Equity Activity:

6 Months Ended

Jun. 30, 2012

Equity Activity:

Equity Activity:

7. Equity Activity:

Taxes Related to Items of Other Comprehensive Income

				Tax
(Dollars in millions)	Before Tax			(Expense)/			Net of Tax
For the three months ended June 30, 2012:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(724	)	$	(58	)	$	(782	)
Net changes related to available-for-sale securities
Unrealized gains/(losses) arising during the period	$	(3	)	$	1		$	(2	)
Reclassification of (gains)/losses to net income	(2		)	1			(1		)
Subsequent changes in previously impaired securities arising during the period	9			(3		)	6
Total net changes related to available-for-sale securities	$	4		$	(1	)	$	2
Unrealized gains/(losses) on cash flow hedges
Unrealized gains/(losses) arising during the period	$	68		$	(15	)	$	53
Reclassification of (gains)/losses to net income	(111		)	37			(74		)
Total unrealized gains/(losses) on cash flow hedges	$	(42	)	$	21		$	(21	)
Retirement-related benefit plans
Prior service costs/(credits)	0			0			0
Net (losses)/gains arising during the period	70			(26		)	45
Curtailments and settlements	0			0			0
Amortization of prior service (credits)/costs	(37		)	13			(24		)
Amortization of net (gains)/losses	613			(217		)	397
Total retirement-related benefit plans	$	647		$	(229	)	$	418
Other comprehensive income/(loss)	$	(115	)	$	(268	)	$	(383	)

				Tax
(Dollars in millions)	Before Tax			(Expense)/			Net of Tax
For the three months ended June 30, 2011:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	350		$	39		$	389
Net changes related to available-for-sale securities
Unrealized gains/(losses) arising during the period	$	(7	)	$	4		$	(3	)
Reclassification of (gains)/losses to net income	(29		)	10			(19		)
Subsequent changes in previously impaired securities arising during the period	0			0			0
Total net changes related to available-for-sale securities	$	(35	)	$	13		$	(22	)
Unrealized gains/(losses) on cash flow hedges
Unrealized gains/(losses) arising during the period	$	(217	)	$	77		$	(141	)
Reclassification of (gains)/losses to net income	227			(78		)	149
Total unrealized gains/(losses) on cash flow hedges	$	10		$	(2	)	$	8
Retirement-related benefit plans
Prior service costs/(credits)	$	(31	)	$	11		$	(20	)
Net (losses)/gains arising during the period	585			(204		)	382
Curtailments and settlements	4			(1		)	2
Amortization of prior service (credits)/costs	(39		)	14			(25		)
Amortization of net (gains)/losses	458			(164		)	294
Total retirement-related benefit plans	$	977		$	(344	)	$	634
Other comprehensive income/(loss)	$	1,301		$	(292	)	$	1,010

Taxes Related to Items of Other Comprehensive Income

				Tax
(Dollars in millions)	Before Tax			(Expense)/			Net of Tax
For the six months ended June 30, 2012:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(337	)	$	(48	)	$	(385	)
Net changes related to available-for-sale securities
Unrealized gains/(losses) arising during the period	$	3		$	(1	)	$	2
Reclassification of (gains)/losses to net income	(16		)	6			(10		)
Subsequent changes in previously impaired securities arising during the period	27			(10		)	17
Total net changes related to available-for-sale securities	$	14		$	(5	)	$	9
Unrealized gains/(losses) on cash flow hedges
Unrealized gains/(losses) arising during the period	$	119		$	(45	)	$	74
Reclassification of (gains)/losses to net income	(135		)	44			(91		)
Total unrealized gains/(losses) on cash flow hedges	$	(16	)	$	(1	)	$	(17	)
Retirement-related benefit plans
Prior service costs/(credits)	0			0			0
Net (losses)/gains arising during the period	65			(23		)	41
Curtailments and settlements	0			0			0
Amortization of prior service (credits)/costs	(74		)	27			(47		)
Amortization of net (gains)/losses	1,232			(446		)	786
Total retirement-related benefit plans	$	1,223		$	(443	)	$	780
Other comprehensive income/(loss)	$	884		$	(497	)	$	387

				Tax
(Dollars in millions)	Before Tax			(Expense)/			Net of Tax
For the six months ended June 30, 2011:	Amount			Benefit			Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	826		$	97		$	924
Net changes related to available-for-sale securities
Unrealized gains/(losses) arising during the period	$	(14	)	$	6		$	(9	)
Reclassification of (gains)/losses to net income	(232		)	88			(144		)
Subsequent changes in previously impaired securities arising during the period	11			(4		)	7
Total net changes related to available-for-sale securities	$	(234	)	$	89		$	(145	)
Unrealized gains/(losses) on cash flow hedges
Unrealized gains/(losses) arising during the period	$	(454	)	$	153		$	(301	)
Reclassification of (gains)/losses to net income	327			(113		)	214
Total unrealized gains/(losses) on cash flow hedges	$	(127	)	$	40		$	(87	)
Retirement-related benefit plans
Prior service costs/(credits)	$	(32	)	$	11		$	(21	)
Net (losses)/gains arising during the period	606			(210		)	395
Curtailments and settlements	13			(4		)	8
Amortization of prior service (credits)/costs	(77		)	27			(50		)
Amortization of net (gains)/losses	932			(324		)	608
Total retirement-related benefit plans	$	1,441		$	(500	)	$	942
Other comprehensive income/(loss)	$	1,906		$	(272	)	$	1,634