The components of 2012 comprehensive income for CVS Caremark and for Caterpillar Inc. are outlined as follows (dollars in millions):

REQUIRED:
a. The net incomes for the two firms are shown above. Discuss how the total changes to equity due to nonowner transactions compare for the two firms.
b. CVS is a U.S.-based chain of retail pharmacies, while Caterpillar is a global manufacturer of heavy-duty construction equipment. How are the companies’ business models reflected in their respective comprehensive incomes?
c. How would an analyst reading the financial statements of the two companies compare their relative financial changes over the course of a year? What specific areas might concern an analyst looking at Caterpillar that would not affect CVS?

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CVS Net income Foreign currency translation Pension/post-retirement benefits Derivative financial instruments Available-for-sale securities Caterpillar $5,722 60 (280) (32) 23 $3,875 (12)