Note 11: Shareowners' Equity and Noncontrolling Interest
 9 Months Ended
Sep. 30, 2012
Notes to Condensed Consolidated Financial Statements [Abstract]  
Note 11: Shareowners' Equity and Noncontrolling Interest

Note 11: Shareowners' Equity and Noncontrolling Interest

As of January 1, 2012, we adopted the provisions of the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income.” As a result of this adoption, we have presented total comprehensive income for each of the periods presented within a single continuous Condensed Consolidated Statement of Comprehensive Income.

       A summary of the changes in shareowners' equity and noncontrolling interest comprising total equity for the quarters and nine months ended September 30, 2012 and 2011 is provided below:

 

     Quarter Ended September 30,
     2012 2011
(Dollars in millions) Shareowners' Equity Noncontrolling Interest Total Equity Shareowners' Equity Noncontrolling Interest Total Equity
Equity, beginning of period $ 22,604 $ 1,121 $ 23,725 $ 22,723 $ 1,016 $ 23,739
 Comprehensive income (loss) for the period:                  
  Net income   1,415   96   1,511   1,324   97   1,421
  Total other comprehensive income (loss)   1,012   23   1,035   (870)   (25)   (895)
 Total comprehensive income for the period   2,427   119   2,546   454   72   526
 Common Stock issued under employee plans   275      275   119      119
 Treasury Stock reissued under employee plans   141      141   -      -
 Common Stock repurchased   -      -   (675)      (675)
 Common Stock contributed to pension plans   -      -   450      450
 Equity Units issuance   -      -   -      -
 Dividends on Common Stock   (463)      (463)   (411)      (411)
 Dividends on ESOP Common Stock   (18)      (18)   (16)      (16)
 Dividends attributable to noncontrolling interest      (162)   (162)      (82)   (82)
 Purchase of subsidiary shares from noncontrolling interest   (11)   (1)   (12)   (51)   (17)   (68)
 Sale of subsidiary shares in noncontrolling interest   -   17   17   -   2   2
 Acquisition of noncontrolling interest      39   39      8   8
 Disposition of noncontrolling interest      -   -      (1)   (1)
 Redeemable noncontrolling interest in                  
  subsidiaries' earnings      (11)   (11)      (4)   (4)
 Redeemable noncontrolling interest in total                  
  other comprehensive income (loss)      (7)   (7)      4   4
 Change in redemption value of put options   -      -   (3)      (3)
 Redeemable noncontrolling interest                   
  reclassification to noncontrolling interest      21   21      -   -
                      
Equity, end of period $ 24,955 $ 1,136 $ 26,091 $ 22,590 $ 998 $ 23,588
                      

     Nine Months Ended September 30,
     2012 2011
(Dollars in millions) Shareowners' Equity Noncontrolling Interest Total Equity Shareowners' Equity Noncontrolling Interest Total Equity
Equity, beginning of period $ 21,880 $ 940 $ 22,820 $ 21,385 $ 947 $ 22,332
 Comprehensive income for the period:                  
  Net income   3,073   267   3,340   3,654   298   3,952
  Total other comprehensive income   827   4   831   3   13   16
 Total comprehensive income for the period   3,900   271   4,171   3,657   311   3,968
 Common Stock issued under employee plans   608      608   566      566
 Treasury Stock reissued under employee plans   141      141   -      -
 Common Stock repurchased   -      -   (2,175)      (2,175)
 Common Stock contributed to pension plans   -      -   450      450
 Equity Units issuance   (216)      (216)   -      -
 Dividends on Common Stock   (1,288)      (1,288)   (1,192)      (1,192)
 Dividends on ESOP Common Stock   (50)      (50)   (47)      (47)
 Dividends attributable to noncontrolling interest      (292)   (292)      (248)   (248)
 Purchase of subsidiary shares from noncontrolling interest   (19)   (4)   (23)   (51)   (17)   (68)
 Sale of subsidiary shares in noncontrolling interest   -   52   52   3   10   13
 Acquisition of noncontrolling interest      94   94      13   13
 Disposition of noncontrolling interest      (4)   (4)      (1)   (1)
 Redeemable noncontrolling interest in                  
  subsidiaries' earnings      (22)   (22)      (15)   (15)
 Redeemable noncontrolling interest in total                  
  other comprehensive income      1   1      (2)   (2)
 Change in redemption value of put options   (1)      (1)   (6)      (6)
 Redeemable noncontrolling interest                   
  reclassification to noncontrolling interest      100   100      -   -
                      
Equity, end of period $ 24,955 $ 1,136 $ 26,091 $ 22,590 $ 998 $ 23,588
                      

A summary of the changes in each component of accumulated other comprehensive (loss) income for the quarter and nine months ended September 30, 2012 is provided below:

(Dollars in millions) Foreign Currency Translation Defined Benefit Pension and Post-retirement Plans Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income
Balance at December 31, 2011 $ 206 $ (5,810) $ 164 $ (50) $ (5,490)
Other comprehensive income - quarter ended March 31, 2012   318   99   11   61   489
Other comprehensive (loss) income - quarter ended June 30, 2012   (628)   136   (42)   (140)   (674)
Other comprehensive income - quarter ended September 30, 2012   690   187   2   133   1,012
Balance at September 30, 2012 $ 586 $ (5,388) $ 135 $ 4 $ (4,663)

All noncontrolling interests with redemption features, such as put options, that are not solely within our control (redeemable noncontrolling interests) are reported in the mezzanine section of the Condensed Consolidated Balance Sheet, between liabilities and equity, at the greater of redemption value or initial carrying value.

 

A summary of the changes in redeemable noncontrolling interest recorded in the mezzanine section of the Condensed Consolidated Balance Sheet for the quarters and nine months ended September 30, 2012 and 2011 is provided below:

    Quarter Ended September 30, Nine Months Ended September 30,
(Dollars in millions) 2012 2011 2012 2011
Redeemable noncontrolling interest, beginning of period $ 238 $ 348 $ 358 $ 317
 Net income   11   4   22   15
 Foreign currency translation, net   7   (4)   (1)   2
 Dividends attributable to noncontrolling interest   (2)   -   (13)   (11)
 Purchase of subsidiary shares from noncontrolling interest   -   (2)   (34)   (2)
 Change in redemption value of put options   -   3   1   6
 Redeemable noncontrolling interest reclassification            
  to noncontrolling interest   (21)   -   (100)   -
 Other changes in redeemable noncontrolling interest   -   (22)   -   -
               
Redeemable noncontrolling interest, end of period $ 233 $ 327 $ 233 $ 327

Changes in noncontrolling interests that do not result in a change of control and where there is a difference between fair value and carrying value are accounted for as equity transactions. A summary of these changes in ownership interests in subsidiaries and the effect on shareowners' equity for the quarters and nine months ended September 30, 2012 and 2011 is provided below:

 

    Quarter Ended September 30, Nine Months Ended September 30,
(Dollars in millions) 2012 2011 2012 2011
Net income attributable to common shareowners $ 1,415 $ 1,324 $ 3,073 $ 3,654
               
Transfers to noncontrolling interests:             
 Increase in common stock for sale of subsidiary shares   -   -   -   3
 Decrease in common stock for purchase of subsidiary shares   (11)   (51)   (19)   (51)
               
Change from net income attributable to common shareowners and transfers to noncontrolling interests $ 1,404 $ 1,273 $ 3,054 $ 3,606