Equity Activity

3 Months Ended

Mar. 31, 2025

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, 2025:
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(343)	$	203	$	(139)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	8	$	(2)	$	6
Reclassification of (gains)/losses to other (income) and expense	—		—		—
Total net changes related to available-for-sale securities	$	8	$	(2)	$	6
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	(58)	$	16	$	(42)
Reclassification of (gains)/losses to:
Cost of services	2		0		2
Cost of sales	(8)		2		(5)
Cost of financing	1		0		1
SG&A expense	(3)		1		(2)
Other (income) and expense	(322)		81		(241)
Interest expense	6		(2)		5
Total unrealized gains/(losses) on cash flow hedges	$	(382)	$	98	$	(283)
Retirement-related benefit plans: (1)
Prior service costs/(credits)	$	0	$	0	$	0
Net (losses)/gains arising during the period	0		0		0
Curtailments and settlements	2		0		2
Amortization of prior service costs/(credits)	(2)		1		(1)
Amortization of net (gains)/losses	151		(41)		111
Total retirement-related benefit plans	$	151	$	(40)	$	111
Other comprehensive income/(loss)	$	(566)	$	259	$	(306)

(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, 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 costs/(credits)	(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 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)	Foreign Currency Translation Adjustments (1)		Net Unrealized Gains/(Losses) on Available- For-Sale Securities		Net Unrealized Gains/(Losses) on Cash Flow Hedges		Net Change Retirement- Related Benefit Plans		Accumulated Other Comprehensive Income/ (Loss)
January 1, 2025	$	(3,512)	$	0	$	237	$	(11,994)	$	(15,269)
Other comprehensive income before reclassifications	(139)		6		(42)		0		(176)
Amount reclassified from accumulated other comprehensive income	—		—		(241)		111		(130)
Total change for the period	$	(139)	$	6	$	(283)	$	111	$	(306)
March 31, 2025	$	(3,651)	$	6	$	(46)	$	(11,884)	$	(15,575)

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

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