v2.4.1.9
Equity and Accumulated Other Comprehensive Income
 3 Months Ended
Mar. 31, 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

      4,219        119        4,338   

Other comprehensive loss

      (195 )      –       (195 ) 
  

 

 

  

Comprehensive income

      4,024        119        4,143   
  

 

 

  

Contributed capital

      (764 )      –       (764 ) 

Dividends declared

      (2,244 )      –       (2,244 ) 

Common stock in treasury

      (3,830 )      –       (3,830 ) 

Distributions and other

      (145 )      (77 )      (222 ) 
  

 

 

  

Balance at March 31, 2015

    $   9,339      $   1,420      $   10,759   
  

 

 

  

Common Stock

Verizon did not repurchase any shares of Verizon common stock through its previously authorized share buyback program during the three months ended March 31, 2015.

However, 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. The total number of shares that Verizon will repurchase under the ASR agreement will be based generally upon the volume-weighted average share price of Verizon’s

common stock during the term of the transaction. 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. Final settlement of the transaction under the ASR agreement, including delivery of the remaining shares, if any, that Verizon is entitled to receive, is scheduled to occur in the second quarter of 2015.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans, including 9.8 million common shares issued from Treasury stock during the three months ended March 31, 2015, which had an aggregate value of $0.4 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, 2015

    $ (346 )    $ (84 )    $   112       $   1,429      $   1,111   

Other comprehensive income (loss)

      (141 )      (59 )      3         –        (197 ) 

Amounts reclassified to net income

      –            46        –         (44 )      2   
  

 

 

  

Net other comprehensive income (loss)

      (141 )      (13 )      3         (44 )      (195 ) 
  

 

 

  

Balance at March 31, 2015

    $ (487 )    $ (97 )    $ 115       $ 1,385      $ 916   
  

 

 

  

The amounts presented above in net other comprehensive income (loss) are net of taxes and noncontrolling interests, which are not significant. For the three months ended March 31, 2015, the amounts reclassified to net income related to defined benefit pension and postretirement plans were included in Cost of services and sales and Selling, general and administrative expense on our condensed consolidated statement of income. For the three months ended March 31, 2015, all other amounts reclassified to net income were included in Other income and (expense), net on our condensed consolidated statement of income.