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Equity (Tables)
 12 Months Ended
Dec. 31, 2013
Equity  
Schedule of reconciliation of common stock share activity

 

 

(Shares of common stock, in thousands)

 

Issued

 

Held in Treasury

 

Outstanding

 

Balance at December 31, 2010

 

76,035

 

12

 

76,023

 

Issuance of restricted stock units as compensation

 

56

 

—

 

56

 

Issuance under incentive and other plans

 

91

 

(9

)

100

 

Stock options exercised

 

640

 

(137

)

777

 

Purchase/acquisition of treasury stock

 

—

 

1,073

 

(1,073

)

Balance at December 31, 2011

 

76,822

 

939

 

75,883

 

Issuance of restricted stock units as compensation

 

—

 

(6

)

6

 

Issuance under incentive and other plans

 

—

 

(142

)

142

 

Stock options exercised

 

320

 

(1,026

)

1,346

 

Purchase/acquisition of treasury stock

 

—

 

345

 

(345

)

Balance at December 31, 2012

 

77,142

 

110

 

77,032

 

Issuance of restricted stock units as compensation

 

6

 

(3

)

9

 

Issuance under incentive and other plans

 

130

 

(43

)

173

 

Stock options exercised

 

395

 

(110

)

505

 

Purchase/acquisition of treasury stock

 

—

 

3,407

 

(3,407

)

Balance at December 31, 2013

 

77,673

 

3,361

 

74,312

 

 
Schedule of valuation assumptions for stock options

 

 

 

 

2013

 

2012

 

2011

 

Expected life (in years)

 

5.8

 

5.8

 

5.8

 

Risk-free interest rate

 

1.1

%

1.1

%

2.8

%

Expected volatility

 

32.6

%

33.3

%

32.7

%

Expected dividend yield

 

1.6

%

1.2

%

1.2

%

 
Schedule of stock option activity

 

 

(shares in thousands)

 

Stock Option
Shares

 

Stock Option
Price Range

 

Weighted
Average
per Share
Exercise Price
for Stock
Options

 

Outstanding at December 31, 2010

 

4,434

 

$

14.17 to 40.71

 

$

27.49

 

Granted

 

438

 

47.95 to 52.64

 

47.96

 

Exercised

 

(777

)

14.17 to 40.71

 

24.24

 

Cancelled

 

(65

)

18.31 to 47.95

 

30.60

 

Outstanding at December 31, 2011

 

4,030

 

14.33 to 52.64

 

30.29

 

Granted

 

460

 

55.95 to 57.33

 

55.96

 

Exercised

 

(1,409

)

14.33 to 47.95

 

26.80

 

Cancelled

 

(49

)

25.58 to 55.95

 

39.29

 

Outstanding at December 31, 2012

 

3,032

 

16.92 to 57.33

 

35.66

 

Granted

 

416

 

66.07 to 66.26

 

66.07

 

Exercised

 

(511

)

16.92 to 57.33

 

28.74

 

Cancelled

 

(88

)

47.95 to 66.07

 

54.37

 

Outstanding at December 31, 2013

 

2,849

 

24.70 to 66.26

 

40.77

 

 
Schedule of summary of information about outstanding and exercisable stock options, by range of exercise prices

The following table summarizes information about stock options outstanding at December 31, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

(options in thousands)
Range of Exercise Prices

 

Options
Outstanding

 

Weighted Average Exercise
Price per Share

 

Average Remaining
Contractual Life (Years)

 

Options
Exercisable

 

Weighted Average
Exercise Price
Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 24.70 to 27.30

 

557

 

$

25.47

 

3.22

 

557

 

$

25.47

 

$ 27.31 to 29.90

 

465

 

29.00

 

6.07

 

465

 

29.00

 

$ 32.51 to 35.10

 

676

 

34.04

 

3.68

 

676

 

34.04

 

$ 45.51 to 53.30

 

357

 

47.96

 

7.11

 

239

 

47.96

 

$ 55.91 to 58.50

 

405

 

55.95

 

8.11

 

142

 

55.95

 

$ 63.71 to 66.26

 

389

 

66.07

 

9.10

 

—

 

—

 

 

 

2,849

 

$

40.77

 

5.78

 

2,079

 

$

33.71

 

 
Schedule of restricted share and restricted unit activity

 

 

(shares in thousands)

 

Number of
Restricted
Shares

 

Weighted
Average
Fair Value
per Share

 

Number of
Restricted
Units

 

Weighted
Average
Fair Value
per Share

 

Non-vested at December 31, 2010

 

181

 

$

30.04

 

113

 

$

30.56

 

Granted

 

—

 

—

 

182

 

