SHAREOWNERS' EQUITY (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Stockholders' Equity Note [Abstract] |
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| 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, retained earnings and non-controlling interests accounts for the year ended December 31, 2019, 2018 and 2017 (in millions, except per share amounts):
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Year Ended December 31: |
2019 |
|
2018 |
|
2017 |
|
Shares |
|
Dollars |
|
Shares |
|
Dollars |
|
Shares |
|
Dollars |
Class A Common Stock: |
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Balance at beginning of year |
163 |
|
|
$ |
2 |
|
|
173 |
|
|
$ |
2 |
|
|
180 |
|
|
$ |
2 |
|
Common stock purchases |
(3 |
) |
|
— |
|
|
(3 |
) |
|
— |
|
|
(4 |
) |
|
— |
|
Stock award plans |
5 |
|
|
— |
|
|
3 |
|
|
— |
|
|
4 |
|
|
— |
|
Common stock issuances |
3 |
|
|
— |
|
|
4 |
|
|
— |
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|
3 |
|
|
— |
|
Conversions of class A to class B common stock |
(12 |
) |
|
— |
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|
(14 |
) |
|
— |
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|
(10 |
) |
|
— |
|
Class A shares issued at end of year |
156 |
|
|
$ |
2 |
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|
163 |
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$ |
2 |
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|
173 |
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|
$ |
2 |
|
Class B Common Stock: |
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Balance at beginning of year |
696 |
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$ |
7 |
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|
687 |
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$ |
7 |
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|
689 |
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|
$ |
7 |
|
Common stock purchases |
(7 |
) |
|
— |
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|
(5 |
) |
|
— |
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|
(12 |
) |
|
— |
|
Conversions of class A to class B common stock |
12 |
|
|
— |
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|
14 |
|
|
— |
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|
10 |
|
|
— |
|
Class B shares issued at end of year |
701 |
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|
$ |
7 |
|
|
696 |
|
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$ |
7 |
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|
687 |
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$ |
7 |
|
Additional Paid-In Capital: |
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Balance at beginning of year |
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$ |
— |
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$ |
— |
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$ |
— |
|
Stock award plans |
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|
778 |
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|
419 |
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|
396 |
|
Common stock purchases |
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(1,005 |
) |
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|
(859 |
) |
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(813 |
) |
Common stock issuances |
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356 |
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|
406 |
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|
363 |
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Option premiums received (paid) |
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21 |
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|
34 |
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|
54 |
|
Balance at end of year |
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$ |
150 |
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$ |
— |
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$ |
— |
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Retained Earnings: |
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Balance at beginning of year |
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$ |
8,006 |
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$ |
5,852 |
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$ |
4,880 |
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Net income attributable to controlling interests |
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4,440 |
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4,791 |
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4,905 |
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Dividends ($3.84, $3.64, and $3.32 per share) (1)
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(3,341 |
) |
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(3,189 |
) |
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(2,928 |
) |
Common stock purchases |
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— |
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|
(141 |
) |
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(1,003 |
) |
Reclassification from AOCI pursuant to the early adoption of ASU 2018-02 |
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|
— |
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735 |
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— |
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Other |
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— |
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(42 |
) |
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(2 |
) |
Balance at end of year |
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$ |
9,105 |
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$ |
8,006 |
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$ |
5,852 |
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Non-Controlling Interests |
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Balance at beginning of year |
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$ |
16 |
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$ |
30 |
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$ |
24 |
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Change in non-controlling interests |
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— |
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(14 |
) |
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|
6 |
|
Balance at end of year |
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$ |
16 |
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$ |
16 |
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$ |
30 |
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(1) The dividend per share amount is the same for both class A and class B common stock
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| Activity in Accumulated Other Comprehensive Income (Loss) |
The activity in AOCI for the years ended December 31, 2019, 2018 and 2017 is as follows (in millions):
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Year Ended December 31: |
2019 |
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2018 |
|
2017 |
Foreign Currency Translation Gain (Loss), Net of Tax: |
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Balance at beginning of year |
$ |
(1,126 |
) |
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$ |
(930 |
) |
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$ |
(1,016 |
) |
Translation adjustment (net of tax effect of $10, $37 and $(161)) |
48 |
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(149 |
) |
|
86 |
|
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 |
— |
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|
(47 |
) |
|
— |
|
Balance at end of year |
$ |
(1,078 |
) |
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$ |
