, net of tax | |||
Foreign currency translation adjustments | (685) | (521) | 498 |
Net loss on complete or substantially complete liquidation of foreign subsidiaries | 5 | 0 | 0 |
Changes attributable to divestments | 41 | (9) | 519 |
Foreign currency translation adjustments, net of tax | (639) | (530) | 1,017 |
Available-for-sale securities, net of tax | |||
Net unrealized gains (losses) arising during the year, net of tax | (23) | (10) | 24 |
Reclassification adjustments for net (gains) losses included in net income | 2 | (5) | (14) |
Changes attributable to divestments | 0 | 0 | (3) |
Unrealized gains (losses) on available-for-sale securities | (21) | (15) | 7 |
Pension and other postretirement plans, net of tax | |||
Prior service credits arising during the year | 0 | 0 | 43 |
Net actuarial gains (losses) arising during the year | 226 | 411 | (200) |
Amortization of prior service credit included in net income | (16) | (14) | (11) |
Amortization of net actuarial loss included in net income | 44 | 69 | 88 |
Net losses from settlements and curtailments included in net income | 9 | 7 | 518 |
Changes attributable to divestments, net of tax | (8) | (6) | 151 |
Net change, net of tax | 255 | 467 | 589 |
Cash flow hedge derivatives, net of tax | |||
Net unrealized gains (losses) arising during the year | (12) | 8 | 2 |
Reclassification adjustments for net (gains) losses included in net income | 12 | (13) | 0 |
Unrealized gains (losses) of cash flow hedge derivatives | 0 | (5) | 2 |
Total other comprehensive income (loss), net of tax | $ (405) | $ (83) | $ 1,615 |
Other comprehensive income - Ch
Other comprehensive income - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning of the period | $ (4,088) | $ (4,002) | $ (5,590) |
Other comprehensive (loss) income before reclassifications | (494) | (112) | 367 |
Amounts reclassified from OCI | 89 | 29 | 1,248 |
Total other comprehensive income (loss) income | (405) | (83) | 1,615 |
Spin-off of the Turbocharging Division | (98) | ||
Less: Amounts attributable to noncontrolling interests and redeemable noncontrolling interests | (35) | ||
Less: Amounts attributable to noncontrolling interests | 4 | 27 | |
Balance at the end of the period | (4,556) | (4,088) | (4,002) |
Foreign currency translation adjustments | |||
Changes in component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning of the period | (2,993) | (2,460) | (3,450) |
Other comprehensive (loss) income before reclassifications | (685) | (521) | 498 |
Amounts reclassified from OCI | 46 | (9) | 519 |
Total other comprehensive income (loss) income | (639) | (530) | 1,017 |
Spin-off of the Turbocharging Division | (93) | ||
Less: Amounts attributable to noncontrolling interests and redeemable noncontrolling interests | (34) | ||
Less: Amounts attributable to noncontrolling interests | 4 | 27 | |
Balance at the end of the period | (3,691) | (2,993) | (2,460) |
Unrealized gains (losses) on available-for-sale securities | |||
Changes in component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning of the period | 2 | 17 | 10 |
Other comprehensive (loss) income before reclassifications | (23) | (10) | 24 |
Amounts reclassified from OCI | 2 | (5) | (17) |
Total other comprehensive income (loss) income | (21) | (15) | 7 |
Spin-off of the Turbocharging Division | 0 | ||
Less: Amounts attributable to noncontrolling interests and redeemable noncontrolling interests | 0 | ||
Less: Amounts attributable to noncontrolling interests | 0 | 0 | |
Balance at the end of the period | (19) | 2 | 17 |
Pension and other post-retirement plan adjustments | |||
Changes in component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning of the period | (1,089) | (1,556) | (2,145) |
Other comprehensive (loss) income before reclassifications | 226 | 411 | (157) |
Amounts reclassified from OCI | 29 | 56 | 746 |
Total other comprehensive income (loss) income | 255 | 467 | 589 |
Spin-off of the Turbocharging Division | (5) | ||
Less: Amounts attributable to noncontrolling interests and redeemable noncontrolling interests | (1) | ||
Less: Amounts attributable to noncontrolling interests | 0 | 0 | |
Balance at the end of the period | (838) | (1,089) | (1,556) |
Unrealized gains (losses) of cash flow hedge derivatives | |||
Changes in component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning of the period | (8) | (3) | (5) |
Other comprehensive (loss) income before reclassifications | (12) | 8 | 2 |
Amounts reclassified from OCI | 12 | (13) | 0 |
