SHAREOWNERS' EQUITY (Tables)
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12 Months Ended |
Dec. 31, 2017 |
Stockholders' Equity Note [Abstract] |
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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 and retained earnings accounts (in millions, except per share amounts):
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2017 |
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2016 |
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2015 |
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Shares |
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Dollars |
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Shares |
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Dollars |
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Shares |
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Dollars |
Class A Common Stock: |
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Balance at beginning of year |
180 |
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$ |
2 |
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|
194 |
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$ |
2 |
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|
201 |
|
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$ |
2 |
|
Common stock purchases |
(4 |
) |
|
— |
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|
(4 |
) |
|
— |
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|
(4 |
) |
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— |
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Stock award plans |
4 |
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— |
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5 |
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|
— |
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|
5 |
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|
— |
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Common stock issuances |
3 |
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|
— |
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|
2 |
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|
— |
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|
3 |
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|
— |
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Conversions of class A to class B common stock |
(10 |
) |
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— |
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|
(17 |
) |
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— |
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|
(11 |
) |
|
— |
|
Class A shares issued at end of year |
173 |
|
|
$ |
2 |
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|
180 |
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$ |
2 |
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|
194 |
|
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$ |
2 |
|
Class B Common Stock: |
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Balance at beginning of year |
689 |
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$ |
7 |
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|
693 |
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$ |
7 |
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|
705 |
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$ |
7 |
|
Common stock purchases |
(12 |
) |
|
— |
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|
(21 |
) |
|
— |
|
|
(23 |
) |
|
— |
|
Conversions of class A to class B common stock |
10 |
|
|
— |
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|
17 |
|
|
— |
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|
11 |
|
|
— |
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Class B shares issued at end of year |
687 |
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$ |
7 |
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|
689 |
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$ |
7 |
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|
693 |
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$ |
7 |
|
Additional Paid-In Capital: |
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Balance at beginning of year |
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$ |
— |
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$ |
— |
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|
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$ |
— |
|
Stock award plans |
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|
396 |
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|
541 |
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|
492 |
|
Common stock purchases |
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(813 |
) |
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|
(898 |
) |
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|
(791 |
) |
Common stock issuances |
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363 |
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303 |
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|
316 |
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Option premiums received (paid) |
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54 |
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54 |
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(17 |
) |
Balance at end of year |
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$ |
— |
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$ |
— |
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$ |
— |
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Retained Earnings: |
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Balance at beginning of year |
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$ |
4,879 |
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$ |
6,001 |
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$ |
5,726 |
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Net income attributable to controlling interests |
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4,910 |
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3,431 |
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4,844 |
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Dividends ($3.32, $3.12, and $2.92 per share) |
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(2,928 |
) |
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(2,771 |
) |
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(2,649 |
) |
Common stock purchases |
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(1,003 |
) |
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(1,782 |
) |
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(1,920 |
) |
Balance at end of year |
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|
$ |
5,858 |
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$ |
4,879 |
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$ |
6,001 |
|
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Activity in Accumulated Other Comprehensive Income (Loss) |
The activity in AOCI is as follows (in millions):
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2017 |
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2016 |
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2015 |
Foreign Currency Translation Gain (Loss), Net of Tax: |
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Balance at beginning of year |
$ |
(1,016 |
) |
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$ |
(897 |
) |
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$ |
