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STOCKHOLDERS' EQUITY
9 Months Ended
Sep. 30, 2012
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY
14.
STOCKHOLDERS' EQUITY

A reconciliation of the changes in stockholders' equity for first nine months 2012 is provided below:
(Dollars in millions)
Common Stock at Par Value
 
Paid-in Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Income
 
Treasury Stock at Cost
 
Total Stockholders' Equity
Balance at December 31, 2011 (1)
$
2

 
$
900

 
$
2,760

 
$
138

 
$
(1,930
)
 
$
1,870

Net Earnings

 

 
491

 

 

 
491

Cash Dividends Declared (2)

 

 
(112
)
 

 

 
(112
)
Other Comprehensive Income

 

 

 
(29
)
 

 
(29
)
Share-Based Compensation Expense (3)

 
23

 

 

 

 
23

Stock Option Exercises

 
25

 

 

 

 
25

Shares Issued for Business Combination

 
730

 

 

 

 
730

Other (4)

 
11

 

 

 
1

 
12

Stock Repurchases

 

 

 

 

 

Balance at September 30, 2012
$
2

 
$
1,689

 
$
3,139

 
$
109

 
$
(1,929
)
 
$
3,010


(1) 
Retained Earnings and Accumulated Other Comprehensive Income have been adjusted for the change in accounting methodology for pension and OPEB plans.  For additional information, see Note 12, "Accounting Methodology Change for Pension and Other Postretirement Benefit Plans".
(2) 
Includes cash dividends declared, but unpaid.
(3) 
Includes the fair value of share-based awards recognized for share-based compensation.
(4) 
Primarily tax benefits relating to the difference between the amounts deductible for federal income taxes over the amounts charged to income for book value purposes credited to paid-in capital and other items.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
 
 
 
 
(Dollars in millions)
 
Cumulative Translation Adjustment
 
Unrecognized Prior Service Credits for Benefit Plans (1)
 
Unrealized Gains (Losses) on Derivative Instruments
 
 
Unrealized Losses on Investments
 
Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2010 (1)
$
79

 
$
99

 
$
17

 
$
(1
)
 
$
194

Period change
(15
)
 
(21
)
 
(20
)
 

 
(56
)
Balance at December 31, 2011 (1)
64

 
78

 
(3
)
 
(1
)
 
138

Period change
21

 
(12
)
 
(38
)
 

 
(29
)
Balance at September 30, 2012
$
85

 
$
66

 
$
(41
)
 
$
(1
)
 
$
109


(1) 
Unrecognized Prior Service Credits for Benefit Plans have been adjusted for the change in accounting methodology for pension and OPEB plans.  For additional information, see Note 12, "Accounting Methodology Change for Pension and Other Postretirement Benefit Plans".

Amounts of other comprehensive income (loss) are presented net of applicable taxes.  The Company records deferred income taxes on the cumulative translation adjustment related to branch operations and other entities included in the Company's consolidated U.S. tax return.  No deferred income taxes are provided on the cumulative translation adjustment of subsidiaries outside the United States, as such cumulative translation adjustment is considered to be a component of permanently invested, unremitted earnings of these foreign subsidiaries.

Components of other comprehensive income recorded in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects:
 
Third Quarter
 
2012
 
2011
(Dollars in millions)
Before Tax
 
Tax (Expense) or Benefit
 
Net of Tax
 
Before Tax
 
Tax (Expense) or Benefit
 
Net of Tax
Other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
 
Change in cumulative translation adjustment
$
30

 
$

 
$
30

 
$
(36
)
 
$

 
$
(36
)
Defined benefit pension and other postretirement benefit plans:
 
 
 
 
 
 
 
 
 
 
 

Amortization of unrecognized prior service credits included in net periodic costs
(5
)
 
1

 
(4
)
 
(9
)
 
4

 
(5
)
Derivatives and hedging:
 
 
 
 
 
 
 
 
 
 
 

Unrealized gain (loss) during period
(5
)
 
2

 
(3
)
 
8

 
(3
)
 
5

Reclassification adjustment for gains included in net income
(7
)
 
3

 
(4
)
 

 

 

Total other comprehensive income (loss)
$
13

 
$
6

 
$
19

 
$
(37
)
 
$
1

 
$
(36
)

 
First Nine Months
 
2012
 
2011
(Dollars in millions)
Before Tax
 
Tax (Expense) or Benefit
 
Net of Tax
 
Before Tax
 
Tax (Expense) or Benefit
 
Net of Tax
Other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
 
Change in cumulative translation adjustment
$
21

 
$

 
$
21

 
$

 
$

 
$

Defined benefit pension and other postretirement benefit plans:
 
 
 
 
 
 
 
 
 
 
 

Amortization of unrecognized prior service credits included in net periodic costs
(17
)
 
5

 
(12
)
 
(30
)
 
12

 
(18
)
Derivatives and hedging:
 
 
 
 
 
 
 
 
 
 
 

Unrealized gain (loss) during period
(53
)
 
20

 
(33
)
 
(44
)
 
17

 
(27
)
Reclassification adjustment for gains included in net income
(8
)
 
3

 
(5
)
 
(1
)
 

 
(1
)
Total other comprehensive income (loss)
$
(57
)
 
$
28

 
$
(29
)
 
$
(75
)
 
$
29

 
$
(46
)