SHAREOWNERS' EQUITY (Tables)
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12 Months Ended |
Dec. 31, 2018 |
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| 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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2018 |
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2017 |
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2016 |
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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 |
173 |
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$ |
2 |
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180 |
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$ |
2 |
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|
194 |
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|
$ |
2 |
|
Common stock purchases |
(3 |
) |
|
— |
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|
(4 |
) |
|
— |
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|
(4 |
) |
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— |
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Stock award plans |
3 |
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— |
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4 |
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— |
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5 |
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|
— |
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Common stock issuances |
4 |
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— |
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|
3 |
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|
— |
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|
2 |
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|
— |
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Conversions of class A to class B common stock |
(14 |
) |
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— |
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|
(10 |
) |
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— |
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|
(17 |
) |
|
— |
|
Class A shares issued at end of year |
163 |
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|
$ |
2 |
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|
173 |
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$ |
2 |
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|
180 |
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$ |
2 |
|
Class B Common Stock: |
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Balance at beginning 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 |
|
Common stock purchases |
(5 |
) |
|
— |
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|
(12 |
) |
|
— |
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|
(21 |
) |
|
— |
|
Conversions of class A to class B common stock |
14 |
|
|
— |
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|
10 |
|
|
— |
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|
17 |
|
|
— |
|
Class B shares issued at end of year |
696 |
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|
$ |
7 |
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|
687 |
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$ |
7 |
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|
689 |
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$ |
7 |
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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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$ |
— |
|
Stock award plans |
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419 |
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|
396 |
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|
541 |
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Common stock purchases |
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(859 |
) |
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|
(813 |
) |
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|
(898 |
) |
Common stock issuances |
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406 |
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|
363 |
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|
303 |
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Option premiums received (paid) |
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34 |
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54 |
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|
54 |
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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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$ |
5,852 |
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$ |
4,880 |
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$ |
6,011 |
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Net income attributable to controlling interests |
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4,791 |
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4,905 |
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3,422 |
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Dividends ($3.64, $3.32, and $3.12 per share) |
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(3,189 |
) |
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(2,928 |
) |
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(2,771 |
) |
Common stock purchases |
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(141 |
) |
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(1,003 |
) |
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(1,782 |
) |
Reclassification from AOCI pursuant to the early adoption of ASU 2018-02 |
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735 |
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— |
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— |
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Other |
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$ |
(42 |
) |
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$ |
(2 |
) |
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$ |
— |
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Balance at end of year |
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$ |
8,006 |
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$ |
5,852 |
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$ |
4,880 |
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| Activity in Accumulated Other Comprehensive Income (Loss) |
The activity in AOCI is as follows (in millions):
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2018 |
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2017 |
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2016 |
Foreign Currency Translation Gain (Loss), Net of Tax: |
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Balance at beginning of year |
$ |
(930 |
) |
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$ |
(1,016 |
) |
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$ |
(897 |
) |
