Shareowners' Equity and Noncontrolling Interest

A summary of the changes in shareowners' equity and noncontrolling interest comprising total equity for the quarter and six months ended June 30, 2018 and 2017 is provided below:



	Quarter Ended June 30,
	2018									2017
(dollars in millions)	Share-owners' Equity			Non-controlling Interest			Total Equity			Share-owners' Equity			Non-controlling Interest			Total Equity
Equity, beginning of period	$	30,534		$	1,958		$	32,492		$	27,594		$	1,678		$	29,272
Comprehensive (loss) income for the period:
Net income	2,048			91			2,139			1,439			93			1,532
Total other comprehensive (loss) income	(747		)	(38		)	(785		)	369			18			387
Total comprehensive income for the period	1,301			53			1,354			1,808			111			1,919
Common Stock issued under employee plans	110			—			110			91			—			91
Common Stock repurchased	(27		)	—			(27		)	(437		)	—			(437		)
Dividends on Common Stock	(535		)	—			(535		)	(503		)	—			(503		)
Dividends on ESOP Common Stock	(17		)	—			(17		)	(17		)	—			(17		)
Dividends attributable to noncontrolling interest	—			(73		)	(73		)	—			(64		)	(64		)
Capital contributions	—			42			42			—			—			—
Purchase of subsidiary shares from noncontrolling interest, net	—			—			—			(1		)	(4		)	(5		)
Redeemable noncontrolling interest fair value adjustment	—			—			—			(94		)	—			(94		)
Other	(2		)	2			—			1			(8		)	(7		)
Equity, end of period	$	31,364		$	1,982		$	33,346		$	28,442		$	1,713		$	30,155



	Six Months Ended June 30,
	2018									2017
(Dollars in millions)	Share-owners' Equity			Non-controlling Interest			Total Equity			Share-owners' Equity			Non-controlling Interest			Total Equity
Equity, beginning of period	$	29,610		$	1,811		$	31,421		$	27,579		$	1,590		$	29,169
Comprehensive (loss) income for the period:
Net income	3,345			162			3,507			2,825			175			3,000
Total other comprehensive (loss) income	(159		)	(5		)	(164		)	370			43			413
Total comprehensive income for the period	3,186			157			3,343			3,195			218			3,413
Common Stock issued under employee plans	181			—			181			170			—			170
Common Stock repurchased	(52		)	—			(52		)	(1,370		)	—			(1,370		)
Dividends on Common Stock	(1,070		)	—			(1,070		)	(1,008		)	—			(1,008		)
Dividends on ESOP Common Stock	(35		)	—			(35		)	(35		)	—			(35		)
Dividends attributable to noncontrolling interest	—			(139		)	(139		)	—			(112		)	(112		)
Capital contributions	—			162			162			—			43			43
Purchase of subsidiary shares from noncontrolling interest, net	(1		)	(1		)	(2		)	(1		)	(5		)	(6		)
Disposition of noncontrolling interest	—			(8		)	(8		)	—			—			—
Redeemable noncontrolling interest fair value adjustment	(2		)	—			(2		)	(95		)	—			(95		)
New Revenue Standard adoption impact	(480		)	—			(480		)	—			—			—
Other	27			—			27			7			(21		)	(14		)
Equity, end of period	$	31,364		$	1,982		$	33,346		$	28,442		$	1,713		$	30,155

A summary of the changes in each component of Accumulated other comprehensive (loss) income, net of tax for the quarter and six months ended June 30, 2018 and 2017 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, 2018
Balance at March 31, 2018	$	(2,444	)	$	(4,579	)	$	—		$	86		$	(6,937	)
Other comprehensive income (loss) before reclassifications, net	(564		)	18			—			(245		)	(791		)
Amounts reclassified, pre-tax	(3		)	88			—			(1		)	84
Tax (benefit) expense reclassified	(74		)	(26		)	—			60			(40		)
Balance at June 30, 2018	$	(3,085	)	$	(4,499	)	$	—		$	(100	)	$	(7,684	)

Six Months Ended June 30, 2018
Balance at December 31, 2017	$	(2,950	)	$	(4,652	)	$	5		$	72		$	(7,525	)
Other comprehensive income (loss) before reclassifications, net	(188		)	26			—			(200		)	(362		)
Amounts reclassified, pre-tax	(3		)	176			—			(28		)	145
Tax (benefit) expense reclassified	56			(49		)	—			56			63
ASU 2016-01 adoption impact	—			—			(5		)	—			(5		)
Balance at June 30, 2018	$	(3,085	)	$	(4,499	)	$	—		$	(100	)	$	(7,684	)



(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	)

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Upon adoption, investments that do not result in consolidation and are not accounted for under the equity method generally must be carried at fair value, with changes in fair value recognized in net income. We had approximately $5 million of unrealized gains on these securities recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheet as of December 31, 2017. We adopted this standard effective January 1, 2018, with these amounts recorded directly to retained earnings as of that date.

Amounts reclassified that relate to our defined benefit pension and postretirement plans include the amortization of prior service costs 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 significant investments in available-for-sale securities in the six months ended June 30, 2017, including UTC Climate, Controls & Security's sale of 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.