Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

v2.4.0.8
SHAREOWNERS' EQUITY (Tables)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2013
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 six months ended June 30, 2013 and 2012 (in millions, except per share amounts):
 
2013
 
2012
 
Shares
 
Dollars
 
Shares
 
Dollars
Class A Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
225

 
$
3

 
240

 
$
3

Common stock purchases
(4
)
 
(1
)
 
(3
)
 

Stock award plans
5

 

 
4

 

Common stock issuances
2

 

 
2

 

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

 
(8
)
 

Class A shares issued at end of period
218

 
$
2

 
235

 
$
3

Class B Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
729

 
$
7

 
725

 
$
7

Common stock purchases
(18
)
 

 
(8
)
 

Conversions of class A to class B common stock
10

 

 
8

 

Class B shares issued at end of period
721

 
$
7

 
725

 
$
7

Additional Paid-In Capital
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$

 
 
 
$

Stock award plans
 
 
364

 
 
 
291

Common stock purchases
 
 
(114
)
 
 
 
(606
)
Common stock issuances
 
 
149

 
 
 
144

Option premiums received (paid)
 
 
(399
)
 
 
 
206

Unsettled portion of accelerated stock repurchase program
 

 
 
 
(35
)
Balance at end of period
 
 
$

 
 
 
$

Retained Earnings
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
7,997

 
 
 
$
10,128

Net income attributable to common shareowners
 
 
2,108

 
 
 
2,086

Dividends ($1.24 and $1.14 per share)
 
 
(1,199
)
 
 
 
(1,123
)
Common stock purchases
 
 
(1,721
)
 
 
 
(264
)
Balance at end of period
 
 
$
7,185

 
 
 
$
10,827

Schedule of Accumulated Other Comprehensive Income (Loss)  
The activity in AOCI for the six months ended June 30, 2013 and 2012 is as follows (in millions):
 
2013
 
2012
Foreign currency translation gain (loss):
 
 
 
Balance at beginning of period
$
134

 
$
(160
)
Reclassification to earnings (no tax impact in either period)
(161
)
 

Translation adjustment (net of tax effect of $3 and $(3))
(166
)
 
(67
)
Balance at end of period
(193
)
 
(227
)
Unrealized gain (loss) on marketable securities, net of tax:
 
 
 
Balance at beginning of period
6

 
6

Current period changes in fair value (net of tax effect of $(5) and $2)
(8
)
 
4

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

 
(3
)
Balance at end of period
(2
)
 
7

Unrealized gain (loss) on cash flow hedges, net of tax:
 
 
 
Balance at beginning of period
(286
)
 
(204
)
Current period changes in fair value (net of tax effect of $(14) and $(57))
(22
)
 
(94
)
Reclassification to earnings (net of tax effect of $48 and $6)
80

 
10

Balance at end of period
(228
)
 
(288
)
Unrecognized pension and postretirement benefit costs, net of tax:
 
 
 
Balance at beginning of period
(3,208
)
 
(2,745
)
Reclassification to earnings (net of tax effect of $34 and $34)
54

 
55

Adjustment for Early Retirement Reinsurance Program (net of tax effect of $0 and $4)

 
6

Balance at end of period
(3,154
)
 
(2,684
)
Accumulated other comprehensive income (loss) at end of period
$
(3,577
)
 
$
(3,192
)
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 six months ended June 30, 2013 and 2012 is as follows (in millions):
Three Months Ended June 30:
 
 
 
 
 
 
2013 Amount Reclassified from AOCI
 
2012 Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
Foreign currency translation gain (loss):
 
 
 
 
 
Liquidation of foreign subsidiary
$

 
$

 
Other expenses
Income tax (expense) benefit

 

 
Income tax expense
Impact on net income

 

 
Net income
Unrealized gain (loss) on marketable securities:
 
 
 
 
 
Realized gain (loss) on sale of securities

 
1

 
Investment income
Income tax (expense) benefit

 

