SHAREHOLDER'S EQUITY

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

SHAREHOLDER'S EQUITY

SHAREHOLDERS' EQUITY

Common Stock Changes

During the second quarter of 2017, shareholders voted to increase the number of authorized shares of common stock from 200 million to 400 million.

Dividends

During 2017, the Board of Directors declared dividends of $1.20 per share. The Company paid dividends of $148 million, $136 million and $102 million to shareholders of record during 2017, 2016 and 2015.

Subsequent to year-end, the Board of Directors declared a quarterly cash dividend of $0.32 per share to be paid in March 2018 to shareholders of record as of February 20, 2018. This is a 7% increase from the most recent quarterly dividend of $0.30 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 billion share repurchase program. As of December 31, 2017, the Company has repurchased 5.1 million shares for $388 million under this program.

At December 31, 2017, the Company held 6,842,860 shares in treasury. Management does not anticipate retiring common shares held in treasury for the foreseeable future.

Share repurchase activity (in millions, except shares):

	2017			2016			2015
	Shares	Amount		Shares	Amount		Shares	Amount
2015 Repurchase Program – $1 billion	981,277	$	75	2,594,809	$	193	1,517,277	$	120
2014 Repurchase Program – $650 million	—	—		—	—		5,691,051	385
Total	981,277	$	75	2,594,809	$	193	7,208,328	$	505

Accumulated Other Comprehensive Loss (AOCL)

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

	2017			2016
Related to marketable securities	$	(5	)	$	(3	)
Related to employee benefit plans	(376		)	(299		)
Related to interest rate derivatives	1			(3		)
	$	(380	)	$	(305	)

In relation to the Tax Cuts and Jobs Act, amounts recognized in other comprehensive income subsequent to the December 22, 2017 enactment date, are taxed at the revised federal income tax rates. The Company's actuarial adjustments for employee benefit plans occur annually at December 31, and therefore are tax effected at the new lower rates. Accordingly, the effective tax rate for employee benefit plan amounts recognized in other comprehensive income at December 31, 2017 is lower than it historically has been.