Equity Activity (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016:				Amount		Benefit		Amount
Other comprehensive income/(loss):
	Foreign currency translation adjustments		$	239	$	266	$	505
	Net changes related to available-for-sale securities:
		Unrealized gains/(losses) arising during the period	$	(36)	$	14	$	(22)
		Reclassification of (gains)/losses to other (income) and expense		37		(14)		23
	Total net changes related to available-for-sale securities		$	1	$	0	$	0
	Unrealized gains/(losses) on cash flow hedges:
		Unrealized gains/(losses) arising during the period	$	(265)	$	91	$	(174)
		Reclassification of (gains)/losses to:
		Cost of sales		(3)		0		(3)
		SG&A expense		(3)		0		(3)
		Other (income) and expense		(87)		33		(53)
		Interest expense		2		(1)		1
	Total unrealized gains/(losses) on cash flow hedges		$	(356)	$	124	$	(232)
	Retirement-related benefit plans(1):
		Net (losses)/gains arising during the period	$	(147)	$	53	$	(94)
		Curtailments and settlements		5		(2)		3
		Amortization of prior service (credits)/costs		(25)		9		(16)
		Amortization of net (gains)/losses		690		(248)		442
	Total retirement-related benefit plans		$	522	$	(187)	$	335
Other comprehensive income/(loss)			$	406	$	202	$	608
(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, 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.)

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, 2016		$	100	$	(3,463)	$	(26,248)	$	5	$	(29,607)
Other comprehensive income before
	reclassifications		(174)		505		(91)		(22)		218
Amount reclassified from accumulated
	other comprehensive income		(58)		0		426		23		391
Total change for the period			(232)		505		335		0		608
March 31, 2016		$	133	$	(2,958)	$	(25,913)	$	5	$	(28,998)
* 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, 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)
*	Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.