Total other comprehensive income (loss) income | 0 | (5) | 2 |
Spin-off of the Turbocharging Division | 0 | ||
Less: Amounts attributable to noncontrolling interests and redeemable noncontrolling interests | 0 | ||
Less: Amounts attributable to noncontrolling interests | 0 | 0 | |
Balance at the end of the period | $ (8) | $ (8) | $ (3) |
Other comprehensive income - Re
Other comprehensive income - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | $ (75) | $ 2,632 | $ 48 |
Non-operational pension (cost) credit | 115 | 166 | (401) |
Income (loss) from discontinued operations, net of tax | (43) | (80) | 4,860 |
Income from continuing operations before income taxes | 3,394 | 5,787 | 841 |
Tax | (757) | (1,057) | (496) |
Net income | 2,594 | 4,650 | 5,205 |
Foreign currency translation adjustments | Amounts reclassified out of "Accumulated other comprehensive loss" | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 46 | (9) | 519 |
Net loss on complete or substantially complete liquidations of foreign subsidiaries | Amounts reclassified out of "Accumulated other comprehensive loss" | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | 5 | 0 | 0 |
Changes attributable to divestments | Amounts reclassified out of "Accumulated other comprehensive loss" | Solar Inverters business | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | 0 | 0 | 99 |
Changes attributable to divestments | Amounts reclassified out of "Accumulated other comprehensive loss" | Other divestments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | 41 | (9) | 0 |
Changes attributable to divestments | Amounts reclassified out of "Accumulated other comprehensive loss" | Power Grids business [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 420 |
Pension and other post-retirement plan adjustments | Amounts reclassified out of "Accumulated other comprehensive loss" | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (Loss) from Continuing And Discontinued Operations before Income Taxes | 45 | 50 | 938 |
Income from continuing operations before income taxes | 45 | 50 | 938 |
Tax | (16) | 4 | (157) |
Net income | 29 | 56 | 746 |
Amounts reclassified from OCI to income from discontinued operations | 94 | ||
Amortization of prior service cost | Amounts reclassified out of "Accumulated other comprehensive loss" | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-operational pension (cost) credit | (13) | (14) | (11) |
Amortization of net actuarial losses | Amounts reclassified out of "Accumulated other comprehensive loss" | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-operational pension (cost) credit | 55 | 65 | 113 |
Net losses from pension and curtailments | Amounts reclassified out of "Accumulated other comprehensive loss" | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-operational pension (cost) credit | 11 | 7 | 650 |
Changes attributable to divestments | Amounts reclassified out of "Accumulated other comprehensive loss" | Other divestments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | (8) | (8) | 0 |
Other income (expense), net | 0 | 2 | 0 |
Changes attributable to divestments | Amounts reclassified out of "Accumulated other comprehensive loss" | Power Grids business [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 186 |
Income tax expense within discontinued operations | $ 0 | $ 0 | $ (35) |
Restructuring and related exp_3
Restructuring and related expenses (Details) - USD ($) $ in Millions | 12 Months Ended | 25 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Liabilities associated with reorganization. | ||||||
Costs incurred in | $ 149 | |||||
Cumulative costs incurred | 303 | $ 303 | ||||
Contract settlements | ||||||
Liabilities associated with reorganization. | ||||||
Expenses | $ 195 | |||||
Electrification | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 35 | |||||
Cumulative costs incurred | 85 | 85 | ||||
Process Automation | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 37 | |||||
Cumulative costs incurred | 61 | 61 | ||||
Motion | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 18 | |||||
Cumulative costs incurred | 25 | 25 | ||||
Robotics & Discrete Automation | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 10 | |||||
Cumulative costs incurred | 18 | 18 | ||||
Corporate and Other [Member] | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 49 | |||||
Cumulative costs incurred | 114 | 114 | ||||
OS Program | ||||||
Liabilities associated with reorganization. | ||||||
Liability at beginning of period | 53 | $ 123 | 99 | $ 65 | $ 0 | |
