XML 80 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
EQUITY
 12 Months Ended
Dec. 31, 2013
Equity [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
Note 18. EQUITY
 
 
Common Stock
 
Capital in  Excess
of Par Value
of Stock
 
Retained
Earnings
 
Treasury Stock
 
Noncontrolling
Interest
Dollars and Shares in Millions
 
Shares
 
Par Value
 
 
Shares
 
Cost        
 
Balance at January 1, 2011
 
2,205

 
$
220

 
$
3,682

 
$
31,636

 
501

 
$
(17,454
)
 
$
(75
)
Net earnings
 
—

 
—

 
—

 
3,709

 
—

 
—

 
2,333

Cash dividends declared
 
—

 
—

 
—

 
(2,276
)
 
—

 
—

 
—

Stock repurchase program
 
—

 
—

 
—

 
—

 
42

 
(1,226
)
 
—

Employee stock compensation plans
 
—

 
—

 
(568
)
 
—

 
(28
)
 
1,278

 
—

Other comprehensive income attributable to noncontrolling interest
 
—

 
—

 
—

 
—

 
—

 
—

 
7

Distributions
 
—

 
—

 
—

 
—

 
—

 
—

 
(2,354
)
Balance at December 31, 2011
 
2,205

 
220

 
3,114

 
33,069

 
515

 
(17,402
)
 
(89
)
Net earnings
 
—

 
—

 
—

 
1,960

 
—

 
—

 
850

Cash dividends declared
 
—

 
—

 
—

 
(2,296
)
 
—

 
—

 
—

Stock repurchase program
 
—

 
—

 
—

 
—

 
73

 
(2,407
)
 
—

Employee stock compensation plans
 
3

 
1

 
(420
)
 
—

 
(18
)
 
986

 
—

Other comprehensive income attributable to noncontrolling interest
 
—

 
—

 
—

 
—

 
—

 
—

 
(6
)
Distributions
 
—

 
—

 
—

 
—

 
—

 
—

 
(740
)
Balance at December 31, 2012
 
2,208

 
221

 
2,694

 
32,733

 
570

 
(18,823
)
 
15

Net earnings
 
—

 
—

 
—

 
2,563

 
—

 
—

 
38

Cash dividends declared
 
—

 
—

 
—

 
(2,344
)
 
—

 
—

 
—

Stock repurchase program
 
—

 
—

 
—

 
—

 
11

 
(413
)
 
—

Employee stock compensation plans
 
—

 
—

 
(772
)
 
—

 
(22
)
 
1,436

 
—

Distributions
 
—

 
—

 
—

 
—

 
—

 
—

 
29

Balance at December 31, 2013
 
2,208

 
$
221

 
$
1,922

 
$
32,952

 
559

 
$
(17,800
)
 
$
82



Treasury stock is recognized at the cost to reacquire the shares. Shares issued from treasury are recognized utilizing the first-in first-out method.

In May 2010, the Board of Directors authorized the repurchase of up to $3.0 billion of common stock. In June 2012, the Board of Directors increased its authorization for the repurchase of stock by an additional $3.0 billion. The repurchase program does not have an expiration date and we may consider future repurchases.

Noncontrolling interest is primarily related to the Plavix* and Avapro*/Avalide* partnerships with Sanofi for the territory covering the Americas. Net earnings attributable to noncontrolling interest are presented net of taxes of $20 million in 2013, $317 million in 2012 and $792 million in 2011 with a corresponding increase to the provision for income taxes. Distribution of the partnership profits to Sanofi and Sanofi’s funding of ongoing partnership operations occur on a routine basis. The above activity includes the pre-tax income and distributions related to these partnerships.
The components of other comprehensive income/(loss) were as follows:
Dollars in Millions
 
Pretax
 
Tax
 
After Tax
2011
 
 
 
 
 
 
Derivatives qualifying as cash flow hedges:(a)
 
 
 
 
 
 
Unrealized gains
 
$
28

 
$
(4
)
 
$
24

Reclassified to net earnings
 
52

 
(20
)
 
32

Derivatives qualifying as cash flow hedges
 
80

 
(24
)
 
56

Pension and other postretirement benefits:
 
 
 
 
 
 
Actuarial losses
 
(1,251
)
 
421

 
(830
)
Amortization(b)
 
115

 
(34
)
 
81

Settlements and curtailments(c)
 
11

 
(4
)
 
7

Pension and other postretirement benefits
 
(1,125
)
 
383

 
(742
)
Available for sale securities, unrealized gains
 
35

 
(7
)
 
28

Foreign currency translation
 
(16
)
 
—

 
(16
)
 
 
$
(1,026
)
 
$
352

 
$
(674
)
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
Derivatives qualifying as cash flow hedges:(a)
 
 
 
 
 
 
Unrealized gains
 
$
26

 
$
(17
)
 
$
9

Reclassified to net earnings
 
(56
)
 
20

 
(36
)
Derivatives qualifying as cash flow hedges
 
(30
)
 
3

 
(27
)
Pension and other postretirement benefits:
 
 
 
 
 
 
Actuarial losses
 
(432
)
 
121

 
(311
)
Amortization(b)
 
133

 
(43
)
 
90

Settlements and curtailments(c)
 
159

 
(56
)
 
103

Pension and other postretirement benefits
 
(140
)
 
22

 
(118
)
Available for sale securities:
 
 
 
 
 
 
Unrealized gains
 
20

 
(8
)
 
12

Realized gains(d)
 
(11
)
 
2

 
(9
)
Available for sale securities
 
9

 
(6
)
 
3

Foreign currency translation
 
(15
)
 
—

 
(15
)
 
 
$
(176
)
 
$
19

 
$
(157
)
2013
 
 
 
 
 
 
Derivatives qualifying as cash flow hedges:(a)
 
 
 
 
 
 
Unrealized gains
 
$
58

 
$
(17
)
 
$
41

Reclassified to net earnings
 
(56
)
 
22

 
(34
)
Derivatives qualifying as cash flow hedges
 
2

 
5

 
7

Pension and other postretirement benefits:
 
 
 
 
 
 
Actuarial gains
 
1,475

 
(504
)
 
971

Amortization(b)
 
129

 
(43
)
 
86

Settlements(c)
 
165

 
(56
)
 
109

Pension and other postretirement benefits
 
1,769

 
(603
)
 
1,166

Available for sale securities:
 
 
 
 
 
 
Unrealized losses
 
(35
)
 
3

 
(32
)
Realized gains(d)
 
(8
)
 
3

 
(5
)
Available for sale securities
 
(43
)
 
6

 
(37
)
Foreign currency translation
 
(75
)
 
—

 
(75
)
 
 
$
1,653

 
$
(592
)
 
$
1,061


(a)
Reclassifications to net earnings of derivatives qualifying as effective hedges are recognized in costs of products sold.
(b)
Actuarial losses and prior service cost/(credits) are amortized into cost of products sold, research and development, and marketing, selling and administrative expenses.
(c)
Pension settlements and curtailments are recognized in other (income)/expense.
(d)
Realized (gains)/losses on available for sale securities are recognized in other (income)/expense.
The accumulated balances related to each component of other comprehensive income/(loss), net of taxes, were as follows:
 
 
December 31,
Dollars in Millions
 
2013
 
2012
Derivatives qualifying as cash flow hedges
 
$
16

 
$
9

Pension and other postretirement benefits
 
(1,857
)
 
(3,023
)
Available for sale securities
 
28

 
65

Foreign currency translation
 
(328
)
 
(253
)
Accumulated other comprehensive income/(loss)
 
$
(2,141
)
 
$
(3,202
)