Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

v3.23.1
SHAREOWNERS' EQUITY (Tables)
 3 Months Ended
Mar. 31, 2023
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 interests accounts for the three months ended March 31, 2023 and 2022 (in millions, except per share amounts):
Three Months Ended March 31: 2023 2022
  Shares Dollars Shares Dollars
Class A Common Stock:
Balance at beginning of period 134  $ 2  138  $ 2 
Stock award plans 3  —  4  — 
Common stock issuances 1  —  1  — 
Conversions of class A to class B common stock (3) —  (3) — 
Class A shares outstanding at end of period 135  $ 2  140  $ 2 
Class B Common Stock:
Balance at beginning of period 725  $ 7  732  $ 7 
Common stock purchases (4) —  (1) — 
Conversions of class A to class B common stock 3  —  3  — 
Class B shares outstanding at end of period 724  $ 7  734  $ 7 
Additional Paid-In Capital:
Balance at beginning of period $ —  $ 1,343 
Stock award plans 345  (35)
Common stock purchases (492) (260)
Common stock issuances 147  183 
Balance at end of period $ —  $ 1,231 
Retained Earnings:
Balance at beginning of period $ 21,326  $ 16,179 
Net income attributable to controlling interests 1,895  2,662 
Dividends ($1.62 and $1.52 per share) (1)
(1,453) (1,406)
Common stock purchases (258) — 
Other —  (2)
Balance at end of period $ 21,510  $ 17,433 
Non-Controlling Interests:
Balance at beginning of period $ 17  $ 16 
Change in non-controlling interest (2) 2 
Balance at end of period $ 15  $ 18 
(1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $105 and $122 million as of March 31, 2023 and 2022, respectively, that were settled in shares of class A common stock.
Schedule of Accumulated Other Comprehensive Income (Loss) The activity in accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022 was as follows (in millions):
Three Months Ended March 31: 2023 2022
Foreign currency translation gain (loss), net of tax:
Balance at beginning of period $ (1,446) $ (1,162)
Translation adjustment (net of tax effect of $(15) and $0)
 115  (40)
Reclassification to earnings (net of tax effect of $0 and $0)
 3  — 
Balance at end of period (1,328) (1,202)
Unrealized gain (loss) on marketable securities, net of tax:
Balance at beginning of period (11) (1)
Current period changes in fair value (net of tax effect of $1 and $(2))
 5  (6)
Reclassification to earnings (net of tax effect of $1 and $0)
 2  — 
Balance at end of period (4) (7)
Unrealized gain (loss) on cash flow hedges, net of tax:
Balance at beginning of period 167  (17)
Current period changes in fair value (net of tax effect of $(8) and $23)
 (26) 72 
Reclassification to earnings (net of tax effect of $(16) and $(9))
 (51) (29)
Balance at end of period 90  26 
Unrecognized pension and postretirement benefit costs, net of tax:
Balance at beginning of period (259) (2,098)
Net actuarial gain (loss) resulting from remeasurements of plan assets and liabilities (net of tax effect of $0 and $11)
 —  31 
Reclassification to earnings (net of tax effect of $7 and $(3))
 20  (7)
Balance at end of period (239) (2,074)
Accumulated other comprehensive income (loss) at end of period $ (1,481) $ (3,257)
Gains (Losses) Reclassified from AOCI
Detail of the gains (losses) reclassified from accumulated other comprehensive income (loss) to the statements of consolidated income for the three months ended March 31, 2023 and 2022 is as follows (in millions):
Amount Reclassified from AOCI(1)
Affected Line Item in the Income Statement
Three Months Ended March 31: 2023 2022
Unrealized Gain (Loss) on Foreign Currency Translation:
Realized gain (loss) on business wind-down $ (3) $ —  Other expenses
Income tax (expense) benefit —  —  Income tax expense
Impact on net income (3) —  Net income
Unrealized gain (loss) on marketable securities:
Realized gain (loss) on sale of securities (3) —  Investment income and other
Income tax (expense) benefit 1  —  Income tax expense
Impact on net income (2) —  Net income
Unrealized gain (loss) on cash flow hedges:
Interest rate contracts (1) (3) Interest expense
Foreign currency exchange contracts 68  41  Revenue
Income tax (expense) benefit (16) (9) Income tax expense
Impact on net income 51  29  Net income
Unrecognized pension and postretirement benefit costs:
Prior service costs (27) (23) Investment income and other
Curtailment of benefit obligation —  33  Investment income and other
Income tax (expense) benefit 7  (3) Income tax expense
Impact on net income (20) 7  Net income
Total amount reclassified for the period $ 26  $ 36  Net income
(1) Accumulated other comprehensive income (loss)
Activity in Deferred Compensation Program
Activity in the deferred compensation program for the three months ended March 31, 2023 and 2022 was as follows (in millions):
2023 2022
Three Months Ended March 31: Shares Dollars Shares Dollars
Deferred Compensation Obligations:
Balance at beginning of period $ 13  $ 16 
Reinvested dividends —  — 
Benefit payments (4) (4)
Balance at end of period $ 9  $ 12 
Treasury Stock:
Balance at beginning of period —  $ (13) —  $ (16)
Reinvested dividends —  —  —  — 
Benefit payments —  4  —  4 
Balance at end of period —  $ (9) —  $ (12)