Quarterly report pursuant to Section 13 or 15(d)

SHAREOWNERS' EQUITY (Tables)

v2.4.0.8
SHAREOWNERS' EQUITY (Tables)
 9 Months Ended
Sep. 30, 2014
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, 2014 and 2013 (in millions, except per share amounts):
 
2014
 
2013
 
Shares
 
Dollars
 
Shares
 
Dollars
Class A Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
212

 
$
2

 
225

 
$
3

Common stock purchases
(4
)
 
—

 
(6
)
 
(1
)
Stock award plans
4

 
—

 
6

 
—

Common stock issuances
2

 
—

 
3

 
—

Conversions of class A to class B common stock
(11
)
 
—

 
(14
)
 
—

Class A shares issued at end of period
203

 
$
2

 
214

 
$
2

Class B Common Stock
 
 
 
 
 
 
 
Balance at beginning of period
712

 
$
7

 
729

 
$
7

Common stock purchases
(17
)
 
—

 
(27
)
 
—

Conversions of class A to class B common stock
11

 
—

 
14

 
—

Class B shares issued at end of period
706

 
$
7

 
716

 
$
7

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

 
 
 
$
—

Stock award plans
 
 
359

 
 
 
493

Common stock purchases
 
 
(630
)
 
 
 
(513
)
Common stock issuances
 
 
218

 
 
 
216

Option premiums received (paid)
 
 
53

 
 
 
(196
)
Balance at end of period
 
 
$
—

 
 
 
$
—

Retained Earnings
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
6,925

 
 
 
$
7,997

Net income attributable to common shareowners
 
 
2,579

 
 
 
3,205

Dividends ($2.01 and $1.86 per share)
 
 
(1,863
)
 
 
 
(1,770
)
Common stock purchases
 
 
(1,412
)
 
 
 
(2,330
)
Balance at end of period
 
 
$
6,229

 
 
 
$
7,102

Schedule of Accumulated Other Comprehensive Income (Loss)
The activity in AOCI for the nine months ended September 30, 2014 and 2013 is as follows (in millions):
 
2014
 
2013
Foreign currency translation gain (loss):
 
 
 
Balance at beginning of period
$
(126
)
 
$
134

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

 
(161
)
Translation adjustment (net of tax effect of $11 and $(2))
(248
)
 
(99
)
Balance at end of period
(374
)
 
(126
)
Unrealized gain (loss) on marketable securities, net of tax:
 
 
 
Balance at beginning of period
(1
)
 
6

Current period changes in fair value (net of tax effect of $1 and $(5))
1

 
(7
)
Reclassification to earnings (no tax impact in either period)
—

 
—

Balance at end of period
—

 
(1
)
Unrealized gain (loss) on cash flow hedges, net of tax:
 
 
 
Balance at beginning of period
(219
)
 
(286
)
Current period changes in fair value (net of tax effect of $77 and $3)
129

 
6

Reclassification to earnings (net of tax effect of $24 and $39)
40

 
64

Balance at end of period
(50
)
 
(216
)
Unrecognized pension and postretirement benefit costs, net of tax:
 
 
 
Balance at beginning of period
(114
)
 
(3,208
)
Reclassification to earnings (net of tax effect of $447 and $51)
742

 
82

Remeasurement of plan assets and liabilities (net of tax effect of $(488) and $0)
(815
)
 
—

Balance at end of period
(187
)
 
(3,126
)
Accumulated other comprehensive income (loss) at end of period
$
(611
)
 
$
(3,469
)
Schedule of Reclassifications from Accumulated Other Comprehensive Income (Loss) to Earnings
Nine Months Ended September 30:
 
 
 
 
 
 
Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
 
2014
 
2013
 
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
—

 
—

 
Investment income
Income tax (expense) benefit
—

 
—

 
Income tax expense
Impact on net income
—

 
—

 
Net income
Unrealized gain (loss) on cash flow hedges:
 
 
 
 
 
Interest rate contracts
(17
)
 
