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Equity Activity (Tables)
9 Months Ended
Sep. 30, 2025
Stockholders' Equity Note [Abstract]  
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 September 30, 2025:
Other comprehensive income/(loss):   
Foreign currency translation adjustments$(100)$(40)$(140)
Net changes related to available-for-sale securities:  
Unrealized gains/(losses) arising during the period$(2)$$(1)
Reclassification of (gains)/losses to other (income) and expense— — — 
Total net changes related to available-for-sale securities$(2)$$(1)
Unrealized gains/(losses) on cash flow hedges:  
Unrealized gains/(losses) arising during the period$20 $(6)$14 
Reclassification of (gains)/losses to:
   
Cost of services(2)
Cost of sales
Cost of financing
SG&A expense
Other (income) and expense79 (20)59 
Interest expense(1)
Total unrealized gains/(losses) on cash flow hedges$113 $(30)$84 
Retirement-related benefit plans: (1)
   
Prior service costs/(credits)$$$
Net gains/(losses) arising during the period
Curtailments and settlements
Amortization of prior service costs/(credits)(2)(1)
Amortization of net (gains)/losses158 (43)115 
Total retirement-related benefit plans$158 $(43)$115 
Other comprehensive income/(loss)$170 $(112)$58 
(1)These accumulated other comprehensive income (AOCI) components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information.
(Dollars in millions)Before Tax
Amount
Tax (Expense)/
Benefit
Net of Tax
Amount
For the three months ended September 30, 2024:
Other comprehensive income/(loss):   
Foreign currency translation adjustments$(330)$270 $(60)
Net changes related to available-for-sale securities:   
Unrealized gains/(losses) arising during the period$$$
Reclassification of (gains)/losses to other (income) and expense— — — 
Total net changes related to available-for-sale securities$$$
Unrealized gains/(losses) on cash flow hedges:   
Unrealized gains/(losses) arising during the period$(215)$57 $(158)
Reclassification of (gains)/losses to:   
Cost of services(5)(4)
Cost of sales(3)(2)
Cost of financing
SG&A expense
Other (income) and expense(234)59 (175)
Interest expense(2)
Total unrealized gains/(losses) on cash flow hedges$(449)$116 $(333)
Retirement-related benefit plans: (1)
   
Prior service costs/(credits)$— $— $— 
Net gains/(losses) arising during the period
100 (25)75 
Curtailments and settlements
2,727 (686)2,041 
Amortization of prior service costs/(credits)(2)(1)
Amortization of net (gains)/losses246 (68)178 
Total retirement-related benefit plans$3,072 $(779)$2,293 
Other comprehensive income/(loss)$2,293 $(392)$1,900 
(1)These AOCI components are included in the computation of net periodic pension cost and include the impact of a one-time, non-cash pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024. Refer to note 18, “Retirement-Related Benefits,” for additional information.
(Dollars in millions)Before Tax
Amount
Tax (Expense)/
Benefit
Net of Tax
Amount
For the nine months ended September 30, 2025:
Other comprehensive income/(loss):   
Foreign currency translation adjustments$(1,056)$562 $(494)
Net changes related to available-for-sale securities:   
Unrealized gains/(losses) arising during the period$$$
Reclassification of (gains)/losses to other (income) and expense— — — 
Total net changes related to available-for-sale securities$$$
Unrealized gains/(losses) on cash flow hedges:   
Unrealized gains/(losses) arising during the period$(121)$34 $(87)
Reclassification of (gains)/losses to:
   
Cost of services12 (3)
Cost of sales(2)(1)
Cost of financing(1)
SG&A expense(1)(1)
Other (income) and expense(679)171 (508)
Interest expense18 (5)13 
Total unrealized gains/(losses) on cash flow hedges$(769)$197 $(572)
Retirement-related benefit plans: (1)
   
Prior service costs/(credits)$$$
Net gains/(losses) arising during the period
Curtailments and settlements(2)
Amortization of prior service costs/(credits)(5)(3)
Amortization of net (gains)/losses466 (126)341 
Total retirement-related benefit plans$469 $(118)$351 
Other comprehensive income/(loss)$(1,355)$641 $(715)
(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information.
(Dollars in millions)Before Tax
Amount
Tax (Expense)/
Benefit
Net of Tax
Amount
For the nine months ended September 30, 2024:
Other comprehensive income/(loss):   
Foreign currency translation adjustments$(273)$49 $(224)
Net changes related to available-for-sale securities:   
Unrealized gains/(losses) arising during the period$$$
Reclassification of (gains)/losses to other (income) and expense— — — 
Total net changes related to available-for-sale securities$$$
Unrealized gains/(losses) on cash flow hedges:   
Unrealized gains/(losses) arising during the period$64 $(18)$46 
Reclassification of (gains)/losses to:   
Cost of services(19)(14)
Cost of sales(30)10 (20)
Cost of financing(1)
SG&A expense(10)(7)
Other (income) and expense(176)44 (132)
Interest expense24 (6)18 
Total unrealized gains/(losses) on cash flow hedges$(142)$37 $(105)
Retirement-related benefit plans: (1)
   
Prior service costs/(credits)$— $— $— 
Net gains/(losses) arising during the period
101 (23)78 
Curtailments and settlements2,731 (687)2,044 
Amortization of prior service costs/(credits)(5)(4)
Amortization of net (gains)/losses765 (212)554 
Total retirement-related benefit plans$3,592 $(921)$2,672 
Other comprehensive income/(loss)$3,178 $(835)$2,343 
(1)These AOCI components are included in the computation of net periodic pension cost and include the impact of a one-time, non-cash pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024. Refer to note 18, “Retirement-Related Benefits,” for additional information.
Accumulated other comprehensive income/(loss) (net of tax)
(Dollars in millions)
 Foreign
Currency
Translation
Adjustments (1)
Net Unrealized
Gains/(Losses)
on Available-
For-Sale
Securities
Net Unrealized
Gains/(Losses)
on Cash Flow
Hedges
Net Change
Retirement-
Related
Benefit
Plans
Accumulated
Other
Comprehensive
Income/(Loss)
January 1, 2025$(3,512)$$237 $(11,994)$(15,269)
Other comprehensive income before reclassifications(494)(87)(572)
Amount reclassified from accumulated other comprehensive income— — (485)343 (142)
Total change for the period$(494)$$(572)$351 $(715)
September 30, 2025$(4,005)$$(335)$(11,643)$(15,983)
(Dollars in millions)
 Foreign
Currency
Translation
Adjustments (1)
Net Unrealized
Gains/(Losses)
on Available-
For-Sale
Securities
Net Unrealized
Gains/(Losses)
on Cash Flow
Hedges
Net Change
Retirement-
Related
Benefit
Plans
Accumulated
Other
Comprehensive
Income/(Loss)
January 1, 2024$(3,488)$(1)$(106)$(15,165)$(18,761)
Other comprehensive income before reclassifications(224)46 78 (100)
Amount reclassified from accumulated other comprehensive income (2)
— — (151)2,594 2,443 
Total change for the period$(224)$$(105)$2,672 $2,343 
September 30, 2024$(3,713)$(1)$(211)$(12,493)$(16,418)
(1)Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.
(2)Net change in retirement-related benefit plans includes the impact of a one-time, non-cash pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024. Refer to note 18, “Retirement-Related Benefits,” for additional information.