Annual report pursuant to Section 13 and 15(d)

SHAREOWNERS' EQUITY (Tables)

v3.8.0.1
SHAREOWNERS' EQUITY (Tables)
 12 Months Ended
Dec. 31, 2017
Stockholders' Equity Note [Abstract]  
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):
 
2017
 
2016
 
2015
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Class A Common Stock:
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
180

 
$
2

 
194

 
$
2

 
201

 
$
2

Common stock purchases
(4
)
 
—

 
(4
)
 
—

 
(4
)
 
—

Stock award plans
4

 
—

 
5

 
—

 
5

 
—

Common stock issuances
3

 
—

 
2

 
—

 
3

 
—

Conversions of class A to class B common stock
(10
)
 
—

 
(17
)
 
—

 
(11
)
 
—

Class A shares issued at end of year
173

 
$
2

 
180

 
$
2

 
194

 
$
2

Class B Common Stock:
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
689

 
$
7

 
693

 
$
7

 
705

 
$
7

Common stock purchases
(12
)
 
—

 
(21
)
 
—

 
(23
)
 
—

Conversions of class A to class B common stock
10

 
—

 
17

 
—

 
11

 
—

Class B shares issued at end of year
687

 
$
7

 
689

 
$
7

 
693

 
$
7

Additional Paid-In Capital:
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
 
 
$
—

 
 
 
$
—

 
 
 
$
—

Stock award plans
 
 
396

 
 
 
541

 
 
 
492

Common stock purchases
 
 
(813
)
 
 
 
(898
)
 
 
 
(791
)
Common stock issuances
 
 
363

 
 
 
303

 
 
 
316

Option premiums received (paid)
 
 
54

 
 
 
54

 
 
 
(17
)
Balance at end of year
 
 
$
—

 
 
 
$
—

 
 
 
$
—

Retained Earnings:
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
 
 
$
4,879

 
 
 
$
6,001

 
 
 
$
5,726

Net income attributable to controlling interests
 
 
4,910

 
 
 
3,431

 
 
 
4,844

Dividends ($3.32, $3.12, and $2.92 per share)
 
 
(2,928
)
 
 
 
(2,771
)
 
 
 
(2,649
)
Common stock purchases
 
 
(1,003
)
 
 
 
(1,782
)
 
 
 
(1,920
)
Balance at end of year
 
 
$
5,858

 
 
 
$
4,879

 
 
 
$
6,001

Activity in Accumulated Other Comprehensive Income (Loss)
The activity in AOCI is as follows (in millions):
 
2017
 
2016
 
2015
Foreign Currency Translation Gain (Loss), Net of Tax:
 
 
 
 
 
Balance at beginning of year
$
(1,016
)
 
$
(897
)
 
$
(457
)
Translation adjustment (net of tax effect of $(161), $32 and $0)
86

 
(119
)
 
(440
)
Balance at end of year
(930
)
 
(1,016
)
 
(897
)
Unrealized Gain (Loss) on Marketable Securities, Net of Tax:
 
 
 
 
 
Balance at beginning of year
(1
)
 
(1
)
 
—

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

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

 
—

 
—

Balance at end of year
(2
)
 
(1
)
 
(1
)
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax:
 
 
 
 
 
Balance at beginning of year
(45
)
 
67

 
61

Current period changes in fair value (net of tax effect of $(190), $75 and $103)
(316
)
 
124

 
171

Reclassification to earnings (net of tax effect of $(3), $(142) and $(99))
(5
)
 
(236
)
 
(165
)
Balance at end of year
(366
)
 
(45
)
 
67

Unrecognized Pension and Postretirement Benefit Costs, Net of Tax:
 
 
 
 
 
Balance at beginning of year
(3,421
)
 
(2,709
)
 
(3,198
)
Reclassification to earnings (net of tax effect of $269, $1,040 and $97)
731

 
1,783

 
195

Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities (net of tax effect of $(180), $(1,460) and $197)
(879
)
 
(2,495
)
 
294

Balance at end of year
(3,569
)
 
(3,421
)
 
(2,709
)
Accumulated other comprehensive income (loss) at end of year
$
(4,867
)
 
$
(4,483
)
 
$
(3,540
)
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, 2017, 2016 and 2015 is as follows (in millions):
 
2017 Amount Reclassified from AOCI
 
2016 Amount Reclassified from AOCI
 
2015 Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
Unrealized Gain (Loss) on Marketable Securities:
 
 
 
 
 
 
Realized gain (loss) on sale of securities
(2
)
 
—

 
—

 
Investment income
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
(27
)
 
(26
)
 
(24
)
 
Interest expense
Foreign exchange contracts
—

 
—

 
(25
)
 
Interest expense
Foreign exchange contracts
35

 
404

 
313

 
Revenue
Income tax (expense) benefit
(3
)
 
(142
)
 
(99
)
 
Income tax expense
Impact on net income
5

 
236

 
165

 
Net income
Unrecognized Pension and Postretirement Benefit Costs:
 
 
 
 
 
 
Prior service costs
(200
)
 
(172
)
 
(174
)
 
Compensation and benefits
Remeasurement of benefit obligation
(800
)
 
(2,651
)
 
(118
)
 
Compensation and benefits
Income tax (expense) benefit
269

 
1,040

 
97

 
Income tax expense
Impact on net income
(731
)
 
(1,783
)
 
(195
)
 
Net income
 
 
 
 
 
 
 
 
Total amount reclassified for the period
$
(727
)
 
$
(1,547
)
 
$
(30
)
 
Net income
Activity in Deferred Compensation Program
Activity in the deferred compensation program for the years ended December 31, 2017, 2016 and 2015 is as follows (in millions):
 
2017
 
2016
 
2015
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Deferred Compensation Obligations:
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
 
 
$
45

 
 
 
$
51

 
 
 
$
59

Reinvested dividends
 
 
2

 
 
 
3

 
 
 
3

Benefit payments
 
 
(10
)
 
 
 
(9
)
 
 
 
(11
)
Balance at end of year
 
 
$
37

 
 
 
$
45

 
 
 
$
51

Treasury Stock:
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
(1
)
 
$
(45
)
 
(1
)
 
$
(51
)
 
(1
)
 
$
(59
)
Reinvested dividends
—

 
(2
)
 
—

 
(3
)
 
—

 
(3
)
Benefit payments
—

 
10

 
—

 
9

 
—

 
11

Balance at end of year
(1
)
 
$
(37
)
 
(1
)
 
$
(45
)
 
(1
)
 
$
(51
)