Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

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SHAREOWNERS' EQUITY (Tables)
 9 Months Ended
Sep. 30, 2021
Stockholders' Equity Note [Abstract]  
Schedule of Stockholders Equity
Three Months Ended September 30: 2021 2020
  Shares Dollars Shares Dollars
Class A Common Stock
Balance at beginning of period 144  $ 2  157  $ 2 
Stock award plans (1) —  —  — 
Common stock issuances 1  —  1  — 
Conversions of class A to class B common stock (3) —  (8) — 
Class A shares issued at end of period 141  $ 2  150  $ 2 
Class B Common Stock
Balance at beginning of period 728  $ 7  706  $ 7 
Common stock purchases (3) —  —  — 
Conversions of class A to class B common stock 3  —  8  — 
Class B shares issued at end of period 728  $ 7  714  $ 7 
Additional Paid-In Capital
Balance at beginning of period $ 1,329  $ 255 
Common stock purchases (500) — 
Stock award plans 176  145 
Common stock issuances 83  90 
Balance at end of period $ 1,088  $ 490 
Retained Earnings
Balance at beginning of period $ 12,531  $ 10,032 
Net income attributable to common shareowners 2,329  1,957 
Dividends ($1.02 and $1.01 per share) (1)
(887) (873)
Other —  (1)
Balance at end of period $ 13,973  $ 11,115 
Non-Controlling Minority Interest
Balance at beginning of period $ 17  $ 13 
Change in non-controlling minority interest (1) 1 
Balance at end of period $ 16  $ 14 
(1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $27 and $28 million as of September 30, 2021 and 2020, respectively, that were settled in shares of class A common stock.
Nine Months Ended September 30: 2021 2020
  Shares Dollars Shares Dollars
Class A Common Stock
Balance at beginning of period 147  $ 2  156  $ 2 
Stock award plans 5  —  6  — 
Common stock issuances 2  —  3  — 
Conversions of class A to class B common stock (13) —  (15) — 
Class A shares issued at end of period 141  $ 2  150  $ 2 
Class B Common Stock
Balance at beginning of period 718  $ 7  701  $ 7 
Common stock purchases (3) —  (2) — 
Conversions of class A to class B common stock 13  —  15  — 
Class B shares issued at end of period 728  $ 7  714  $ 7 
Additional Paid-In Capital
Balance at beginning of period $ 865  $ 150 
Common stock purchases (500) (217)
Stock award plans 399  215 
Common stock issuances 324  342 
Balance at end of period $ 1,088  $ 490 
Retained Earnings
Balance at beginning of period $ 6,896  $ 9,105 
Net income attributable to controlling interests 9,797  4,690 
Dividends ($3.06 and $3.03 per share) (1)
(2,718) (2,679)
Other (2) (1)
Balance at end of period $ 13,973  $ 11,115 
Non-Controlling Interests
Balance at beginning of period $ 12  $ 16 
Change in non-controlling minority interest 4  (2)
Balance at end of period $ 16  $ 14 
(1) The dividend per share amount is the same for both class A and class B common stock. Dividends include $140 and $151 million as of September 30, 2021 and 2020 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, 2021 and 2020 was as follows (in millions):
Three Months Ended September 30: 2021 2020
Foreign Currency Translation Gain (Loss), Net of Tax:
Balance at beginning of period $ (1,015) $ (1,209)
Translation adjustment (net of tax effect of $8 and $(14))
 (106) 65 
Balance at end of period (1,121) (1,144)
Unrealized Gain (Loss) on Marketable Securities, Net of Tax:
Balance at beginning of period 1  9 
Current period changes in fair value (net of tax effect of $0 and $0)
 —  (1)
Reclassification to earnings (net of tax effect of $0 and $0)
 —  (1)
Balance at end of period 1  7 
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax:
Balance at beginning of period (155) 215 
Current period changes in fair value (net of tax effect of $40 and $(53))
 126  (168)
Reclassification to earnings (net of tax effect of $(5) and $(8))
 (14) (27)
Balance at end of period (43) 20 
Unrecognized Pension and Postretirement Benefit Costs, Net of Tax:
Balance at beginning of period (1,895) (4,948)
Reclassification to earnings (net of tax effect of $9 and $13)
 29  43 
Balance at end of period (1,866) (4,905)
Accumulated other comprehensive income (loss) at end of period $ (3,029) $ (6,022)
Nine Months Ended September 30: 2021 2020
Foreign currency translation gain (loss), net of tax:
Balance at beginning of period $ (981) $ (1,078)
Translation adjustment (net of tax effect of $37 and $(15))
 (140) (66)
Balance at end of period (1,121) (1,144)
Unrealized gain (loss) on marketable securities, net of tax:
Balance at beginning of period 6  4 
Current period changes in fair value (net of tax effect of $0 and $1)
 (1) 6 
Reclassification to earnings (net of tax effect of $0 and $(1))
 (4) (3)
Balance at end of period 1  7 
Unrealized gain (loss) on cash flow hedges, net of tax:
Balance at beginning of period (223) 112 
Current period changes in fair value (net of tax effect of $65 and $10)
 207  33 
Reclassification to earnings (net of tax effect of $(9) and $(39))
 (27) (125)
Balance at end of period (43) 20 
Unrecognized pension and postretirement benefit costs, net of tax:
Balance at beginning of period (5,915) (5,035)
Net actuarial gain (loss) resulting from remeasurements of plan assets and liabilities (net of tax effect of $2,039 and $0)
 6,470  — 
Reclassification to earnings (net of tax effect of $(763) and $40)
 (2,421) 130 
Balance at end of period (1,866) (4,905)
Accumulated other comprehensive income (loss) at end of period $ (3,029) $ (6,022)
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, 2021 and 2020 is as follows (in millions):
Amount Reclassified from AOCI Affected Line Item in the Income Statement
Three Months Ended September 30: 2021 2020
Unrealized Gain (Loss) on Marketable Securities:
Realized gain (loss) on sale of securities $ —  $ 1  Investment income and other
Income tax (expense) benefit —  —  Income tax expense
Impact on net income —  1  Net income
Unrealized Gain (Loss) on Cash Flow Hedges:
Interest rate contracts (3) (3) Interest expense
Foreign currency exchange contracts 22  38  Revenue
Income tax (expense) benefit (5) (8) Income tax expense
Impact on net income 14  27  Net income
Unrecognized Pension and Postretirement Benefit Costs:
Prior service costs (38) (56) Investment income and other
Prior service credit for divested business
 —  —  Other expenses
Plan amendments for divested business —  —  Other expenses
Income tax (expense) benefit 9  13  Income tax expense
Impact on net income (29) (43) Net income
Total amount reclassified for the period $ (15) $ (15) Net income

