Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

v3.5.0.2
SHAREOWNERS' EQUITY (Tables)
 9 Months Ended
Sep. 30, 2016
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 nine months ended September 30, 2016 and 2015 (in millions, except per share amounts):
 
2016
 
2015
 
Shares
 
Dollars
 
Shares
 
Dollars
Class A Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
194

 
$
2

 
201

 
$
2

Common stock purchases
(4
)
 
—

 
(3
)
 
—

Stock award plans
5

 
—

 
4

 
—

Common stock issuances
2

 
—

 
2

 
—

Conversions of class A to class B common stock
(12
)
 
—

 
(8
)
 
—

Class A shares issued at end of period
185

 
$
2

 
196

 
$
2

Class B Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
693

 
$
7

 
705

 
$
7

Common stock purchases
(16
)
 
—

 
(17
)
 
—

Conversions of class A to class B common stock
12

 
—

 
8

 
—

Class B shares issued at end of period
689

 
$
7

 
696

 
$
7

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

 
 
 
$
—

Stock award plans
 
 
423

 
 
 
391

Common stock purchases
 
 
(811
)
 
 
 
(567
)
Common stock issuances
 
 
233

 
 
 
245

Option premiums received (paid)
 
 
155

 
 
 
(69
)
Balance at end of period
 
 
$
—

 
 
 
$
—

Retained Earnings
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
6,001

 
 
 
$
5,726

Net income attributable to common shareowners
 
 
3,670

 
 
 
3,513

Dividends ($2.34 and $2.19 per share)
 
 
(2,093
)
 
 
 
(2,000
)
Common stock purchases
 
 
(1,193
)
 
 
 
(1,468
)
Balance at end of period
 
 
$
6,385

 
 
 
$
5,771

Schedule of Accumulated Other Comprehensive Income (Loss)
The activity in AOCI for the nine months ended September 30, 2016 and 2015 is as follows (in millions):
 
2016
 
2015
Foreign currency translation gain (loss):
 
 
 
Balance at beginning of period
$
(897
)
 
$
(457
)
Translation adjustment (net tax of $24 and no tax impact)
(12
)
 
(344
)
Balance at end of period
(909
)
 
(801
)
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 $3 and $1)
4

 
1

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

 
—

Balance at end of period
3

 
1

Unrealized gain (loss) on cash flow hedges, net of tax:
 
 
 
Balance at beginning of period
67

 
61

Current period changes in fair value (net of tax effect of $(15) and $71)
(24
)
 
119

Reclassification to earnings (net of tax effect of $(96) and $(67))
(159
)
 
(113
)
Balance at end of period
(116
)
 
67

Unrecognized pension and postretirement benefit costs, net of tax:
 
 
 
Balance at beginning of period
(2,709
)
 
(3,198
)
Reclassification to earnings (net of tax effect of $48 and $51)
80

 
80

Balance at end of period
(2,629
)
 
(3,118
)
Accumulated other comprehensive income (loss) at end of period
$
(3,651
)
 
$
(3,851
)
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 and nine months ended September 30, 2016 and 2015 is as follows (in millions):
Three Months Ended September 30:
 
 
 
 
 
 
Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
 
2016
 
2015
 
Unrealized gain (loss) on cash flow hedges:
 
 
 
 
 
Interest rate contracts
$
(7
)
 
$
(6
)
 
Interest expense
Foreign exchange contracts
83

 
67

 
Revenue
Income tax (expense) benefit
(29
)
 
(22
)
 
Income tax expense
Impact on net income
47

 
39

 
Net income
Unrecognized pension and postretirement benefit costs:
 
 
 
 
 
Prior service costs
(42
)
 
(44
)
 
Compensation and benefits
Income tax (expense) benefit
15

 
16

 
Income tax expense
Impact on net income
(27
)
 
(28
)
 
Net income
Total amount reclassified for the period
$
20

 
$
11

 
Net income


Nine Months Ended September 30:
 
 
 
 
 
 
Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
 
2016
 
2015
 
Unrealized gain (loss) on cash flow hedges:
 
 
 
 
 
Interest rate contracts
(19
)
 
(18
)
 
Interest expense
Foreign exchange contracts
—

 
(25
)
 
Interest expense
Foreign exchange contracts
274

 
223

 
Revenue
Income tax (expense) benefit
(96
)
 
(67
)
 
Income tax expense
Impact on net income
159

 
113

 
Net income
Unrecognized pension and postretirement benefit costs:
 
 
 
 
 
Prior service costs
(128
)
 
(131
)
 
Compensation and benefits
Income tax (expense) benefit
48

 
51

 
Income tax expense
Impact on net income
(80
)
 
(80
)
 
Net income
Total amount reclassified for the period
$
79

 
$
33

 
Net income
Schedule of Deferred Compensation and Treasury Stock Activity
Activity in the deferred compensation program for the nine months ended September 30, 2016 and 2015 is as follows (in millions):
 
2016
 
2015
Shares
 
Dollars
 
Shares
 
Dollars
Deferred Compensation Obligations:
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
51

 
 
 
$
59

Reinvested dividends
 
 
2

 
 
 
3

Benefit payments
 
 
(9
)
 
 
 
(11
)
Balance at end of period
 
 
$
44

 
 
 
$
51

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

 
(2
)
 
—

 
(3
)
Benefit payments
—

 
9

 
—

 
11

Balance at end of period
(1
)
 
$
(44
)
 
(1
)
 
$
(51
)