SHAREHOLDERS’ EQUITY
Authorized Stock. Our authorized capital stock consists of 500 million shares of $1 per share par value common stock and 50 million shares of $1 per share par value preferred stock. The preferred stock is issuable in series, with the rights, preferences and limitations of each series to be determined by our board of directors.
Shares Issued and Outstanding. On December 31, 2012, we had 481,880,634 shares of common stock issued and 353,674,248 shares of common stock outstanding. On December 31, 2013, we had 481,880,634 shares of common stock issued and 353,402,794 shares of common stock outstanding, including unvested restricted stock of 1,947,273 shares. No shares of our preferred stock were outstanding on either date. The only changes in our shares outstanding during 2013 resulted from share activity under our equity compensation plans (see Note O for further discussion) and shares repurchased in the open market. In 2013, we repurchased 9.4 million shares at an average price of $78 per share.
On October 2, 2013, with 1.4 million shares remaining under a prior authorization, the board of directors authorized management to repurchase an additional 10 million shares. On December 31, 2013, approximately 11.4 million shares remained authorized for repurchase, about 3 percent of our total shares outstanding. All of these shares were subsequently repurchased in January 2014 through an ASR agreement with a financial institution. See Note A for further discussion of the ASR and the subsequent authorization by the board of directors to repurchase 20 million additional shares of common stock on the open market.
Dividends per Share. Dividends declared per share were $1.88 in 2011, $2.04 in 2012 and $2.24 in 2013. Cash dividends paid were $673 in 2011, $893 in 2012 and $591 in 2013. In advance of possible tax increases in 2013, we accelerated our first quarter 2013 dividend payment to December 2012.
Other Comprehensive Income (Loss). The tax effect for each component of other comprehensive income (loss) (OCL) consisted of the following:
|
| | | | | | | | | |
Year Ended December 31, 2011 | Gross Amount | Benefit (Provision) for Income Tax | Net Amount |
Losses on cash flow hedges | $ | (81 | ) | $ | 22 |
| $ | (59 | ) |
Unrealized losses on securities | (1 | ) | — |
| (1 | ) |
Foreign currency translation adjustments | (89 | ) | 18 |
| (71 | ) |
Change in retirement plans' funded status | (1,129 | ) | 384 |
| (745 | ) |
Other comprehensive loss | $ | (1,300 | ) | $ | 424 |
| $ | (876 | ) |
| | | |
Year Ended December 31, 2012 | Gross Amount | Benefit (Provision) for Income Tax | Net Amount |
Losses on cash flow hedges | $ | (23 | ) | $ | 3 |
| $ | (20 | ) |
Unrealized gains on securities | 6 |
| (2 | ) | 4 |
|
Foreign currency translation adjustments | 141 |
| 130 |
| 271 |
|
Change in retirement plans' funded status | (1,149 | ) | 431 |
| (718 | ) |
Other comprehensive loss | $ | (1,025 | ) | $ | 562 |
| $ | (463 | ) |
| | | |
Year Ended December 31, 2013 | Gross Amount | Benefit (Provision) for Income Tax | Net Amount |
Gains on cash flow hedges | $ | 3 |
| $ | — |
| $ | 3 |
|
Unrealized gains on securities | 12 |
| (4 | ) | 8 |
|
Foreign currency translation adjustments | (118 | ) | — |
| (118 | ) |
Change in retirement plans' funded status | 2,595 |
| (898 | ) | 1,697 |
|
Other comprehensive income | $ | 2,492 |
| $ | (902 | ) | $ | 1,590 |
|
The changes, net of tax, in each component of AOCL consisted of the following:
|
| | | | | | | | | | | | | | | |
| Gains (Losses) on Cash Flow Hedges | Unrealized Gains (Losses) on Securities | Foreign Currency Translation Adjustments | Changes in Retirement Plans’ Funded Status | AOCL |
Balance, December 31, 2010 | $ | 85 |
| $ | 4 |
| $ | 892 |
| $ | (2,417 | ) | $ | (1,436 | ) |
2011 other comprehensive loss | (59 | ) | (1 | ) | (71 | ) | (745 | ) | (876 | ) |
Balance, December 31, 2011 | 26 |
| 3 |
| 821 |
| (3,162 | ) | (2,312 | ) |
2012 other comprehensive loss | (20 | ) | 4 |
| 271 |
| (718 | ) | (463 | ) |
Balance, December 31, 2012 | 6 |
| 7 |
| 1,092 |
| (3,880 | ) | (2,775 | ) |
OCL before reclassifications | 11 |
| 8 |
| (118 | ) | 1,453 |
| 1,354 |
|
Amounts reclassified from AOCL | (8 | ) | — |
| — |
| 244 |
| 236 |
|
2013 other comprehensive income | 3 |
| 8 |
| (118 | ) | 1,697 |
| 1,590 |
|
Balance, December 31, 2013 | $ | 9 |
| $ | 15 |
| $ | 974 |
| $ | (2,183 | ) | $ | (1,185 | ) |
Significant amounts reclassified out of each component of AOCL in 2013 consisted of the following:
|
| | | | |
| Amount Reclassified from AOCL | Consolidated Statements of Earnings (Loss) Line Item |
Losses on cash flow hedges of foreign exchange contracts | $ | (12 | ) | Operating costs and expenses |
| 4 |
| Tax benefit |
| (8 | ) | |
Changes in retirement plans' funded status | | |
Recognized net actuarial loss | 435 |
| * |
Amortization of prior service credit | (60 | ) | * |
| (131 | ) | Tax expense |
| 244 |
| |
Total reclassifications, net of tax | $ | 236 |
| |
* These AOCL components are included in our net periodic pension and other post-retirement benefit cost. See Note P for additional details.
