Annual report pursuant to Section 13 and 15(d)

SHAREOWNERS' EQUITY (Tables)

v3.20.4
SHAREOWNERS' EQUITY (Tables)
 12 Months Ended
Dec. 31, 2020
Stockholders' Equity Note [Abstract]  
Roll-forward of Common Stock, Additional Paid-in Capital, and Retained Earnings Accounts
The following is a rollforward of our common stock, additional paid-in capital, retained earnings and non-controlling minority interests accounts for the years ended December 31, 2020, 2019 and 2018 (in millions, except per share amounts):
2020 2019 2018
  Shares Dollars Shares Dollars Shares Dollars
Class A Common Stock:
Balance at beginning of year 156  $ 2  163  $ 2  173  $ 2 
Common stock purchases —  —  (3) —  (3) — 
Stock award plans 6  —  5  —  3  — 
Common stock issuances 4  —  3  —  4  — 
Conversions of class A to class B common stock (19) —  (12) —  (14) — 
Class A shares issued at end of year 147  $ 2  156  $ 2  163  $ 2 
Class B Common Stock:
Balance at beginning of year 701  $ 7  696  $ 7  687  $ 7 
Common stock purchases (2) —  (7) —  (5) — 
Conversions of class A to class B common stock 19  —  12  —  14  — 
Class B shares issued at end of year 718  $ 7  701  $ 7  696  $ 7 
Additional Paid-In Capital:
Balance at beginning of year $ 150  $ —  $ — 
Stock award plans 498  778  419 
Common stock purchases (217) (1,005) (859)
Common stock issuances 434  356  406 
Option premiums received (paid) —  21  34 
Balance at end of year $ 865  $ 150  $ — 
Retained Earnings:
Balance at beginning of year $ 9,105  $ 8,006  $ 5,852 
Net income attributable to controlling interests 1,343  4,440  4,791 
Dividends ($4.04, $3.84, and $3.64 per share) (1)
(3,552) (3,341) (3,189)
Common stock purchases —  —  (141)
Reclassification from AOCI pursuant to the early adoption of ASU 2018-02 —  —  735 
Other —  —  (42)
Balance at end of year $ 6,896  $ 9,105  $ 8,006 
Non-Controlling Interests:
Balance at beginning of year $ 16  $ 16  $ 30 
Change in non-controlling interests (4) —  (14)
Balance at end of year $ 12  $ 16  $ 16 
(1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $178, $147 and $178 million for 2020, 2019 and 2018, respectively, that were settled in shares of class A common stock.
Activity in Accumulated Other Comprehensive Income (Loss) The activity in AOCI for the years ended December 31, 2020, 2019 and 2018 was as follows (in millions):
2020 2019 2018
Foreign Currency Translation Gain (Loss), Net of Tax:
Balance at beginning of year $ (1,078) $ (1,126) $ (930)
Translation adjustment (net of tax effect of $(36), $10 and $37)
 97  48  (149)
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 —  —  (47)
Balance at end of year $ (981) $ (1,078) $ (1,126)
Unrealized Gain (Loss) on Marketable Securities, Net of Tax:
Balance at beginning of year $ 4  $ (2) $ (2)
Current period changes in fair value (net of tax effect of $1, $4 and $(1))
 6  11  (3)
Reclassification to earnings (net of tax effect of $(1), $(1) and $1)
 (4) (5) 3 
Balance at end of year $ 6  $ 4  $ (2)
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax:
Balance at beginning of year $ 112  $ 40  $ (366)
Current period changes in fair value (net of tax effect of $(61), $61 and $135)
 (192) 195  429 
Reclassification to earnings (net of tax effect of $(45), $(39) and $18)
 (143) (123) 56 
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 —  —  (79)
Balance at end of year $ (223) $ 112  $ 40 
Unrecognized Pension and Postretirement Benefit Costs, Net of Tax:
Balance at beginning of year $ (5,035) $ (3,906) $ (3,569)
Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities (net of tax effect of $(1,885), $(979)and $(355))
 (5,984) (3,117) (1,117)
Reclassification to earnings (net of tax effect of $1,607, $626 and $439)
 5,104  1,988  1,389 
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 —  —  (609)
Balance at end of year $ (5,915) $ (5,035) $ (3,906)
Accumulated other comprehensive income (loss) at end of year $ (7,113) $ (5,997) $ (4,994)
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]
Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the years ended December 31, 2020, 2019 and 2018 was as follows (in millions):
Amount Reclassified from AOCI Affected Line Item in the Income Statement
2020 2019 2018
Unrealized Gain (Loss) on Marketable Securities:
Realized gain (loss) on sale of securities $ 5  $ 6  $ (4) Investment income (expense) and other
Income tax (expense) benefit (1) (1) 1  Income tax expense
Impact on net income 4  5  (3) Net income
Unrealized Gain (Loss) on Cash Flow Hedges:
Interest rate contracts (8) (15) (24) Interest expense
Foreign currency exchange contracts 196  177  (50) Revenue
Income tax (expense) benefit (45) (39) 18  Income tax expense
Impact on net income 143  123  (56) Net income
Unrecognized Pension and Postretirement Benefit Costs:
Prior service costs (227) (227) (201) Investment income (expense) and other
Remeasurement of benefit obligation (6,484) (2,387) (1,627) Investment income (expense) and other
Income tax (expense) benefit 1,607  626  439  Income tax expense
Impact on net income (5,104) (1,988) (1,389) Net income
Total amount reclassified for the year $ (4,957) $ (1,860) $ (1,448) Net income
Activity in Deferred Compensation Program
Activity in the deferred compensation program for the years ended December 31, 2020, 2019 and 2018 is as follows (in millions):
2020 2019 2018
  Shares Dollars Shares Dollars Shares Dollars
Deferred Compensation Obligations:
Balance at beginning of year $ 26  $ 32  $ 37 
Reinvested dividends 1  2  2 
Benefit payments (7) (8) (7)
Balance at end of year $ 20  $ 26  $ 32 
Treasury Stock:
Balance at beginning of year —  $ (26) (1) $ (32) (1) $ (37)
Reinvested dividends —  (1) —  (2) —  (2)
Benefit payments —  7  1  8  —  7 
Balance at end of year —  $ (20) —  $ (26) (1) $ (32)