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SHAREOWNERS' EQUITY (Tables)
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3 Months Ended |
9 Months Ended |
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Sep. 30, 2013
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Sep. 30, 2013
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| Stockholders' Equity Note [Abstract] |
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| Schedule of Stockholders Equity |
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The following is a rollforward of our common stock, additional paid-in capital and retained earnings accounts for the nine months ended September 30, 2013 and 2012 (in millions, except per share amounts):
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2013 |
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2012 |
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Shares |
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Dollars |
|
Shares |
|
Dollars |
Class A Common Stock |
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|
|
|
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|
Balance at beginning of period |
225 |
|
|
$ |
3 |
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|
240 |
|
|
$ |
3 |
|
Common stock purchases |
(6 |
) |
|
(1 |
) |
|
(6 |
) |
|
— |
|
Stock award plans |
6 |
|
|
— |
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|
5 |
|
|
— |
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Common stock issuances |
3 |
|
|
— |
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|
3 |
|
|
— |
|
Conversions of class A to class B common stock |
(14 |
) |
|
— |
|
|
(11 |
) |
|
— |
|
Class A shares issued at end of period |
214 |
|
|
$ |
2 |
|
|
231 |
|
|
$ |
3 |
|
Class B Common Stock |
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|
|
|
|
|
|
Balance at beginning of period |
729 |
|
|
$ |
7 |
|
|
725 |
|
|
$ |
7 |
|
Common stock purchases |
(27 |
) |
|
— |
|
|
(13 |
) |
|
— |
|
Conversions of class A to class B common stock |
14 |
|
|
— |
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|
11 |
|
|
— |
|
Class B shares issued at end of period |
716 |
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|
$ |
7 |
|
|
723 |
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$ |
7 |
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Additional Paid-In Capital |
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Balance at beginning of period |
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|
$ |
— |
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|
|
$ |
— |
|
Stock award plans |
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|
493 |
|
|
|
|
414 |
|
Common stock purchases |
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|
(513 |
) |
|
|
|
(827 |
) |
Common stock issuances |
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|
216 |
|
|
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|
207 |
|
Option premiums received (paid) |
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(196 |
) |
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|
206 |
|
Balance at end of period |
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$ |
— |
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|
|
$ |
— |
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Retained Earnings |
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Balance at beginning of period |
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|
$ |
7,997 |
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$ |
10,128 |
|
Net income attributable to common shareowners |
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3,205 |
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2,555 |
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Dividends ($1.86 and $1.71 per share) |
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|
(1,770 |
) |
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|
(1,670 |
) |
Common stock purchases |
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|
(2,330 |
) |
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|
(565 |
) |
Balance at end of period |
|
|
$ |
7,102 |
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$ |
10,448 |
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| Schedule of Accumulated Other Comprehensive Income (Loss) |
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The activity in AOCI for the nine months ended September 30, 2013 and 2012 is as follows (in millions):
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2013 |
|
2012 |
Foreign currency translation gain (loss): |
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Balance at beginning of period |
$ |
134 |
|
|
$ |
(160 |
) |
Reclassification to earnings (no tax impact in either period) |
(161 |
) |
|
— |
|
Translation adjustment (net of tax effect of $(2) and $(6)) |
(99 |
) |
|
176 |
|
Balance at end of period |
(126 |
) |
|
16 |
|
Unrealized gain (loss) on marketable securities, net of tax: |
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|
Balance at beginning of period |
6 |
|
|
6 |
|
Current period changes in fair value (net of tax effect of $(5) and $5) |
(7 |
) |
|
7 |
|
Reclassification to earnings (net of tax effect of $0 and $(3)) |
— |
|
|
(5 |
) |
Balance at end of period |
(1 |
) |
|
8 |
|
Unrealized gain (loss) on cash flow hedges, net of tax: |
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|
Balance at beginning of period |
(286 |
) |
|
(204 |
) |
Current period changes in fair value (net of tax effect of $3 and $(38)) |
6 |
|
|
(64 |
) |
Reclassification to earnings (net of tax effect of $39 and $(16)) |
64 |
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|
(28 |
) |
Balance at end of period |
(216 |
) |
|
(296 |
) |
Unrecognized pension and postretirement benefit costs, net of tax: |
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|
Balance at beginning of period |
(3,208 |
) |
|
(2,745 |
) |
Reclassification to earnings (net of tax effect of $51 and $50) |
82 |
|
|
84 |
|
Adjustment for Early Retirement Reinsurance Program (net of tax effect of $0 and $2) |
— |
|
|
4 |
|
Balance at end of period |
(3,126 |
) |
|
(2,657 |
) |
Accumulated other comprehensive income (loss) at end of period |
$ |
(3,469 |
) |
|
$ |
(2,929 |
) |
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| 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, 2013 and 2012 is as follows (in millions):
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Three Months Ended September 30: |
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2013 Amount Reclassified from AOCI |
|
2012 Amount Reclassified from AOCI |
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Affected Line Item in the Income Statement |
Foreign currency translation gain (loss): |
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Liquidation of foreign subsidiary |
$ |
— |
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|
$ |
— |
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Other expenses |
Income tax (expense) benefit |
— |
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|
— |
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Income tax expense |
Impact on net income |
— |
|
|
— |
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Net income |
Unrealized gain (loss) on marketable securities: |
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Realized gain (loss) on sale of securities |
— |
