Equity Activity (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2015:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	102	$	67	$	169
	Net changes related to available-for-sale securities:
		Unrealized gains/(losses) arising during the period	$	(15)	$	6	$	(10)
		Reclassification of (gains)/losses to other (income) and expense		0		0		0
	Total net changes related to available-for-sale securities		$	(15)	$	6	$	(10)
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	(187)	$	60	$	(127)
		Reclassification of (gains)/losses to:
		Cost of sales		(58)		17		(41)
		SG&A expense		(42)		12		(30)
		Other (income) and expense		(221)		85		(136)
		Interest expense		0		0		0
	Total unrealized gains/(losses) on cash flow hedges		$	(508)	$	175	$	(333)
	Retirement-related benefit plans(1):
		Prior service costs/(credits)	$	1	$	0	$	1
		Net (losses)/gains arising during the period		93		(31)		62
		Curtailments and settlements		3		(1)		2
		Amortization of prior service (credits)/costs		(25)		9		(16)
		Amortization of net (gains)/losses		821		(285)		536
	Total retirement-related benefit plans		$	894	$	(310)	$	585
Other comprehensive income/(loss)			$	472	$	(62)	$	411
(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 June 30, 2014:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	339	$	19	$	358
	Net changes related to available-for-sale securities:
		Unrealized gains/(losses) arising during the period	$	1	$	0	$	0
		Reclassification of (gains)/losses to other (income) and expense		0		0		0
	Total net changes related to available-for-sale securities		$	1	$	0	$	1
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	(16)	$	2	$	(14)
		Reclassification of (gains)/losses to:
		Cost of sales		23		(7)		16
		SG&A expense		7		(1)		5
		Other (income) and expense		5		(2)		3
		Interest expense		(1)		0		(1)
	Total unrealized gains/(losses) on cash flow hedges		$	18	$	(8)	$	10
	Retirement-related benefit plans(1):
		Prior service costs/(credits)	$	0	$	0	$	0
		Net (losses)/gains arising during the period		15		(5)		10
		Curtailments and settlements		8		(3)		6
		Amortization of prior service (credits)/costs		(29)		10		(19)
		Amortization of net (gains)/losses		639		(218)		422
	Total retirement-related benefit plans		$	633	$	(216)	$	418
Other comprehensive income/(loss)			$	991	$	(205)	$	787
(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 six months ended June 30, 2015:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	(350)	$	(199)	$	(549)
	Net changes related to available-for-sale securities:
		Unrealized gains/(losses) arising during the period	$	17	$	(6)	$	10
		Reclassification of (gains)/losses to other (income) and expense		0		0		0
	Total net changes related to available-for-sale securities		$	16	$	(6)	$	10
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	432	$	(158)	$	274
		Reclassification of (gains)/losses to:
		Cost of sales		(108)		32		(76)
		SG&A expense		(82)		24		(58)
		Other (income) and expense		(380)		146		(234)
		Interest expense		0		0		0
	Total unrealized gains/(losses) on cash flow hedges		$	(138)	$	44	$	(94)
	Retirement-related benefit plans(1):
		Prior service costs/(credits)	$	6	$	(2)	$	4
		Net (losses)/gains arising during the period		16		(5)		10
		Curtailments and settlements		7		(2)		5
		Amortization of prior service (credits)/costs		(51)		17		(33)
		Amortization of net (gains)/losses		1,656		(565)		1,091
	Total retirement-related benefit plans		$	1,635	$	(558)	$	1,077
Other comprehensive income/(loss)			$	1,163	$	(719)	$	444
(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 six months ended June 30, 2014:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	278	$	29	$	307
	Net changes related to available-for-sale securities:
		Unrealized gains/(losses) arising during the period	$	1	$	0	$	1
		Reclassification of (gains)/losses to other (income) and expense		5		(2)		3
	Total net changes related to available-for-sale securities		$	5	$	(2)	$	3
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	72	$	(31)	$	41
		Reclassification of (gains)/losses to:
		Cost of sales		49		(17)		32
		SG&A expense		8		(1)		7
		Other (income) and expense		(24)		9		(15)
		Interest expense		0		0		0
	Total unrealized gains/(losses) on cash flow hedges		$	104	$	(40)	$	64
	Retirement-related benefit plans(1):
		Prior service costs/(credits)	$	1	$	0	$	0
		Net (losses)/gains arising during the period		47		(16)		31
		Curtailments and settlements		13		(4)		8
		Amortization of prior service (credits)/costs		(59)		20		(39)
		Amortization of net (gains)/losses		1,288		(432)		856
	Total retirement-related benefit plans		$	1,290	$	(433)	$	857
Other comprehensive income/(loss)			$	1,678	$	(445)	$	1,232
(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		274		(549)		19		10		(246)
Amount reclassified from accumulated
	other comprehensive income		(368)		0		1,058		0		690
Total change for the period			(94)		(549)		1,077		10		444
June 30, 2015		$	298	$	(2,292)	$	(25,433)	$	(5)	$	(27,432)
* Foreign currency translation adjustments are presented gross except for any associated hedges which are presented 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, 2014		$	(165)	$	332	$	(21,767)	$	(1)	$	(21,602)
Other comprehensive income before
	reclassifications		41		307		31		1		379
Amount reclassified from accumulated
	other comprehensive income		24		0		825		3		853
Total change for the period			64		307		857		3		1,232
June 30, 2014		$	(101)	$	639	$	(20,910)	$	3	$	(20,369)
*	Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.