STOCKHOLDERS’ EQUITY

Repurchases of Common Stock

During the nine months ended September 30, 2018, we repurchased 2.5 million shares of our common stock for $826 million. The total remaining authorization for future common share repurchases under our share repurchase program was $3.7 billion as of September 30, 2018, including a $1.0 billion increase to the program authorized by our Board of Directors on September 27, 2018. As we repurchase our common shares, we reduce common stock for the $1 of par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in capital. If additional paid-in capital is reduced to zero, we record the remainder of the excess purchase price over par value as a reduction of retained earnings. Due to the volume of repurchases and the prices at which these were made, additional paid-in capital was reduced to zero, with the remainder of the excess purchase price over par value of $523 million and $1.2 billion recorded as a reduction of retained earnings during the nine months ended September 30, 2018 and September 24, 2017.

Dividends

We declared cash dividends totaling $1.2 billion ($4.20 per share) and $2.3 billion ($8.20 per share) during the quarter and nine months ended September 30, 2018. The 2018 dividend amounts include the declaration of our 2018 fourth quarter dividend of $2.20 per share, an increase of $0.20 over the third quarter 2018 dividend, which totaled $569 million. We did not declare any cash dividends during the third quarter of 2017 but we declared cash dividends of $1.6 billion ($5.46 per share) during the nine months ended September 24, 2017. Our third quarter 2017 dividend of $528 million ($1.82 per share) was declared during the second quarter of 2017.

Restricted Stock Unit Grants

During the nine months ended September 30, 2018, we granted certain employees approximately 0.4 million RSUs with a grant date fair value of $353.99 per RSU. The grant date fair value of these RSUs is equal to the closing market price of our common stock on the grant date less a discount to reflect the delay in payment of dividend-equivalent cash payments that are made only upon vesting, which is generally three years from the grant date. We recognize the grant date fair value of RSUs, less estimated forfeitures, as compensation expense ratably over the requisite service period, which is shorter than the vesting period if the employee is retirement eligible on the date of grant or will become retirement eligible before the end of the vesting period.

Accumulated Other Comprehensive Loss

Changes in the balance of AOCL, net of tax, consisted of the following (in millions):



	Postretirement Benefit Plans			Other, net			AOCL
Balance at December 31, 2017	$	(12,559	)	$	20		$	(12,539	)
Other comprehensive income before reclassifications	—			(53		)	(53		)
Amounts reclassified from AOCL
Recognition of net actuarial losses ^(a)	1,092			—			1,092
Amortization of net prior service credits ^(a)	(192		)	—			(192		)
Other	—			23			23
Total reclassified from AOCL	900			23			923
Total other comprehensive income	900			(30		)	870
Reclassification of income tax effects from tax reform ^(b)	(2,396		)	(12		)	(2,408		)
Balance at September 30, 2018	$	(14,055	)	$	(22	)	$	(14,077	)

Balance at December 31, 2016	$	(11,981	)	$	(121	)	$	(12,102	)
Other comprehensive income before reclassifications	3			123			126
Amounts reclassified from AOCL
Recognition of net actuarial losses ^(a)	774			—			774
Amortization of net prior service credits ^(a)	(172		)	—			(172		)
Other	—			14			14
Total reclassified from AOCL	602			14			616
Total other comprehensive income	605			137			742
Balance at September 24, 2017	$	(11,376	)	$	16		$	(11,360	)

^(a)

Reclassifications from AOCL related to our postretirement benefit plans were recorded as a component of net periodic benefit cost for each period presented (see “Note 7 – Postretirement Benefit Plans”). These amounts include $300 million and $200 million, net of tax, for the quarters ended September 30, 2018 and September 24, 2017, which are comprised of the recognition of net actuarial losses of $364 million and $258 million for the quarters ended September 30, 2018 and September 24, 2017 and the amortization of net prior service credits of $(64) million and $(58) million for the quarters ended September 30, 2018 and September 24, 2017.


^(b)	We reclassified the impact of the income tax effects related to the Tax Cuts and Jobs Act of 2017 (the Tax Act) from AOCL during the first quarter of 2018 to retained earnings by the same amount with zero impact to total equity. See ASU 2018-02 in “Note 12 – Recent Accounting Pronouncements” for additional information.