Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

v3.19.1
SHAREOWNERS' EQUITY (Tables)
 3 Months Ended
Mar. 31, 2019
Stockholders' Equity Note [Abstract]  
Schedule of Stockholders Equity The following is a rollforward of our common stock, additional paid-in capital, retained earnings and non-controlling minority interest accounts for the three months ended March 31, 2019 and 2018 (in millions, except per share amounts):
 
2019
 
2018
 
Shares
 
Dollars
 
Shares
 
Dollars
Class A Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
163

 
$
2

 
173

 
$
2

Common stock purchases
(1
)
 
—

 
(1
)
 
—

Stock award plans
3

 
—

 
3

 
—

Common stock issuances
2

 
—

 
2

 
—

Conversions of class A to class B common stock
(3
)
 
—

 
(3
)
 
—

Class A shares issued at end of period
164

 
$
2

 
174

 
$
2

Class B Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
696

 
$
7

 
687

 
$
7

Common stock purchases
(2
)
 
—

 
(1
)
 
—

Conversions of class A to class B common stock
3

 
—

 
3

 
—

Class B shares issued at end of period
697

 
$
7

 
689

 
$
7

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

 
 
 
$
—

Stock award plans
 
 
169

 
 
 
20

Common stock purchases
 
 
(251
)
 
 
 
(136
)
Common stock issuances
 
 
114

 
 
 
155

Option premiums received (paid)
 
 
(5
)
 
 
 
(39
)
Balance at end of period
 
 
$
27

 
 
 
$
—

Retained Earnings
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
8,006

 
 
 
$
5,852

Net income attributable to common shareowners
 
 
1,111

 
 
 
1,345

Dividends ($0.96 and $0.91 per share) (1)
 
 
(867
)
 
 
 
(840
)
Common stock purchases
 
 
—

 
 
 
(119
)
Reclassification from AOCI pursuant to the early adoption of ASU 2018-02
 
 
—

 
 
 
735

Other
 
 
(1
)
 
 
 
—

Balance at end of period
 
 
$
8,249

 
 
 
$
6,973

Non-Controlling Minority Interest
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
16

 
 
 
$
30

Change in non-controlling minority interest
 
 
2

 
 
 
1

Balance at end of period
 
 
$
18

 
 
 
$
31

(1) The dividend per share amount is the same for both class A and class B common stock
Schedule of Accumulated Other Comprehensive Income (Loss) The activity in AOCI for the three months ended March 31, 2019 and 2018 is as follows (in millions):
 
2019
 
2018
Foreign currency translation gain (loss), net of tax:
 
 
 
Balance at beginning of period
$
(1,126
)
 
$
(930
)
Translation adjustment (net of tax effect of $9 and $(9))
53

 
(6
)
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02
—

 
(47
)
Balance at end of period
(1,073
)
 
(983
)
Unrealized gain (loss) on marketable securities, net of tax:
 
 
 
Balance at beginning of period
(2
)
 
(2
)
Current period changes in fair value (net of tax effect of $0 and $(1))
4

 
(4
)
Reclassification to earnings (net of tax effect of $0 and $1)
—

 
1

Balance at end of period
2

 
(5
)
Unrealized gain (loss) on cash flow hedges, net of tax:
 
 
 
Balance at beginning of period
40

 
(366
)
Current period changes in fair value (net of tax effect of $28 and $(33))
89

 
(102
)
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02
—

 
(79
)
Reclassification to earnings (net of tax effect of $(4) and $12)
(13
)
 
36

Balance at end of period
116

 
(511
)
Unrecognized pension and postretirement benefit costs, net of tax:
 
 
 
Balance at beginning of period
(3,906
)
 
(3,569
)
Reclassification to earnings (net of tax effect of $13 and $12)
43

 
39

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

 
(609
)
Balance at end of period
(3,863
)
 
(4,139
)
Accumulated other comprehensive income (loss) at end of period
$
(4,818
)
 
$
(5,638
)
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 months ended March 31, 2019 and 2018 is as follows (in millions):
Three Months Ended March 31:
 
 
 
 
 
 
Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
 
2019
 
2018
 
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
(6
)
 
(6
)
 
Interest expense
Foreign exchange contracts
23

 
(42
)
 
Revenue
Income tax (expense) benefit
(4
)
 
12

 
Income tax expense
Impact on net income
13

 
(36
)
 
Net income
Unrecognized pension and postretirement benefit costs:
 
 
 
 
 
Prior service costs
(56
)
 
(51
)
 
Investment income and other
Income tax (expense) benefit
13

 
12

 
Income tax expense
Impact on net income
(43
)
 
(39
)
 
Net income
 
 
 
 
 
 
Total amount reclassified for the period
$
(30
)
 
$
(76
)
 
Net income


Schedule of Deferred Compensation and Treasury Stock Activity Activity in the deferred compensation program for the three months ended March 31, 2019 and 2018 is as follows (in millions):
 
2019
 
2018
Shares
 
Dollars
 
Shares
 
Dollars
Deferred Compensation Obligations:
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
32

 
 
 
$
37

Reinvested dividends
 
 
1

 
 
 
1

Benefit payments
 
 
(8
)
 
 
 
(7
)
Balance at end of period
 
 
$
25

 
 
 
$
31

Treasury Stock:
 
 
 
 
 
 
 
Balance at beginning of period
(1
)
 
$
(32
)
 
(1
)
 
$
(37
)
Reinvested dividends
—

 
(1
)
 
—

 
(1
)
Benefit payments
—

 
8

 
—

 
7

Balance at end of period
(1
)
 
$
(25
)
 
(1
)
 
$
(31
)