Note 10: Shareowners' Equity and Noncontrolling Interest

9 Months Ended

Sep. 30, 2011

Notes to Condensed Consolidated Financial Statements [Abstract]

Note 10: Shareowners' Equity and Noncontrolling Interest

A summary of the changes in shareowners' equity and noncontrolling interest (excluding redeemable noncontrolling interest) comprising total equity for the quarters and nine months ended September 30, 2011 and 2010 is provided below:

				Quarter Ended September 30,
				2011						2010
(Dollars in millions)				Shareowners' Equity		Noncontrolling Interest		Total Equity		Shareowners' Equity		Noncontrolling Interest		Total Equity
Equity, beginning of period				$	22,723	$	1,016	$	23,739	$	19,933	$	982	$	20,915
	Comprehensive income for the period:
		Net income			1,324		97		1,421		1,198		101		1,299
		Other comprehensive (loss) income:
			Foreign currency translation, net		(732)		(25)		(757)		808		45		853
			(Decreases) increases in unrealized gains from available-for-sale securities, net		(111)				(111)		25				25
			Cash flow hedging (losses) gains		(106)				(106)		25				25
			Change in pension and post-retirement benefit plans, net		79				79		23				23
		Total other comprehensive (loss) income			(870)		(25)		(895)		881		45		926
	Total comprehensive income for the period				454		72		526		2,079		146		2,225

	Common Stock issued under employee plans				119				119		113				113
	Common Stock repurchased				(675)				(675)		(490)				(490)
	Common Stock contributed to pension plans				450				450		-				-
	Dividends on Common Stock				(411)				(411)		(370)				(370)
	Dividends on ESOP Common Stock				(16)				(16)		(16)				(16)
	Dividends attributable to noncontrolling interest						(82)		(82)				(86)		(86)
	Purchase of subsidiary shares from noncontrolling interest				(51)		(17)		(68)		-		(8)		(8)
	Sale of subsidiary shares in noncontrolling interest				-		2		2		-		9		9
	Acquisition of noncontrolling interest						8		8				-		-
	Disposition of noncontrolling interest						(1)		(1)				(18)		(18)
	Redeemable noncontrolling interest in
		subsidiaries' earnings					(4)		(4)				(6)		(6)
	Redeemable noncontrolling interest in total
		other comprehensive (loss) income					4		4				(20)		(20)
	Change in redemption value of put options				(3)				(3)		5				5

Equity, end of period				$	22,590	$	998	$	23,588	$	21,254	$	999	$	22,253

				Nine Months Ended September 30,
				2011						2010
(Dollars in millions)				Shareowners' Equity		Noncontrolling Interest		Total Equity		Shareowners' Equity		Noncontrolling Interest		Total Equity
Equity, beginning of period				$	21,385	$	947	$	22,332	$	20,066	$	933	$	20,999
	Comprehensive income for the period:
		Net income			3,654		298		3,952		3,174		284		3,458
		Other comprehensive income (loss):
			Foreign currency translation, net		(63)		13		(50)		11		(3)		8
			(Decreases) increases in unrealized gains from available-for-sale securities, net		(40)				(40)		33				33
			Cash flow hedging losses		(87)				(87)		(18)				(18)
			Change in pension and post-retirement benefit plans, net		193				193		104				104
		Total other comprehensive income (loss)			3		13		16		130		(3)		127
	Total comprehensive income for the period				3,657		311		3,968		3,304		281		3,585

	Common Stock issued under employee plans				566				566		439				439
	Common Stock repurchased				(2,175)				(2,175)		(1,650)				(1,650)
	Common Stock contributed to pension plans				450				450		250				250
	Dividends on Common Stock				(1,192)				(1,192)		(1,114)				(1,114)
	Dividends on ESOP Common Stock				(47)				(47)		(47)				(47)
	Dividends attributable to noncontrolling interest						(248)		(248)				(233)		(233)
	Purchase of subsidiary shares from noncontrolling interest				(51)		(17)		(68)		(2)		(12)		(14)
	Sale of subsidiary shares in noncontrolling interest				3		10		13		-		36		36
	Acquisition of noncontrolling interest						13		13				29		29
	Disposition of noncontrolling interest						(1)		(1)				(18)		(18)
	Redeemable noncontrolling interest in
		subsidiaries' earnings					(15)		(15)				(22)		(22)
	Redeemable noncontrolling interest in total
		other comprehensive (loss) income					(2)		(2)				5		5
	Change in redemption value of put options				(6)				(6)		8				8

Equity, end of period				$	22,590	$	998	$	23,588	$	21,254	$	999	$	22,253

Consistent with the requirements under the Business Combinations Topic of the FASB ASC and the accounting for redeemable equity instruments, 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, 2011 and 2010 is provided below:

		Quarter Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)		2011		2010		2011		2010
Redeemable noncontrolling interest, beginning of period		$	348	$	311	$	317	$	389
	Net income		4		6		15		22
	Foreign currency translation, net		(4)		20		2		(5)
	Dividends attributable to noncontrolling interest		-		(3)		(11)		(16)
	Purchase of subsidiary shares from noncontrolling interest		(2)		-		(2)		(65)
	Change in redemption value of put options		3		(5)		6		(8)
	Other changes in redeemable noncontrolling interest		(22)		(11)		-		1

Redeemable noncontrolling interest, end of period		$	327	$	318	$	327	$	318

Consistent with the requirements under the Business Combinations Topic of the FASB ASC and the accounting for noncontrolling interests in consolidated financial statements, 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 and nine months ended September 30, 2011 and 2010 is provided below:

		Quarter Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)		2011		2010		2011		2010
Net income attributable to common shareowners		$	1,324	$	1,198	$	3,654	$	3,174

Transfers to noncontrolling interests:
	Increase in common stock for sale of subsidiary shares		-		-		3		-
	Decrease in common stock for purchase of subsidiary shares		(51)		-		(51)		(2)

Change from net income attributable to common shareowners and transfers to noncontrolling interests		$	1,273	$	1,198	$	3,606	$	3,172