Note 15—Shareholders’ Equity
Distribution of qualifying additional paid-in capital—In May 2013, at our annual general meeting, our shareholders approved the distribution of qualifying additional paid-in capital in the form of a U.S. dollar denominated dividend of $2.24 per outstanding share, payable in four installments of $0.56 per outstanding share, subject to certain limitations. In May 2013, we recognized a liability of $816 million for the distribution payable, recorded in other current liabilities, with a corresponding entry to additional paid-in capital. On June 19, 2013, we paid the first installment in the aggregate amount of $204 million to shareholders of record and directors and employees holding unvested deferred units as of May 31, 2013. At June 30, 2013, the carrying amount of the unpaid distribution payable was $612 million.
In May 2011, at our annual general meeting, our shareholders approved the distribution of additional paid-in capital in the form of a U.S. dollar denominated dividend of $3.16 per outstanding share, payable in four equal installments of $0.79 per outstanding share, subject to certain limitations. On March 21, 2012, we paid the final installment in the aggregate amount of $278 million to shareholders of record and directors and employees holding unvested deferred units as of February 24, 2012.
Shares held by subsidiary—One of our subsidiaries holds our shares for future use to satisfy our obligations to deliver shares in connection with awards granted under our incentive plans or other rights to acquire our shares. At June 30, 2013 and December 31, 2012, our subsidiary held 10.6 million and 11.5 million shares, respectively.
Accumulated other comprehensive loss—For the three and six months ended June 30, 2013 and 2012, the changes in accumulated other comprehensive loss, presented net of tax, were as follows (in millions):
| |
|
Three months ended June 30, 2013 |
|
|
Three months ended June 30, 2012 |
|
| |
|
Defined benefit pension plans |
|
|
Derivative instruments |
|
|
Marketable securities |
|
|
Total |
|
|
Defined benefit pension plans |
|
|
Derivative instruments |
|
|
Marketable securities |
|
|
Total |
|
|
Balance, beginning of period |
|
$ |
(533 |
) |
|
$ |
(7 |
) |
|
$ |
— |
|
|
$ |
(540 |
) |
|
$ |
(517 |
) |
|
$ |
(12 |
) |
|
$ |
(2) |
|
|
$ |
(531 |
) |
|
Other comprehensive income (loss) before reclassifications |
|
|
84 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
83 |
|
|
|
1 |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(1 |
) |
|
Reclassifications to net income |
|
|
12 |
|
|
|
11 |
|
|
|
— |
|
|
|
23 |
|
|
|
10 |
|
|
|
6 |
|
|
|
— |
|
|
|
16 |
|
|
Other comprehensive income, net |
|
|
96 |
|
|
|
10 |
|
|
|
— |
|
|
|
106 |
|
|
|
11 |
|
|
|
4 |
|
|
|
— |
|
|
|
15 |
|
|
Balance, end of period |
|
$ |
(437 |
) |
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
(434 |
) |
|
$ |
(506 |
) |
|
$ |
(8 |
) |
|
$ |
(2) |
|
|
$ |
(516 |
) |
| |
|
Six months ended June 30, 2013 |
|
|
Six months ended June 30, 2012 |
|
| |
|
Defined benefit pension plans |
|
|
Derivative instruments |
|
|
Marketable securities |
|
|
Total |
|
|
Defined benefit pension plans |
|
|
Derivative instruments |
|
|
Marketable securities |
|
|
Total |
|
|
Balance, beginning of period |
|
$ |
(511 |
) |
|
$ |
(10 |
) |
|
$ |
— |
|
|
$ |
(521 |
) |
|
$ |
(501 |
) |
|
$ |
7 |
|
|
$ |
(2 |
) |
|
$ |
(496) |
|
|
Reclassification from redeemable noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(17 |
) |
|
|
— |
|
|
|
(17 |
) |
|
Other comprehensive income (loss) before reclassifications |
|
|
49 |
|
|
|
(5 |
) |
|
|
— |
|
|
|
44 |
|
|
|
(27 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(28 |
) |
|
Reclassifications to net income |
|
|
25 |
|
|
|
18 |
|
|
|
— |
|
|
|
43 |
|
|
|
22 |
|
|
|
3 |
|
|
|
— |
|
|
|
25 |
|
|
Other comprehensive income (loss), net |
|
|
74 |
|
|
|
13 |
|
|
|
— |
|
|
|
87 |
|
|
|
(5 |
) |
|
|
(15 |
) |
|
|
— |
|
|
|
(20 |
) |
|
Balance, end of period |
|
$ |
(437 |
) |
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
(434 |
) |
|
$ |
(506 |
) |
|
$ |
(8 |
) |
|
$ |
(2 |
) |
|
$ |
(516 |
) |
Significant reclassifications from accumulated other comprehensive income to net income included the following (in millions):
| |
|
Statement of operations classification |
|
|
Three months ended
June 30, |
|
|
Six months ended
June 30, |
|
| |
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
Defined benefit pension plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial losses |
|
|
|
|
$ |
14 |
|
|
$ |
11 |
|
|
$ |
28 |
|
|
$ |
22 |
|
|
Prior service costs |
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
Settlements and curtailments |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
Total amortization, before income taxes |
|
Net periodic benefit costs (a) |
|
|
|
13 |
|
|
|
10 |
|
|
|
27 |
|
|
|
23 |
|
|
Income tax benefit |
|
Income tax expense |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(1 |
) |
|
Total amortization, net of income taxes |
|
|
|
|
$ |
12 |
|
|
$ |
10 |
|
|
$ |
25 |
|
|
$ |
22 |
|
_____________________________
|
(a) |
We recognize the amortization of accumulated other comprehensive income components related to defined benefit pension plans in net periodic benefit costs. In the three and six months ended June 30, 2013, the amortization components of our net periodic benefit costs were $10 million and $21 million, recorded in operating and maintenance costs, and $3 million and $6 million, recorded in general and administrative costs, respectively. In the three and six months ended June 30, 2012, the amortization components of our net periodic benefit costs were $8 million and $17 million, recorded in operating and maintenance costs, and $2 million and $6 million, recorded in general and administrative costs, respectively. See Note 12—Postemployment Benefit Plans. |