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Shareholders' Equity
 12 Months Ended
Dec. 31, 2019
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholders’ Equity
The following tables summarize our activity in shareholders’ equity:
Dollars in millions
Total
 
PIC
 
Retained
Earnings
 
Treasury
Stock
 
AOCL
 
NCI
Balance at December 31, 2016
$
725

 
$
2,088

 
$
467

 
$
(769
)
 
$
(1,049
)
 
$
(12
)
Acquisition of noncontrolling interest
(8
)
 
(8
)
 
—

 
—

 
—

 
—

Share-based compensation
12

 
12

 
—

 
—

 
—

 
—

Dividends declared to shareholders ($0.32/share)
(45
)
 
—

 
(45
)
 
—

 
—

 
—

Repurchases of common stock
(53
)
 
—

 
—

 
(53
)
 
—

 
—

Issuance of ESPP shares
3

 
(1
)
 
—

 
4

 
—

 
—

Investments by noncontrolling interests
1

 
—

 
—

 
—

 
—

 
1

Distributions to noncontrolling interests
(4
)
 
—

 
—

 
—

 
—

 
(4
)
Other noncontrolling interests activity
(1
)
 
—

 
—

 
—

 
—

 
(1
)
Net income
440

 
—

 
432

 
—

 
—

 
8

Other comprehensive income, net of tax
127

 
—

 
—

 
—

 
127

 
—

Balance at December 31, 2017
$
1,197

 
$
2,091

 
$
854

 
$
(818
)
 
$
(922
)
 
$
(8
)
Cumulative effect of change in accounting policy, net of tax (Note 1)
144

 
—

 
144

 
—

 
—

 
—

Adjusted balance at January 1, 2018
1,341

 
2,091

 
998

 
(818
)
 
(922
)
 
(8
)
Acquisition of noncontrolling interest
69

 
69

 
—

 
—

 
—

 
—

Share-based compensation
10

 
10

 
—

 
—

 
—

 
—

Tax benefit decrease related to share-based plans
1

 
1

 
—

 
—

 
—

 
—

Common stock issued upon exercise of stock options
2

 
2

 
—

 
—

 
—

 
—

Dividends declared to shareholders ($0.32/share)
(44
)
 
—

 
(44
)
 
—

 
—

 
—

Repurchases of common stock
(3
)
 
—

 
—

 
(3
)
 
—

 
—

Issuance of ESPP shares
3

 
(1
)
 
—

 
4

 
—

 
—

Issuance of convertible debt and call spread overlay
18

 
18

 
—

 
—

 
—

 
—

Distributions to noncontrolling interests
(3
)
 
—

 
—

 
—

 
—

 
(3
)
Other noncontrolling interests activity
2

 
—

 
—

 
—

 
—

 
2

Net income
310

 
—

 
281

 
—

 
—

 
29

Other comprehensive income, net of tax
12

 
—

 
—

 
—

 
12

 
—

Balance at December 31, 2018
$
1,718

 
$
2,190

 
$
1,235

 
$
(817
)
 
$
(910
)
 
$
20

Cumulative adjustment for the adoption of ASC 842, net of tax (Note 1)
21

 
—

 
21

 
—

 
—

 
—

Cumulative adjustment for the adoption of ASC 606 for our unconsolidated affiliates, net of tax (Note 1)
29

 
—

 
29

 
—

 
—

 
—

Adjusted balance at January 1, 2019
1,768

 
2,190

 
1,285

 
(817
)
 
(910
)
 
20

Share-based compensation
12

 
12

 
—

 
—

 
—

 
—

Common stock issued upon exercise of stock options
5

 
5

 
—

 
—

 
—

 
—

Dividends declared to shareholders ($0.32/share)
(46
)
 
—

 
(46
)
 
—

 
—

 
—

Repurchases of common stock
(4
)
 
—

 
—

 
(4
)
 
—

 
—

Issuance of ESPP shares
3

 
(1
)
 
—

 
4

 
—

 
—

Investments by noncontrolling interests
1

 
—

 
—

 
—

 
—

 
1

Distributions to noncontrolling interests
(14
)
 
—

 
—

 
—

 
—

 
(14
)
Net income
209

 
—

 
202

 
—

 
—

 
7

Other comprehensive income (loss), net of tax
(77
)
 
