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EQUITY
 12 Months Ended
Dec. 31, 2012
Equity [Abstract]  
Stockholders Equity Note Disclosure [Text Block]

Note 17. EQUITY

      Capital in Excess        
 Common Stock of Par Value Retained Treasury Stock Non-Controlling
Dollars and Shares in MillionsShares Par Value   of Stock   Earnings Shares Cost Interest
Balance at January 1, 2010 2,205 $ 220 $ 3,768 $ 30,760  491 $ (17,364) $ (58)
Net earnings -   -   -   3,102  -   -   2,091
Cash dividends declared -   -   -   (2,226)  -   -   -
Stock repurchase program -   -   -   -  23   (587)   -
Employee stock compensation plans -   -   (86)   -  (13)   497   -
Distributions -   -   -   -  -   -   (2,108)
Balance at December 31, 2010 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

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 a repurchase of up to $3.0 billion of common stock and in June 2012 increased its authorization for the repurchase of common stock by an additional $3.0 billion. 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. The stock repurchase program does not have an expiration date and may be suspended or discontinued at any time.

 

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 $317 million in 2012, $792 million in 2011 and $683 million in 2010 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) (OCI) were as follows:

Dollars in Millions Pretax Tax After Tax
Year ended December 31, 2010         
Derivatives qualifying as cash flow hedges:(a)         
 Unrealized gains $ 18 $ (3) $ 15
 Realized gains   (10)   5   (5)
Derivatives qualifying as cash flow hedges   8   2   10
Pension and other postretirement benefits:(b)         
 Actuarial losses   (154)   66   (88)
 Amortization   102   (35)   67
 Settlements and curtailments   25   (9)   16
Pension and other postretirement benefits   (27)   22   (5)
Available for sale securities, unrealized gains   47   (3)   44
Foreign currency translation   121   -   121
   $ 149 $ 21 $ 170
Year ended December 31, 2011         
Derivatives qualifying as cash flow hedges:(a)         
 Unrealized gains $ 28 $ (4) $ 24
 Realized gains   52   (20)   32
Derivatives qualifying as cash flow hedges   80   (24)   56
Pension and other postretirement benefits:(b)         
 Actuarial losses   (1,251)   421   (830)
 Amortization   115   (34)   81
 Settlements and curtailments   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)
Year ended December 31, 2012         
Derivatives qualifying as cash flow hedges:(a)         
 Unrealized gains $ 26 $ (17) $ 9
 Realized gains   (56)   20   (36)
Derivatives qualifying as cash flow hedges   (30)   3   (27)
Pension and other postretirement benefits:(b)         
 Actuarial losses   (432)   121   (311)
 Amortization   133   (43)   90
 Settlements and curtailments   159   (56)   103
Pension and other postretirement benefits   (140)   22   (118)
Available for sale securities:         
 Unrealized gains   20   (8)   12
 Realized gains   (11)   2   (9)
Available for sale securities(c)   9   (6)   3
Foreign currency translation   (15)   -   (15)
   $ (176) $ 19 $ (157)

  • Realized (gains)/losses on derivatives qualifying as effective hedges are recognized in costs of products sold.
  • See “Item 8. Financial Statements¾Note 18. Pension, Postretirement and Postemployment Liabilities” for further detail.
  • 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) (OCI), net of taxes, were as follows:

 December 31,
Dollars in Millions 2012 2011
Derivatives qualifying as cash flow hedges$9 $36
Pension and other postretirement benefits (3,023)  (2,905)
Available for sale securities 65  62
Foreign currency translation (253)  (238)
Accumulated other comprehensive income/(loss)$(3,202) $(3,045)