Expenses | 136 | 112 | 65 | |||
Expenses, net of change in estimates | (6) | 4 | ||||
Cash payments | (23) | (68) | (106) | (45) | ||
Changes in estimates | (10) | (30) | ||||
Exchange rate differences | (3) | (6) | 4 | (3) | ||
Liability at end of period | 21 | 53 | 123 | 99 | 65 | $ 123 |
Term of program (in years) | 2 years | |||||
Costs incurred in | 149 | |||||
Cumulative costs incurred | 303 | $ 303 | ||||
OS Program | Total cost of sales | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 38 | |||||
OS Program | SG&A expenses | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 37 | |||||
OS Program | Non-order related research and development | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 4 | |||||
OS Program | Other income (expense), net. | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 70 | |||||
OS Program | Employee severance costs | ||||||
Liabilities associated with reorganization. | ||||||
Liability at beginning of period | 52 | 121 | 99 | 65 | 0 | |
Expenses | 119 | 111 | 65 | |||
Expenses, net of change in estimates | (7) | 2 | ||||
Cash payments | (22) | (65) | (91) | (44) | ||
Changes in estimates | (10) | (30) | ||||
Exchange rate differences | (3) | (6) | 4 | (3) | ||
Liability at end of period | 20 | 52 | 121 | 99 | 65 | 121 |
Costs incurred in | 109 | |||||
Cumulative costs incurred | 255 | 255 | ||||
OS Program | Estimated contract settlement, loss order and other costs | ||||||
Liabilities associated with reorganization. | ||||||
Liability at beginning of period | 1 | 2 | 0 | 0 | 0 | |
Expenses | 17 | 1 | 0 | |||
Expenses, net of change in estimates | 1 | 2 | ||||
Cash payments | (1) | (3) | (15) | (1) | ||
Changes in estimates | 0 | 0 | ||||
Exchange rate differences | 0 | 0 | 0 | 0 | ||
Liability at end of period | 1 | 1 | 2 | $ 0 | $ 0 | 2 |
Costs incurred in | 17 | |||||
Cumulative costs incurred | 18 | 18 | ||||
OS Program | Inventory and long-lived asset impairments | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 23 | |||||
Cumulative costs incurred | 30 | $ 30 | ||||
Other restructuring-related activities | ||||||
Liabilities associated with reorganization. | ||||||
Liability at beginning of period | 212 | |||||
Liability at end of period | 198 | 212 | ||||
Costs incurred in | 297 | 156 | 194 | |||
Other restructuring-related activities | Total cost of sales | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 24 | 71 | 95 | |||
Other restructuring-related activities | SG&A expenses | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 40 | 21 | 50 | |||
Other restructuring-related activities | Non-order related research and development | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 2 | 2 | 10 | |||
Other restructuring-related activities | Other income (expense), net. | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 231 | 62 | 39 | |||
Other restructuring-related activities | Employee severance costs | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 81 | 101 | 164 | |||
Other restructuring-related activities | Estimated contract settlement, loss order and other costs | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | 209 | 31 | 18 | |||
Other restructuring-related activities | Inventory and long-lived asset impairments | ||||||
Liabilities associated with reorganization. | ||||||
Costs incurred in | $ 7 | $ 24 | $ 12 |
Operating segment and geograp_3
Operating segment and geographic data - General (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Benchmark percent for total revenue by geography (as a percent) | 10% | 10% | 10% |
Property, plant and equipment, net | Geographic concentration | United States | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 20% | 19% | |
Property, plant and equipment, net | Geographic concentration | China | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 13% | 12% | |
Property, plant and equipment, net | Geographic concentration | Switzerland | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 8% | 11% | |
Revenue | Geographic concentration | Excludes Switzerland | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 98% | 98% | 98% |
Operating segment and geograp_4
Operating segment and geographic data - Schedule of Segment revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 29,446 | $ 28,945 | $ 26,134 |
Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 29,446 | 28,945 | 26,026 |
Intersegment elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 108 |
