Name: Carrier Global Corp. (NYSE:CARR) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Carrier Global Corp., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income from operations	3,584)	1,701)	2,006)
Foreign currency translation adjustments arising during period	(551)	(322)	604)
Reclassification adjustments for (gain) loss on sale of an investment in a foreign entity recognized in Other income (expense), net	—)	8)	—)
Chubb divestiture	(574)	—)	—)
Foreign currency translation adjustments arising during period	(1,125)	(314)	604)
Net actuarial gain (loss) arising during period	63)	53)	(94)
Amortization of actuarial (gain) loss and prior service credit	11)	34)	24)
Chubb divestiture	329)	—)	—)
Other	—)	—)	(35)
Tax (expense) benefit	(3)	(17)	22)
Pension and post-retirement benefit plans adjustments arising during the period	400)	70)	(83)
Other comprehensive income (loss), net of tax	(725)	(244)	521)
Comprehensive income	2,859)	1,457)	2,527)
Comprehensive income attributable to non-controlling interest	(24)	(37)	(37)
Comprehensive income attributable to common shareowners	2,835)	1,420)	2,490)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Comprehensive income attributable to common shareowners exhibited a fluctuating trend over the three-year period, experiencing a decline in 2021 before reaching a peak in 2022. This performance was characterized by a divergent relationship between operational profitability and other comprehensive income, where strong gains in net income from operations mitigated increasing losses from non-operational adjustments.

Operational Profitability: Net income from operations demonstrated significant growth in 2022, rising to 3,584 million US dollars from 1,701 million US dollars in 2021. This represents a substantial recovery and expansion compared to the 2,006 million US dollars reported in 2020, indicating a strengthening of core operational performance.
Other Comprehensive Income (OCI) Trends: A consistent downward trajectory is observed in other comprehensive income, net of tax, which shifted from a gain of 521 million US dollars in 2020 to a loss of 244 million US dollars in 2021, and further deteriorated to a loss of 725 million US dollars in 2022. This decline was primarily driven by foreign currency translation adjustments, which transitioned from a positive 604 million US dollars in 2020 to significant negative values in subsequent years, reaching 1,125 million US dollars in negative adjustments by 2022.
Strategic and Actuarial Adjustments: The 2022 fiscal year was marked by specific strategic adjustments, including the Chubb divestiture, which resulted in mixed impacts of -574 million US dollars and 329 million US dollars. Concurrently, pension and post-retirement benefit plan adjustments showed a strong positive trend, increasing to 400 million US dollars in 2022, compared to 70 million US dollars in 2021 and a loss of 83 million US dollars in 2020.
Comprehensive Income Attribution: The total comprehensive income attributable to common shareowners followed the trajectory of operational income, ending 2022 at 2,835 million US dollars. This figure is higher than the 2,490 million US dollars recorded in 2020 and significantly exceeds the 1,420 million US dollars reported in 2021, confirming that operational growth outweighed the adverse effects of currency translation and other comprehensive losses.

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