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Other (Income) and Expenses
 9 Months Ended
Sep. 30, 2023
Other Income and Expenses [Abstract]  
Other (Income) and Expenses Other (Income) and Expense:
Components of other (income) and expense are as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in millions)2023202220232022
Other (income) and expense:
Foreign currency transaction losses/(gains) (1)
$(260)$(352)$(338)$(1,021)
(Gains)/losses on derivative instruments (2)
316 189 315 730 
Interest income(156)(53)(527)(98)
Net (gains)/losses from securities and investment assets (3)
(5)(11)3 262 
Retirement-related costs/(income) (4)
(12)6,062 (16)6,455 
Other (5)
(97)(80)(158)(407)
Total other (income) and expense$(215)$5,755 $(721)$5,921 
(1)The company uses financial hedging instruments to limit specific currency risks related to foreign currency-based transactions. The hedging program does not hedge 100 percent of currency exposures and defers, versus eliminates, the impact of currency. Refer to note 16, "Derivative Financial Instruments," for additional information on foreign exchange risk.
(2)Prior year includes a gain of $3 million and a loss of $85 million recognized in the three and nine months ended September 30, 2022, respectively, on the cash-settled swap related to the Kyndryl retained shares. Refer to note 16, "Derivative Financial Instruments," for additional information.
(3)Prior year includes a gain of $11 million and a loss of $267 million recognized in the three and nine months ended September 30, 2022, respectively, on Kyndryl retained shares. Refer to note 5, "Acquisitions & Divestitures," for additional information.
(4)Prior year includes a one-time, non-cash pension settlement charge of $5.9 billion. Refer to note 18, "Retirement-Related Benefits," for additional information.
(5)Other primarily consists of (gains)/losses from divestitures and dispositions of land/buildings. The nine months ended September 30, 2022 includes a pre-tax gain of $259 million related to the divestiture of IBM's healthcare software assets in the second quarter 2022.