Products | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 20,766 | 19,920 | 17,942 |
Systems | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,705 | 3,825 | 3,164 |
Services and software | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,975 | 5,200 | 4,920 |
Europe | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 10,285 | 10,529 | 9,708 |
The Americas | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 9,573 | 8,686 | 7,936 |
Asia, Middle East and Africa | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 9,588 | 9,730 | 8,382 |
United States | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 7,023 | 6,397 | 6,019 |
China | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,696 | 4,932 | 4,091 |
Electrification | |||
Segment Reporting Information [Line Items] | |||
Revenue | 14,105 | 13,187 | 11,924 |
Electrification | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 13,904 | 12,957 | 11,564 |
Electrification | Intersegment elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 201 | 230 | 360 |
Electrification | Products | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 12,179 | 10,706 | 9,951 |
Electrification | Systems | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 830 | 1,367 | 743 |
Electrification | Services and software | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 895 | 884 | 870 |
Electrification | Europe | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,449 | 4,517 | 4,008 |
Electrification | The Americas | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 5,332 | 4,465 | 4,050 |
Electrification | Asia, Middle East and Africa | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,123 | 3,975 | 3,506 |
Electrification | United States | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,918 | 3,304 | 3,093 |
Electrification | China | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,984 | 2,087 | 1,820 |
Motion | |||
Segment Reporting Information [Line Items] | |||
Revenue | 6,745 | 6,925 | 6,409 |
Motion | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 6,280 | 6,472 | 5,914 |
Motion | Intersegment elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 465 | 453 | 495 |
Motion | Products | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 5,380 | 5,555 | 5,040 |
Motion | Systems | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
Motion | Services and software | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 900 | 917 | 874 |
Motion | Europe | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,031 | 2,015 | 1,934 |
Motion | The Americas | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,148 | 2,346 | 2,173 |
Motion | Asia, Middle East and Africa | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,101 | 2,111 | 1,807 |
Motion | United States | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,787 | 1,952 | 1,846 |
Motion | China | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,147 | 1,156 | 926 |
Process Automation | |||
Segment Reporting Information [Line Items] | |||
Revenue | 6,044 | 6,259 | 5,792 |
Process Automation | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 6,013 | 6,214 | 5,681 |
Process Automation | Intersegment elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 31 | 45 | 111 |
Process Automation | Products | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,337 | 1,496 | 1,263 |
Process Automation | Systems | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,974 | 1,802 | 1,665 |
Process Automation | Services and software | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,702 | 2,916 | 2,753 |
Process Automation | Europe | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,248 | 2,416 | 2,322 |
Process Automation | The Americas | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,566 | 1,431 | 1,321 |
Process Automation | Asia, Middle East and Africa | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,199 | 2,367 | 2,038 |
Process Automation | United States | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 943 | 833 | 805 |
Process Automation | China | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 666 | 740 | 628 |
Robotics & Discrete Automation | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,181 | 3,297 | 2,907 |
Robotics & Discrete Automation | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,173 | 3,287 | 2,838 |
Robotics & Discrete Automation | Intersegment elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 8 | 10 | 69 |
Robotics & Discrete Automation | Products | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,863 | 2,159 | 1,635 |
