Equity and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Equity and Accumulated Other Comprehensive Income

9. Equity and Accumulated Other Comprehensive Income

Equity

Changes in the components of Total equity were as follows:

(dollars in millions)	Attributable to Verizon			Noncontrolling Interests			Total Equity
Balance at January 1, 2015	$	12,298		$	1,378		$	13,676
Net income		12,488			374			12,862
Other comprehensive loss		(511	)		–			(511	)
Comprehensive income		11,977			374			12,351
Contributed capital		29			–			29
Dividends declared		(6,779	)		–			(6,779	)
Common stock in treasury		(4,341	)		–			(4,341	)
Distributions and other		(46	)		(348	)		(394	)
Balance at September 30, 2015	$	13,138		$	1,404		$	14,542

Common Stock

During the nine months ended September 30, 2015, Verizon repurchased approximately 2.8 million shares of the Company’s common stock under our authorized share buyback program for approximately $0.1 billion. At September 30, 2015, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 97.2 million.

In February 2015, the Verizon Board of Directors authorized Verizon to enter into an accelerated share repurchase (ASR) agreement to repurchase $5.0 billion of the Company’s common stock. On February 10, 2015, in exchange for an upfront payment totaling $5.0 billion, Verizon received an initial delivery of 86.2 million shares having a value of approximately $4.25 billion. On June 5, 2015, Verizon received an additional 15.4 million shares as final settlement of the transaction under the ASR agreement. In total, 101.6 million shares were delivered under the ASR at an average repurchase price of $49.21.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans, including 18.3 million common shares issued from Treasury stock during the nine months ended September 30, 2015, which had an aggregate value of $0.7 billion.

Accumulated Other Comprehensive Income

The changes in the balances of Accumulated other comprehensive income by component are as follows:

(dollars in millions)	Foreign currency translation adjustments			Unrealized loss on cash flow hedges			Unrealized loss on marketable securities			Defined benefit pension and postretirement plans			Total
Balance at January 1, 2015	$	(346	)	$	(84	)	$	112		$	1,429		$	1,111
Other comprehensive loss		(161	)		(246	)		(13	)		–			(420	)
Amounts reclassified to net income		–			50			(9	)		(132	)		(91	)
Net other comprehensive loss		(161	)		(196	)		(22	)		(132	)		(511	)
Balance at September 30, 2015	$	(507	)	$	(280	)	$	90		$	1,297		$	600

The amounts presented above in net other comprehensive loss are net of taxes and noncontrolling interests, which are not significant. For the nine months ended September 30, 2015, the amounts reclassified to net income related to defined benefit pension and postretirement plans were included in Cost of services and Selling, general and administrative expense on our condensed consolidated statement of income. For the nine months ended September 30, 2015, all other amounts reclassified to net income were included in Other income and (expense), net on our condensed consolidated statement of income.