Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

v3.20.2
SHAREOWNERS' EQUITY (Tables)
 9 Months Ended
Sep. 30, 2020
Stockholders' Equity Note [Abstract]  
Schedule of Stockholders Equity
Three Months Ended September 30: 2020 2019
  Shares Dollars Shares Dollars
Class A Common Stock
Balance at beginning of period 157  $ 2  161  $ 2 
Common stock purchases —  —  (1) — 
Stock award plans —  —  —  — 
Common stock issuances 1  —  1  — 
Conversions of class A to class B common stock (8) —  (4) — 
Class A shares issued at end of period 150  $ 2  157  $ 2 
Class B Common Stock
Balance at beginning of period 706  $ 7  698  $ 7 
Common stock purchases —  —  (1) — 
Conversions of class A to class B common stock 8  —  4  — 
Class B shares issued at end of period 714  $ 7  701  $ 7 
Additional Paid-In Capital
Balance at beginning of period $ 255  $ 102 
Common stock purchases —  (251)
Stock award plans 145  202 
Common stock issuances 90  56 
Option premiums paid —  20 
Balance at end of period $ 490  $ 129 
Retained Earnings
Balance at beginning of period $ 10,032  $ 9,109 
Net income attributable to common shareowners 1,957  1,750 
Dividends ($1.01 and $0.96 per share) (1)
(873) (825)
Other (1) 3 
Balance at end of period $ 11,115  $ 10,037 
Non-Controlling Minority Interest
Balance at beginning of period $ 13  $ 18 
Change in non-controlling minority interest 1  (2)
Balance at end of period $ 14  $ 16 
(1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $28 and $27 million as of September 30, 2020 and September 30, 2019 respectively, that were settled in shares of class A common stock.
Nine Months Ended September 30: 2020 2019
  Shares Dollars Shares Dollars
Class A Common Stock
Balance at beginning of period 156  $ 2  163  $ 2 
Common stock purchases —  —  (3) — 
Stock award plans 6  —  4  — 
Common stock issuances 3  —  2  — 
Conversions of class A to class B common stock (15) —  (9) — 
Class A shares issued at end of period 150  $ 2  157  $ 2 
Class B Common Stock
Balance at beginning of period 701  $ 7  696  $ 7 
Common stock purchases (2) —  (4) — 
Conversions of class A to class B common stock 15  —  9  — 
Class B shares issued at end of period 714  $ 7  701  $ 7 
Additional Paid-In Capital
Balance at beginning of period $ 150  $ — 
Common stock purchases (217) (753)
Stock award plans 215  584 
Common stock issuances 342  277 
Option premiums received (paid) —  21 
Balance at end of period $ 490  $ 129 
Retained Earnings
Balance at beginning of period $ 9,105  $ 8,006 
Net income attributable to common shareowners 4,690  4,546 
Dividends ($3.03 and $2.88 per share) (1)
(2,679) (2,518)
Other (1) 3 
Balance at end of period $ 11,115  $ 10,037 
Non-Controlling Minority Interest
Balance at beginning of period $ 16  $ 16 
Change in non-controlling minority interest (2) — 
Balance at end of period $ 14  $ 16 
(1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $151 and $121 million as of September 30, 2020 and September 30, 2019 respectively, that were settled in shares of class A common stock.