Robotics & Discrete Automation | Systems | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 832 | 645 | 780 |
Robotics & Discrete Automation | Services and software | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 478 | 483 | 423 |
Robotics & Discrete Automation | Europe | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,494 | 1,578 | 1,429 |
Robotics & Discrete Automation | The Americas | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 524 | 439 | 385 |
Robotics & Discrete Automation | Asia, Middle East and Africa | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,155 | 1,270 | 1,024 |
Robotics & Discrete Automation | United States | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 373 | 308 | 270 |
Robotics & Discrete Automation | China | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 897 | 949 | 714 |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | (629) | (723) | (898) |
Corporate and Other [Member] | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 76 | 15 | 29 |
Corporate and Other [Member] | Intersegment elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | (705) | (738) | (927) |
Corporate and Other [Member] | Products | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 7 | 4 | 53 |
Corporate and Other [Member] | Systems | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 69 | 11 | (24) |
Corporate and Other [Member] | Services and software | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
Corporate and Other [Member] | Europe | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 63 | 3 | 15 |
Corporate and Other [Member] | The Americas | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3 | 5 | 7 |
Corporate and Other [Member] | Asia, Middle East and Africa | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 10 | 7 | 7 |
Corporate and Other [Member] | United States | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2 | 0 | 5 |
Corporate and Other [Member] | China | Operating | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 2 | $ 0 | $ 3 |
Revenue | Excludes Switzerland | Geographic Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk (as a percent) | 98% | 98% | 98% |
Operating segment and geograp_5
Operating segment and geographic data - Schedule of operational EBITA reconciliations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Operational EBITA: | $ 4,510 | $ 4,122 | $ 2,899 |
Acquisition-related amortization | (229) | (250) | (263) |
Restructuring, related and implementation costs | (347) | (160) | (410) |
Changes in obligations related to divested businesses | 88 | (9) | (218) |
Changes in pre-acquisition estimates | (10) | 6 | (11) |
Gains and losses from sale of business | (7) | 2,193 | (2) |
Fair value adjustment on assets and liabilities held for sale | 0 | 0 | (33) |
Acquisition- and divestment-related expenses and integration costs | (195) | (132) | (74) |
Other income/expenses relating to the Power Grids joint venture | (57) | (34) | (20) |
Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) | 32 | (54) | 67 |
Foreign exchange/commodity timing differences in income from operations: Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized | (48) | (2) | 26 |
Foreign exchange/commodity timing differences in income from operations: Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) | (15) | 20 | (33) |
Costs for divestment of Power Grids | 0 | 0 | (86) |
Regulatory, compliance and legal costs | (317) | 0 | (7) |
Business transformation costs | (152) | (92) | (37) |
Favorable resolution of an uncertain purchase price adjustment | 15 | 6 | 36 |
Gains and losses from sale of investments in equity-accounted companies | 43 | 0 | 0 |
Certain other fair value changes including asset impairments | 45 | 119 | (239) |
Other non-operational items | (19) | (15) | (2) |
Income from operations | 3,337 | 5,718 | 1,593 |
Interest and dividend income | 72 | 51 | 51 |
Interest and other finance expense | (130) | (148) | (240) |
Losses from extinguishment of debt | 0 | 0 | (162) |
Non-operational pension (cost) credit | 115 | 166 | (401) |
Income from continuing operations before taxes | 3,394 | 5,787 | 841 |
Goodwill impairment charges | 0 | 0 | 311 |
O S Program [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring, related and implementation costs | (67) | ||
ABB Way [Member] | |||
Segment Reporting Information [Line Items] | |||
Business transformation costs | (131) | (80) | |
Intersegment elimination [Member] | Non-Core and divested businesses | |||
