Note 11: Shareowners' Equity and Noncontrolling Interest

6 Months Ended

Jun. 30, 2012

Notes to Condensed Consolidated Financial Statements [Abstract]

Note 11: Shareowners' Equity and Noncontrolling Interest

As of January 1, 2012, we adopted the provisions of the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income.” As a result of this adoption, we have presented total comprehensive income for each of the periods presented within a single continuous Condensed Consolidated Statement of Comprehensive Income.

A summary of the changes in shareowners' equity and noncontrolling interest (excluding redeemable noncontrolling interest) comprising total equity for the quarters and six months ended June 30, 2012 and 2011 is provided below:

			Quarter Ended June 30,
			2012						2011
(Dollars in millions)			Shareowners' Equity		Noncontrolling Interest		Total Equity		Shareowners' Equity		Noncontrolling Interest		Total Equity
Equity, beginning of period			$	22,492	$	1,057	$	23,549	$	22,126	$	1,000	$	23,126
	Comprehensive income for the period:
		Net income		1,328		94		1,422		1,318		112		1,430
		Total other comprehensive (loss) income		(674)		(27)		(701)		205		2		207
	Total comprehensive income for the period			654		67		721		1,523		114		1,637
	Common Stock issued under employee plans			104				104		253				253
	Common Stock repurchased			-				-		(750)				(750)
	Equity Units issuance			(216)				(216)		-				-
	Dividends on Common Stock			(413)				(413)		(413)				(413)
	Dividends on ESOP Common Stock			(16)				(16)		(16)				(16)
	Dividends attributable to noncontrolling interest					(72)		(72)				(90)		(90)
	Purchase of subsidiary shares from noncontrolling interest			-		(2)		(2)		-		-		-
	Sale of subsidiary shares in noncontrolling interest			-		20		20		-		-		-
	Acquisition of noncontrolling interest					47		47				-		-
	Redeemable noncontrolling interest in
		subsidiaries' earnings				(7)		(7)				(6)		(6)
	Redeemable noncontrolling interest in total
		other comprehensive income				7		7				(2)		(2)
	Change in redemption value of put options			(1)				(1)		-				-
	Redeemable noncontrolling interest
		reclassification to noncontrolling interest				4		4				-		-

Equity, end of period			$	22,604	$	1,121	$	23,725	$	22,723	$	1,016	$	23,739

			Six Months Ended June 30,
			2012						2011
(Dollars in millions)			Shareowners' Equity		Noncontrolling Interest		Total Equity		Shareowners' Equity		Noncontrolling Interest		Total Equity
Equity, beginning of period			$	21,880	$	940	$	22,820	$	21,385	$	947	$	22,332
	Comprehensive income for the period:
		Net income		1,658		171		1,829		2,330		201		2,531
		Total other comprehensive (loss) income		(185)		(19)		(204)		873		38		911
	Total comprehensive income for the period			1,473		152		1,625		3,203		239		3,442
	Common Stock issued under employee plans			333				333		447				447
	Common Stock repurchased			-				-		(1,500)				(1,500)
	Equity Units issuance			(216)				(216)		-				-
	Dividends on Common Stock			(825)				(825)		(781)				(781)
	Dividends on ESOP Common Stock			(32)				(32)		(31)				(31)
	Dividends attributable to noncontrolling interest					(130)		(130)				(166)		(166)
	Purchase of subsidiary shares from noncontrolling interest			(8)		(3)		(11)		-		-		-
	Sale of subsidiary shares in noncontrolling interest			-		35		35		3		8		11
	Acquisition of noncontrolling interest					55		55				5		5
	Disposition of noncontrolling interest					(4)		(4)				-		-
	Redeemable noncontrolling interest in
		subsidiaries' earnings				(11)		(11)				(11)		(11)
	Redeemable noncontrolling interest in total
		other comprehensive income				8		8				(6)		(6)
	Change in redemption value of put options			(1)				(1)		(3)				(3)
	Redeemable noncontrolling interest
		reclassification to noncontrolling interest				79		79				-		-

Equity, end of period			$	22,604	$	1,121	$	23,725	$	22,723	$	1,016	$	23,739

A summary of the changes in each component of accumulated other comprehensive (loss) income for the quarter and six months ended June 30, 2012 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
Balance at December 31, 2011	$	206	$	(5,810)	$	164	$	(50)	$	(5,490)
Other comprehensive income - quarter ended March 31, 2012		318		99		11		61		489
Other comprehensive (loss) income - quarter ended June 30, 2012		(628)		136		(42)		(140)		(674)
Balance at June 30, 2012	$	(104)	$	(5,575)	$	133	$	(129)	$	(5,675)

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, 2012 and 2011 is provided below:

			Quarter Ended June 30,				Six Months Ended June 30,
(Dollars in millions)			2012		2011		2012		2011
Redeemable noncontrolling interest, beginning of period			$	243	$	319	$	358	$	317
	Net income			7		6		11		11
	Foreign currency translation, net			(7)		2		(8)		6
	Dividends attributable to noncontrolling interest			-		(1)		(11)		(11)
	Purchase of subsidiary shares from noncontrolling interest			(2)		-		(34)		-
	Change in redemption value of put options			1		-		1		3
	Redeemable noncontrolling interest reclassification
		to noncontrolling interest		(4)		-		(79)		-
	Other changes in redeemable noncontrolling interest			-		22		-		22

Redeemable noncontrolling interest, end of period			$	238	$	348	$	238	$	348

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 six months ended June 30, 2012 and 2011 is provided below:

		Quarter Ended June 30,				Six Months Ended June 30,
(Dollars in millions)		2012		2011		2012		2011
Net income attributable to common shareowners		$	1,328	$	1,318	$	1,658	$	2,330

Transfers to noncontrolling interests:
	Increase in common stock for sale of subsidiary shares		-		-		-		3
	Decrease in common stock for purchase of subsidiary shares		-		-		(8)		-

Change from net income attributable to common shareowners and transfers to noncontrolling interests		$	1,328	$	1,318	$	1,650	$	2,333