Amount Reclassified from AOCI Affected Line Item in the Income Statement
Nine Months Ended September 30: 2021 2020
Unrealized gain (loss) on marketable securities:
Realized gain (loss) on sale of securities $ 4  $ 4  Investment income and other
Income tax (expense) benefit —  (1) Income tax expense
Impact on net income 4  3  Net income
Unrealized gain (loss) on cash flow hedges:
Interest rate contracts (8) (9) Interest expense
Foreign currency exchange contracts 44  173  Revenue
Income tax (expense) benefit (9) (39) Income tax expense
Impact on net income 27  125  Net income
Unrecognized pension and postretirement benefit costs:
Prior service costs (109) (170) Investment income and other
Prior service credit for divested business
 69  —  Other expenses
Plan amendments for divested business (66) —  Other expenses
Remeasurement of benefit obligation 3,290  —  Investment income and other
Income tax (expense) benefit (763) 40  Income tax expense
Impact on net income 2,421  (130) Net income
Total amount reclassified for the period $ 2,452  $ (2) Net income
Activity in Deferred Compensation Program
Activity in the deferred compensation program for the three and nine months ended September 30, 2021 and 2020 was as follows (in millions):
2021 2020
Three Months Ended September 30: Shares Dollars Shares Dollars
Deferred Compensation Obligations:
Balance at beginning of period $ 16  $ 20 
Reinvested dividends —  — 
Benefit payments —  — 
Balance at end of period $ 16  $ 20 
Treasury Stock:
Balance at beginning of period —  $ (16) —  $ (20)
Reinvested dividends —  —  —  — 
Benefit payments —  —  —  — 
Balance at end of period —  $ (16) —  $ (20)

2021 2020
Nine Months Ended September 30: Shares Dollars Shares Dollars
Deferred Compensation Obligations:
Balance at beginning of period $ 20  $ 26 
Reinvested dividends 1  1 
Benefit payments (5) (7)
Balance at end of period $ 16  $ 20 
Treasury Stock:
Balance at beginning of period —  $ (20) —  $ (26)
Reinvested dividends —  (1) —  (1)
Benefit payments —  5  —  7 
Balance at end of period —  $ (16) —  $ (20)