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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Amounts related to cumulative basis adjustments for fair value hedges
At June 30, 2024 and December 31, 2023, the following amounts were recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:
(Dollars in millions)June 30,
2024		December 31,
2023
Short-term debt:  
Carrying amount of the hedged item$— $(1)
Cumulative hedging adjustments included in the carrying amount — assets/(liabilities) $— $(1)
Long-term debt:  
Carrying amount of the hedged item$(6,481)$(6,629)
Cumulative hedging adjustments included in the carrying amount — assets/(liabilities) (1)
$204 $61 
(1)Includes ($177) million and ($200) million of hedging adjustments on discontinued hedging relationships at June 30, 2024 and December 31, 2023, respectively.
Effect of derivative instruments in the Consolidated Income Statement
The total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value hedges, cash flow hedges, net investment hedges and derivatives not designated as hedging instruments are recorded and the total effect of hedge activity on these income and expense line items are as follows:
(Dollars in millions)TotalGains/(Losses) of
Total Hedge Activity
For the three months ended June 30:2024202320242023
Cost of services$5,126 $5,294 $9 $(3)
Cost of sales$1,607 $1,587 $15 $2 
Cost of financing$86 $93 $(4)$(3)
SG&A expense$4,938 $4,900 $11 $43 
Other (income) and expense$(233)$(261)$(140)$(141)
Interest expense$427 $423 $(19)$(18)
Gain (Loss) Recognized in Consolidated Income Statement
(Dollars in millions)Consolidated
Income Statement
Line Item		Recognized on
Derivatives
Attributable to Risk
Being Hedged (2)
For the three months ended June 30:2024202320242023
Derivative instruments in fair value hedges: (1)
     
Interest rate contractsCost of financing$(8)$(30)$2 $25 
Interest expense(42)(153)10 130 
Derivative instruments not designated as hedging instruments: 
Foreign exchange contractsOther (income) and expense(161)(196) N/A  N/A
Equity contractsSG&A expense4 42  N/A  N/A
Total $(207)$(337)$12 $155 
Gain (Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income
Recognized in OCIConsolidated
Income Statement
Line Item		Reclassified
from AOCI
Amounts Excluded from
Effectiveness Testing (3)
(Dollars in millions)
For the three months ended June 30:202420232024202320242023
Derivative instruments in cash flow hedges:       
Interest rate contracts$— $— Cost of financing$(1)$(1)$— $— 
Interest expense(3)(4)— — 
Foreign exchange contractsCost of services9 (3)— — 
Amount included in the assessment of effectiveness134 178 Cost of sales15 2 — — 
Amount excluded from the assessment of effectiveness(31)— Cost of financing(1)(3)— — 
SG&A expense7 1 — — 
Other (income) and expense39 55 (18)— 
Interest expense(5)(18)— — 
Instruments in net investment hedges: (4)
       
Foreign exchange contracts269 136 Cost of financing— — 4 5 
  Interest expense— — 21 27 
Total$372 $313  $61 $30 $6 $32 
(1)The amount includes changes in clean fair values of the derivative instruments in fair value hedging relationships and the periodic accrual for coupon payments required under these derivative contracts.
(2)The amount includes basis adjustments to the carrying value of the hedged item recorded during the period and amortization of basis adjustments recorded on de-designated hedging relationships during the period.
(3)The company’s policy is to recognize all fair value changes in amounts excluded from effectiveness testing for net investment hedges in net income each period. For cash flow hedges of foreign currency denominated debt, the amounts excluded from effectiveness testing are amortized to net income over the life of the hedging instrument.
(4)Instruments in net investment hedges include derivative and non-derivative instruments with the amounts recognized in OCI providing an offset to the translation of foreign subsidiaries.
N/A - not applicable
(Dollars in millions)TotalGains/(Losses) of
Total Hedge Activity
For the six months ended June 30:2024202320242023
Cost of services$10,365 $10,604 $14 $(5)
Cost of sales$2,988 $2,910 $27 $17 
Cost of financing$186 $203 $(7)$(7)
SG&A expense$9,912 $9,754 $85 $102 
Other (income) and expense$(550)$(506)$(427)$1 
Interest expense$859 $790 $(34)$(31)
Gain (Loss) Recognized in Consolidated Income Statement
(Dollars in millions)Consolidated
Income Statement
Line Item		Recognized on
Derivatives
Attributable to Risk
Being Hedged (2)
For the six months ended June 30:2024202320242023
Derivative instruments in fair value hedges: (1)
     
Interest rate contractsCost of financing$(35)$(21)$23 $13 
Interest expense(180)(96)120 58 
Derivative instruments not designated as hedging instruments:     
Foreign exchange contractsOther (income) and expense(368)(180) N/A  N/A
Equity contractsSG&A expense75 91  N/A  N/A
Total $(509)$(206)$143 $71 
Gain (Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income
Recognized in OCIConsolidated
Income Statement
Line Item		Reclassified
from AOCI
Amounts Excluded from
Effectiveness Testing (3)
(Dollars in millions)
For the six months ended June 30:202420232024202320242023
Derivative instruments in cash flow hedges:       
Interest rate contracts$— $— Cost of financing$(1)$(2)$— $— 
Interest expense(7)(7)— — 
Foreign exchange contractsCost of services14 (5)— — 
Amount included in the assessment of effectiveness300 149 Cost of sales27 17 — — 
Amount excluded from the assessment of effectiveness(21)— Cost of financing(2)(8)— — 
SG&A expense10 10 — — 
Other (income) and expense(22)181 (37)— 
Interest expense(10)(35)— — 
Instruments in net investment hedges: (4)
       
Foreign exchange contracts881 (88)Cost of financing— — 8 11 
  Interest expense— — 43 49 
Total$1,160 $61  $9 $152 $14 $60 
(1)The amount includes changes in clean fair values of the derivative instruments in fair value hedging relationships and the periodic accrual for coupon payments required under these derivative contracts.
(2)The amount includes basis adjustments to the carrying value of the hedged item recorded during the period and amortization of basis adjustments recorded on de-designated hedging relationships during the period.
(3)The company’s policy is to recognize all fair value changes in amounts excluded from effectiveness testing for net investment hedges in net income each period. For cash flow hedges of foreign currency denominated debt, the amounts excluded from effectiveness testing are amortized to net income over the life of the hedging instrument.
(4)Instruments in net investment hedges include derivative and non-derivative instruments with the amounts recognized in OCI providing an offset to the translation of foreign subsidiaries.
N/A - not applicable