Equity Activity

3 Months Ended

Mar. 31, 2024

Stockholders' Equity Note [Abstract]

Equity Activity

Equity Activity:

Reclassifications and Taxes Related to Items of Other Comprehensive Income

(Dollars in millions)	Before Tax Amount		Tax (Expense)/ Benefit		Net of Tax Amount
For the three months ended March 31, 2024:
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	55	$	(154)	$	(99)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	0	$	0	$	0
Reclassification of (gains)/losses to other (income) and expense	—		—		—
Total net changes related to available-for-sale securities	$	0	$	0	$	0
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	176	$	(47)	$	129
Reclassification of (gains)/losses to:
Cost of services	(4)		1		(3)
Cost of sales	(12)		4		(8)
Cost of financing	2		0		1
SG&A expense	(3)		1		(2)
Other (income) and expense	79		(20)		59
Interest expense	9		(2)		6
Total unrealized gains/(losses) on cash flow hedges	$	246	$	(63)	$	183
Retirement-related benefit plans: (1)
Prior service costs/(credits)	$	—	$	—	$	—
Net (losses)/gains arising during the period	1		0		0
Curtailments and settlements	2		0		2
Amortization of prior service (credits)/costs	(2)		0		(1)
Amortization of net (gains)/losses	261		(72)		189
Total retirement-related benefit plans	$	262	$	(72)	$	189
Other comprehensive income/(loss)	$	563	$	(289)	$	273

(1)These accumulated other comprehensive income (AOCI) components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information.

Reclassifications and Taxes Related to Items of Other Comprehensive Income

(Dollars in millions)	Before Tax Amount		Tax (Expense)/ Benefit		Net of Tax Amount
For the three months ended March 31, 2023:
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(87)	$	56	$	(30)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	15	$	(4)	$	11
Reclassification of (gains)/losses to other (income) and expense	—		—		—
Total net changes related to available-for-sale securities	$	15	$	(4)	$	11
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	(29)	$	6	$	(23)
Reclassification of (gains)/losses to:
Cost of services	2		0		2
Cost of sales	(14)		4		(10)
Cost of financing	5		(1)		4
SG&A expense	(10)		3		(7)
Other (income) and expense	(126)		32		(94)
Interest expense	21		(5)		16
Total unrealized gains/(losses) on cash flow hedges	$	(151)	$	38	$	(113)
Retirement-related benefit plans: (1)
Prior service costs/(credits)	$	—	$	1	$	1
Net (losses)/gains arising during the period	2		0		2
Curtailments and settlements	(1)		0		(1)
Amortization of prior service (credits)/costs	(2)		1		(2)
Amortization of net (gains)/losses	131		(38)		93
Total retirement-related benefit plans	$	130	$	(38)	$	92
Other comprehensive income/(loss)	$	(93)	$	53	$	(40)

(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information.

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

(Dollars in millions)	Net Unrealized Gains/(Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Net Change Retirement- Related Benefit Plans		Net Unrealized Gains/(Losses) on Available- For-Sale Securities		Accumulated Other Comprehensive Income/ (Loss)
January 1, 2024	$	(106)	$	(3,488)	$	(15,165)	$	(1)	$	(18,761)
Other comprehensive income before reclassifications	129		(99)		0		0		30
Amount reclassified from accumulated other comprehensive income	54		—		189		—		243
Total change for the period	$	183	$	(99)	$	189	$	0	$	273
March 31, 2024	$	76	$	(3,588)	$	(14,976)	$	(1)	$	(18,488)

(Dollars in millions)	Net Unrealized Gains/(Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Net Change Retirement- Related Benefit Plans		Net Unrealized Gains/(Losses) on Available- For-Sale Securities		Accumulated Other Comprehensive Income/ (Loss)
January 1, 2023	$	(135)	$	(3,591)	$	(13,013)	$	(1)	$	(16,740)
Other comprehensive income before reclassifications	(23)		(30)		2		11		(39)
Amount reclassified from accumulated other comprehensive income	(90)		—		90		—		0
Total change for the period	$	(113)	$	(30)	$	92	$	11	$	(40)
March 31, 2023	$	(248)	$	(3,621)	$	(12,921)	$	10	$	(16,780)

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