Equity Activity (Tables)

6 Months Ended

Jun. 30, 2020

Equity Activity

Reclassifications and Taxes Related to Items of Other Comprehensive Income

(Dollars in millions)	Before Tax		Tax (Expense)/		Net of Tax
For the three months ended June 30, 2020:	Amount		Benefit		Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	36	$	14	$	51
Retirement-related benefit plans (1):
Net (losses)/gains arising during the period	$	—	$	—	$	—
Curtailments and settlements		0		0		0
Amortization of prior service (credits)/costs		0		0		0
Amortization of net (gains)/losses		1		0		1
Total retirement-related benefit plans	$	1	$	0	$	1
Other comprehensive income/(loss)	$	37	$	14	$	52

(1) These accumulated other comprehensive income (AOCI) components are included in the computation of net periodic pension cost. (Refer to note 13, "Retirement-Related Benefits," for additional information.)

Reclassifications and Taxes Related to Items of Other Comprehensive Income

(Dollars in millions)	Before Tax		Tax (Expense)/		Net of Tax
For the three months ended June 30, 2019:	Amount		Benefit		Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	16	$	2	$	19
Retirement-related benefit plans (1):
Net (losses)/gains arising during the period	$	—	$	0	$	0
Curtailments and settlements		—		—		—
Amortization of prior service (credits)/costs		0		0		0
Amortization of net (gains)/losses		0		0		0
Total retirement-related benefit plans	$	0	$	0	$	0
Other comprehensive income/(loss)	$	17	$	2	$	19

(1) These AOCI components are included in the computation of net periodic pension cost. (Refer to note 13, "Retirement-Related Benefits," for additional information.)

Reclassifications and Taxes Related to Items of Other Comprehensive Income

(Dollars in millions)	Before Tax		Tax (Expense)/		Net of Tax
For the six months ended June 30, 2020:	Amount		Benefit		Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(120)	$	(3)	$	(123)
Retirement-related benefit plans (1):
Net (losses)/gains arising during the period	$	0	$	0	$	0
Curtailments and settlements		0		0		0
Amortization of prior service (credits)/costs		0		0		0
Amortization of net (gains)/losses		2		0		2
Total retirement-related benefit plans	$	2	$	0	$	2
Other comprehensive income/(loss)	$	(118)	$	(3)	$	(121)

(1) These AOCI components are included in the computation of net periodic pension cost. (Refer to note 13, "Retirement-Related Benefits," for additional information.)

Reclassifications and Taxes Related to Items of Other Comprehensive Income

(Dollars in millions)	Before Tax		Tax (Expense)/		Net of Tax
For the six months ended June 30, 2019:	Amount		Benefit		Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	20	$	5	$	25
Retirement-related benefit plans (1):
Net (losses)/gains arising during the period	$	0	$	0	$	0
Curtailments and settlements		—		—		—
Amortization of prior service (credits)/costs		0		0		0
Amortization of net (gains)/losses		1		0		1
Total retirement-related benefit plans	$	0	$	0	$	0
Other comprehensive income/(loss)	$	20	$	5	$	25

(1) These AOCI components are included in the computation of net periodic pension cost. (Refer to note 13, "Retirement-Related Benefits," for additional information.)

Accumulated Other Comprehensive Income/(Loss) (net of tax)

Accumulated Other Comprehensive Income/(Loss) (net of tax)

			Net Change
	Foreign		Retirement-		Accumulated
	Currency		Related		Other
	Translation		Benefit		Comprehensive
(Dollars in millions)	Adjustments*		Plans		Income/(Loss)
January 1, 2020	$	(12)	$	(19)	$	(31)
Other comprehensive income before reclassification		(123)		0		(123)
Amount reclassified from accumulated other comprehensive income		—		1		1
Total change for the period		(123)		2		(121)
June 30, 2020	$	(135)	$	(17)	$	(153)

*     Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.

			Net Change
	Foreign		Retirement-		Accumulated
	Currency		Related		Other
	Translation		Benefit		Comprehensive
(Dollars in millions)	Adjustments*		Plans		Income/(Loss)
January 1, 2019	$	(23)	$	(10)	$	(33)
Other comprehensive income before reclassification		25		0		24
Amount reclassified from accumulated other comprehensive income		—		1		1
Total change for the period		25		0		25
June 30, 2019	$	1	$	(9)	$	(8)

*    Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.