Equity Activity: (Tables)

6 Months Ended

Jun. 30, 2013

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 June 30, 2013:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(936	)	$	(23	)	$	(959	)
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
Subsequent changes in previously impaired securities arising during the period	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	$	(10	)	$	9		$	(1	)
Reclassification of (gains)/losses to:
Cost of sales	7			(2		)	4
SG&A expense	(5		)	2			(3		)
Other (income) and expense	(48		)	19			(30		)
Interest expense	0			0			0
Total unrealized gains/(losses) on cash flow hedges	$	(57	)	$	28		$	(29	)
Retirement-related benefit plans(1):
Prior service costs/(credits)	0			0			0
Net (losses)/gains arising during the period	210			(71		)	138
Amortization of prior service (credits)/costs	(28		)	10			(18		)
Amortization of net (gains)/losses	864			(304		)	559
Total retirement-related benefit plans	$	1,045		$	(366	)	$	679
Other comprehensive income/(loss)	$	53		$	(361	)	$	(309	)

(1) These AOCI components are included in the computation of net periodic pension cost. (See note 8,”Retirement-Related Benefits,” on pages 32 to 34 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 June 30, 2012:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(724	)	$	(58	)	$	(782	)
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	(2		)	1			(1		)
Subsequent changes in previously impaired securities arising during the period	9			(3		)	6
Total net changes related to available-for-sale securities	$	4		$	(1	)	$	2
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	68		$	(15	)	$	53
Reclassification of (gains)/losses to:
Cost of sales	(12		)	0			(11		)
SG&A expense	(15		)	4			(11		)
Other (income) and expense	(86		)	33			(53		)
Interest expense	2			(1		)	1
Total unrealized gains/(losses) on cash flow hedges	$	(42	)	$	21		$	(21	)
Retirement-related benefit plans(1):
Prior service costs/(credits)	$	0		$	0		$	0
Net (losses)/gains arising during the period	70			(26		)	45
Curtailments and settlements	0			0			0
Amortization of prior service (credits)/costs	(37		)	13			(24		)
Amortization of net (gains)/losses	613			(217		)	397
Total retirement-related benefit plans	$	647		$	(229	)	$	418
Other comprehensive income/(loss)	$	(115	)	$	(268	)	$	(383	)

(1) These AOCI components are included in the computation of net periodic pension cost. (See note 8, “Retirement-Related Benefits,” on pages 32 to 34 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 six months ended June 30, 2013:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(1,341	)	$	(107	)	$	(1,448	)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	(2	)	$	1		$	(2	)
Reclassification of (gains)/losses to other (income) and expense	0			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	)	$	1		$	0
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	350		$	(119	)	$	231
Reclassification of (gains)/losses to:
Cost of sales	(3		)	1			(2		)
SG&A expense	(15		)	6			(10		)
Other (income) and expense	(85		)	33			(52		)
Interest expense	0			0			0
Total unrealized gains/(losses) on cash flow hedges	$	247		$	(79	)	$	168
Retirement-related benefit plans(1):
Prior service costs/(credits)	$	33		$	(11	)	$	21
Net (losses)/gains arising during the period	195			(67		)	129
Amortization of prior service (credits)/costs	(58		)	20			(38		)
Amortization of net (gains)/losses	1,750			(597		)	1,153
Total retirement-related benefit plans	$	1,920		$	(655	)	$	1,265
Other comprehensive income/(loss)	$	826		$	(842	)	$	(16	)

(1) These AOCI components are included in the computation of net periodic pension cost. (See note 8,”Retirement-Related Benefits,” on pages 32 to 34 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 six months ended June 30, 2012:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(337	)	$	(48	)	$	(385	)
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	(16		)	6			(10		)
Subsequent changes in previously impaired securities arising during the period	27			(10		)	17
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	$	119		$	(45	)	$	74
Reclassification of (gains)/losses to:
Cost of sales	(16		)	0			(16		)
SG&A expense	(16		)	4			(12		)
Other (income) and expense	(106		)	41			(65		)
Interest expense	4			(2		)	2
Total unrealized gains/(losses) on cash flow hedges	$	(16	)	$	(1	)	$	(17	)
Retirement-related benefit plans(1):
Prior service costs/(credits)	$	0		$	0		$	0
Net (losses)/gains arising during the period	65			(23		)	41
Curtailments and settlements	0			0			0
Amortization of prior service (credits)/costs	(74		)	27			(47		)
Amortization of net (gains)/losses	1,232			(446		)	786
Total retirement-related benefit plans	$	1,223		$	(443	)	$	780
Other comprehensive income/(loss)	$	884		$	(497	)	$	387

(1) These AOCI components are included in the computation of net periodic pension cost. (See note 8,”Retirement-Related Benefits,” on pages 32 to 34 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	231			(1,448		)	150			0		(1,067		)
Amount reclassified from accumulated other comprehensive income	(63		)	0			1,115			0		1,050
Total change for the period	168			(1,448		)	1,265			0		(16		)
June 30, 2013	$	78		$	284		$	(26,141	)	$	4	$	(25,774	)

							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	74			(385		)	41			18			(252		)
Amount reclassified from accumulated other comprehensive income	(91		)	0			739			(10		)	638
Total change for the period	(17		)	(385		)	780			9			387
June 30, 2012	$	54		$	1,382		$	(22,956	)	$	22		$	(21,498	)

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