(1,126 |
) |
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$ |
(930 |
) |
Unrealized Gain (Loss) on Marketable Securities, Net of Tax: |
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Balance at beginning of year |
$ |
(2 |
) |
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$ |
(2 |
) |
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$ |
(1 |
) |
Current period changes in fair value (net of tax effect of $4, $(1) and $(1)) |
11 |
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(3 |
) |
|
(2 |
) |
Reclassification to earnings (net of tax effect of $(1), $1 and $1) |
(5 |
) |
|
3 |
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|
1 |
|
Balance at end of year |
$ |
4 |
|
|
$ |
(2 |
) |
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$ |
(2 |
) |
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax: |
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Balance at beginning of year |
$ |
40 |
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|
$ |
(366 |
) |
|
$ |
(45 |
) |
Current period changes in fair value (net of tax effect of $61, $135 and $(190)) |
195 |
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|
429 |
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(316 |
) |
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 |
— |
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|
(79 |
) |
|
— |
|
Reclassification to earnings (net of tax effect of $(39), $18 and $(3)) |
(123 |
) |
|
56 |
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|
(5 |
) |
Balance at end of year |
$ |
112 |
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$ |
40 |
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|
$ |
(366 |
) |
Unrecognized Pension and Postretirement Benefit Costs, Net of Tax: |
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Balance at beginning of year |
$ |
(3,906 |
) |
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$ |
(3,569 |
) |
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$ |
(3,421 |
) |
Reclassification to earnings (net of tax effect of $626, $439 and $269) |
1,988 |
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|
1,389 |
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|
731 |
|
Reclassification to retained earnings pursuant to the early adoption of ASU 2018-02 |
— |
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|
(609 |
) |
|
— |
|
Net actuarial gain (loss) and prior service cost resulting from remeasurements of plan assets and liabilities (net of tax effect of $(979), $(355) and $(180)) |
(3,117 |
) |
|
(1,117 |
) |
|
(879 |
) |
Balance at end of year |
$ |
(5,035 |
) |
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$ |
(3,906 |
) |
|
$ |
(3,569 |
) |
Accumulated other comprehensive income (loss) at end of year |
$ |
(5,997 |
) |
|
$ |
(4,994 |
) |
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$ |
(4,867 |
) |
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| 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, 2019, 2018 and 2017 is as follows (in millions):
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Year Ended December 31: |
Amount Reclassified from AOCI |
|
Affected Line Item in the Income Statement |
|
2019 |
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2018 |
|
2017 |
|
Unrealized Gain (Loss) on Marketable Securities: |
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Realized gain (loss) on sale of securities |
6 |
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(4 |
) |
|
(2 |
) |
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Investment income (expense) and other |
Income tax (expense) benefit |
(1 |
) |
|
1 |
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|
1 |
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Income tax expense |
Impact on net income |
5 |
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|
(3 |
) |
|
(1 |
) |
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Net income |
Unrealized Gain (Loss) on Cash Flow Hedges: |
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Interest rate contracts |
(15 |
) |
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(24 |
) |
|
(27 |
) |
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Interest expense |
Foreign exchange contracts |
177 |
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|
(50 |
) |
|
35 |
|
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Revenue |
Income tax (expense) benefit |
(39 |
) |
|
18 |
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|
(3 |
) |
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Income tax expense |
Impact on net income |
123 |
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|
(56 |
) |
|
5 |
|
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Net income |
Unrecognized Pension and Postretirement Benefit Costs: |
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Prior service costs |
(227 |
) |
|
(201 |
) |
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(200 |
) |
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Investment income (expense) and other |
Remeasurement of benefit obligation |
(2,387 |
) |
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(1,627 |
) |
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(800 |
) |
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Investment income (expense) and other |
Income tax (expense) benefit |
626 |
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|
439 |
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|
269 |
|
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Income tax expense |
Impact on net income |
(1,988 |
) |
|
(1,389 |
) |
|
(731 |
) |
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Net income |
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Total amount reclassified for the year |
$ |
(1,860 |
) |
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$ |
(1,448 |
) |
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$ |
(727 |
) |
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Net income |
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| Activity in Deferred Compensation Program |
Activity in the deferred compensation program for the years ended December 31, 2019, 2018 and 2017 is as follows (in millions):
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Year Ended December 31: |
2019 |
|
2018 |
|
2017 |
|
Shares |
|
Dollars |
|
Shares |
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Dollars |
|
Shares |
|
Dollars |
Deferred Compensation Obligations: |
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Balance at beginning of year |
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$ |
32 |
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$ |
37 |
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$ |
45 |
|
Reinvested dividends |
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|
2 |
|
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|
2 |
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|
2 |
|
Benefit payments |
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|
(8 |
) |
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|
(7 |
) |
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|
(10 |
) |
Balance at end of year |
|
|
$ |
26 |
|
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$ |
32 |
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$ |
37 |
|
Treasury Stock: |
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Balance at beginning of year |
(1 |
) |
|
$ |
(32 |
) |
|
(1 |
) |
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$ |
(37 |
) |
|
(1 |
) |
|
$ |
(45 |
) |
Reinvested dividends |
— |
|
|
(2 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
|
(2 |
) |
Benefit payments |
1 |
|
|
8 |
|
|
— |
|
|
7 |
|
|
— |
|
|
10 |
|
Balance at end of year |
— |
|
|
$ |
(26 |
) |
|
(1 |
) |
|
$ |
(32 |
) |
|
(1 |
) |
|
$ |
(37 |
) |
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