Equity Activity: (Tables)

9 Months Ended

Sep. 30, 2012

Equity Activity:

Taxes Allocated to Items of Other Comprehensive Income

(Dollars in millions)	Before Tax			Tax (Expense)/			Net of Tax
For the three months ended September 30, 2012:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	501		$	56		$	557
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	11		$	(4	)	$	6
Reclassification of (gains)/losses to net income	(27		)	11			(17		)
Subsequent changes in previously impaired securities arising during the period	(7		)	3			(4		)
Total net changes related to available-for-sale securities	$	(24	)	$	9		$	(15	)
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	(54	)	$	10		$	(43	)
Reclassification of (gains)/losses to net income	(112		)	39			(72		)
Total unrealized gains/(losses) on cash flow hedges	$	(165	)	$	50		$	(116	)
Retirement-related benefit plans:
Prior service costs/(credits)	$	0		$	0		$	0
Net (losses)/gains arising during the period	1			(1		)	0
Curtailments and settlements	(2		)	1			(1		)
Amortization of prior service (credits)/costs	(37		)	15			(23		)
Amortization of net (gains)/losses	613			(238		)	375
Total retirement-related benefit plans	$	575		$	(224	)	$	351
Other comprehensive income/(loss)	$	887		$	(109	)	$	778

(Dollars in millions)	Before Tax			Tax (Expense)/			Net of Tax
For the three months ended September 30, 2011:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(1,500	)	$	(92	)	$	(1,592	)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	(6	)	$	2		$	(4	)
Reclassification of (gains)/losses to net income	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	$	(14	)	$	5		$	(9	)
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	295		$	(89	)	$	206
Reclassification of (gains)/losses to net income	167			(61		)	106
Total unrealized gains/(losses) on cash flow hedges	$	461		$	(150	)	$	312
Retirement-related benefit plans:
Prior service costs/(credits)	$	(0	)	$	0		$	0
Net (losses)/gains arising during the period	(0		)	7			7
Curtailments and settlements	0			0			0
Amortization of prior service (credits)/costs	(40		)	12			(27		)
Amortization of net (gains)/losses	463			(144		)	319
Total retirement-related benefit plans	$	423		$	(124	)	$	300
Other comprehensive income/(loss)	$	(630	)	$	(361	)	$	(989	)

Taxes Related to Items of Other Comprehensive Income

				Tax
(Dollars in millions)	Before Tax			(Expense)/			Net of Tax
For the nine months ended September 30, 2012:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	164		$	9		$	172
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	13		$	(5	)	$	8
Reclassification of (gains)/losses to net income	(43		)	17			(26		)
Subsequent changes in previously impaired securities arising during the period	20			(8		)	12
Total net changes related to available-for-sale securities	$	(10	)	$	4		$	(6	)
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	65		$	(35	)	$	31
Reclassification of (gains)/losses to net income	(246		)	83			(164		)
Total unrealized gains/(losses) on cash flow hedges	$	(181	)	$	48		$	(133	)
Retirement-related benefit plans:
Prior service costs/(credits)	$	0		$	0		$	0
Net (losses)/gains arising during the period	66			(24		)	41
Curtailments and settlements	(1		)	1			(1		)
Amortization of prior service (credits)/costs	(112		)	41			(70		)
Amortization of net (gains)/losses	1,846			(684		)	1,161
Total retirement-related benefit plans	$	1,799		$	(667	)	$	1,132
Other comprehensive income/(loss)	$	1,771		$	(606	)	$	1,165

				Tax
(Dollars in millions)	Before Tax			(Expense)/			Net of Tax
For the nine months ended September 30, 2011:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(674	)	$	6		$	(668	)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	(20	)	$	8		$	(12	)
Reclassification of (gains)/losses to net income	(231		)	88			(143		)
Subsequent changes in previously impaired securities arising during the period	3			(1		)	2
Total net changes related to available-for-sale securities	$	(248	)	$	94		$	(154	)
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	(159	)	$	64		$	(95	)
Reclassification of (gains)/losses to net income	494			(174		)	320
Total unrealized gains/(losses) on cash flow hedges	$	335		$	(110	)	$	225
Retirement-related benefit plans:
Prior service costs/(credits)	$	(32	)	$	11		$	(21	)
Net (losses)/gains arising during the period	605			(203		)	402
Curtailments and settlements	13			(4		)	9
Amortization of prior service (credits)/costs	(117		)	39			(78		)
Amortization of net (gains)/losses	1,395			(467		)	928
Total retirement-related benefit plans	$	1,864		$	(623	)	$	1,241
Other comprehensive income/(loss)	$	1,276		$	(632	)	$	645