Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

v3.10.0.1
SHAREOWNERS' EQUITY (Tables)
 6 Months Ended
Jun. 30, 2018
Stockholders' Equity Note [Abstract]  
Schedule of Stockholders Equity
The following is a rollforward of our common stock, additional paid-in capital and retained earnings accounts for the six months ended June 30, 2018 and 2017 (in millions, except per share amounts):
 
2018
 
2017
 
Shares
 
Dollars
 
Shares
 
Dollars
Class A Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
173

 
$
2

 
180

 
$
2

Common stock purchases
(2
)
 
—

 
(2
)
 
—

Stock award plans
3

 
—

 
4

 
—

Common stock issuances
2

 
—

 
1

 
—

Conversions of class A to class B common stock
(8
)
 
—

 
(5
)
 
—

Class A shares issued at end of period
168

 
$
2

 
178

 
$
2

Class B Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
687

 
$
7

 
689

 
$
7

Common stock purchases
(2
)
 
—

 
(6
)
 
—

Conversions of class A to class B common stock
8

 
—

 
5

 
—

Class B shares issued at end of period
693

 
$
7

 
688

 
$
7

Additional Paid-In Capital
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
—

 
 
 
$
—

Stock award plans
 
 
170

 
 
 
157

Common stock purchases
 
 
(383
)
 
 
 
(412
)
Common stock issuances
 
 
232

 
 
 
203

Option premiums received (paid)
 
 
(19
)
 
 
 
52

Balance at end of period
 
 
$
—

 
 
 
$
—

Retained Earnings
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
5,852

 
 
 
$
4,880

Net income attributable to common shareowners
 
 
2,830

 
 
 
2,550

Dividends ($1.82 and $1.66 per share)
 
 
(1,624
)
 
 
 
(1,495
)
Common stock purchases
 
 
(128
)
 
 
 
(489
)
Reclassification from AOCI pursuant to the early adoption of ASU 2018-02
 
 
735

 
 
 
—

Balance at end of period
 
 
$
7,665

 
 
 
$
5,446

Schedule of Accumulated Other Comprehensive Income (Loss)
The activity in AOCI for the six months ended June 30, 2018 and 2017 is as follows (in millions):
 
2018
 
2017
Foreign currency translation gain (loss), net of tax:
 
 
 
Balance at beginning of period
$
(930
)
 
$
(1,016
)
Translation adjustment (net of tax effect of $25 and $(93))
(84
)
 
54

Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02
(47
)
 
—

Balance at end of period
(1,061
)
 
(962
)
Unrealized gain (loss) on marketable securities, net of tax:
 
 
 
Balance at beginning of period
(2
)
 
(1
)
Current period changes in fair value (net of tax effect of $(1) and $0)
(4
)
 
1

Reclassification to earnings (net of tax effect of $1 and $0)
1

 
—

Balance at end of period
(5
)
 
—

Unrealized gain (loss) on cash flow hedges, net of tax:
 
 
 
Balance at beginning of period
(366
)
 
(45
)
Current period changes in fair value (net of tax effect of $67 and $(109))
210

 
(181
)
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02
(79
)
 
—

Reclassification to earnings (net of tax effect of $18 and $(7))
56

 
(11
)
Balance at end of period
(179
)
 
(237
)
Unrecognized pension and postretirement benefit costs, net of tax:
 
 
 
Balance at beginning of period
(3,569
)
 
(3,421
)
Remeasurement of plan assets and liabilities (net of tax effect of $0 and $214) (1)
—

 
355

Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02
(609
)
 
—

Reclassification to earnings (net of tax effect of $24 and $37)
77

 
63

Balance at end of period
(4,101
)
 
(3,003
)
Accumulated other comprehensive income (loss) at end of period
$
(5,346
)
 
$
(4,202
)
 
 
 
 
(1) See note 7 for further information about plan curtailments resulting in remeasurement of plan assets and liabilities.
Schedule of Reclassifications from Accumulated Other Comprehensive Income (Loss) to Earnings
Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and six months ended June 30, 2018 and 2017 is as follows (in millions):
Three Months Ended June 30:
 
 
 
 
 
 
Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
 
2018
 
2017
 
Unrealized gain (loss) on marketable securities:
 
 
 
 
 
Realized loss on sale of securities
$
—

 
$
—

 
Investment income and other
Income tax (expense) benefit
—

 
—

 
Income tax expense
Impact on net income
—

 
—

 
Net income
Unrealized gain (loss) on cash flow hedges:
 
 
 
 
 
Interest rate contracts
(6
)
 
(7
)
 
Interest expense
Foreign exchange contracts
(20
)
 
7

 
Revenue
Income tax (expense) benefit
6

 
—

 
Income tax expense
Impact on net income
(20
)
 
—

 
Net income
Unrecognized pension and postretirement benefit costs:
 
 
 
 
 
Prior service costs
(50
)
 
(50
)
 
Investment income and other
Income tax (expense) benefit
12

 
19

 
Income tax expense
Impact on net income
(38
)
 
(31
)
 
Net income
 
 
 
 
 
 
Total amount reclassified for the period
$
(58
)
 
$
(31
)
 
Net income


Six Months Ended June 30:
 
 
 
 
 
 
Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
 
2018
 
2017
 
Unrealized gain (loss) on marketable securities:
 
 
 
 
 
Realized loss on sale of securities
(2
)
 
—

 
Investment income and other
Income tax (expense) benefit
1

 
—

 
Income tax expense
Impact on net income
(1
)
 
—

 
Net income
Unrealized gain (loss) on cash flow hedges:
 
 
 
 
 
Interest rate contracts
(12
)
 
(14
)
 
Interest expense
Foreign exchange contracts
(62
)
 
32

 
Revenue
Income tax (expense) benefit
18

 
(7
)
 
Income tax expense
Impact on net income
(56
)
 
11

 
Net income
Unrecognized pension and postretirement benefit costs:
 
 
 
 
 
Prior service costs
(101
)
 
(100
)
 
Investment income and other
Income tax (expense) benefit
24

 
37

 
Income tax expense
Impact on net income
(77
)
 
(63
)
 
Net income
 
 
 
 
 
 
Total amount reclassified for the period
$
(134
)
 
$
(52
)
 
Net income


Schedule of Deferred Compensation and Treasury Stock Activity
Activity in the deferred compensation program for the six months ended June 30, 2018 and 2017 is as follows (in millions):
 
2018
 
2017
Shares
 
Dollars
 
Shares
 
Dollars
Deferred Compensation Obligations:
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
37

 
 
 
$
45

Reinvested dividends
 
 
1

 
 
 
1

Benefit payments
 
 
(7
)
 
 
 
(10
)
Balance at end of period
 
 
$
31

 
 
 
$
36

Treasury Stock:
 
 
 
 
 
 
 
Balance at beginning of period
(1
)
 
$
(37
)
 
(1
)
 
$
(45
)
Reinvested dividends
—

 
(1
)
 
—

 
(1
)
Benefit payments
—

 
7

 
—

 
10

Balance at end of period
(1
)
 
$
(31
)
 
(1
)
 
$
(36
)