(457 |
) |
Translation adjustment (net of tax effect of $(161), $32 and $0) |
86 |
|
|
(119 |
) |
|
(440 |
) |
Balance at end of year |
(930 |
) |
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(1,016 |
) |
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(897 |
) |
Unrealized Gain (Loss) on Marketable Securities, Net of Tax: |
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Balance at beginning of year |
(1 |
) |
|
(1 |
) |
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— |
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Current period changes in fair value (net of tax effect of $(1), $0 and $(1)) |
(2 |
) |
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— |
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|
(1 |
) |
Reclassification to earnings (net of tax effect of $1, $0 and $0) |
1 |
|
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— |
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|
— |
|
Balance at end of year |
(2 |
) |
|
(1 |
) |
|
(1 |
) |
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax: |
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Balance at beginning of year |
(45 |
) |
|
67 |
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|
61 |
|
Current period changes in fair value (net of tax effect of $(190), $75 and $103) |
(316 |
) |
|
124 |
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|
171 |
|
Reclassification to earnings (net of tax effect of $(3), $(142) and $(99)) |
(5 |
) |
|
(236 |
) |
|
(165 |
) |
Balance at end of year |
(366 |
) |
|
(45 |
) |
|
67 |
|
Unrecognized Pension and Postretirement Benefit Costs, Net of Tax: |
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Balance at beginning of year |
(3,421 |
) |
|
(2,709 |
) |
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(3,198 |
) |
Reclassification to earnings (net of tax effect of $269, $1,040 and $97) |
731 |
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1,783 |
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|
195 |
|
Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities (net of tax effect of $(180), $(1,460) and $197) |
(879 |
) |
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(2,495 |
) |
|
294 |
|
Balance at end of year |
(3,569 |
) |
|
(3,421 |
) |
|
(2,709 |
) |
Accumulated other comprehensive income (loss) at end of year |
$ |
(4,867 |
) |
|
$ |
(4,483 |
) |
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$ |
(3,540 |
) |
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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, 2017, 2016 and 2015 is as follows (in millions):
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2017 Amount Reclassified from AOCI |
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2016 Amount Reclassified from AOCI |
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2015 Amount Reclassified from AOCI |
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Affected Line Item in the Income Statement |
Unrealized Gain (Loss) on Marketable Securities: |
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Realized gain (loss) on sale of securities |
(2 |
) |
|
— |
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— |
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Investment income |
Income tax (expense) benefit |
1 |
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|
— |
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— |
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Income tax expense |
Impact on net income |
(1 |
) |
|
— |
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|
— |
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Net income |
Unrealized Gain (Loss) on Cash Flow Hedges: |
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Interest rate contracts |
(27 |
) |
|
(26 |
) |
|
(24 |
) |
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Interest expense |
Foreign exchange contracts |
— |
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|
— |
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|
(25 |
) |
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Interest expense |
Foreign exchange contracts |
35 |
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|
404 |
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|
313 |
|
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Revenue |
Income tax (expense) benefit |
(3 |
) |
|
(142 |
) |
|
(99 |
) |
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Income tax expense |
Impact on net income |
5 |
|
|
236 |
|
|
165 |
|
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Net income |
Unrecognized Pension and Postretirement Benefit Costs: |
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Prior service costs |
(200 |
) |
|
(172 |
) |
|
(174 |
) |
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Compensation and benefits |
Remeasurement of benefit obligation |
(800 |
) |
|
(2,651 |
) |
|
(118 |
) |
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Compensation and benefits |
Income tax (expense) benefit |
269 |
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|
1,040 |
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|
97 |
|
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Income tax expense |
Impact on net income |
(731 |
) |
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(1,783 |
) |
|
(195 |
) |
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Net income |
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Total amount reclassified for the period |
$ |
(727 |
) |
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$ |
(1,547 |
) |
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$ |
(30 |
) |
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Net income |
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Activity in Deferred Compensation Program |
Activity in the deferred compensation program for the years ended December 31, 2017, 2016 and 2015 is as follows (in millions):
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2017 |
|
2016 |
|
2015 |
|
Shares |
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Dollars |
|
Shares |
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Dollars |
|
Shares |
|
Dollars |
Deferred Compensation Obligations: |
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Balance at beginning of year |
|
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$ |
45 |
|
|
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$ |
51 |
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$ |
59 |
|
Reinvested dividends |
|
|
2 |
|
|
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|
3 |
|
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|
3 |
|
Benefit payments |
|
|
(10 |
) |
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|
(9 |
) |
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|
(11 |
) |
Balance at end of year |
|
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$ |
37 |
|
|
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$ |
45 |
|
|
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$ |
51 |
|
Treasury Stock: |
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|
|
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|
Balance at beginning of year |
(1 |
) |
|
$ |
(45 |
) |
|
(1 |
) |
|
$ |
(51 |
) |
|
(1 |
) |
|
$ |
(59 |
) |
Reinvested dividends |
— |
|
|
(2 |
) |
|
— |
|
|
(3 |
) |
|
— |
|
|
(3 |
) |
Benefit payments |
— |
|
|
10 |
|
|
— |
|
|
9 |
|
|
— |
|
|
11 |
|
Balance at end of year |
(1 |
) |
|
$ |
(37 |
) |
|
(1 |
) |
|
$ |
(45 |
) |
|
(1 |
) |
|
$ |
(51 |
) |
|