—

 
—

 
—

 
(77
)
 
—

Balance at December 31, 2019
$
1,857

 
$
2,206

 
$
1,441

 
$
(817
)
 
$
(987
)
 
$
14




AOCL, net of tax
 
December 31,
Dollars in millions
2019
 
2018
 
2017
Accumulated foreign currency translation adjustments, net of tax of $3, $2 and $4
$
(315
)
 
$
(304
)
 
$
(259
)
Pension and post-retirement benefits, net of tax of $224, $213 and $227
(654
)
 
(592
)
 
(660
)
Fair value of derivatives, net of tax of $5, $3 and $0
(18
)
 
(14
)
 
(3
)
Total accumulated other comprehensive loss
$
(987
)
 
$
(910
)
 
$
(922
)


Changes in AOCL, net of tax, by component
Dollars in millions
Accumulated foreign currency translation adjustments
 
Accumulated pension liability adjustments
 
Changes in fair value of derivatives
 
Total
Balance at December 31, 2017
$
(259
)
 
$
(660
)
 
$
(3
)
 
$
(922
)
   Other comprehensive income adjustments before reclassifications
(51
)
 
44

 
(20
)
 
(27
)
   Amounts reclassified from AOCL
6

 
24

 
9

 
39

Net other comprehensive income (loss)
(45
)
 
68

 
(11
)
 
12

Balance at December 31, 2018
$
(304
)
 
$
(592
)
 
$
(14
)
 
$
(910
)
   Other comprehensive income adjustments before reclassifications
(3
)
 
(76
)
 
(14
)
 
(93
)
   Amounts reclassified from AOCL
(8
)
 
14

 
10

 
16

Net other comprehensive income (loss)
(11
)
 
(62
)
 
(4
)
 
(77
)
Balance at December 31, 2019
$
(315
)
 
$
(654
)
 
$
(18
)
 
$
(987
)


Reclassifications out of AOCL, net of tax, by component
Dollars in millions
December 31, 2019
 
December 31, 2018
 
Affected line item on the Consolidated Statements of Operations
Accumulated foreign currency adjustments
 
 
 
 
 
    Reclassification of foreign currency adjustments
8

 
$
(6
)
 
Gain (loss) on disposition of assets and Gain on consolidation of Aspire entities, respectively
Tax benefit
—

 
—

 
Provision for income taxes
Net accumulated foreign currency
$
8

 
$
(6
)
 
 
 
 
 
 
 
 
Accumulated pension liability adjustments
 
 
 
 
 
    Amortization of actuarial loss (a)
$
(17
)
 
$
(28
)
 
See (a) below
Tax benefit
3

 
4

 
Provision for income taxes
Net pension and post-retirement benefits
$
(14
)
 
$
(24
)
 
Net of tax
 
 
 
 
 
 
Changes in fair value for derivatives
 
 
 
 
 
   Foreign currency hedge and interest rate swap settlements
$
(10
)
 
$
(9
)
 
Other non-operating income (loss)
Tax benefit
—

 
—

 
Provision for income taxes
Net changes in fair value of derivatives
$
(10
)
 
$
(9
)
 
Net of tax

 
(a)
This item is included in the computation of net periodic pension cost. See Note 13 to our consolidated financial statements for further discussion.

As a result of the Tax Cuts and Jobs Act of 2017, certain income tax effects related to items in AOCL have been stranded in AOCL, and we did not elect to reclassify these stranded tax effects to retained earnings. The tax effects remaining in AOCL are released only when all related units of account are liquidated, sold or extinguished.


Shares of common stock
Shares in millions
Shares
Balance at December 31, 2017
176.6

Common stock issued
0.8

Balance at December 31, 2018
177.4

Common stock issued
0.9

Balance at December 31, 2019
178.3



Shares of treasury stock
Shares and dollars in millions
Shares
 
Amount
Balance at December 31, 2017
36.5

 
$
818

Treasury stock acquired, net of ESPP shares issued
—

 
(1
)
Balance at December 31, 2018
36.5

 
817

Treasury stock acquired, net of ESPP shares issued
—

 
—

Balance at December 31, 2019
36.5

 
$
817



Dividends

We declared dividends totaling $46 million and $44 million in 2019 and 2018, respectively.