Shares reserved for issuance under long-term incentive plans (in shares)

  
Accumulated other comprehensive income (loss)— The changes in accumulated other comprehensive income (loss) during 2021, 2020 and 2019 were as follows:  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| In millions | 2021 |  | 2020 |  | 2019 |
| Beginning balance | $ | (1,642) |  |  | $ | (1,705) |  |  | $ | (1,677) |  |
|  |  |  |  |  |  |
| Foreign currency translation adjustments during the period | 73  |  |  | (82) |  |  | 7  |  |
| Foreign currency translation adjustments reclassified to income | 5  |  |  | —  |  |  | —  |  |
| Income taxes | (73) |  |  | 86  |  |  | (9) |  |
| Total foreign currency translation adjustments, net of tax | 5  |  |  | 4  |  |  | (2) |  |
|  |  |  |  |  |  |
| Pension and other postretirement benefit adjustments during the period | 125  |  |  | 30  |  |  | (54) |  |
| Pension and other postretirement benefit adjustments reclassified to income | 54  |  |  | 48  |  |  | 21  |  |
| Income taxes | (44) |  |  | (19) |  |  | 7  |  |
| Total pension and other postretirement benefit adjustments, net of tax | 135  |  |  | 59  |  |  | (26) |  |
|  |  |  |  |  |  |
| Ending balance | $ | (1,502) |  |  | $ | (1,642) |  |  | $ | (1,705) |  |

  
Foreign currency translation adjustments reclassified to income primarily relate to the exit of immaterial foreign operations. Pension and other postretirement benefit adjustments reclassified to income represent the amortization of actuarial gains and losses and prior service cost. Refer to Note 12. Pension and Other Postretirement Benefits for the amounts included in net periodic benefit cost.  
The Company designated the €1.0 billion of Euro notes issued in May 2014, the €1.0 billion of Euro notes issued in May 2015 and the €1.6 billion of Euro notes issued in June 2019 as hedges of a portion of its net investment in Euro-denominated foreign operations to reduce foreign currency risk associated with the investment in these operations. Changes in the value of this debt resulting from fluctuations in the Euro to U.S. Dollar exchange rate have been recorded as foreign currency translation adjustments within Accumulated other comprehensive income (loss). The cumulative unrealized pre-tax gain (loss) recorded in Accumulated other comprehensive income (loss) related to the net investment hedge was a gain of $183 million as of December 31, 2021 and a loss of $120 million as of December 31, 2020.  
As of December 31, 2021 and 2020, the ending balance of Accumulated other comprehensive income (loss) consisted of after-tax cumulative translation adjustment losses of $1.3 billion and $1.3 billion, respectively, and after-tax unrecognized pension and other postretirement benefits costs of $196 million and $331 million, respectively.  
(15)     Stock-Based Compensation  
On May 8, 2015 (the "Effective Date"), the 2015 Long-Term Incentive Plan (the "2015 Plan") was approved by shareholders. As of the Effective Date, no additional awards will be granted to employees under the 2011 Long-Term Incentive Plan (the "2011 Plan"). The significant terms of stock options and restricted stock units ("RSUs") were not changed under the 2015 Plan. Stock options and RSUs are issued to officers and/or other management employees under these plans. Stock options generally vest over a four-year period and have an expiration of ten years from the issuance date. RSUs generally "cliff" vest after a three-year period and include units with and without performance criteria. RSUs with performance criteria provide for full "cliff" vesting after three years if the Compensation Committee certifies that the performance goals have been met. Upon vesting, the holder will receive one share of common stock of the Company for each vested restricted stock unit.  
Commencing in February 2013, the Company began issuing shares from treasury stock to cover the exercised options and vested RSUs. Prior to February 2013, the Company generally issued new shares from its authorized but unissued share pool. As of December 31, 2021, approximately 10 million shares of ITW common stock were reserved for issuance under these plans.  
70
