Equity Activity (Tables)

9 Months Ended

Sep. 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 September 30, 2015:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	(1,015)	$	(28)	$	(1,043)
	Net changes related to available-for-sale securities:
		Unrealized gains/(losses) arising during the period	$	(102)	$	39	$	(63)
		Reclassification of (gains)/losses to other (income) and expense		0		0		0
	Total net changes related to available-for-sale securities		$	(101)	$	39	$	(62)
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	36	$	(9)	$	27
		Reclassification of (gains)/losses to:
		Cost of sales		(46)		13		(33)
		SG&A expense		(43)		13		(30)
		Other (income) and expense		(185)		71		(114)
		Interest expense		0		0		0
	Total unrealized gains/(losses) on cash flow hedges		$	(237)	$	88	$	(149)
	Retirement-related benefit plans(1):
		Prior service costs/(credits)	$	0	$	0	$	0
		Net (losses)/gains arising during the period		(2)		1		(1)
		Curtailments and settlements		11		(4)		7
		Amortization of prior service (credits)/costs		(25)		8		(16)
		Amortization of net (gains)/losses		823		(281)		542
	Total retirement-related benefit plans		$	807	$	(275)	$	531
Other comprehensive income/(loss)			$	(547)	$	(176)	$	(724)
(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 September 30, 2014:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	(1,126)	$	(271)	$	(1,397)
	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		0		0		0
	Total net changes related to available-for-sale securities		$	0	$	0	$	0
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	524	$	(182)	$	342
		Reclassification of (gains)/losses to:
		Cost of sales		4		(1)		3
		SG&A expense		(3)		1		(2)
		Other (income) and expense		57		(22)		35
		Interest expense		1		0		1
	Total unrealized gains/(losses) on cash flow hedges		$	582	$	(204)	$	378
	Retirement-related benefit plans(1):
		Prior service costs/(credits)	$	0	$	0	$	0
		Net (losses)/gains arising during the period		1		0		1
		Curtailments and settlements		7		(2)		5
		Amortization of prior service (credits)/costs		(29)		10		(19)
		Amortization of net (gains)/losses		635		(212)		423
	Total retirement-related benefit plans		$	615	$	(205)	$	409
Other comprehensive income/(loss)			$	71	$	(680)	$	(609)
(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 nine months ended September 30, 2015:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	(1,365)	$	(227)	$	(1,593)
	Net changes related to available-for-sale securities:
		Unrealized gains/(losses) arising during the period	$	(85)	$	33	$	(52)
		Reclassification of (gains)/losses to other (income) and expense		0		0		0
	Total net changes related to available-for-sale securities		$	(85)	$	33	$	(52)
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	467	$	(166)	$	301
		Reclassification of (gains)/losses to:
		Cost of sales		(154)		46		(109)
		SG&A expense		(124)		36		(88)
		Other (income) and expense		(565)		217		(348)
		Interest expense		0		0		0
	Total unrealized gains/(losses) on cash flow hedges		$	(376)	$	132	$	(243)
	Retirement-related benefit plans(1):
		Prior service costs/(credits)	$	6	$	(2)	$	4
		Net (losses)/gains arising during the period		14		(5)		9
		Curtailments and settlements		19		(6)		12
		Amortization of prior service (credits)/costs		(76)		26		(50)
		Amortization of net (gains)/losses		2,479		(846)		1,633
	Total retirement-related benefit plans		$	2,441	$	(833)	$	1,608
Other comprehensive income/(loss)			$	616	$	(895)	$	(280)
(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 nine months ended September 30, 2014:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	(848)	$	(241)	$	(1,090)
	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		$	6	$	(2)	$	4
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	596	$	(213)	$	383
		Reclassification of (gains)/losses to:
		Cost of sales		53		(18)		35
		SG&A expense		5		0		5
		Other (income) and expense		33		(13)		20
		Interest expense		1		0		1
	Total unrealized gains/(losses) on cash flow hedges		$	687	$	(244)	$	443
	Retirement-related benefit plans(1):
		Prior service costs/(credits)	$	1	$	0	$	0
		Net (losses)/gains arising during the period		48		(16)		32
		Curtailments and settlements		20		(7)		14
		Amortization of prior service (credits)/costs		(88)		29		(58)
		Amortization of net (gains)/losses		1,923		(644)		1,279
	Total retirement-related benefit plans		$	1,905	$	(638)	$	1,266
Other comprehensive income/(loss)			$	1,749	$	(1,126)	$	623
(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		301		(1,593)		25		(52)		(1,319)
Amount reclassified from accumulated
	other comprehensive income		(544)		0		1,583		0		1,039
Total change for the period			(243)		(1,593)		1,608		(52)		(280)
September 30, 2015		$	148	$	(3,335)	$	(24,901)	$	(67)	$	(28,155)
* 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		383		(1,090)		32		1		(674)
Amount reclassified from accumulated
	other comprehensive income		61		0		1,235		3		1,299
Total change for the period			443		(1,090)		1,267		4		623
September 30, 2014		$	277	$	(758)	$	(20,501)	$	3	$	(20,978)
*	Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.