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