Shareowners' Equity and Noncontrolling Interest

A summary of the changes in shareowners' equity and noncontrolling interest comprising total equity for the quarters and six months ended June 30, 2014 and 2013 is provided below:



	Quarter Ended June 30,
	2014									2013
(Dollars in millions)	Share-owners' Equity			Non-controlling Interest			Total Equity			Share-owners' Equity			Non-controlling Interest			Total Equity
Equity, beginning of period	$	32,317		$	1,378		$	33,695		$	26,194		$	1,369		$	27,563
Comprehensive income for the period:
Net income	1,680			110			1,790			1,560			93			1,653
Total other comprehensive income (loss)	538			—			538			(133		)	(5		)	(138		)
Total comprehensive income for the period	2,218			110			2,328			1,427			88			1,515
Common Stock issued under employee plans	125						125			201						201
Common Stock repurchased	(335		)				(335		)	(335		)				(335		)
Dividends on Common Stock	(512		)				(512		)	(465		)				(465		)
Dividends on ESOP Common Stock	(18		)				(18		)	(17		)				(17		)
Dividends attributable to noncontrolling interest				(44		)	(44		)				(71		)	(71		)
Purchase of subsidiary shares from noncontrolling interest	(10		)	(33		)	(43		)	(18		)	(1		)	(19		)
Sale of subsidiary shares in noncontrolling interest	—			3			3			—			5			5
Disposition of noncontrolling interest				3			3						(5		)	(5		)
Redeemable noncontrolling interest in subsidiaries' earnings				(1		)	(1		)				(2		)	(2		)
Redeemable noncontrolling interest in total other comprehensive (loss) income				(2		)	(2		)				2			2
Redeemable noncontrolling interest reclassification to noncontrolling interest				(6		)	(6		)				(3		)	(3		)
Equity, end of period	$	33,785		$	1,408		$	35,193		$	26,987		$	1,382		$	28,369



	Six Months Ended June 30,
	2014									2013
(Dollars in millions)	Share-owners' Equity			Non-controlling Interest			Total Equity			Share-owners' Equity			Non-controlling Interest			Total Equity
Equity, beginning of period	$	31,866		$	1,353		$	33,219		$	25,914		$	1,155		$	27,069
Comprehensive income for the period:
Net income	2,893			203			3,096			2,826			175			3,001
Total other comprehensive income (loss)	477			(7		)	470			(552		)	(26		)	(578		)
Total comprehensive income for the period	3,370			196			3,566			2,274			149			2,423
Common Stock issued under employee plans	290						290			452						452
Common Stock repurchased	(670		)				(670		)	(670		)				(670		)
Dividends on Common Stock	(1,026		)				(1,026		)	(930		)				(930		)
Dividends on ESOP Common Stock	(36		)				(36		)	(34		)				(34		)
Dividends attributable to noncontrolling interest				(100		)	(100		)				(127		)	(127		)
Purchase of subsidiary shares from noncontrolling interest	(13		)	(33		)	(46		)	(19		)	(10		)	(29		)
Sale of subsidiary shares in noncontrolling interest	4			27			31			—			242			242
Disposition of noncontrolling interest				3			3						(5		)	(5		)
Redeemable noncontrolling interest in subsidiaries' earnings				(7		)	(7		)				(2		)	(2		)
Redeemable noncontrolling interest in total other comprehensive income				—			—						6			6
Redeemable noncontrolling interest reclassification to noncontrolling interest				(31		)	(31		)				(26		)	(26		)
Equity, end of period	$	33,785		$	1,408		$	35,193		$	26,987		$	1,382		$	28,369

A summary of the changes in each component of accumulated other comprehensive income (loss), net of tax for the quarters and six months ended June 30, 2014 and 2013 is 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
Quarter Ended June 30, 2014
Balance at March 31, 2014	$	71	$	(3,184	)	$	301		$	(129	)	$	(2,941	)
Other comprehensive income (loss) before reclassifications, net	424		(12		)	(28		)	80			464
Amounts reclassified, pretax	—		104			(6		)	13			111
Tax (benefit) expense reclassified	—		(35		)	5			(7		)	(37		)
Balance at June 30, 2014	$	495	$	(3,127	)	$	272		$	(43	)	$	(2,403	)

Six Months Ended June 30, 2014
Balance at December 31, 2013	$	170	$	(3,267	)	$	296		$	(79	)	$	(2,880	)
Other comprehensive income (loss) before reclassifications, net	322		1			(6		)	15			332
Amounts reclassified, pretax	3		208			(30		)	31			212
Tax (benefit) expense reclassified	—		(69		)	12			(10		)	(67		)
Balance at June 30, 2014	$	495	$	(3,127	)	$	272		$	(43	)	$	(2,403	)



(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
Quarter Ended June 30, 2013
Balance at March 31, 2013	$	76		$	(6,084	)	$	207		$	(66	)	$	(5,867	)
Other comprehensive (loss) income before reclassifications, net	(212		)	18			3			(46		)	(237		)
Amounts reclassified, pretax	(36		)	227			(27		)	15			179
Tax (benefit) expense reclassified	—			(83		)	11			(3		)	(75		)
Balance at June 30, 2013	$	(172	)	$	(5,922	)	$	194		$	(100	)	$	(6,000	)

Six Months Ended June 30, 2013
Balance at December 31, 2012	$	654		$	(6,250	)	$	145		$	3		$	(5,448	)
Other comprehensive (loss) income before reclassifications, net	(794		)	38			82			(120		)	(794		)
Amounts reclassified, pretax	(32		)	454			(54		)	21			389
Tax (benefit) expense reclassified	—			(164		)	21			(4		)	(147		)
Balance at June 30, 2013	$	(172	)	$	(5,922	)	$	194		$	(100	)	$	(6,000	)

Amounts reclassified related to our defined benefit pension and postretirement plans include amortization of prior service costs and transition obligations, and actuarial net losses recognized during each period presented. These costs are recorded as components of net periodic pension cost for each period presented (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 and six months ended June 30, 2014 and 2013 is provided below:



	Quarter Ended June 30,					Six Months Ended June 30,
(Dollars in millions)	2014		2013			2014			2013
Redeemable noncontrolling interest, beginning of period	$	137	$	255		$	111		$	238
Net income	1		1			7			2
Foreign currency translation, net	2		(2		)	—			(6		)
Dividends attributable to noncontrolling interest	—		—			(3		)	(3		)
Disposition of noncontrolling interest	—		(82		)	—			(82		)
Redeemable noncontrolling interest reclassification to noncontrolling interest	6		2			31			25
Redeemable noncontrolling interest, end of period	$	146	$	174		$	146		$	174

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 pro-forma effect on Net income attributable to common shareowners had they been recorded through net income for the quarters and six months ended June 30, 2014 and 2013 is provided below:



	Quarter Ended June 30,						Six Months Ended June 30,
(Dollars in millions)	2014			2013			2014			2013
Net income attributable to common shareowners	$	1,680		$	1,560		$	2,893		$	2,826
Transfers to noncontrolling interests:
Increase in common stock for sale of subsidiary shares	—			—			4			—
Decrease in common stock for purchase of subsidiary shares	(10		)	(18		)	(13		)	(19		)
Net income attributable to common shareowners after transfers to noncontrolling interests	$	1,670		$	1,542		$	2,884		$	2,807