 
Income tax expense
Impact on net income

 
1

 
Net income
Unrealized gain (loss) on cash flow hedges:
 
 
 
 
 
Interest rate contracts
(5
)
 
(5
)
 
Interest expense
Foreign exchange contracts
6

 
(19
)
 
Interest expense
Foreign exchange contracts
(12
)
 
9

 
Revenue
Commodity contracts
(38
)
 

 
Fuel expense
Income tax (expense) benefit
18

 
6

 
Income tax expense
Impact on net income
(31
)
 
(9
)
 
Net income
Unrecognized pension and postretirement benefit costs:
 
 
 
 
 
Prior service costs
(44
)
 
(45
)
 
Compensation and benefits
Income tax (expense) benefit
16

 
18

 
Income tax expense
Impact on net income
(28
)
 
(27
)
 
Net income
 
 
 
 
 
 
Total amount reclassified for the period
$
(59
)
 
$
(35
)
 
Net income
 
 
 
 
 
 
Six Months Ended June 30:
 
 
 
 
 
 
2013 Amount Reclassified from AOCI
 
2012 Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
Foreign currency translation gain (loss):
 
 
 
 
 
Liquidation of foreign subsidiary
$
161

 
$

 
Other expenses
Income tax (expense) benefit

 

 
Income tax expense
Impact on net income
161



 
Net income
Unrealized gain (loss) on marketable securities:
 
 
 
 
 
Realized gain (loss) on sale of securities

 
4

 
Investment income
Income tax (expense) benefit

 
(1
)
 
Income tax expense
Impact on net income

 
3

 
Net income
Unrealized gain (loss) on cash flow hedges:
 
 
 
 
 
Interest rate contracts
(10
)
 
(10
)
 
Interest expense
Foreign exchange contracts
(44
)
 
(3
)
 
Interest expense
Foreign exchange contracts
(26
)
 
(3
)
 
Revenue
Commodity contracts
(48
)
 

 
Fuel expense
Income tax (expense) benefit
48

 
6

 
Income tax expense
Impact on net income
(80
)
 
(10
)
 
Net income
Unrecognized pension and postretirement benefit costs:
 
 
 
 
 
Prior service costs
(88
)
 
(89
)
 
Compensation and benefits
Income tax (expense) benefit
34

 
34

 
Income tax expense
Impact on net income
(54
)
 
(55
)
 
Net income
 
 
 
 
 
 
Total amount reclassified for the period
$
27

 
$
(62
)
 
Net income
Schedule of Deferred Compensation and Treasury Stock Activity  
Activity in the deferred compensation program for the six months ended June 30, 2013 and 2012 is as follows (in millions):
 
2013
 
2012
Shares
 
Dollars
 
Shares
 
Dollars
Deferred Compensation Obligations:
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
78

 
 
 
$
88

Reinvested dividends
 
 
2

 
 
 
2

Benefit payments
 
 
(13
)
 
 
 
(14
)
Balance at end of period
 
 
$
67

 
 
 
$
76

Treasury Stock:
 
 
 
 
 
 
 
Balance at beginning of period
(1
)
 
$
(78
)
 
(2
)
 
$
(88
)
Reinvested dividends

 
(2
)
 

 
(2
)
Benefit payments

 
13

 

 
14

Balance at end of period
(1
)
 
$
(67
)
 
(2
)
 
$
(76
)
Activity Related to Noncontrolling Interests  
The activity related to our noncontrolling interests is presented below for the six months ended June 30, 2013 and 2012 (in millions):
 
2013
 
2012
Noncontrolling Interests:
 
 
 
Balance at beginning of period
$
80

 
$
73

Acquired noncontrolling interests
(67
)
 
7

Dividends attributable to noncontrolling interests

 

Net income attributable to noncontrolling interests

 

Balance at end of period
$
13

 
$
80