Translation adjustment (net of tax effect of $37, $(161) and $32) |
(149 |
) |
|
86 |
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|
(119 |
) |
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 |
(47 |
) |
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— |
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|
— |
|
Balance at end of year |
(1,126 |
) |
|
(930 |
) |
|
(1,016 |
) |
Unrealized Gain (Loss) on Marketable Securities, Net of Tax: |
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Balance at beginning of year |
(2 |
) |
|
(1 |
) |
|
(1 |
) |
Current period changes in fair value (net of tax effect of $(1), $(1) and $0) |
(3 |
) |
|
(2 |
) |
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— |
|
Reclassification to earnings (net of tax effect of $1, $1 and $0) |
3 |
|
|
1 |
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— |
|
Balance at end of year |
(2 |
) |
|
(2 |
) |
|
(1 |
) |
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax: |
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Balance at beginning of year |
(366 |
) |
|
(45 |
) |
|
67 |
|
Current period changes in fair value (net of tax effect of $135, $(190) and $75) |
429 |
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|
(316 |
) |
|
124 |
|
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 |
(79 |
) |
|
— |
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|
— |
|
Reclassification to earnings (net of tax effect of $18, $(3) and $(142)) |
56 |
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|
(5 |
) |
|
(236 |
) |
Balance at end of year |
40 |
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|
(366 |
) |
|
(45 |
) |
Unrecognized Pension and Postretirement Benefit Costs, Net of Tax: |
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Balance at beginning of year |
$ |
(3,569 |
) |
|
$ |
(3,421 |
) |
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$ |
(2,709 |
) |
Reclassification to earnings (net of tax effect of $439, $269 and $1,040) |
1,389 |
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|
731 |
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|
1,783 |
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Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 |
(609 |
) |
|
— |
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|
— |
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Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities (net of tax effect of $(355), $(180) and $(1,460)) |
(1,117 |
) |
|
(879 |
) |
|
(2,495 |
) |
Balance at end of year |
(3,906 |
) |
|
(3,569 |
) |
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(3,421 |
) |
Accumulated other comprehensive income (loss) at end of year |
(4,994 |
) |
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(4,867 |
) |
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(4,483 |
) |
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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, 2018, 2017 and 2016 is as follows (in millions):
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Twelve Months Ended December 31: |
2018 Amount Reclassified from AOCI |
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2017 Amount Reclassified from AOCI |
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2016 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 |
(4 |
) |
|
(2 |
) |
|
— |
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Investment income (expense) and other |
Income tax (expense) benefit |
1 |
|
|
1 |
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|
— |
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Income tax expense |
Impact on net income |
(3 |
) |
|
(1 |
) |
|
— |
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Net income |
Unrealized Gain (Loss) on Cash Flow Hedges: |
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|
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Interest rate contracts |
(24 |
) |
|
(27 |
) |
|
(26 |
) |
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Interest expense |
Foreign exchange contracts |
(50 |
) |
|
35 |
|
|
404 |
|
|
Revenue |
Income tax (expense) benefit |
18 |
|
|
(3 |
) |
|
(142 |
) |
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Income tax expense |
Impact on net income |
(56 |
) |
|
5 |
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|
236 |
|
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Net income |
Unrecognized Pension and Postretirement Benefit Costs: |
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Prior service costs |
(201 |
) |
|
(200 |
) |
|
(172 |
) |
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Investment income (expense) and other |
Remeasurement of benefit obligation |
(1,627 |
) |
|
(800 |
) |
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(2,651 |
) |
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Investment income (expense) and other |
Income tax (expense) benefit |
439 |
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|
269 |
|
|
1,040 |
|
|
Income tax expense |
Impact on net income |
(1,389 |
) |
|
(731 |
) |
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(1,783 |
) |
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Net income |
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Total amount reclassified for the period |
$ |
(1,448 |
) |
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$ |
(727 |
) |
|
$ |
(1,547 |
) |
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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, 2018, 2017 and 2016 is as follows (in millions):
|
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|
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|
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|
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|
|
|
|
|
|
|
|
2018 |
|
2017 |
|
2016 |
|
Shares |
|
Dollars |
|
Shares |
|
Dollars |
|
Shares |
|
Dollars |
Deferred Compensation Obligations: |
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Balance at beginning of year |
|
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$ |
37 |
|
|
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$ |
45 |
|
|
|
|
$ |
51 |
|
Reinvested dividends |
|
|
2 |
|
|
|
|
2 |
|
|
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|
3 |
|
Benefit payments |
|
|
(7 |
) |
|
|
|
(10 |
) |
|
|
|
(9 |
) |
Balance at end of year |
|
|
$ |
32 |
|
|
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|
$ |
37 |
|
|
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|
$ |
45 |
|
Treasury Stock: |
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|
|
|
|
|
|
|
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|
Balance at beginning of year |
(1 |
) |
|
$ |
(37 |
) |
|
(1 |
) |
|
$ |
(45 |
) |
|
(1 |
) |
|
$ |
(51 |
) |
Reinvested dividends |
— |
|
|
(2 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
|
(3 |
) |
Benefit payments |
— |
|
|
7 |
|
|
— |
|
|
10 |
|
|
— |
|
|
9 |
|
Balance at end of year |
(1 |
) |
|
$ |
(32 |
) |
|
(1 |
) |
|
$ |
(37 |
) |
|
(1 |
) |
|
$ |
(45 |
) |
|