Segment Reporting Information [Line Items] | |||
Operational EBITA: | 5 | (39) | (133) |
Intersegment elimination [Member] | Stranded corporate costs | |||
Segment Reporting Information [Line Items] | |||
Operational EBITA: | 0 | 0 | (40) |
Intersegment elimination [Member] | Corporate costs and other intersegment elimination | |||
Segment Reporting Information [Line Items] | |||
Operational EBITA: | (174) | (299) | (372) |
Operating | Electrification | |||
Segment Reporting Information [Line Items] | |||
Operational EBITA: | 2,328 | 2,121 | 1,681 |
Operating | Motion | |||
Segment Reporting Information [Line Items] | |||
Operational EBITA: | 1,163 | 1,183 | 1,075 |
Operating | Process Automation | |||
Segment Reporting Information [Line Items] | |||
Operational EBITA: | 848 | 801 | 451 |
Operating | Robotics & Discrete Automation | |||
Segment Reporting Information [Line Items] | |||
Operational EBITA: | $ 340 | $ 355 | $ 237 |
Operating segment and geograp_6
Operating segment and geographic data - Schedule of Depreciation and amortization, Capital expenditure, and Total assets by segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 814 | $ 893 | $ 915 |
Capital expenditure | 762 | 820 | 694 |
Total assets | 39,148 | 40,260 | 41,088 |
Equity method investments | 130 | 1,670 | |
Electrification | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 406 | 425 | 411 |
Capital expenditure | 385 | 345 | 316 |
Total assets | 13,992 | 12,831 | 12,800 |
Motion | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 141 | 172 | 182 |
Capital expenditure | 150 | 230 | 118 |
Total assets | 6,565 | 5,936 | 6,495 |
Process Automation | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 75 | 83 | 80 |
Capital expenditure | 100 | 85 | 75 |
Total assets | 4,598 | 5,009 | 5,008 |
Robotics & Discrete Automation | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 141 | 144 | 131 |
Capital expenditure | 86 | 96 | 65 |
Total assets | 4,901 | 4,860 | 4,794 |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 51 | 69 | 111 |
Capital expenditure | 41 | 64 | 120 |
Total assets | 9,092 | 11,624 | 11,991 |
Assets held for sale | $ 96 | 136 | 282 |
Corporate and Other [Member] | Hitachi ABB Power Grids | |||
Segment Reporting Information [Line Items] | |||
Equity method investments | $ 1,609 | $ 1,710 |
Operating segment and geograp_7
Operating segment and geographic data - Schedule of Geographical information for long-lived assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets at December 31 | $ 4,752 | $ 4,939 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets at December 31 | 2,533 | 2,670 |
The Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets at December 31 | 1,256 | 1,260 |
Asia, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets at December 31 | $ 963 | $ 1,009 |
Subsequent events (Details)
Subsequent events (Details) SFr / shares in Units, SFr in Millions, $ in Millions | 2 Months Ended | 3 Months Ended | ||||||
Feb. 23, 2023 USD ($) | Jan. 16, 2023 EUR (€) | Jan. 16, 2023 USD ($) | Feb. 23, 2023 CHF (SFr) SFr / shares | Feb. 23, 2023 USD ($) | Mar. 31, 2023 USD ($) | Feb. 01, 2023 | Jan. 19, 2023 USD ($) | |
Scenario Forecast [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Income taxes, release from provision | $ (200) | |||||||
Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from issuance of long term debt | € 1,235,000,000 | $ 1,338 | ||||||
Proposed distribution (in Swiss francs per share) | SFr / shares | SFr 0.84 | |||||||
Subsequent event | ABB E-Mobility [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Ownership percentage | 81% | |||||||
Subsequent event | ABB E-Mobility [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds From Issuance Of Private Placement | SFr 325 | $ 351 | ||||||
Subsequent event | Commercial paper program | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayments of commercial paper | $ 2,000 | |||||||
Subsequent event | EUR 500 million of 3.25% notes, due 2027 [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt instrument, face amount | € | € 500,000,000 | |||||||
Debt nominal interest rate (as a percent) | 3.25% | |||||||
Subsequent event | EUR 750 million of 3.375% notes, due 2031 [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt instrument, face amount | € | € 750,000,000 | |||||||
Debt nominal interest rate (as a percent) | 3.375% | |||||||
Subsequent event | Power Conversion Division [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Divestment value | $ 505 |