Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

v3.24.3
SHAREOWNERS' EQUITY (Tables)
 9 Months Ended
Sep. 30, 2024
Stockholders' Equity Note [Abstract]  
Schedule of Stockholders Equity
The following is a rollforward of our common stock, additional paid-in capital, retained earnings and noncontrolling interests accounts for the three and nine months ended September 30, 2024 and 2023 (in millions, except per share amounts):
Three Months Ended September 30: 2024 2023
Shares Dollars Shares Dollars
Class A Common Stock:
Balance at beginning of period 125  $ 2  132  $ 2 
Stock award plans —  —  1  — 
Common stock issuances —  —  1  — 
Conversions of class A to class B common stock (3) —  (4) — 
Class A shares issued at end of period 122  $ 2  130  $ 2 
Class B Common Stock:
Balance at beginning of period 732  $ 7  723  $ 7 
Common stock purchases (4) —  (5) — 
Conversions of class A to class B common stock 3  —  4  — 
Class B shares issued at end of period 731  $ 7  722  $ 7 
Additional Paid-In Capital:
Balance at beginning of period $ 136  $ — 
Stock award plans (20) 14 
Common stock purchases (212) (123)
Common stock issuances 96  115 
Other (1)
—  (6)
Balance at end of period $ —  $ — 
Retained Earnings:
Balance at beginning of period $ 20,692  $ 21,584 
Net income attributable to controlling interests 1,539  1,127 
Dividends ($1.63 and $1.62 per share) (2)
(1,391) (1,384)
Common stock purchases (288) (627)
Other
 —  (1)
Balance at end of period $ 20,552  $ 20,699 
Noncontrolling Interests:
Balance at beginning of period $ 23  $ 18 
Change in noncontrolling interest
 4  (6)
Balance at end of period $ 27  $ 12 
(1)    Includes a 1% excise tax applicable to share repurchases.
(2)    The dividend per share amount is the same for both class A and class B common stock. Dividends include $88 and $43 million as of September 30, 2024 and 2023, respectively, that were settled in shares of class A common stock.
Nine Months Ended September 30: 2024 2023
  Shares Dollars Shares Dollars
Class A Common Stock:
Balance at beginning of period 127  $ 2  134  $ 2 
Stock award plans 2  —  4  — 
Common stock issuances 2  —  2  — 
Conversions of class A to class B common stock (9) —  (10) — 
Class A shares issued at end of period
 122  $ 2  130  $ 2 
Class B Common Stock:
Balance at beginning of period 726  $ 7  725  $ 7 
Common stock purchases (4) —  (13) — 
Conversions of class A to class B common stock 9  —  10  — 
Class B shares issued at end of period
 731  $ 7  722  $ 7 
Additional Paid-In Capital:
Balance at beginning of period $ —  $ — 
Stock award plans (123) 391 
Common stock purchases (212) (750)
Common stock issuances 335  370 
Other (1)
—  (11)
Balance at end of period $ —  $ — 
Retained Earnings:
Balance at beginning of period $ 21,055  $ 21,326 
Net income attributable to controlling interests 4,061  5,103 
Dividends ($4.89 and $4.86 per share) (2)
(4,203) (4,230)
Common stock purchases (288) (1,500)
Other (3)
(73) — 
Balance at end of period $ 20,552  $ 20,699 
Noncontrolling Interests:
Balance at beginning of period $ 8  $ 17 
Change in noncontrolling interest
 19  (5)
Balance at end of period $ 27  $ 12 
(1)    Includes a 1% excise tax applicable to share repurchases.
(2)    The dividend per share amount is the same for both class A and class B common stock. Dividends include $154 and $196 million as of September 30, 2024 and 2023, respectively, that were settled in shares of class A common stock.
(3)    Includes adjustments related to certain stock-based awards.
