Note 11: Shareowners' Equity and Noncontrolling Interest

9 Months Ended

Sep. 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 comprising total equity for the quarters and nine months ended September 30, 2012 and 2011 is provided below:

			Quarter Ended September 30,
			2012						2011
(Dollars in millions)			Shareowners' Equity		Noncontrolling Interest		Total Equity		Shareowners' Equity		Noncontrolling Interest		Total Equity
Equity, beginning of period			$	22,604	$	1,121	$	23,725	$	22,723	$	1,016	$	23,739
	Comprehensive income (loss) for the period:
		Net income		1,415		96		1,511		1,324		97		1,421
		Total other comprehensive income (loss)		1,012		23		1,035		(870)		(25)		(895)
	Total comprehensive income for the period			2,427		119		2,546		454		72		526
	Common Stock issued under employee plans			275				275		119				119
	Treasury Stock reissued under employee plans			141				141		-				-
	Common Stock repurchased			-				-		(675)				(675)
	Common Stock contributed to pension plans			-				-		450				450
	Equity Units issuance			-				-		-				-
	Dividends on Common Stock			(463)				(463)		(411)				(411)
	Dividends on ESOP Common Stock			(18)				(18)		(16)				(16)
	Dividends attributable to noncontrolling interest					(162)		(162)				(82)		(82)
	Purchase of subsidiary shares from noncontrolling interest			(11)		(1)		(12)		(51)		(17)		(68)
	Sale of subsidiary shares in noncontrolling interest			-		17		17		-		2		2
	Acquisition of noncontrolling interest					39		39				8		8
	Disposition of noncontrolling interest					-		-				(1)		(1)
	Redeemable noncontrolling interest in
		subsidiaries' earnings				(11)		(11)				(4)		(4)
	Redeemable noncontrolling interest in total
		other comprehensive income (loss)				(7)		(7)				4		4
	Change in redemption value of put options			-				-		(3)				(3)
	Redeemable noncontrolling interest
		reclassification to noncontrolling interest				21		21				-		-

Equity, end of period			$	24,955	$	1,136	$	26,091	$	22,590	$	998	$	23,588

			Nine Months Ended September 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		3,073		267		3,340		3,654		298		3,952
		Total other comprehensive income		827		4		831		3		13		16
	Total comprehensive income for the period			3,900		271		4,171		3,657		311		3,968
	Common Stock issued under employee plans			608				608		566				566
	Treasury Stock reissued under employee plans			141				141		-				-
	Common Stock repurchased			-				-		(2,175)				(2,175)
	Common Stock contributed to pension plans			-				-		450				450
	Equity Units issuance			(216)				(216)		-				-
	Dividends on Common Stock			(1,288)				(1,288)		(1,192)				(1,192)
	Dividends on ESOP Common Stock			(50)				(50)		(47)				(47)
	Dividends attributable to noncontrolling interest					(292)		(292)				(248)		(248)
	Purchase of subsidiary shares from noncontrolling interest			(19)		(4)		(23)		(51)		(17)		(68)
	Sale of subsidiary shares in noncontrolling interest			-		52		52		3		10		13
	Acquisition of noncontrolling interest					94		94				13		13
	Disposition of noncontrolling interest					(4)		(4)				(1)		(1)
	Redeemable noncontrolling interest in
		subsidiaries' earnings				(22)		(22)				(15)		(15)
	Redeemable noncontrolling interest in total
		other comprehensive income				1		1				(2)		(2)
	Change in redemption value of put options			(1)				(1)		(6)				(6)
	Redeemable noncontrolling interest
		reclassification to noncontrolling interest				100		100				-		-

Equity, end of period			$	24,955	$	1,136	$	26,091	$	22,590	$	998	$	23,588

A summary of the changes in each component of accumulated other comprehensive (loss) income for the quarter and nine months ended September 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)
Other comprehensive income - quarter ended September 30, 2012		690		187		2		133		1,012
Balance at September 30, 2012	$	586	$	(5,388)	$	135	$	4	$	(4,663)

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, 2012 and 2011 is provided below:

			Quarter Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)			2012		2011		2012		2011
Redeemable noncontrolling interest, beginning of period			$	238	$	348	$	358	$	317
	Net income			11		4		22		15
	Foreign currency translation, net			7		(4)		(1)		2
	Dividends attributable to noncontrolling interest			(2)		-		(13)		(11)
	Purchase of subsidiary shares from noncontrolling interest			-		(2)		(34)		(2)
	Change in redemption value of put options			-		3		1		6
	Redeemable noncontrolling interest reclassification
		to noncontrolling interest		(21)		-		(100)		-
	Other changes in redeemable noncontrolling interest			-		(22)		-		-

Redeemable noncontrolling interest, end of period			$	233	$	327	$	233	$	327

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, 2012 and 2011 is provided below:

		Quarter Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)		2012		2011		2012		2011
Net income attributable to common shareowners		$	1,415	$	1,324	$	3,073	$	3,654

Transfers to noncontrolling interests:
	Increase in common stock for sale of subsidiary shares		-		-		-		3
	Decrease in common stock for purchase of subsidiary shares		(11)		(51)		(19)		(51)

Change from net income attributable to common shareowners and transfers to noncontrolling interests		$	1,404	$	1,273	$	3,054	$	3,606