Shareowners' Equity and Noncontrolling Interest

3 Months Ended

Mar. 31, 2017

Stockholders' Equity Note [Abstract]

Shareowners' Equity and Noncontrolling Interest [Text Block]

Shareowners' Equity and Noncontrolling Interest

A summary of the changes in shareowners' equity and noncontrolling interest comprising total equity for the quarters ended March 31, 2017 and 2016 is provided below:

	Quarter Ended March 31,
	2017									2016
(Dollars in millions)	Share-owners' Equity			Non-controlling Interest			Total Equity			Share-owners' Equity			Non-controlling Interest			Total Equity
Equity, beginning of period	$	27,579		$	1,590		$	29,169		$	27,358		$	1,486		$	28,844
Comprehensive income for the period:
Net income	1,386			82			1,468			1,183			81			1,264
Total other comprehensive (loss) income	1			25			26			275			13			288
Total comprehensive income for the period	1,387			107			1,494			1,458			94			1,552
Common Stock issued under employee plans	79						79			59						59
Common Stock repurchased	(933		)				(933		)	—						—
Dividends on Common Stock	(505		)				(505		)	(509		)				(509		)
Dividends on ESOP Common Stock	(18		)				(18		)	(18		)				(18		)
Dividends attributable to noncontrolling interest	—			(5		)	(5		)				(51		)	(51		)
Purchase of subsidiary shares from noncontrolling interest, net	—			(1		)	(1		)	—			(1		)	(1		)
Acquisition of noncontrolling interest	—			—			—						34			34
Other	5			(13		)	(8		)	5			(12		)	(7		)
Equity, end of period	$	27,594		$	1,678		$	29,272		$	28,353		$	1,550		$	29,903

On November 11, 2015, we entered into ASR agreements to repurchase an aggregate of $6 billion of our common stock utilizing the net after-tax proceeds from the sale of Sikorsky. Under the terms of the ASR agreements, we made aggregate payments and received an initial delivery of approximately 51.9 million shares of our common stock in November 2015, representing approximately 85% of the shares expected to be repurchased. The shares associated with the remaining portion of the aggregate purchase were settled upon delivery to us of approximately 2.1 million additional shares of common stock in the quarter ended March 31, 2016 and approximately 8.0 million additional shares of common stock in the quarter ended September 30, 2016.

A summary of the changes in each component of accumulated other comprehensive (loss) income, net of tax for the quarters ended March 31, 2017 and 2016 is provided below:

(Dollars in millions)	Foreign Currency Translation			Defined Benefit Pension and Post- retirement Plans			Unrealized Gains (Losses) on Available-for-Sale Securities			Unrealized Hedging (Losses) Gains			Accumulated Other Comprehensive (Loss) Income
Quarter Ended March 31, 2017
Balance at December 31, 2016	$	(3,480	)	$	(5,045	)	$	353		$	(162	)	$	(8,334	)
Other comprehensive (loss) income before reclassifications, net	121			—			(21		)	50			150
Amounts reclassified, pre-tax	—			131			(383		)	5			(247		)
Tax (benefit) expense reclassified	—			(48		)	147			(1		)	98
Balance at March 31, 2017	$	(3,359	)	$	(4,962	)	$	96		$	(108	)	$	(8,333	)

(Dollars in millions)	Foreign Currency Translation			Defined Benefit Pension and Post- retirement Plans			Unrealized Gains (Losses) on Available-for-Sale Securities			Unrealized Hedging (Losses) Gains			Accumulated Other Comprehensive (Loss) Income
Quarter Ended March 31, 2016
Balance at December 31, 2015	$	(2,438	)	$	(5,135	)	$	293		$	(339	)	$	(7,619	)
Other comprehensive income (loss) before reclassifications, net	26			(17		)	38			117			164
Amounts reclassified, pre-tax	1			126			(27		)	62			162
Tax (benefit) expense reclassified	—			(46		)	12			(17		)	(51		)
Balance at March 31, 2016	$	(2,411	)	$	(5,072	)	$	316		$	(177	)	$	(7,344	)

Amounts reclassified that relate to our defined benefit pension and postretirement plans include amortization of prior service costs and transition obligations, and actuarial net losses recognized during each period presented. These costs are recorded as components of net periodic pension cost for each period presented (see Note 7 for additional details).

Amounts reclassified that relate to unrealized gains (losses) on available-for-sale securities, pre-tax includes approximately $380 million of previously unrealized gains reclassified to other income as a result of sales of available-for-sale securities in the quarter ended March 31, 2017, which consisted primarily of the sale of UTC Climate, Controls & Security's investments in Watsco, Inc.

All noncontrolling interests with redemption features, such as put options, that are not solely within our control (redeemable noncontrolling interests) are reported in the mezzanine section of the Condensed Consolidated Balance Sheet, between liabilities and equity, at the greater of redemption value or initial carrying value.

Changes in noncontrolling interests that do not result in a change of control, and where there is a difference between fair value and carrying value, are accounted for as equity transactions. There would have been no pro-forma effect on Net income attributable to common shareowners for the quarters ended March 31, 2017 and 2016 had the changes been recorded through net income.