Equity and Comprehensive Earnings

9 Months Ended

Sep. 30, 2021

Equity and Accumulated Other Comprehensive Earnings

Equity and 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 June 30, 2021	680,246	$	1,195	(353,475)	$	(3,255)	$	6,496	$	(797)	$	62	$	3,701
Net earnings	—		—	—		—		179		—		—		179
Other comprehensive earnings (loss), net of tax	—		—	—		—		—		144		—		144
Common dividends	—		—	—		—		(66)		—		—		(66)
Treasury stock purchases	—		—	(2,429)		(219)		—		—		—		(219)
Treasury shares reissued	—		—	62		9		—		—		—		9
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged	421		14	—		—		—		—		—		14
Other activity	—		—	—		2		2		—		(1)		3
Balance at September 30, 2021	680,667	$	1,209	(355,842)	$	(3,463)	$	6,611	$	(653)	$	61	$	3,765

	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 June 30, 2020	678,484	$	1,153	(352,102)	$	(3,145)	$	5,822	$	(1,068)	$	68	$	2,830
Net earnings	—		—	—		—		241		—		(1)		240
Other comprehensive earnings (loss), net of tax	—		—	—		—		—		(87)		—		(87)
Common dividends	—		—	—		—		(49)		—		—		(49)
Treasury shares reissued	—		—	80		7		—		—		—		7
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged	517		11	—		—		—		—		—		11
Other activity	—		—	—		1		—		—		—		1
Balance at September 30, 2020	679,001	$	1,164	(352,022)	$	(3,137)	$	6,014	$	(1,155)	$	67	$	2,953

	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, 2020	679,524	$	1,167	(351,939)	$	(3,130)	$	6,192	$	(954)	$	62	$	3,337
Net earnings	—		—	—		—		581		—		—		581
Other comprehensive earnings (loss), net of tax	—		—	—		—		—		301		—		301
Common dividends	—		—	—		—		(164)		—		—		(164)
Treasury stock purchases	—		—	(4,201)		(368)		—		—		—		(368)
Treasury shares reissued	—		—	298		25		—		—		—		25
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged	1,143		42	—		—		—		—		—		42
Other activity	—		—	—		10		2		—		(1)		11
Balance at September 30, 2021	680,667	$	1,209	(355,842)	$	(3,463)	$	6,611	$	(653)	$	61	$	3,765

	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	—		—	—		—		358		—		(3)		355
Other comprehensive earnings (loss), net of tax	—		—	—		—		—		(245)		—		(245)
Common dividends	—		—	—		—		(148)		—		—		(148)
Treasury stock purchases	—		—	(775)		(54)		—		—		—		(54)
Treasury shares reissued	—		—	420		21		—		—		—		21
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged	2,699		(14)	—		—		—		—		—		(14)
Other activity	—		—	—		18		1		—		—		19
Balance at September 30, 2020	679,001	$	1,164	(352,022)	$	(3,137)	$	6,014	$	(1,155)	$	67	$	2,953

Accumulated Other Comprehensive Earnings (Loss)

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

($ in millions)	​ 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, 2020		(555)		(466)		67		(954)
Other comprehensive earnings (loss) before reclassifications		19		55		159		233
Reclassification of net deferred (gains) losses into earnings		—		129		(61)		68
Balance at September 30, 2021	$	(536)	$	(282)	$	165	$	(653)

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

	Three Months Ended September 30,				Nine Months Ended September 30,
($  in millions)	2021		2020		2021		2020
Gains (losses) on cash flow hedges:
Commodity contracts recorded in net sales	$	(28)	$	(4)	$	(89)	$	33
Commodity contracts recorded in cost of sales		53		(27)		95		(62)
Currency exchange contracts recorded in selling, general and administrative		27		(30)		66		(23)
Cross-currency swaps recorded in selling, general and administrative		—		—		—		(1)
Interest rate contracts recorded in interest expense		—		(2)		—		(5)
Total before tax effect		52		(63)		72		(58)
Tax benefit (expense) on amounts reclassified into earnings		(9)		15		(11)		13
Recognized gain (loss), net of tax	$	43	$	(48)	$	61	$	(45)
Amortization of pension and other postretirement benefits: (a)
Actuarial gains (losses)	$	(12)	$	(10)	$	(39)	$	(30)
Prior service income (expense)		(1)		—		(3)		(1)
Effect of pension settlements		(130)		(5)		(130)		(109)
Total before tax effect		(143)		(15)		(172)		(140)
Tax benefit (expense) on amounts reclassified into earnings		35		3		43		34
Recognized gain (loss), net of tax	$	(108)	$	(12)	$	(129)	$	(106)

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