Schedule of Accumulated Other Comprehensive Income (Loss) The activity in accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2024 and 2023 was as follows (in millions):
Three Months Ended September 30: 2024 2023
Foreign Currency Translation Gain (Loss), Net of Tax:
Balance at beginning of period $ (1,431) $ (1,346)
Translation adjustment (net of tax effect of $(5) and $0)
 211  (96)
Balance at end of period (1,220) (1,442)
Unrealized Gain (Loss) on Marketable Securities, Net of Tax:
Balance at beginning of period (3) (20)
Current period changes in fair value (net of tax effect of $0 and $(1))
 2  (2)
Balance at end of period (1) (22)
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax:
Balance at beginning of period —  10 
Current period changes in fair value (net of tax effect of $(37) and $44)
 (117) 138 
Reclassification to earnings (net of tax effect of $(7) and $(8))
 (22) (27)
Balance at end of period (139) 121 
Unrecognized Pension and Postretirement Benefit Costs, Net of Tax:
Balance at beginning of period (2,373) (218)
Reclassification to earnings (net of tax effect of $9 and $7)
 29  21 
Balance at end of period (2,344) (197)
Accumulated other comprehensive income (loss) at end of period $ (3,704) $ (1,540)
Nine Months Ended September 30: 2024 2023
Foreign currency translation gain (loss), net of tax:
Balance at beginning of period $ (1,248) $ (1,446)
Translation adjustment (net of tax effect of $(2) and $(13))
 28  1 
Reclassification to earnings (net of tax effect of $0 and $0)
 —  3 
Balance at end of period (1,220) (1,442)
Unrealized gain (loss) on marketable securities, net of tax:
Balance at beginning of period (2) (11)
Current period changes in fair value (net of tax effect of $0 and $(5))
 1  (13)
Reclassification to earnings (net of tax effect of $0 and $1)
 —  2 
Balance at end of period (1) (22)
Unrealized gain (loss) on cash flow hedges, net of tax:
Balance at beginning of period (76) 167 
Current period changes in fair value (net of tax effect of $7 and $22)
 24  69 
Reclassification to earnings (net of tax effect of $(27) and $(36))
 (87) (115)
Balance at end of period (139) 121 
Unrecognized pension and postretirement benefit costs, net of tax:
Balance at beginning of period (2,432) (259)
Reclassification to earnings (net of tax effect of $27 and $20)
 88  62 
Balance at end of period (2,344) (197)
Accumulated other comprehensive income (loss) at end of period $ (3,704) $ (1,540)
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 and nine months ended September 30, 2024 and 2023 is as follows (in millions):
Amount Reclassified from AOCI(1)
Affected Line Item in the Income Statement
Three Months Ended September 30: 2024 2023
Unrealized Gain (Loss) on Cash Flow Hedges:
Interest rate contracts $ (1) $ (6) Interest expense
Foreign currency exchange contracts 30  41  Revenue
Income tax (expense) benefit (7) (8) Income tax expense
Impact on net income 22  27  Net income
Unrecognized Pension and Postretirement Benefit Costs:
Prior service costs (38) (28) Investment income and other
Income tax (expense) benefit 9  7  Income tax expense
Impact on net income (29) (21) Net income
Total amount reclassified for the period $ (7) $ 6  Net income

Amount Reclassified from AOCI(1)
Affected Line Item in the Income Statement
Nine Months Ended September 30: 2024 2023
Unrealized gain (loss) on foreign currency translation:
Realized gain (loss) on business wind-down $ —  $ (3) Other expenses
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 (4) (9) Interest expense
Foreign currency exchange contracts 118  160  Revenue
Income tax (expense) benefit (27) (36) Income tax expense
Impact on net income 87  115  Net income
Unrecognized pension and postretirement benefit costs:
Prior service costs (115) (82) Investment income and other
Income tax (expense) benefit 27  20  Income tax expense
Impact on net income (88) (62) Net income
Total amount reclassified for the period $ (1) $ 48  Net income
(1)    Accumulated other comprehensive income (loss)
Activity in Deferred Compensation Program
Activity in the deferred compensation program for the three and nine months ended September 30, 2024 and 2023 was as follows (in millions):
2024 2023
Three Months Ended September 30: Shares Dollars Shares Dollars
Deferred Compensation Obligations:
Balance at beginning of period $ 6  $ 9 
Reinvested dividends —  — 
Benefit payments —  — 
Balance at end of period $ 6  $ 9 
Treasury Stock:
Balance at beginning of period —  $ (6) —  $ (9)
Reinvested dividends —  —  —  — 
Benefit payments —  —  —  — 
Balance at end of period —  $ (6) —  $ (9)
2024 2023
Nine Months Ended September 30: Shares Dollars Shares Dollars
Deferred Compensation Obligations:
Balance at beginning of period $ 9  $ 13 
Reinvested dividends —  — 
Benefit payments (3) (4)
Balance at end of period $ 6  $ 9 
Treasury Stock:
Balance at beginning of period —  $ (9) —  $ (13)
Reinvested dividends —  —  —  — 
Benefit payments —  3  —  4 
Balance at end of period —  $ (6) —  $ (9)