Equity Activity (Tables)

12 Months Ended

Dec. 31, 2012

Equity Activity

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

($ in millions)

	Before Tax			Tax (Expense)/			Net of Tax
For the year ended December 31, 2012:	Amount			Benefit			Amount
Other comprehensive income/(loss)
Foreign currency translation adjustments	$	(44	)	$	10		$	(34	)
Net changes related to available-for-sale securities
Unrealized gains/(losses) arising during the period	$	8		$	(4	)	$	4
Reclassification of (gains)/losses to other (income) and expense	(42		)	17			(25		)
Subsequent changes in previously impaired securities arising during the period	20			(8		)	12
Total net changes related to available-for-sale securities	$	(14	)	$	5		$	(9	)
Unrealized gains/(losses) on cash flow hedges
Unrealized gains/(losses) arising during the period	$	32		$	(27	)	$	5
Reclassification of (gains)/losses to:
Cost of sales	(7		)	(6		)	(13		)
SG&A expense	(16		)	4			(12		)
Other (income) and expense	(237		)	91			(146		)
Interest expense	6			(3		)	3
Total unrealized gains/(losses) on cash flow hedges	$	(220	)	$	59		$	(161	)
Retirement-related benefit plans(1)
Net (losses)/gains arising during the period	$	(7,489	)	$	2,327		$	(5,162	)
Curtailments and settlements	(2		)	0			(2		)
Amortization of prior service (credits)/cost	(148		)	59			(89		)
Amortization of net gains/(losses)	2,457			(874		)	1,583
Total retirement-related benefit plans	$	(5,182	)	$	1,513		$	(3,669	)
Other comprehensive income/(loss)	$	(5,460	)	$	1,587		$	(3,874	)

(1) These AOCI components are included in the computation of net periodic pension cost. (See note S, “Retirement-Related Benefits,” on pages 120 to 134 for additional information.)

($ in millions)

	Before Tax			Tax (Expense)/			Net of Tax
For the year ended December 31, 2011:	Amount			Benefit			Amount
Other comprehensive income/(loss)
Foreign currency translation adjustments	$	(693	)	$	(18	)	$	(711	)
Net changes related to available-for-sale securities
Unrealized gains/(losses) arising during the period	$	(14	)	$	5		$	(9	)
Reclassification of (gains)/losses to other (income) and expense	(231		)	88			(143		)
Subsequent changes in previously impaired securities arising during the period	4			(1		)	3
Total net changes related to available-for-sale securities	$	(241	)	$	91		$	(150	)
Unrealized gains/(losses) on cash flow hedges
Unrealized gains/(losses) arising during the period	$	(266	)	$	105		$	(162	)
Reclassification of (gains)/losses to:
Cost of sales	182			(61		)	121
SG&A expense	75			(23		)	52
Other (income) and expense	247			(3		)	244
Interest expense	8			(95		)	(88		)
Total unrealized gains/(losses) on cash flow hedges	$	245		$	(77	)	$	167
Retirement-related benefit plans(1)
Prior service costs/(credits)	$	(28	)	$	7		$	(22	)
Net (losses)/gains arising during the period	(5,463		)	1,897			(3,566		)
Curtailments and settlements	11			(3		)	7
Amortization of prior service (credits)/cost	(157		)	62			(94		)
Amortization of net gains/(losses)	1,847			(619		)	1,227
Total retirement-related benefit plans	$	(3,790	)	$	1,343		$	(2,448	)
Other comprehensive income/(loss)	$	(4,479	)	$	1,339		$	(3,142	)

(1) These AOCI components are included in the computation of net periodic pension cost (See note S, “Retirement-Related Benefits,” on pages 120 to 134 for additional information.)

($ in millions)

	Before Tax			Tax (Expense)/			Net of Tax
For the year ended December 31, 2010:	Amount			Benefit			Amount
Other comprehensive income/(loss)
Foreign currency translation adjustments	$	712		$	(69	)	$	643
Net changes related to available-for-sale securities
Unrealized gains/(losses) arising during the period	$	70		$	(24	)	$	46
Reclassification of (gains)/losses to other (income) and expense	0			(0		)	(0		)
Subsequent changes in previously impaired securities arising during the period	8			(3		)	5
Total net changes related to available-for-sale securities	$	78		$	(27	)	$	51
Unrealized gains/(losses) on cash flow hedges
Unrealized gains/(losses) arising during the period	$	371		$	(120	)	$	251
Reclassification of (gains)/losses to:
Cost of sales	92			(32		)	60
SG&A expense	49			(17		)	33
Other (income) and expense	54			(17		)	37
Interest expense	8			(3		)	5
Total unrealized gains/(losses) on cash flow hedges	$	573		$	(188	)	$	385
Retirement-related benefit plans(1)
Prior service costs/(credits)	$	28		$	(8	)	$	20
Net (losses)/gains arising during the period	(2,728		)	1,016			(1,712		)
Curtailments and settlements	10			(3		)	7
Amortization of prior service (credits)/cost	(183		)	67			(116		)
Amortization of net gains/(losses)	1,249			(441		)	808
Total retirement-related benefit plans	$	(1,624	)	$	632		$	(992	)
Other comprehensive income/(loss)	$	(260	)	$	348		$	87

(1) These AOCI components are included in the computation of net periodic pension cost. (See note S, “Retirement-Related Benefits,” on pages 120 to 134 for additional information.)

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

($ in millions)

							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
	Hedges			Adjustments*			Plans			Securities			Income/(Loss)
December 31, 2009	$	(481	)	$	1,836		$	(20,297	)	$	113		$	(18,830	)
Other comprehensive income before reclassifications	251			643			(1,684		)	51			(739		)
Amount reclassified from accumulated other comprehensive income	134			0			692			0			826
Total change for the period	385			643			(992		)	51			87
December 31, 2010	(96		)	2,478			(21,289		)	164			(18,743		)
Other comprehensive income before reclassifications	(162		)	(711		)	(3,581		)	(7		)	(4,461		)
Amount reclassified from accumulated other comprehensive income	329			0			1,133			(143		)	1,319
Total change for the period	167			(711		)	(2,448		)	(150		)	(3,142		)
December 31, 2011	71			1,767			(23,737		)	13			(21,885		)
Other comprehensive income before reclassifications	5			(34		)	(5,164		)	16			(5,177		)
Amount reclassified from accumulated other comprehensive income	(167		)	0			1,495			(25		)	1,303
Total change for the period	(161		)	(34		)	(3,669		)	(9		)	(3,874		)
December 31, 2012	$	(90	)	$	1,733		$	(27,406	)	$	4		$	(25,759	)

* Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.