48.04

 

Vested

 

(34

)

27.56

 

(56

)

26.08

 

Cancelled

 

(11

)

29.74

 

(4

)

47.98

 

Non-vested at December 31, 2011

 

136

 

$

30.69

 

235

 

$

44.24

 

Granted

 

—

 

—

 

174

 

55.69

 

Vested

 

(37

)

33.73

 

(9

)

37.57

 

Cancelled

 

(4

)

25.58

 

(15

)

44.95

 

Non-vested at December 31, 2012

 

95

 

$

29.69

 

385

 

$

49.77

 

Granted

 

—

 

—

 

144

 

66.27

 

Vested

 

(33

)

34.02

 

(17

)

46.82

 

Cancelled

 

(14

)

31.25

 

(43

)

54.93

 

Non-vested at December 31, 2013

 

48

 

$

26.25

 

469

 

$

54.47

 

 
Summary of accumulated other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

Cumulative

 

Deferred
Gain/(Loss)

 

Pension/

 

Gain
(Loss)

 

Accumulated
Other

 

 

 

Translation

 

on Hedging

 

Postretirement

 

on

 

Comprehensive

 

(in millions)

 

Adjustment

 

Activities

 

Adjustment

 

Investment

 

Loss

 

Balance, December 31, 2010

 

$

(180

)

$

41

 

$

(49

)

$

(2

)

$

(190

)

Gains on cash-flow hedges, net of income tax effect of $19

 

 

 

29

 

 

 

 

 

29

 

Amount of gains on cash-flow hedges reclassified to earnings, net of income tax effect of $61

 

 

 

(105

)

 

 

 

 

(105

)

Actuarial loss on pension and other postretirement obligations, settlements and plan amendments, net of income tax of $4

 

 

 

 

 

(10

)

 

 

(10

)

Gains related to pension and other postretirement obligations reclassified to earnings, net of income tax of $5

 

 

 

 

 

(11

)

 

 

(11

)

Currency translation adjustment

 

(126

)

 

 

 

 

 

 

(126

)

Balance, December 31, 2011

 

$

(306

)

$

(35

)

$

(70

)

$

(2

)

$

(413

)

Gains on cash-flow hedges, net of income tax effect of $25

 

 

 

43

 

 

 

 

 

43

 

Amount of gains on cash-flow hedges reclassified to earnings, net of income tax effect of $15

 

 

 

(25

)

 

 

 

 

(25

)

Actuarial loss on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect of $27

 

 

 

 

 

(56

)

 

 

(56

)

Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax of $2

 

 

 

 

 

5

 

 

 

5

 

Currency translation adjustment

 

(29

)

 

 

 

 

 

 

(29

)

Balance, December 31, 2012

 

$

(335

)

$

(17

)

$

(121

)

$

(2

)

$

(475

)

Losses on cash-flow hedges, net of income tax effect of $29

 

 

 

(64

)

 

 

 

 

(64

)

Amount of losses on cash-flow hedges reclassified to earnings, net of income tax effect of $19

 

 

 

41

 

 

 

 

 

41

 

Actuarial gain on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect of $32

 

 

 

 

 

63

 

 

 

63

 

Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax of $3

 

 

 

 

 

5

 

 

 

5

 

Unrealized gain on investment, net of income tax effect

 

 

 

 

 

 

 

1

 

1

 

Currency translation adjustment

 

(154

)

 

 

 

 

 

 

(154

)

Balance, December 31, 2013

 

$

(489

)

$

(40

)

$

(53

)

$

(1

)

$

(583

)

 
Schedule of reclassifications from AOCI into net income

 

 

 

 

 

 

 

 

 

 

Affected Line Item in

 

Details about AOCI Components 

 

Amount Reclassified from AOCI 

 

Consolidated Statements

 

(in millions)

 

2013

 

2012

 

2011

 

of Income

 

Gains (losses) on cash-flow hedges:

 

 

 

 

 

 

 

 

 

Commodity and foreign currency contracts

 

$

(57

)

$

43

 

$

169

 

Cost of sales

 

Interest rate contracts

 

(3

)

(3

)

(3

)

Financing costs, net

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) related to pension and other postretirement obligations

 

(8

)

(7

)

16

 

(a)

 

Total before tax reclassifications

 

$

(68

)

$

33

 

$

182

 

 

 

Income tax (expense) benefit

 

22

 

(13

)

(66

)

 

 

Total after-tax reclassifications

 

$

(46

)

$

20

 

$

116

 

 

 

 

 

(a) This component is included in the computation of net periodic benefit cost and affects both cost of sales and SG&A expenses on the Consolidated Statements of Income.