Schedule of Accumulated Other Comprehensive Income (Loss) The activity in AOCI for the three and nine months ended September 30, 2020 and 2019 was as follows (in millions):
Three Months Ended September 30: 2020 2019
Foreign currency translation gain (loss), net of tax:
Balance at beginning of period $ (1,209) $ (1,106)
Translation adjustment (net of tax effect of $(14) and $41)
 65  (48)
Balance at end of period (1,144) (1,154)
Unrealized gain (loss) on marketable securities, net of tax:
Balance at beginning of period 9  7 
Current period changes in fair value (net of tax effect of $0 and $1)
 (1) 2 
Reclassification to earnings (net of tax effect of $0 and $(1))
 (1) (5)
Balance at end of period 7  4 
Unrealized gain (loss) on cash flow hedges, net of tax:
Balance at beginning of period 215  104 
Current period changes in fair value (net of tax effect of $(53) and $79)
 (168) 251 
Reclassification to earnings (net of tax effect of $(8) and $(14))
 (27) (45)
Balance at end of period 20  310 
Unrecognized pension and postretirement benefit costs, net of tax:
Balance at beginning of period (4,948) (3,820)
Reclassification to earnings (net of tax effect of $13 and $14)
 43  43 
Balance at end of period (4,905) (3,777)
Accumulated other comprehensive income (loss) at end of period $ (6,022) $ (4,617)
Nine Months Ended September 30: 2020 2019
Foreign currency translation gain (loss), net of tax:
Balance at beginning of period $ (1,078) $ (1,126)
Translation adjustment (net of tax effect of $(15) and $43)
 (66) (28)
Balance at end of period (1,144) (1,154)
Unrealized gain (loss) on marketable securities, net of tax:
Balance at beginning of period 4  (2)
Current period changes in fair value (net of tax effect of $1 and $4)
 6  11 
Reclassification to earnings (net of tax effect of $(1) in both periods)
 (3) (5)
Balance at end of period 7  4 
Unrealized gain (loss) on cash flow hedges, net of tax:
Balance at beginning of period 112  40 
Current period changes in fair value (net of tax effect of $10 and $112)
 33  355 
Reclassification to earnings (net of tax effect of $(39) and $(27))
 (125) (85)
Balance at end of period 20  310 
Unrecognized pension and postretirement benefit costs, net of tax:
Balance at beginning of period (5,035) (3,906)
Reclassification to earnings (net of tax effect of $40 and $41)
 130  129 
Balance at end of period (4,905) (3,777)
Accumulated other comprehensive income (loss) at end of period $ (6,022) $ (4,617)
Gains (Losses) Reclassified from AOCI
Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and nine months ended September 30, 2020 and 2019 was as follows (in millions):
Amount Reclassified from AOCI Affected Line Item in the Income Statement
Three Months Ended September 30: 2020 2019
Unrealized gain (loss) on marketable securities:
Realized gain (loss) on sale of securities $ 1  $ 6  Investment income and other
Income tax (expense) benefit —  (1) Income tax expense
Impact on net income 1  5  Net income
Unrealized gain (loss) on cash flow hedges:
Interest rate contracts (3) (3) Interest expense
Foreign exchange contracts 38  62  Revenue
Income tax (expense) benefit (8) (14) Income tax expense
Impact on net income 27  45  Net income
Unrecognized pension and postretirement benefit costs:
Prior service costs (56) (57) Investment income and other
Income tax (expense) benefit 13  14  Income tax expense
Impact on net income (43) (43) Net income
Total amount reclassified for the period $ (15) $ 7  Net income
Amount Reclassified from AOCI Affected Line Item in the Income Statement
Nine Months Ended September 30: 2020 2019
Unrealized gain (loss) on marketable securities:
Realized gain (loss) on sale of securities $ 4  $ 6  Investment income and other
Income tax (expense) benefit (1) (1) Income tax expense
Impact on net income 3  5  Net income
Unrealized gain (loss) on cash flow hedges:
Interest rate contracts (9) (12) Interest expense
Foreign exchange contracts 173  124  Revenue
Income tax (expense) benefit (39) (27) Income tax expense
Impact on net income 125  85  Net income
Unrecognized pension and postretirement benefit costs:
Prior service costs (170) (170) Investment income and other
Income tax (expense) benefit 40  41  Income tax expense
Impact on net income (130) (129) Net income
Total amount reclassified for the period $ (2) $ (39) Net income
Activity in Deferred Compensation Program
Activity in the deferred compensation program for the three and nine months ended September 30, 2020 and 2019 was as follows (in millions):
2020 2019
Three Months Ended September 30: Shares Dollars Shares Dollars
Deferred Compensation Obligations:
Balance at beginning of period $ 20  $ 25 
Reinvested dividends —  — 
Benefit payments —  — 
Balance at end of period $ 20  $ 25 
Treasury Stock:
Balance at beginning of period —  $ (20) —  $ (25)
Reinvested dividends —  —  —  — 
Benefit payments —  —  —  — 
Balance at end of period —  $ (20) —  $ (25)
2020 2019
Nine Months Ended September 30: Shares Dollars Shares Dollars
Deferred Compensation Obligations:
Balance at beginning of period $ 26  $ 32 
Reinvested dividends 1  1 
Benefit payments (7) (8)
Balance at end of period $ 20  $ 25 
Treasury Stock:
Balance at beginning of period —  $ (26) (1) $ (32)
Reinvested dividends —  (1) —  (1)
Benefit payments —  7  1  8 
Balance at end of period —  $ (20) —  $ (25)