Equity and Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2013

Equity and Accumulated Other Comprehensive Income

7. Equity and Accumulated Other Comprehensive Income

Equity

Changes in the components of Total equity were as follows:

(dollars in millions)	Attributable to Verizon			Noncontrolling Interests			Total Equity
Balance at January 1, 2013	$	33,157		$	52,376		$	85,533
Net income		4,198			5,855			10,053
Other comprehensive loss		(241	)		(15	)		(256	)
Comprehensive income		3,957			5,840			9,797
Contributed capital		(95	)		–			(95	)
Dividends declared		(2,947	)		–			(2,947	)
Common stock in treasury		97			–			97
Distributions and other		(108	)		(5,121	)		(5,229	)
Balance at June 30, 2013	$	34,061		$	53,095		$	87,156

Noncontrolling interests included in our condensed consolidated financial statements primarily consist of Vodafone Group Plc’s (Vodafone) 45% ownership interest in Verizon Wireless.

Common Stock

During the first quarter of 2013, Verizon purchased approximately 3.5 million shares under our authorized share buyback program for approximately $0.2 billion. There were no such repurchases during the second quarter of 2013. At June 30, 2013, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 96.5 million.

Special Distribution

In May 2013, the Board of Representatives of Verizon Wireless declared a distribution to its owners, which was paid in the second quarter of 2013 in proportion to their partnership interests on the payment date, in the aggregate amount of $7.0 billion. As a result, Vodafone received a cash payment of $3.15 billion and the remainder of the distribution was received by Verizon.

Accumulated Other Comprehensive Income

The changes in the balances of Accumulated other comprehensive income by component are as follows:

(dollars in millions)	Foreign currency translation adjustments			Unrealized loss on cash flow hedges			Unrealized loss on marketable securities			Defined benefit pension and postretirement plans			Total
Balance at January 1, 2013	$	793		$	88		$	101		$	1,253		$	2,235
Other comprehensive loss		(136	)		(37	)		(7	)		–			(180	)
Amounts reclassified to net income		–			19			(8	)		(72	)		(61	)
Net other comprehensive loss		(136	)		(18	)		(15	)		(72	)		(241	)
Balance at June 30, 2013	$	657		$	70		$	86		$	1,181		$	1,994

The amounts presented above in net other comprehensive loss are net of taxes and noncontrolling interests, which are not significant. For the six months ended June 30, 2013, the amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Cost of services and sales and Selling, general and administrative expense on our condensed consolidated statements of income. For the six months ended June 30, 2013, all other amounts reclassified to net income in the table above are included in Other income, net on our condensed consolidated statements of income.