|
NOTE N – EQUITY ITEMS
Stockholder dividends
Dividends of 27.5 cents per share were paid in the first and second quarters of fiscal 2020, and the third and fourth quarters of fiscal 2019. These dividends represented a 10% increase over the previous quarterly cash dividend of 25 cents per share paid in the first and second quarters of fiscal 2019.
Accumulated other comprehensive income (loss)
Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects.
|
|
|
2020 |
|
|
2019 |
|
|
(In millions) |
|
Before
tax |
|
|
Tax
(expense) benefit |
|
|
Net of
tax |
|
|
Before
tax |
|
|
Tax
(expense) benefit |
|
|
Net of
tax |
|
|
Three months ended March 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized translation gain (loss) |
|
$ |
(52 |
) |
|
$ |
— |
|
|
$ |
(52 |
) |
|
$ |
(9 |
) |
|
$ |
— |
|
|
$ |
(9 |
) |
|
Pension and postretirement obligation
adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment of unrecognized prior
service costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total other comprehensive income (loss) |
|
$ |
(52 |
) |
|
$ |
— |
|
|
$ |
(52 |
) |
|
$ |
(9 |
) |
|
$ |
— |
|
|
$ |
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended March 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized translation gain (loss) |
|
$ |
(14 |
) |
|
$ |
— |
|
|
$ |
(14 |
) |
|
$ |
(40 |
) |
|
$ |
— |
|
|
$ |
(40 |
) |
|
Pension and postretirement obligation
adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment of unrecognized prior
service costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
1 |
|
|
|
(6 |
) |
|
Total other comprehensive income (loss) |
|
|
(14 |
) |
|
|
— |
|
|
|
(14 |
) |
|
|
(47 |
) |
|
|
1 |
|
|
|
(46 |
) |
Summary of stockholders’ equity
A reconciliation of changes in stockholders’ equity are as follows:
|
|
|
Three months ended |
|
|
|
|
Six months ended |
|
|
|
|
March 31 |
|
|
|
|
March 31 |
|
|
(In millions) |
|
2020 |
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|
Common stock and paid in capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
|
$ |
758 |
|
|
$ |
948 |
|
|
|
|
$ |
757 |
|
|
|
|
$ |
947 |
|
|
Common shares issued under stock incentive and other plans (a) |
|
|
8 |
|
|
|
5 |
|
|
|
|
|
9 |
|
|
|
|
|
6 |
|
|
Balance, end of period |
|
|
766 |
|
|
|
953 |
|
|
|
|
|
766 |
|
|
|
|
|
953 |
|
|
Retained earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
|
|
3,239 |
|
|
|
2,719 |
|
|
|
|
|
3,224 |
|
|
|
|
|
2,750 |
|
|
Adoption of new accounting pronouncements (b) |
|
|
— |
|
|
|
1 |
|
|
|
|
|
— |
|
|
|
|
|
34 |
|
|
Net income (loss) |
|
|
(582 |
) |
|
|
76 |
|
|
|
|
|
(550 |
) |
|
|
|
|
28 |
|
|
Regular dividends |
|
|
(16 |
) |
|
|
(16 |
) |
|
|
|
|
(33 |
) |
|
|
|
|
(32 |
) |
|
Balance, end of period |
|
|
2,641 |
|
|
|
2,780 |
|
|
|
|
|
2,641 |
|
|
|
|
|
2,780 |
|
|
Accumulated other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
|
|
(372 |
) |
|
|
(362 |
) |
|
|
|
|
(410 |
) |
|
|
|
|
(291 |
) |
|
Adoption of new accounting pronouncements (b) |
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(34 |
) |
|
Unrealized translation gain (loss) |
|
|
(52 |
) |
|
|
(9 |
) |
|
|
|
|
(14 |
) |
|
|
|
|
(40 |
) |
|
Pension and postretirement obligation adjustment |
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(6 |
) |
|
Net change in investment securities |
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
Balance, end of period |
|
|
(424 |
) |
|
|
(371 |
) |
|
|
|
|
(424 |
) |
|
|
|
|
(371 |
) |
|
Total stockholders' equity |
|
$ |
2,983 |
|
|
$ |
3,362 |
|
|
|
|
$ |
2,983 |
|
|
|
|
$ |
3,362 |
|
|
Cash dividends declared per common share |
|
|
0.275 |
|
|
|
0.250 |
|
|
|
|
$ |
0.550 |
|
|
|
|
$ |
0.500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Common shares issued were 208,564 shares and 93,738 shares for the three months ended March 31, 2020 and 2019, respectively, and 279,025 shares and 234,352 shares for the six months ended March 31, 2020 and 2019. |
|
|
|
(b) |
Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the accounting for equity securities and tax effects of intercompany transfers during fiscal 2019. |
|
|