Equity Activity: (Tables)

3 Months Ended

Mar. 31, 2013

Equity Activity:

Schedule of 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, 2013:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(405	)	$	(84	)	$	(489	)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	(3	)	$	1		$	(2	)
Reclassification of (gains)/losses to other (income) and expense	1			(0		)	0
Subsequent changes in previously impaired securities arising during the period	1			(0		)	1
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	$	360		$	(128	)	$	232
Reclassification of (gains)/losses to:
Cost of sales	(9		)	3			(6		)
SG&A expense	(10		)	3			(7		)
Other (income) and expense	(37		)	14			(23		)
Interest expense	0			—			0
Total unrealized gains/(losses) on cash flow hedges	$	305		$	(108	)	$	197
Retirement-related benefit plans(1):
Prior service costs/(credits)	$	33		$	(11	)	$	22
Net (losses)/gains arising during the period	(15		)	5			(10		)
Amortization of prior service (credits)/costs	(30		)	10			(20		)
Amortization of net (gains)/losses	886			(293		)	594
Total retirement-related benefit plans	$	875		$	(289	)	$	586
Other comprehensive income/(loss)	$	773		$	(480	)	$	293

(1) These AOCI components are included in the computation of net periodic pension cost. (See note 8, "Retirement-Related Benefits," on pages 28 and 29 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, 2012:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	387		$	11		$	398
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	6		$	(2	)	$	4
Reclassification of (gains)/losses to other (income) and expense	(14		)	5			(8		)
Subsequent changes in previously impaired securities arising during the period	18			(7		)	11
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	$	51		$	(30	)	$	21
Reclassification of (gains)/losses to:
Cost of sales	(5		)	0			(5		)
SG&A expense	(2		)	0			(2		)
Other (income) and expense	(20		)	8			(12		)
Interest expense	2			(1		)	1
Total unrealized gains/(losses) on cash flow hedges	$	27		$	(23	)	$	4
Retirement-related benefit plans(1):
Prior service costs/(credits)	$	0		$	0		$	0
Net (losses)/gains arising during the period	(6		)	2			(4		)
Amortization of prior service (credits)/costs	(37		)	14			(24		)
Amortization of net (gains)/losses	619			(229		)	390
Total retirement-related benefit plans	$	576		$	(213	)	$	363
Other comprehensive income/(loss)	$	1,000		$	(229	)	$	770

(1) These AOCI components are included in the computation of net periodic pension cost. (See note 8, "Retirement-Related Benefits," on pages 28 and 29 for additional information.)

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, 2013	$	(90	)	$	1,733		$	(27,406	)	$	4		$	(25,759	)
Other comprehensive income before reclassifications	232			(489		)	12			(1		)	(245		)
Amount reclassified from accumulated other comprehensive income	(35		)	0			574			0			539
Total change for the period	197			(489		)	586			(0		)	293
March 31, 2013	$	107		$	1,243		$	(26,820	)	$	4		$	(25,466	)
							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, 2012	$	71		$	1,767		$	(23,737	)	$	13		$	(21,885	)
Other comprehensive income before reclassifications	21			398			(4		)	15			430
Amount reclassified from accumulated other comprehensive income	(17		)	0			366			(8		)	341
Total change for the period	4			398			363			6			770
March 31, 2012	$	75		$	2,165		$	(23,374	)	$	19		$	(21,115	)

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