Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

v2.4.1.9
SHAREOWNERS' EQUITY (Tables)
 3 Months Ended
Mar. 31, 2015
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 three months ended March 31, 2015 and 2014 (in millions, except per share amounts):
 
2015
 
2014
 
Shares
 
Dollars
 
Shares
 
Dollars
Class A Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
201

 
$
2

 
212

 
$
2

Common stock purchases
(1
)
 
—

 
(1
)
 
—

Stock award plans
2

 
—

 
2

 
—

Common stock issuances
1

 
—

 
1

 
—

Conversions of class A to class B common stock
(2
)
 
—

 
(3
)
 
—

Class A shares issued at end of period
201

 
$
2

 
211

 
$
2

Class B Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
705

 
$
7

 
712

 
$
7

Common stock purchases
(6
)
 
—

 
(6
)
 
—

Conversions of class A to class B common stock
2

 
—

 
3

 
—

Class B shares issued at end of period
701

 
$
7

 
709

 
$
7

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

 
 
 
$
—

Stock award plans
 
 
124

 
 
 
97

Common stock purchases
 
 
(126
)
 
 
 
(176
)
Common stock issuances
 
 
101

 
 
 
78

Option premiums received (paid)
 
 
(99
)
 
 
 
1

Balance at end of period
 
 
$
—

 
 
 
$
—

Retained Earnings
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
5,726

 
 
 
$
6,925

Net income attributable to common shareowners
 
 
1,026

 
 
 
911

Dividends ($0.73 and $0.67 per share)
 
 
(683
)
 
 
 
(626
)
Common stock purchases
 
 
(561
)
 
 
 
(483
)
Balance at end of period
 
 
$
5,508

 
 
 
$
6,727

Schedule of Accumulated Other Comprehensive Income (Loss)
The activity in AOCI for the three months ended March 31, 2015 and 2014 is as follows (in millions):
 
2015
 
2014
Foreign currency translation gain (loss):
 
 
 
Balance at beginning of period
$
(457
)
 
$
(126
)
Reclassification to earnings (no tax impact in either period)
—

 
—

Translation adjustment (net of tax effect of $0 and $2)
(304
)
 
(36
)
Balance at end of period
(761
)
 
(162
)
Unrealized gain (loss) on marketable securities, net of tax:
 
 
 
Balance at beginning of period
—

 
(1
)
Current period changes in fair value (net of tax effect of $1 and $0)
2

 
—

Reclassification to earnings (no tax impact in either period)
—

 
—

Balance at end of period
2

 
(1
)
Unrealized gain (loss) on cash flow hedges, net of tax:
 
 
 
Balance at beginning of period
61

 
(219
)
Current period changes in fair value (net of tax effect of $120 and $(15))
199

 
(24
)
Reclassification to earnings (net of tax effect of $(14) and $3)
(23
)
 
4

Balance at end of period
237

 
(239
)
Unrecognized pension and postretirement benefit costs, net of tax:
 
 
 
Balance at beginning of period
(3,198
)
 
(114
)
Reclassification to earnings (net of tax effect of $17 and $16)
26

 
27

Translation adjustment (net of tax effect of $3 and $0)
6

 
—

Balance at end of period
(3,166
)
 
(87
)
Accumulated other comprehensive income (loss) at end of period
$
(3,688
)
 
$
(489
)
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, 2015 and 2014 is as follows (in millions):
Three Months Ended March 31:
 
 
 
 
 
 
Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
 
2015
 
2014
 
Unrealized gain (loss) on marketable securities:
 
 
 
 
 
Realized gain (loss) on sale of securities
—

 
—

 
Investment income
Income tax (expense) benefit
—

 
—

 
Income tax expense
Impact on net income
—

 
—

 
Net income
Unrealized gain (loss) on cash flow hedges:
 
 
 
 
 
Interest rate contracts
(6
)
 
(6
)
 
Interest expense
Foreign exchange contracts
(36
)
 
8

 
Interest expense
Foreign exchange contracts
79

 
(9
)
 
Revenue
Commodity contracts
—

 
—

 
Fuel expense
Income tax (expense) benefit
(14
)
 
3

 
Income tax expense
Impact on net income
23

 
(4
)
 
Net income
Unrecognized pension and postretirement benefit costs:
 
 
 
 
 
Prior service costs
(43
)
 
(43
)
 
Compensation and benefits
Settlement and curtailment loss
—

 
—

 
Compensation and benefits
Remeasurement of benefit obligation
—

 
—

 
Compensation and benefits
Income tax (expense) benefit
17

 
16

 
Income tax expense
Impact on net income
(26
)
 
(27
)
 
Net income
 
 
 
 
 
 
Total amount reclassified for the period
$
(3
)
 
$
(31
)
 
Net income
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Deferred Compensation and Treasury Stock Activity
Activity in the deferred compensation program for the three months ended March 31, 2015 and 2014 is as follows (in millions):
 
2015
 
2014
Shares
 
Dollars
 
Shares
 
Dollars
Deferred Compensation Obligations:
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
59

 
 
 
$
69

Reinvested dividends
 
 
1

 
 
 
1

Benefit payments
 
 
(11
)
 
 
 
(12
)
Balance at end of period
 
 
$
49

 
 
 
$
58

Treasury Stock:
 
 
 
 
 
 
 
Balance at beginning of period
(1
)
 
$
(59
)
 
(1
)
 
$
(69
)
Reinvested dividends
—

 
(1
)
 
—

 
(1
)
Benefit payments
—

 
11

 
—

 
12

Balance at end of period
(1
)
 
$
(49
)
 
(1
)
 
$
(58
)
Activity Related to Noncontrolling Interests
The activity related to our noncontrolling interests is presented below for the three months ended March 31, 2015 and 2014 (in millions):
 
2015
 
2014
Noncontrolling Interests:
 
 
 
Balance at beginning of period
$
17

 
$
14

Acquired noncontrolling interests
1

 
1

Dividends attributable to noncontrolling interests
—

 
—

Net income attributable to noncontrolling interests
—

 
—

Balance at end of period
$
18

 
$
15