EQUITY

6 Months Ended

Jun. 30, 2011

Note 11. EQUITY

Changes in common shares, treasury stock and capital in excess of par value of stock were as follows:

	Common		Cost		Capital in Excess
	Shares	Treasury	of Treasury		of Par Value
Dollars and Shares in Millions	Issued	Stock	Stock		of Stock
Balance at January 1, 2010	2,205	491	$	(17,364)	$	3,768
Stock repurchase program	-	7		(173)		-
Employee stock compensation plans	-	(7)		266		(71)
Balance at June 30, 2010	2,205	491	$	(17,271)	$	3,697

Balance at January 1, 2011	2,205	501	$	(17,454)	$	3,682
Stock repurchase program	-	14		(386)		-
Employee stock compensation plans	-	(15)		649		(361)
Balance at June 30, 2011	2,205	500	$	(17,191)	$	3,321

The accumulated balances related to each component of other comprehensive income/(loss) (OCI), net of taxes, were as follows:

	Foreign		Derivatives		Pension and Other		Available		Accumulated Other
	Currency		Qualifying as		Postretirement		for		Comprehensive
Dollars in Millions	Translation		Effective Hedges		Benefits		Sale Securities		Income/(Loss)
Balance at January 1, 2010	$	(343)	$	(30)	$	(2,158)	$	(10)	$	(2,541)
Other comprehensive income/(loss)		103		75		31		32		241
Balance at June 30, 2010	$	(240)	$	45	$	(2,127)	$	22	$	(2,300)

Balance at January 1, 2011	$	(222)	$	(20)	$	(2,163)	$	34	$	(2,371)
Other comprehensive income/(loss)		(29)		(44)		37		18		(18)
Balance at June 30, 2011	$	(251)	$	(64)	$	(2,126)	$	52	$	(2,389)

The reconciliation of noncontrolling interest was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in Millions	2011		2010		2011		2010
Balance at beginning of period	$	(97)	$	(16)	$	(75)	$	(58)
Net earnings attributable to noncontrolling interest		609		505		1,186		1,033
Distributions		(720)		(583)		(1,319)		(1,069)
Balance at June 30	$	(208)	$	(94)	$	(208)	$	(94)

Noncontrolling interest is primarily related to the partnerships with Sanofi for the territory covering the Americas for net sales of PLAVIX*. Net earnings attributable to noncontrolling interest are presented net of taxes of $204 million and $165 million for the three months ended June 30, 2011 and 2010, respectively, and $400 million and $336 million for the six months ended June 30, 2011 and 2010, respectively, in the consolidated statements of earnings 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 and are included within operating activities in the consolidated statements of cash flows. The above activity includes the pre-tax income and distributions related to these partnerships.

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. Repurchases may be made either in the open market or through private transactions, including under repurchase plans established in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The stock repurchase program does not have an expiration date but is expected to take place over a few years. It may be suspended or discontinued at any time. During the three and six months ended June 30, 2011, the Company repurchased 9 million and 14 million shares, respectively, at the average price of approximately $28.29 per share and $27.32 per share, respectively, for an aggregate cost of $248 million and $386 million, respectively. During the three and six months ended June 30, 2010, the Company repurchased 7 million shares at the average price of approximately $23.75 per share for an aggregate cost of $173 million.