Shareowners' Equity and Noncontrolling Interest

A summary of the changes in shareowners' equity and noncontrolling interest comprising total equity for the quarters and six months ended June 30, 2017 and 2016 is provided below:



	Quarter Ended June 30,
	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	$	27,594		$	1,678		$	29,272		$	28,353		$	1,550		$	29,903
Comprehensive income for the period:
Net income	1,439			93			1,532			1,379			99			1,478
Total other comprehensive income (loss)	369			18			387			(140		)	(2		)	(142		)
Total comprehensive income for the period	1,808			111			1,919			1,239			97			1,336
Common Stock issued under employee plans	91						91			88						88
Common Stock repurchased	(437		)				(437		)	(36		)				(36		)
Dividends on Common Stock	(503		)				(503		)	(526		)				(526		)
Dividends on ESOP Common Stock	(17		)				(17		)	(19		)				(19		)
Dividends attributable to noncontrolling interest				(64		)	(64		)				(90		)	(90		)
Purchase of subsidiary shares from noncontrolling interest	(1		)	(4		)	(5		)	(6		)	—			(6		)
Redeemable noncontrolling interest fair value adjustment	(94		)	—			(94		)	(3		)	—			(3		)
Other	1			(8		)	(7		)	—			1			1
Equity, end of period	$	28,442		$	1,713		$	30,155		$	29,090		$	1,558		$	30,648



	Six Months Ended June 30,
	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	2,825			175			3,000			2,562			180			2,742
Total other comprehensive income	370			43			413			135			11			146
Total comprehensive income for the period	3,195			218			3,413			2,697			191			2,888
Common Stock issued under employee plans	170						170			146						146
Common Stock repurchased	(1,370		)				(1,370		)	(36		)				(36		)
Dividends on Common Stock	(1,008		)				(1,008		)	(1,035		)				(1,035		)
Dividends on ESOP Common Stock	(35		)				(35		)	(37		)				(37		)
Dividends attributable to noncontrolling interest				(69		)	(69		)				(141		)	(141		)
Purchase of subsidiary shares from noncontrolling interest	(1		)	(5		)	(6		)	(6		)	(1		)	(7		)
Acquisition of noncontrolling interest				—			—						34			34
Redeemable noncontrolling interest fair value adjustment	(95		)	—			(95		)	(3		)	—			(3		)
Other	7			(21		)	(14		)	6			(11		)	(5		)
Equity, end of period	$	28,442		$	1,713		$	30,155		$	29,090		$	1,558		$	30,648

On November 11, 2015, we entered into accelerated share repurchase (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 and six months ended June 30, 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 June 30, 2017
Balance at March 31, 2017	$	(3,359	)	$	(4,962	)	$	96		$	(108	)	$	(8,333	)
Other comprehensive income (loss) before reclassifications, net	231			(2		)	20			50			299
Amounts reclassified, pre-tax	—			132			(24		)	5			113
Tax (benefit) expense reclassified	—			(50		)	8			(1		)	(43		)
Balance at June 30, 2017	$	(3,128	)	$	(4,882	)	$	100		$	(54	)	$	(7,964	)

Six Months Ended June 30, 2017
Balance at December 31, 2016	$	(3,480	)	$	(5,045	)	$	353		$	(162	)	$	(8,334	)
Other comprehensive income (loss) before reclassifications, net	352			(2		)	(1		)	100			449
Amounts reclassified, pre-tax	—			263			(407		)	10			(134		)
Tax (benefit) expense reclassified	—			(98		)	155			(2		)	55
Balance at June 30, 2017	$	(3,128	)	$	(4,882	)	$	100		$	(54	)	$	(7,964	)



(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 June 30, 2016
Balance at March 31, 2016	$	(2,411	)	$	(5,072	)	$	316		$	(177	)	$	(7,344	)
Other comprehensive income (loss) before reclassifications, net	(274		)	(8		)	19			26			(237		)
Amounts reclassified, pre-tax	—			128			(25		)	45			148
Tax (benefit) expense reclassified	—			(47		)	7			(11		)	(51		)
Balance at June 30, 2016	$	(2,685	)	$	(4,999	)	$	317		$	(117	)	$	(7,484	)

Six Months Ended June 30, 2016
Balance at December 31, 2015	$	(2,438	)	$	(5,135	)	$	293		$	(339	)	$	(7,619	)
Other comprehensive income (loss) before reclassifications, net	(248		)	(25		)	57			143			(73		)
Amounts reclassified, pre-tax	1			254			(52		)	107			310
Tax (benefit) expense reclassified	—			(93		)	19			(28		)	(102		)
Balance at June 30, 2016	$	(2,685	)	$	(4,999	)	$	317		$	(117	)	$	(7,484	)

Amounts reclassified that relate to our defined benefit pension and postretirement plans include the 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 six months ended June 30, 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. The increase in the value of redeemable noncontrolling interest in our Condensed Consolidated Balance Sheet as of June 30, 2017 is primarily attributable to the adjustment of the redemption value related to the acquisition of a majority interest in an Italian heating products and services company by UTC Climate, Controls & Security in 2016.