Equity and Accumulated Other Comprehensive Earnings

3 Months Ended

Mar. 31, 2020

Equity and Accumulated Other Comprehensive Earnings

Equity and Accumulated Other Comprehensive Earnings

18.    Equity and Accumulated Other Comprehensive Earnings

The following tables provide additional details of the company’s equity activity:

	Common Stock			Treasury Stock					Accumulated Other
	Number of			Number of			Retained		Comprehensive		Noncontrolling		Total
($ in millions; share amounts in thousands)	Shares	Amount		Shares	Amount		Earnings		Earnings (Loss)		Interest		Equity
Balance at December 31, 2019	676,302	$	1,178	(351,667)	$	(3,122)	$	5,803	$	(910)	$	70	$	3,019
Net earnings	—		—	—		—		23		—		—		23
Other comprehensive earnings (loss), net of tax	—		—	—		—		—		(229)		—		(229)
Common dividends, net of tax benefits	—		—	—		—		(49)		—		—		(49)
Treasury stock purchases	—		—	(774)		(54)		—		—		—		(54)
Treasury shares reissued	—		—	232		7		—		—		—		7
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged	1,826		(27)	—		—		—		—		—		(27)
Other activity	—		—	—		10		—		—		—		10
Balance at March 31, 2020	678,128	$	1,151	(352,209)	$	(3,159)	$	5,777	$	(1,139)	$	70	$	2,700

	Common Stock			Treasury Stock					Accumulated Other
	Number of			Number of			Retained		Comprehensive		Noncontrolling		Total
($ in millions; share amounts in thousands)	Shares	Amount		Shares	Amount		Earnings		Earnings (Loss)		Interest		Equity
Balance at December 31, 2018	673,237	$	1,157	(337,979)	$	(2,205)	$	5,341	$	(835)	$	104	$	3,562
Net earnings	—		—	—		—		117		—		—		117
Other comprehensive earnings (loss), net of tax	—		—	—		—		—		125		—		125
Reclassification of stranded tax effects	—		—	—		—		79		(79)		—		—
Common dividends, net of tax benefits	—			—		—		(34)		—		—		(34)
Treasury stock purchases	—		—	(2,634)		(129)		—		—		—		(129)
Treasury shares reissued	—		—	390		5		—		—		—		5
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged	1,455		(3)	—		—		—		—		—		(3)
Other activity	—		—	—		6		1		—		(1)		6
Balance at March 31, 2019	674,692	$	1,154	(340,223)	$	(2,323)	$	5,504	$	(789)	$	103	$	3,649

Accumulated Other Comprehensive Earnings (Loss)

The activity related to accumulated other comprehensive earnings (loss) was as follows:

($ in millions)	Foreign Currency Translation (Net of Tax)		Pension and Other Postretirement Benefits (Net of Tax)		Derivatives Designated as Hedges (Net of Tax)		Accumulated Other Comprehensive Earnings (Loss)
Balance at December 31, 2019	$	(340)	$	(558)	$	(12)	$	(910)
Other comprehensive earnings (loss) before reclassifications		(224)		(18)		20		(222)
Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings		—		8		(15)		(7)
Balance at March 31, 2020	$	(564)	$	(568)	$	(7)	$	(1,139)

The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive earnings (loss):

	Three Months Ended March 31,
($  in millions)	2020		2019
Gains (losses) on cash flow hedges:
Commodity contracts recorded in net sales	$	—	$	2
Commodity contracts recorded in cost of sales		4		(5)
Currency exchange contracts recorded in selling, general and administrative		18		23
Cross-currency swaps recorded in interest expense		(1)		4
Interest rate contracts recorded in interest expense		(1)		—
Total before tax effect		20		24
Tax benefit (expense) on amounts reclassified into earnings		(5)		(6)
Recognized gain (loss), net of tax	$	15	$	18
Amortization of pension and other postretirement benefits: (a)
Actuarial gains (losses)	$	(11)	$	(5)
Total before tax effect		(11)		(5)
Tax benefit (expense) on amounts reclassified into earnings		3		1
Recognized gain (loss), net of tax	$	(8)	$	(4)

(a) These components include the computation of net periodic benefit cost detailed in Note 17.

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