SHAREHOLDER'S EQUITY

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

SHAREHOLDER'S EQUITY

SHAREHOLDERS' EQUITY

Common Stock Changes

During the second quarter of 2014, shareholders voted to increase the number of authorized shares from 100 million to 200 million shares and reduce the par value of common stock from $1 per share to $0.01 per share, and the Board of Directors declared a two-for-one stock split by means of a stock distribution. The additional shares were distributed on July 9, 2014, to the shareholders of record on June 23, 2014.

Dividends

During 2016, the Board of Directors declared dividends of $1.10 per share. The Company paid dividends of $136 million, $102 million and $68 million to shareholders of record during 2016, 2015 and 2014.

Subsequent to year-end, the Board of Directors declared a quarterly cash dividend of $0.30 per share to be paid in March 2017 to shareholders of record as of February 21, 2017. This is a 9% increase from the most recent quarterly dividends of $0.275 per share.

Common Stock Repurchase

In May 2014, the Board of Directors authorized a $650 million share repurchase program, which was completed in October 2015. In August 2015, the Board of Directors authorized a $1.0 billion share repurchase program, which was paused in the second quarter of 2016 in anticipation of the acquisition of Virgin America. At December 31, 2016, the Company held 5,861,583 shares in treasury. Management does not anticipate retiring common shares held in treasury for the foreseeable future.

Share repurchase activity (in millions, except shares):

	2016			2015			2014
	Shares	Amount		Shares	Amount		Shares	Amount
2015 $1 billion Repurchase Program	2,594,809	$	193	1,517,277	$	120	—	$	—
2014 $650 million Repurchase Program	—	—		5,691,051	385		5,497,427	265
2012 $250 million Repurchase Program	—	—		—	—		1,819,304	83
Total	2,594,809	$	193	7,208,328	$	505	7,316,731	$	348

Accumulated Other Comprehensive Loss (AOCL)

AOCL consisted of the following (in millions, net of tax):  

	2016			2015
Related to marketable securities	$	(3	)	$	(3	)
Related to employee benefit plans	(299		)	(288		)
Related to interest rate derivatives	(3		)	(12		)
	$	(305	)	$	(303	)