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Shareowners' Equity and Noncontrolling Interest
 3 Months Ended
Mar. 31, 2014
Notes to Condensed Consolidated Financial Statements [Abstract]  
Shareowners' Equity and Noncontrolling Interest
Shareowners’ Equity and Noncontrolling Interest
A summary of the changes in shareowners’ equity and noncontrolling interest comprising total equity for the quarters ended March 31, 2014 and 2013 is provided below:
 
 
Quarter Ended March 31,
 
 
2014
 
2013
(Dollars in millions)
 
Share-owners’
Equity
 
Non-controlling Interest
 
Total
Equity
 
Share-owners’
Equity
 
Non-controlling Interest
 
Total
Equity
Equity, beginning of period
 
$
31,866

 
$
1,353

 
$
33,219

 
$
25,914

 
$
1,155

 
$
27,069

Comprehensive income for the period:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
1,213

 
93

 
1,306

 
1,266

 
82

 
1,348

Total other comprehensive loss
 
(61
)
 
(7
)
 
(68
)
 
(419
)
 
(21
)
 
(440
)
Total comprehensive income for the period
 
1,152

 
86

 
1,238

 
847

 
61

 
908

Common Stock issued under employee plans
 
165

 

 
165

 
251

 

 
251

Common Stock repurchased
 
(335
)
 

 
(335
)
 
(335
)
 

 
(335
)
Dividends on Common Stock
 
(514
)
 

 
(514
)
 
(465
)
 

 
(465
)
Dividends on ESOP Common Stock
 
(18
)
 

 
(18
)
 
(17
)
 

 
(17
)
Dividends attributable to noncontrolling interest
 


 
(56
)
 
(56
)
 


 
(56
)
 
(56
)
Purchase of subsidiary shares from noncontrolling interest
 
(3
)
 
—

 
(3
)
 
(1
)
 
(9
)
 
(10
)
Sale of subsidiary shares in noncontrolling interest
 
4

 
24

 
28

 
—

 
237

 
237

Redeemable noncontrolling interest in subsidiaries’ earnings
 


 
(6
)
 
(6
)
 


 
—

 
—

Redeemable noncontrolling interest in total other comprehensive income
 

 
2

 
2

 

 
4

 
4

Redeemable noncontrolling interest reclassification to noncontrolling interest
 

 
(25
)
 
(25
)
 

 
(23
)
 
(23
)
Equity, end of period
 
$
32,317

 
$
1,378

 
$
33,695

 
$
26,194

 
$
1,369

 
$
27,563


 
 
 
 
 
 
 
 
 
 
 
 
 

A summary of the changes in each component of accumulated other comprehensive loss, net of tax for the quarter ended March 31, 2014 are provided below:
(Dollars in millions)
Foreign
Currency
Translation
 
Defined
Benefit
Pension and
Post-
retirement
Plans
 
Unrealized Gains
(Losses) on
Available-for-Sale
Securities
 
Unrealized
Hedging
(Losses)
Gains
 
Accumulated
Other
Comprehensive
(Loss) Income
Balance at December 31, 2013
$
170

 
$
(3,267
)
 
$
296

 
$
(79
)
 
$
(2,880
)
Other comprehensive (loss) income before reclassifications, net
(102
)
 
13

 
22

 
(65
)
 
(132
)
Amounts reclassified from accumulated other comprehensive income (loss)
3

 
70

 
(17
)
 
15

 
71

Balance at March 31, 2014
$
71

 
$
(3,184
)
 
$
301

 
$
(129
)
 
$
(2,941
)

Details of the reclassification out of accumulated other comprehensive loss for the quarter ended March 31, 2014 are provided below:
(Dollars in millions)
 
Amount of Income (Expense) Reclassified from Other Comprehensive Income (Loss)
 
Affected Line Item in the Condensed Consolidated Statement of Comprehensive Income
Foreign Currency Translation:
 
 
 
 
Recognized due to business disposition
 
$
(3
)
 
Other income, net
Defined Benefit Pension and Post-retirement Plans:
 
 
 
 
Amortization of prior-service costs and transition obligation
 
$
2

 
Note (1)
Recognized actuarial net loss
 
(106
)
 
Note (1)
Total before tax
 
(104
)
 
 
Tax benefit
 
34

 
Income tax expense
Net of tax
 
$
(70
)
 
 
Unrealized Gains on Available-for-Sale Securities:
 
 
 
 
Realized gain on sale of securities, before tax
 
$
24

 
Other income, net
Tax expense
 
(7
)
 
Income tax expense
Net of tax
 
$
17

 
 
Unrealized Hedging (Losses) Gains:
 
 
 
 
Foreign exchange contracts
 
$
(18
)
 
Product sales
Tax expense
 
3

 
Income tax expense
Net of tax
 
$
(15
)
 
 

Note (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 7 for additional details).
All noncontrolling interests with redemption features, such as put options, that are not solely within our control (redeemable noncontrolling interests) are reported in the mezzanine section of the Condensed Consolidated Balance Sheet, between liabilities and equity, at the greater of redemption value or initial carrying value. A summary of the changes in redeemable noncontrolling interest recorded in the mezzanine section of the Condensed Consolidated Balance Sheet for the quarters ended March 31, 2014 and 2013 is provided below:
 
Quarter Ended March 31,
(Dollars in millions)
2014
 
2013
Redeemable noncontrolling interest, beginning of period
$
111

 
$
238

Net income
6

 
—

Foreign currency translation, net
(2
)
 
(4
)
Dividends attributable to noncontrolling interest
(3
)
 
(2
)
Redeemable noncontrolling interest reclassification to noncontrolling interest
25

 
23

Redeemable noncontrolling interest, end of period
$
137

 
$
255


Changes in noncontrolling interests that do not result in a change of control and where there is a difference between fair value and carrying value are accounted for as equity transactions. A summary of these changes in ownership interests in subsidiaries and the pro-forma effect on Net income attributable to common shareowners had they been recorded through net income for the quarters ended March 31, 2014 and 2013 is provided below:
 
Quarter Ended March 31,
(Dollars in millions)
2014
 
2013
Net income attributable to common shareowners
$
1,213

 
$
1,266

Transfers to noncontrolling interests:
 
 
 
Increase in common stock for sale of subsidiary shares
4

 
—

Decrease in common stock for purchase of subsidiary shares
(3
)
 
(1
)
Net income attributable to common shareowners after transfers to noncontrolling interests
$
1,214

 
$
1,265