(16
)
 
Interest expense
Foreign exchange contracts
(15
)
 
—

 
Interest expense
Foreign exchange contracts
(32
)
 
(39
)
 
Revenue
Commodity contracts
—

 
(48
)
 
Fuel expense
Income tax (expense) benefit
24

 
39

 
Income tax expense
Impact on net income
(40
)
 
(64
)
 
Net income
Unrecognized pension and postretirement benefit costs:
 
 
 
 
 
Prior service costs
(123
)
 
(133
)
 
Compensation and benefits
Settlement and curtailment loss
(320
)
 
—

 
Compensation and benefits
Remeasurement of benefit obligation
(746
)
 
—

 
Compensation and benefits
Income tax (expense) benefit
447

 
51

 
Income tax expense
Impact on net income
(742
)
 
(82
)
 
Net income
 
 
 
 
 
 
Total amount reclassified for the period
$
(782
)
 
$
15

 
Net income
Detail of the gains (losses) reclassified from AOCI to the statements of consolidated income for the three and nine months ended September 30, 2014 and 2013 is as follows (in millions):
Three Months Ended September 30:
 
 
 
 
 
 
Amount Reclassified from AOCI
 
Affected Line Item in the Income Statement
 
2014
 
2013
 
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
—

 
—

 
Investment income
Income tax (expense) benefit
—

 
—

 
Income tax expense
Impact on net income
—

 
—

 
Net income
Unrealized gain (loss) on cash flow hedges:
 
 
 
 
 
Interest rate contracts
(6
)
 
(6
)
 
Interest expense
Foreign exchange contracts
(43
)
 
44

 
Interest expense
Foreign exchange contracts
(11
)
 
(13
)
 
Revenue
Commodity contracts
—

 
—

 
Fuel expense
Income tax (expense) benefit
23

 
(9
)
 
Income tax expense
Impact on net income
(37
)
 
16

 
Net income
Unrecognized pension and postretirement benefit costs:
 
 
 
 
 
Prior service costs
(44
)
 
(45
)
 
Compensation and benefits
Settlement and curtailment loss
—

 
—

 
Compensation and benefits
Remeasurement of benefit obligation
—

 
—

 
Compensation and benefits
Income tax (expense) benefit
17

 
17

 
Income tax expense
Impact on net income
(27
)
 
(28
)
 
Net income
 
 
 
 
 
 
Total amount reclassified for the period
$
(64
)
 
$
(12
)
 
Net income
 
 
 
 
 
 
Schedule of Deferred Compensation and Treasury Stock Activity
Activity in the deferred compensation program for the nine months ended September 30, 2014 and 2013 is as follows (in millions):
 
2014
 
2013
Shares
 
Dollars
 
Shares
 
Dollars
Deferred Compensation Obligations:
 
 
 
 
 
 
 
Balance at beginning of period
 
 
$
69

 
 
 
$
78

Reinvested dividends
 
 
2

 
 
 
3

Benefit payments
 
 
(12
)
 
 
 
(13
)
Balance at end of period
 
 
$
59

 
 
 
$
68

Treasury Stock:
 
 
 
 
 
 
 
Balance at beginning of period
(1
)
 
$
(69
)
 
(1
)
 
$
(78
)
Reinvested dividends
—

 
(2
)
 
—

 
(3
)
Benefit payments
—

 
12

 
—

 
13

Balance at end of period
(1
)
 
$
(59
)
 
(1
)
 
$
(68
)
Activity Related to Noncontrolling Interests
The activity related to our noncontrolling interests is presented below for the nine months ended September 30, 2014 and 2013 (in millions):
 
2014
 
2013
Noncontrolling Interests:
 
 
 
Balance at beginning of period
$
14

 
$
80

Acquired noncontrolling interests
3

 
(67
)
Dividends attributable to noncontrolling interests
—

 
—

Net income attributable to noncontrolling interests
—

 
—

Balance at end of period
$
17

 
$
13