Equity Activity (Tables)

3 Months Ended

Mar. 31, 2015

Equity Activity:

Schedule of Reclassifications and Taxes Related to items of Other Comprehensive Income

Reclassifications and Taxes Related to Items of Other Comprehensive Income
(Dollars in millions)				Before Tax	Tax (Expense)/			Net of Tax
For the three months ended March 31, 2015:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	(452)	$	(266)	$	(718)
	Net changes related to available-for-sale securities:
		Unrealized gains/(losses) arising during the period	$	32	$	(12)	$	20
		Reclassification of (gains)/losses to other (income) and expense		0		0		0
	Total net changes related to available-for-sale securities		$	32	$	(12)	$	20
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	619	$	(218)	$	401
		Reclassification of (gains)/losses to:
		Cost of sales		(50)		15		(35)
		SG&A expense		(40)		11		(28)
		Other (income) and expense		(160)		61		(98)
		Interest expense		0		0		0
	Total unrealized gains/(losses) on cash flow hedges		$	370	$	(131)	$	239
	Retirement-related benefit plans(1):
		Prior service costs/(credits)	$	5	$	(2)	$	3
		Net (losses)/gains arising during the period		(77)		26		(52)
		Curtailments and settlements		4		(1)		3
		Amortization of prior service (credits)/costs		(26)		9		(17)
		Amortization of net (gains)/losses		835		(280)		555
	Total retirement-related benefit plans		$	740	$	(248)	$	492
Other comprehensive income/(loss)			$	690	$	(657)	$	33
(1) These AOCI components are included in the computation of net periodic pension cost. (See note 8, "Retirement-Related Benefits,"
for additional information.)

Reclassifications and Taxes Related to Items of Other Comprehensive Income
(Dollars in millions)				Before Tax	Tax (Expense)/			Net of Tax
For the three months ended March 31, 2014:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	(61)	$	10	$	(51)
	Net changes related to available-for-sale securities:
		Unrealized gains/(losses) arising during the period	$	0	$	0	$	0
		Reclassification of (gains)/losses to other (income) and expense		4		(2)		3
	Total net changes related to available-for-sale securities		$	4	$	(2)	$	3
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	88	$	(33)	$	54
		Reclassification of (gains)/losses to:
		Cost of sales		26		(10)		16
		SG&A expense		2		0		2
		Other (income) and expense		(29)		11		(18)
		Interest expense		0		0		0
	Total unrealized gains/(losses) on cash flow hedges		$	87	$	(32)	$	55
	Retirement-related benefit plans(1):
		Prior service costs/(credits)	$	1	$	0	$	0
		Net (losses)/gains arising during the period		32		(11)		21
		Curtailments and settlements		4		(1)		3
		Amortization of prior service (credits)/costs		(29)		10		(20)
		Amortization of net (gains)/losses		649		(214)		434
	Total retirement-related benefit plans		$	656	$	(217)	$	439
Other comprehensive income/(loss)			$	687	$	(241)	$	446
(1) These AOCI components are included in the computation of net periodic pension cost. (See note 8, "Retirement-Related Benefits,"
for additional information.)

Accumulated Other Comprehensive Income/(Loss) (net of tax)

Accumulated Other Comprehensive Income/(Loss) (net of tax)
						Net Change		Net Unrealized
		Net Unrealized		Foreign		Retirement-		Gains/(Losses)		Accumulated
		Gains/(Losses)		Currency		Related		on Available-		Other
		on Cash Flow		Translation		Benefit		For-Sale		Comprehensive
(Dollars in Millions)		Hedges		Adjustments*		Plans		Securities		Income/(Loss)
January 1, 2015		$	392	$	(1,742)	$	(26,509)	$	(15)	$	(27,875)
Other comprehensive income before
	reclassifications		401		(718)		(46)		20		(343)
Amount reclassified from accumulated
	other comprehensive income		(162)		0		538		0		376
Total change for the period			239		(718)		492		20		33
March 31, 2015		$	631	$	(2,461)	$	(26,017)	$	5	$	(27,842)
						Net Change		Net Unrealized
		Net Unrealized		Foreign		Retirement-		Gains/(Losses)		Accumulated
		Gains/(Losses)		Currency		Related		on Available-		Other
		on Cash Flow		Translation		Benefit		For-Sale		Comprehensive
(Dollars in Millions)		Hedges		Adjustments*		Plans		Securities		Income/(Loss)
January 1, 2014		$	(165)	$	332	$	(21,767)	$	(1)	$	(21,602)
Other comprehensive income before
	reclassifications		54		(51)		21		0		24
Amount reclassified from accumulated
	other comprehensive income		1		0		417		3		421
Total change for the period			55		(51)		439		3		446
March 31, 2014		$	(111)	$	281	$	(21,328)	$	2	$	(21,156)
*	Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.