XML 31 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Equity Activity
 9 Months Ended
Sep. 30, 2018
Equity Activity  
Equity Activity

 

8. Equity Activity:

 

Reclassifications and Taxes Related to Items of Other Comprehensive Income

 

(Dollars in millions)

 

Before Tax

 

Tax (Expense)/

 

Net of Tax

 

For the three months ended September 30, 2018:

 

Amount

 

Benefit

 

Amount

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

$
(22

)

$
(22

)

$
(44

)

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

 

$
(46

)

$
11

 

$
(35

)

Reclassification of (gains)/losses to:

 

 

 

 

 

 

 

Cost of sales

 
(8

)
3

 
(6

)

Cost of services

 
(1

)
0

 
(1

)

SG&A expense

 
(7

)
2

 
(5

)

Other (income) and expense

 
8

 
(2

)
6

 

Interest expense

 
36

 
(9

)
27

 

 

 

 

 

 

 

 

 

Total unrealized gains/(losses) on cash flow hedges

 

$
(18

)

$
4

 

$
(14

)

 

 

 

 

 

 

 

 

 

 

 

Retirement-related benefit plans(1):

 

 

 

 

 

 

 

Prior service costs/(credits)

 

$
0

 

$
0

 

$
0

 

Net (losses)/gains arising during the period

 
(1

)
1

 
(1

)

Curtailments and settlements

 
2

 
0

 
1

 

Amortization of prior service (credits)/costs

 
(18

)
5

 
(13

)

Amortization of net (gains)/losses

 
737

 
(196

)
540

 

 

 

 

 

 

 

 

 

Total retirement-related benefit plans

 

$
719

 

$
(191

)

$
527

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss)

 

$
678

 

$
(209

)

$
470

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

These AOCI components are included in the computation of net periodic pension cost. (See note 9, “Retirement-Related Benefits,” for additional information.)

 

Reclassifications and Taxes Related to Items of Other Comprehensive Income

 

(Dollars in millions)

 

Before Tax

 

Tax (Expense)/

 

Net of Tax

 

For the three months ended September 30, 2017:

 

Amount

 

Benefit

 

Amount

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

$
89

 

$
195

 

$
284

 

Net changes related to available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

Unrealized gains/(losses) arising during the period

 

$
(1

)

$
1

 

$
0

 

Reclassification of (gains)/losses to other (income) and expense

 
0

 
0

 
0

 

 

 

 

 

 

 

 

 

Total net changes related to available-for-sale securities

 

$
(2

)

$
1

 

$
(1

)

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains/(losses) on cash flow hedges:

 

 

 

 

 

 

 

Unrealized gains/(losses) arising during the period

 

$
(70

)

$
20

 

$
(50

)

Reclassification of (gains)/losses to:

 

 

 

 

 

 

 

Cost of sales

 
(1

)
1

 
(1

)

Cost of services

 
(20

)
8

 
(12

)

SG&A expense

 
6

 
(1

)
4

 

Other (income) and expense

 
(64

)
25

 
(39

)

Interest expense

 
7

 
(3

)
4

 

 

 

 

 

 

 

 

 

Total unrealized gains/(losses) on cash flow hedges

 

$
(143

)

$
49

 

$
(94

)

 

 

 

 

 

 

 

 

 

 

 

Retirement-related benefit plans(1):

 

 

 

 

 

 

 

Prior service costs/(credits)

 

$
0

 

$
0

 

$
0

 

Net (losses)/gains arising during the period

 
1

 
0

 
1

 

Curtailments and settlements

 
2

 
(1

)
1

 

Amortization of prior service (credits)/costs

 
(22

)
7

 
(15

)

Amortization of net (gains)/losses

 
733

 
(242

)
491

 

 

 

 

 

 

 

 

 

Total retirement-related benefit plans

 

$
713

 

$
(235

)

$
479

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss)

 

$
658

 

$
11

 

$
669

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

These AOCI components are included in the computation of net periodic pension cost. (See note 9, “Retirement-Related Benefits,” for additional information.)

 

Reclassifications and Taxes Related to Items of Other Comprehensive Income

 

(Dollars in millions)

 

Before Tax

 

Tax (Expense)/

 

Net of Tax

 

For the nine months ended September 30, 2018:

 

Amount

 

Benefit

 

Amount

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

$
(535

)

$
(128

)

$
(663

)

Net changes related to available-for-sale securities:

 

 

 

 

 

 

 

Unrealized gains/(losses) arising during the period

 

$
(2

)

$
1

 

$
(1

)

Reclassification of (gains)/losses to other (income) and expense

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

Total net changes related to available-for-sale securities

 

$
(2

)

$
1

 

$
(1

)

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains/(losses) on cash flow hedges:

 

 

 

 

 

 

 

Unrealized gains/(losses) arising during the period

 

$
(134

)

$
39

 

$
(95

)

Reclassification of (gains)/losses to:

 

 

 

 

 

 

 

Cost of sales

 
15

 
(4

)
11

 

Cost of services

 
(29

)
7

 
(22

)

SG&A expense

 
14

 
(4

)
10

 

Other (income) and expense

 
301

 
(76

)
225

 

Interest expense

 
108

 
(27

)
81

 

 

 

 

 

 

 

 

 

Total unrealized gains/(losses) on cash flow hedges

 

$
274

 

$
(63

)

$
210

 

 

 

 

 

 

 

 

 

 

 

 

Retirement-related benefit plans(1):

 

 

 

 

 

 

 

Prior service costs/(credits)

 

$
(1

)

$
0

 

$
(1

)

Net (losses)/gains arising during the period

 
83

 
(22

)
60

 

Curtailments and settlements

 
7

 
(2

)
5

 

Amortization of prior service (credits)/costs

 
(55

)
15

 
(40

)

Amortization of net (gains)/losses

 
2,231

 
(607

)
1,624

 

 

 

 

 

 

 

 

 

Total retirement-related benefit plans

 

$
2,264

 

$
(616

)

$
1,648

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss)

 

$
2,001

 

$
(807

)

$
1,194

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

These AOCI components are included in the computation of net periodic pension cost. (See note 9, “Retirement-Related Benefits,” for additional information.)