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|
4 |
|
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Investment income |
Income tax (expense) benefit |
— |
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|
(2 |
) |
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Income tax expense |
Impact on net income |
— |
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|
2 |
|
|
Net income |
Unrealized gain (loss) on cash flow hedges: |
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Interest rate contracts |
(6 |
) |
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(6 |
) |
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Interest expense |
Foreign exchange contracts |
44 |
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|
30 |
|
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Interest expense |
Foreign exchange contracts |
(13 |
) |
|
36 |
|
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Revenue |
Commodity contracts |
— |
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|
— |
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Fuel expense |
Income tax (expense) benefit |
(9 |
) |
|
(22 |
) |
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Income tax expense |
Impact on net income |
16 |
|
|
38 |
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Net income |
Unrecognized pension and postretirement benefit costs: |
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Prior service costs |
(45 |
) |
|
(45 |
) |
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Compensation and benefits |
Income tax (expense) benefit |
17 |
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|
16 |
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Income tax expense |
Impact on net income |
(28 |
) |
|
(29 |
) |
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Net income |
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Total amount reclassified for the period |
$ |
(12 |
) |
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$ |
11 |
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Net income |
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Nine Months Ended September 30: |
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2013 Amount Reclassified from AOCI |
|
2012 Amount Reclassified from AOCI |
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Affected Line Item in the Income Statement |
Foreign currency translation gain (loss): |
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Liquidation of foreign subsidiary |
$ |
161 |
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|
$ |
— |
|
|
Other expenses |
Income tax (expense) benefit |
— |
|
|
— |
|
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Income tax expense |
Impact on net income |
161 |
|
|
— |
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Net income |
Unrealized gain (loss) on marketable securities: |
|
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|
|
|
Realized gain (loss) on sale of securities |
— |
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|
8 |
|
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Investment income |
Income tax (expense) benefit |
— |
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|
(3 |
) |
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Income tax expense |
Impact on net income |
— |
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|
5 |
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Net income |
Unrealized gain (loss) on cash flow hedges: |
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Interest rate contracts |
(16 |
) |
|
(16 |
) |
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Interest expense |
Foreign exchange contracts |
— |
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|
27 |
|
|
Interest expense |
Foreign exchange contracts |
(39 |
) |
|
33 |
|
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Revenue |
Commodity contracts |
(48 |
) |
|
— |
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Fuel expense |
Income tax (expense) benefit |
39 |
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|
(16 |
) |
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Income tax expense |
Impact on net income |
(64 |
) |
|
28 |
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Net income |
Unrecognized pension and postretirement benefit costs: |
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Prior service costs |
(133 |
) |
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(134 |
) |
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Compensation and benefits |
Income tax (expense) benefit |
51 |
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|
50 |
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Income tax expense |
Impact on net income |
(82 |
) |
|
(84 |
) |
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Net income |
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Total amount reclassified for the period |
$ |
15 |
|
|
$ |
(51 |
) |
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Net income |
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| Schedule of Deferred Compensation and Treasury Stock Activity |
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Activity in the deferred compensation program for the nine months ended September 30, 2013 and 2012 is as follows (in millions):
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2013 |
|
2012 |
Shares |
|
Dollars |
|
Shares |
|
Dollars |
Deferred Compensation Obligations: |
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Balance at beginning of period |
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$ |
78 |
|
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$ |
88 |
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Reinvested dividends |
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|
3 |
|
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|
3 |
|
Benefit payments |
|
|
(13 |
) |
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|
(14 |
) |
Balance at end of period |
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$ |
68 |
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$ |
77 |
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Treasury Stock: |
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Balance at beginning of period |
(1 |
) |
|
$ |
(78 |
) |
|
(2 |
) |
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$ |
(88 |
) |
Reinvested dividends |
— |
|
|
(3 |
) |
|
— |
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|
(3 |
) |
Benefit payments |
— |
|
|
13 |
|
|
— |
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|
14 |
|
Balance at end of period |
(1 |
) |
|
$ |
(68 |
) |
|
(2 |
) |
|
$ |
(77 |
) |
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| Activity Related to Noncontrolling Interests |
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The activity related to our noncontrolling interests is presented below for the nine months ended September 30, 2013 and 2012 (in millions):
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2013 |
|
2012 |
Noncontrolling Interests: |
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Balance at beginning of period |
$ |
80 |
|
|
$ |
73 |
|
Acquired noncontrolling interests |
(67 |
) |
|
12 |
|
Dividends attributable to noncontrolling interests |
— |
|
|
— |
|
Net income attributable to noncontrolling interests |
— |
|
|
— |
|
Balance at end of period |
$ |
13 |
|
|
$ |
85 |
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