v2.4.0.8
Equity and Accumulated Other Comprehensive Income
 6 Months Ended
Jun. 30, 2014
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, 2014

    $ 38,836     $ 56,580     $ 95,416  

Net income

      8,161       2,149       10,310  

Other comprehensive loss

      (1,170 )      (23 )      (1,193 ) 
  

 

 

  

Comprehensive income

      6,991       2,126       9,117  
  

 

 

  

Issuance of common stock

      127       –       127  

Contributed capital

      (26,901 )      –       (26,901 ) 

Dividends declared

      (4,392 )      –       (4,392 ) 

Common stock in treasury

      323       –       323  

Purchase of noncontrolling interest

      –       (55,960 )      (55,960 ) 

Distributions and other

      (83 )      (1,635 )      (1,718 ) 
  

 

 

  

Balance at June 30, 2014

    $   14,901     $   1,111     $     16,012  
  

 

 

  

The changes in Common stock, Contributed capital and Purchase of noncontrolling interest are primarily due to the completion of the Wireless Transaction on February 21, 2014. See Note 2 for additional information.

Prior to the closing of the Wireless Transaction, noncontrolling interests included in our condensed consolidated financial statements primarily consisted of Vodafone’s 45% ownership interest in Verizon Wireless. The noncontrolling interests that remain after the completion of the Wireless Transaction primarily relate to wireless partnership entities.

Common Stock

As a result of the Wireless Transaction, Verizon issued approximately 1.27 billion shares of Verizon common stock.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans, including 3.9 million common shares issued from Treasury stock during the six months ended June 30, 2014, which had an aggregate value of $0.2 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

gain on
marketable
securities

    

Defined benefit

pension and
postretirement
plans

     Total  

Balance at January 1, 2014

    $    853     $    113     $   117     $   1,275     $     2,358  

Other comprehensive income (loss)

      (29 )      (21 )      22       –       (28 ) 

Amounts reclassified to net income

      (911 )      (143 )      (10 )      (78 )      (1,142 ) 
  

 

 

  

Net other comprehensive income (loss)

      (940 )      (164 )      12       (78 )      (1,170 ) 
  

 

 

  

Balance at June 30, 2014

    $ (87 )    $ (51 )    $ 129     $ 1,197     $ 1,188  
  

 

 

  

The amounts presented above in net other comprehensive income (loss) are net of taxes and noncontrolling interests, which are not significant. For the six months ended June 30, 2014, the amounts reclassified to net income related to foreign currency translation adjustments are included in Equity in earnings (losses) of unconsolidated businesses on our condensed consolidated statement of income and are a result of the completion of the Omnitel Transaction. See Note 2 for additional details. For the six months ended June 30, 2014, the amounts reclassified to net income related to defined benefit pension and postretirement plans are included in Cost of services and sales and Selling, general and administrative expense on our condensed consolidated statements of income. For the six months ended June 30, 2014, all other amounts reclassified to net income are included in Other income and (expense), net on our condensed consolidated statements of income.