 

Reclassifications and Taxes Related to Items of Other Comprehensive Income

 

(Dollars in millions)

 

Before Tax

 

Tax (Expense)/

 

Net of Tax

 

For the nine months ended September 30, 2017:

 

Amount

 

Benefit

 

Amount

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

$
213

 

$
581

 

$
794

 

Net changes related to available-for-sale securities:

 

 

 

 

 

 

 

Unrealized gains/(losses) arising during the period

 

$
2

 

$
0

 

$
1

 

Reclassification of (gains)/losses to other (income) and expense

 

 
1

 

 
0

 

 
0

 

 

 

 

 

 

 

 

 

 

 

 

Total net changes related to available-for-sale securities

 

$
2

 

$
0

 

$
2

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains/(losses) on cash flow hedges:

 

 

 

 

 

 

 

Unrealized gains/(losses) arising during the period

 

$
(198

)

$
53

 

$
(146

)

Reclassification of (gains)/losses to:

 

 

 

 

 

 

 

Cost of sales

 
(23

)
6

 
(17

)

Cost of services

 
(47

)
18

 
(29

)

SG&A expense

 
(23

)
6

 
(17

)

Other (income) and expense

 
(275

)
106

 
(169

)

Interest expense

 
21

 
(8

)
13

 

 

 

 

 

 

 

 

 

Total unrealized gains/(losses) on cash flow hedges

 

$
(545

)

$
180

 

$
(365

)

 

 

 

 

 

 

 

 

 

 

 

Retirement-related benefit plans(1):

 

 

 

 

 

 

 

Prior service costs/(credits)

 

$
0

 

$
0

 

$
0

 

Net (losses)/gains arising during the period

 
106

 
(36

)
70

 

Curtailments and settlements

 
3

 
(1

)
2

 

Amortization of prior service (credits)/costs

 
(66

)
23

 
(43

)

Amortization of net (gains)/losses

 
2,156

 
(739

)
1,417

 

 

 

 

 

 

 

 

 

Total retirement-related benefit plans

 

$
2,200

 

$
(754

)

$
1,446

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss)

 

$
1,869

 

$
7

 

$
1,877

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

These AOCI components are included in the computation of net periodic pension cost. (See note 9, “Retirement-Related Benefits,” for additional information.)

 

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

 

 

 

 

 

 

 

Net Change

 

Net Unrealized

 

 

 

 

 

Net Unrealized

 

Foreign

 

Retirement-

 

Gains/(Losses)

 

Accumulated

 

 

 

Gains/(Losses)

 

Currency

 

Related

 

on Available-

 

Other

 

 

 

on Cash Flow

 

Translation

 

Benefit

 

For-Sale

 

Comprehensive

 

(Dollars in millions)

 

Hedges

 

Adjustments*

 

Plans

 

Securities

 

Income/(Loss)

 

January 1, 2018

 

$
35

 

$
(2,834

)

$
(23,796

)

$
3

 

$
(26,592

)

Cumulative effect of a change in accounting principle **

 
5

 
46

 
(2,471

)
(2)

 
(2,422

)

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income before reclassifications

 
(95

)
(663

)
65

 
(1

)
(695

)

Amount reclassified from accumulated other comprehensive income

 
305

 

—

 
1,584

 

—

 
1,889

 

 

 

 

 

 

 

 

 

 

 

 

 

Total change for the period

 

$
210

 

$
(663

)

$
1,648

 

$
(1

)

$
1,194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2018

 

$
250

 

$
(3,451

)

$
(24,618

)

$
0

 

$
(27,820

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

**  Reflects the adoption of the FASB guidance on stranded tax effects, hedging and financial instruments. Refer to note 2, “Accounting Changes”.

 

 

 

 

 

 

 

Net Change

 

Net Unrealized

 

 

 

 

 

Net Unrealized

 

Foreign

 

Retirement-

 

Gains/(Losses)

 

Accumulated

 

 

 

Gains/(Losses)

 

Currency

 

Related

 

on Available-

 

Other

 

 

 

on Cash Flow

 

Translation

 

Benefit

 

For-Sale

 

Comprehensive

 

(Dollars in millions)

 

Hedges

 

Adjustments*

 

Plans

 

Securities

 

Income/(Loss)

 

January 1, 2017

 

$
319

 

$
(3,603

)

$
(26,116

)

$
2

 

$
(29,398

)

Other comprehensive income before reclassifications

 
(146

)
794

 
72

 
1

 
721

 

Amount reclassified from accumulated other comprehensive income

 
(219

)

—

 
1,374

 
0

 
1,155

 

 

 

 

 

 

 

 

 

 

 

 

 

Total change for the period

 

$
(365

)

$
794

 

$
1,446

 

$
2

 

$
1,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2017

 

$
(46

)

$
(2,809

)

$
(24,670

)

$
4

 

$
(27,521

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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