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Shareholders' Equity
 6 Months Ended
Jun. 30, 2014
Shareholders' Equity  
Shareholders' Equity

Note 14—Shareholders’ Equity

 

Distributions of qualifying additional paid-in capital—In May 2014, 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 $3.00 per outstanding share, payable in four quarterly installments of $0.75 per outstanding share, subject to certain limitations.  We do not pay the distribution of qualifying additional paid-in capital with respect to our shares held in treasury or held by our subsidiary.  In May 2014, we recognized a liability of $1.1 billion for the distribution payable, recorded in other current liabilities, with a corresponding entry to additional paid-in capital.  On June 18, 2014, we paid the first installment in the aggregate amount of $272 million to shareholders of record as of May 30, 2014.  At June 30, 2014, the aggregate carrying amount of the distribution payable was $816 million.

 

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 quarterly installments of $0.56 per outstanding share, subject to certain limitations.  We did not pay the distribution of qualifying additional paid-in capital with respect to our shares held in treasury or held by our subsidiary.  In May 2013, we recognized a liability of $808 million for the distribution payable, recorded in other current liabilities, with a corresponding entry to additional paid-in capital.  On March 19, 2014, we paid the final installment in the aggregate amount of $202 million to shareholders of record as of February 21, 2014.  On June 19, 2013, we paid the initial installment in the aggregate amount of $202 million to shareholders of record as of May 31, 2013.

 

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, 2014 and December 31, 2013, our subsidiary held 8.8 million shares and 10.2 million shares, respectively.

 

Accumulated other comprehensive loss—The changes in accumulated other comprehensive loss, presented net of tax, were as follows (in millions):

 

 

 

Three months ended June 30, 2014

 

Three months ended June 30, 2013

 

 

 

Defined benefit
pension plans

 

Derivative
instruments

 

Total

 

Defined benefit
pension plans

 

Derivative
instruments

 

Total

 

Balance, beginning of period

 

$

(263

)

$

—

 

$

(263

)

$

(533

)

$

(7

)

$

(540

)

Other comprehensive income (loss) before reclassifications

 

78

 

—

 

78

 

84

 

(1

)

83

 

Reclassifications to net income

 

(3

)

—

 

(3

)

12

 

11

 

23

 

Other comprehensive income, net

 

75

 

—

 

75

 

96

 

10

 

106

 

Balance, end of period

 

$

(188

)

$

—

 

$

(188

)

$

(437

)

$

3

 

$

(434

)

 

 

 

Six months ended June 30, 2014

 

Six months ended June 30, 2013

 

 

 

Defined benefit
pension plans

 

Derivative
instruments

 

Total

 

Defined benefit
pension plans

 

Derivative
instruments

 

Total

 

Balance, beginning of period

 

$

(264

)

$

2

 

$

(262

)

$

(511

)

$

(10

)

$

(521

)

Other comprehensive income (loss) before reclassifications

 

73

 

—

 

73

 

49

 

(5

)

44

 

Reclassifications to net income

 

3

 

(2

)

1

 

25

 

18

 

43

 

Other comprehensive income (loss), net

 

76

 

(2

)

74

 

74

 

13

 

87

 

Balance, end of period

 

$

(188

)

$

—

 

$

(188

)

$

(437

)

$

3

 

$

(434

)

 

Significant reclassifications from accumulated other comprehensive income to net income included the following (in millions):

 

 

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

Statement of 
operations
classification

 

2014

 

2013

 

2014

 

2013

 

Defined benefit pension plans

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses

 

 

 

$

6

 

$

14

 

$

12

 

$

28

 

Prior service costs

 

 

 

(1

)

(1

)

(1

)

(1

)

Settlements and curtailments

 

 

 

(5

)

—

 

(5

)

—

 

Total amortization, before income taxes

 

Net periodic benefit costs (a)

 

—

 

13

 

6

 

27

 

Income tax benefit

 

Income tax expense

 

(3

)

(1

)

(3

)

(2

)

Total amortization, net of income taxes

 

 

 

$

(3

)

$

12

 

$

3

 

$

25

 

 

(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, 2014, the amortization components of our net periodic benefit costs were less than $1 million and $4 million, recorded in operating and maintenance costs, and less than $1 million and $2 million, recorded in general and administrative costs, respectively.  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.  See Note 12—Postemployment Benefit Plans.