Shareowners’ Equity and Noncontrolling Interest

A summary of the changes in shareowners’ equity and noncontrolling interest comprising total equity for the quarters ended March 31, 2013 and 2012 is provided below:



	Quarter Ended March 31,
	2013									2012
(Dollars in millions)	Share-owners’ Equity			Non-controlling Interest			Total Equity			Share-owners’ Equity			Non-controlling Interest			Total Equity
Equity, beginning of period	$	25,914		$	1,155		$	27,069		$	21,880		$	940		$	22,820
Comprehensive income (loss) for the period:
Net income	1,266			82			1,348			330			77			407
Total other comprehensive income (loss)	(419		)	(21		)	(440		)	489			8			497
Total comprehensive income for the period	847			61			908			819			85			904
Common Stock issued under employee plans	251						251			229						229
Common Stock repurchased	(335		)				(335		)	—						—
Dividends on Common Stock	(465		)				(465		)	(412		)				(412		)
Dividends on ESOP Common Stock	(17		)				(17		)	(16		)				(16		)
Dividends attributable to noncontrolling interest				(56		)	(56		)				(58		)	(58		)
Purchase of subsidiary shares from noncontrolling interest	(1		)	(9		)	(10		)	(8		)	(1		)	(9		)
Sale of subsidiary shares in noncontrolling interest	—			237			237			—			15			15
Acquisition of noncontrolling interest				—			—						8			8
Disposition of noncontrolling interest				—			—						(4		)	(4		)
Redeemable noncontrolling interest in subsidiaries’ earnings				—			—						(4		)	(4		)
Redeemable noncontrolling interest in total other comprehensive income				4			4						1			1
Redeemable noncontrolling interest reclassification to noncontrolling interest				(23		)	(23		)				75			75
Equity, end of period	26,194			1,369			27,563			22,492			1,057			23,549

As of January 1, 2013, we adopted the provisions of the FASB issued Accounting Standards Update ("ASU") No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." As a result of this adoption, we have disclosed below the significant items reclassified to net income in their entirety during the period.

A summary of the changes in each component of accumulated other comprehensive (loss) income, net of tax for the quarter ended March 31, 2013 are provided below:



(Dollars in millions)	Foreign Currency Translation			Defined Benefit Pension and Post- retirement Plans			Unrealized Gains (Losses) on Available-for-Sale Securities			Unrealized Hedging (Losses) Gains			Accumulated Other Comprehensive (Loss) Income
Balance at December 31, 2012	$	654		$	(6,250	)	$	145		$	3		$	(5,448	)
Other comprehensive (loss) income before reclassifications	(582		)	20			79			(74		)	(557		)
Amounts reclassified from accumulated other comprehensive (loss) income	4			146			(17		)	5			138
Balance at March 31, 2013	$	76		$	(6,084	)	$	207		$	(66	)	$	(5,867	)

Details of the reclassification out of accumulated other comprehensive loss for the quarter ended March 31, 2013 is provided below:



Details about Accumulated Other Comprehensive Loss Components Reclassified to Net Income (Dollars in millions)	Income (Expense)			Affected Line item in the Condensed Consolidated Statement of Comprehensive Income
Foreign Currency Translation:
Recognized due to business disposition	$	(4	)	Other income, net
Defined Benefit Pension and Post-retirement Plans:
Amortization of prior-service costs and transition obligation	$	12		Note (1)
Recognized actuarial net loss	(239		)	Note (1)
Total before tax	(227		)
Tax benefit	81			Income tax expense
Net of tax	$	(146	)
Unrealized Gains (Losses) on Available-for-Sale Securities:
Realized gain (loss) on sale of securities, before tax	$	27		Other income, net
Tax expense	(10		)	Income tax expense
Net of tax	$	17
Unrealized Hedging (Losses) Gains:
Foreign exchange contracts	$	(8	)	Product sales
Other contracts	2			Other income, net
Total before tax	(6		)
Tax benefit	1			Income tax expense
Net of tax	$	(5	)

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 7 for additional details).

All noncontrolling interests with redemption features, such as put options, that are not solely within our control (redeemable noncontrolling interests) are reported in the mezzanine section of the Condensed Consolidated Balance Sheet, between liabilities and equity, at the greater of redemption value or initial carrying value. A summary of the changes in redeemable noncontrolling interest recorded in the mezzanine section of the Condensed Consolidated Balance Sheet for the quarters ended March 31, 2013 and 2012 is provided below:



	Quarter Ended March 31,
(Dollars in millions)	2013			2012
Redeemable noncontrolling interest, beginning of period	$	238		$	358
Net income	1			4
Foreign currency translation, net	(4		)	(1		)
Dividends attributable to noncontrolling interest	(3		)	(11		)
Purchase of subsidiary shares from noncontrolling interest	—			(32		)
Redeemable noncontrolling interest reclassification to noncontrolling interest	23			(75		)
Redeemable noncontrolling interest, end of period	$	255		$	243

Changes in noncontrolling interests that do not result in a change of control and where there is a difference between fair value and carrying value are accounted for as equity transactions. A summary of these changes in ownership interests in subsidiaries and the effect on shareowners’ equity for the quarters ended March 31, 2013 and 2012 is provided below:



	Quarter Ended March 31,
(Dollars in millions)	2013			2012
Net income attributable to common shareowners	$	1,266		$	330
Transfers to noncontrolling interests:
Decrease in common stock for purchase of subsidiary shares	(1		)	(8		)
Change from net income attributable to common shareowners and transfers to noncontrolling interests	$	1,265		$	322