| Shareowners' Equity and Noncontrolling Interest |
Shareowners' Equity and Noncontrolling Interest A summary of the changes in shareowners' equity and noncontrolling interest comprising total equity for the quarters and nine months ended September 30, 2014 and 2013 is provided below: | | | | | | | | | | | | | | | | | | | | | | | | | | Quarter Ended September 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 | $ | 33,785 |
| | $ | 1,408 |
| | $ | 35,193 |
| | $ | 26,987 |
| | $ | 1,382 |
| | $ | 28,369 |
| Comprehensive income for the period: | | | | | | | | | | | | Net income | 1,854 |
| | 98 |
| | 1,952 |
| | 1,432 |
| | 111 |
| | 1,543 |
| Total other comprehensive (loss) income | (766 | ) | | (27 | ) | | (793 | ) | | 675 |
| | 17 |
| | 692 |
| Total comprehensive income for the period | 1,088 |
| | 71 |
| | 1,159 |
| | 2,107 |
| | 128 |
| | 2,235 |
| Common Stock issued under employee plans | 154 |
| |
| | 154 |
| | 312 |
| |
| | 312 |
| Common Stock repurchased | (425 | ) | |
| | (425 | ) | | (330 | ) | |
| | (330 | ) | Dividends on Common Stock | (512 | ) | |
| | (512 | ) | | (465 | ) | |
| | (465 | ) | Dividends on ESOP Common Stock | (17 | ) | |
| | (17 | ) | | (17 | ) | |
| | (17 | ) | Dividends attributable to noncontrolling interest |
|
| | (145 | ) | | (145 | ) | |
|
| | (161 | ) | | (161 | ) | (Purchase) / sale of subsidiary shares from noncontrolling interest | (24 | ) | | 6 |
| | (18 | ) | | (17 | ) | | (56 | ) | | (73 | ) | Disposition of noncontrolling interest |
|
| | — |
| | — |
| |
|
| | (1 | ) | | (1 | ) | Redeemable noncontrolling interest | — |
| | — |
| | — |
| | — |
| | 50 |
| | 50 |
| Equity, end of period | $ | 34,049 |
| | $ | 1,340 |
| | $ | 35,389 |
| | $ | 28,577 |
| | $ | 1,342 |
| | $ | 29,919 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 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 | 4,747 |
| | 301 |
| | 5,048 |
| | 4,258 |
| | 286 |
| | 4,544 |
| Total other comprehensive (loss) income | (289 | ) | | (34 | ) | | (323 | ) | | 123 |
| | (9 | ) | | 114 |
| Total comprehensive income for the period | 4,458 |
| | 267 |
| | 4,725 |
| | 4,381 |
| | 277 |
| | 4,658 |
| Common Stock issued under employee plans | 444 |
| | | | 444 |
| | 764 |
| | | | 764 |
| Common Stock repurchased | (1,095 | ) | | | | (1,095 | ) | | (1,000 | ) | | | | (1,000 | ) | Dividends on Common Stock | (1,538 | ) | | | | (1,538 | ) | | (1,395 | ) | | | | (1,395 | ) | Dividends on ESOP Common Stock | (53 | ) | | | | (53 | ) | | (51 | ) | | | | (51 | ) | Dividends attributable to noncontrolling interest | | | (245 | ) | | (245 | ) | | | | (288 | ) | | (288 | ) | (Purchase) / sale of subsidiary shares from noncontrolling interest | (33 | ) | | — |
| | (33 | ) | | (36 | ) | | 175 |
| | 139 |
| Disposition of noncontrolling interest | | | 3 |
| | 3 |
| | | | (6 | ) | | (6 | ) | Redeemable noncontrolling interest | — |
| | (38 | ) | | (38 | ) | | — |
| | 29 |
| | 29 |
| Equity, end of period | $ | 34,049 |
| | $ | 1,340 |
| | $ | 35,389 |
| | $ | 28,577 |
| | $ | 1,342 |
| | $ | 29,919 |
|
A summary of the changes in each component of accumulated other comprehensive income (loss), net of tax for the quarters and nine months ended September 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 September 30, 2014 | | | | | | | | | | Balance at June 30, 2014 | $ | 495 |
| | $ | (3,127 | ) | | $ | 272 |
| | $ | (43 | ) | | $ | (2,403 | ) | Other comprehensive (loss) income before reclassifications, net | (717 | ) | | 9 |
| | (37 | ) | | (113 | ) | | (858 | ) | Amounts reclassified, pretax | 1 |
| | 104 |
| | — |
| | 24 |
| | 129 |
| Tax (benefit) expense reclassified | — |
| | (37 | ) | | — |
| | — |
