Other (Income) and Expense (Tables)

9 Months Ended

Sep. 30, 2025

Other Income and Expenses [Abstract]

Schedule of components of 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)	2025		2024		2025		2024
Other (income) and expense:
(Gains)/losses on foreign currency transactions (1)	$	(84)	$	470	$	1,131	$	126
(Gains)/losses on derivative instruments (1)	162		(428)		(881)		(1)
Interest income	(150)		(170)		(513)		(597)
Net (gains)/losses from securities and investment assets	(3)		(4)		8		(14)
Retirement-related costs/(income) (2)	13		2,797		61		2,991
Other (3)	(110)		(422)		(181)		(810)
Total other (income) and expense	$	(173)	$	2,244	$	(376)	$	1,694

(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)2024 includes the impact of a pension settlement charge of $2.7 billion. Refer to note U, "Retirement-Related Benefits," in the company's 2024 Annual Report for additional information.

(3)2024 includes a pre-tax gain of $351 million from the sale of certain QRadar SaaS assets. The nine months ended September 30, 2024 also includes a pre-tax gain of $241 million from the divestiture of The Weather Company assets. Refer to note E, "Acquisitions & Divestitures," in the company's 2024 Annual Report for additional information.