| | (37 | ) | Balance at September 30, 2014 | $ | (221 | ) | | $ | (3,051 | ) | | $ | 235 |
| | $ | (132 | ) | | $ | (3,169 | ) | | | | | | | | | | | Nine Months Ended September 30, 2014 | | | | | | | | | | Balance at December 31, 2013 | $ | 170 |
| | $ | (3,267 | ) | | $ | 296 |
| | $ | (79 | ) | | $ | (2,880 | ) | Other comprehensive income (loss) before reclassifications, net | (395 | ) | | 10 |
| | (43 | ) | | (98 | ) | | (526 | ) | Amounts reclassified, pretax | 4 |
| | 312 |
| | (30 | ) | | 55 |
| | 341 |
| Tax (benefit) expense reclassified | — |
| | (106 | ) | | 12 |
| | (10 | ) | | (104 | ) | Balance at September 30, 2014 | $ | (221 | ) | | $ | (3,051 | ) | | $ | 235 |
| | $ | (132 | ) | | $ | (3,169 | ) |
| | | | | | | | | | | | | | | | | | | | | (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 September 30, 2013 | | | | | | | | | | Balance at June 30, 2013 | $ | (172 | ) | | $ | (5,922 | ) | | $ | 194 |
| | $ | (100 | ) | | $ | (6,000 | ) | Other comprehensive income (loss) before reclassifications, net | 419 |
| | (11 | ) | | 58 |
| | 72 |
| | 538 |
| Amounts reclassified, pretax | (1 | ) | | 226 |
| | (27 | ) | | (1 | ) | | 197 |
| Tax (benefit) expense reclassified | — |
| | (71 | ) | | 10 |
| | 1 |
| | (60 | ) | Balance at September 30, 2013 | $ | 246 |
| | $ | (5,778 | ) | | $ | 235 |
| | $ | (28 | ) | | $ | (5,325 | ) | | | | | | | | | | | Nine Months Ended September 30, 2013 | | | | | | | | | | Balance at December 31, 2012 | $ | 654 |
| | $ | (6,250 | ) | | $ | 145 |
| | $ | 3 |
| | $ | (5,448 | ) | Other comprehensive (loss) income before reclassifications, net | (439 | ) | | 27 |
| | 140 |
| | (48 | ) | | (320 | ) | Amounts reclassified, pretax | 31 |
| | 680 |
| | (81 | ) | | 20 |
| | 650 |
| Tax (benefit) expense reclassified | — |
| | (235 | ) | | 31 |
| | (3 | ) | | (207 | ) | Balance at September 30, 2013 | $ | 246 |
| | $ | (5,778 | ) | | $ | 235 |
| | $ | (28 | ) | | $ | (5,325 | ) |
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 nine months ended September 30, 2014 and 2013 is provided below: | | | | | | | | | | | | | | | | | | Quarter Ended September 30, | | Nine Months Ended September 30, | (Dollars in millions) | 2014 | | 2013 | | 2014 | | 2013 | Redeemable noncontrolling interest, beginning of period | $ | 146 |
| | $ | 174 |
| | $ | 111 |
| | $ | 238 |
| Net income | — |
| | 1 |
| | 7 |
| | 3 |
| Foreign currency translation, net | (5 | ) | | 1 |
| | (5 | ) | | (5 | ) | Dividends attributable to noncontrolling interest | — |
| | — |
| | (3 | ) | | (3 | ) | Disposition of noncontrolling interest | — |
| | — |
| | — |
| | (82 | ) | Redeemable noncontrolling interest reclassification to noncontrolling interest | — |
| | (52 | ) | | 31 |
| | (27 | ) | Redeemable noncontrolling interest, end of period | $ | 141 |
| | $ | 124 |
| | $ | 141 |
| | $ | 124 |
|
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 nine months ended September 30, 2014 and 2013 is provided below: | | | | | | | | | | | | | | | | | | Quarter Ended September 30, | | Nine Months Ended September 30, | (Dollars in millions) | 2014 | | 2013 | | 2014 | | 2013 | Net income attributable to common shareowners | $ | 1,854 |
| | $ | 1,432 |
| | $ | 4,747 |
| | $ | 4,258 |
| Transfers to noncontrolling interests: | | | | | | | | Increase in common stock for sale of subsidiary shares | — |
| | — |
| | 4 |
| | — |
| Decrease in common stock for purchase of subsidiary shares | (24 | ) | | (17 | ) | | (37 | ) | | (36 | ) | Net income attributable to common shareowners after transfers to noncontrolling interests | $ | 1,830 |
| | $ | 1,415 |
| | $ | 4,714 |
| | $ | 4,222 |
|
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