Equity Activity (Tables)

12 Months Ended

Dec. 31, 2019

Equity Activity

Reclassifications and taxes related to items of other comprehensive income

($ in millions)	Before Tax		Tax (Expense)/		Net of Tax
For the year ended December 31, 2019:	Amount		Benefit		Amount
Other comprehensive income/(loss)
Foreign currency translation adjustments	$	(39)	$	29	$	(10)
Net changes related to available-for-sale securities
Unrealized gains/(losses) arising during the period	$	1	$	0	$	1
Reclassification of (gains)/losses to other (income) and expense		—		—		—
Total net changes related to available-for-sale securities	$	1	$	0	$	1
Unrealized gains/(losses) on cash flow hedges
Unrealized gains/(losses) arising during the period	$	(689)	$	167	$	(522)
Reclassification of (gains)/losses to:
Cost of services		(68)		17		(50)
Cost of sales		(51)		15		(37)
Cost of financing		89		(22)		67
SG&A expense		(53)		14		(39)
Other (income) and expense		(39)		10		(29)
Interest expense		197		(50)		148
Total unrealized gains/(losses) on cash flow hedges	$	(614)	$	151	$	(463)
Retirement-related benefit plans (1)
Prior service costs/(credits)	$	(73)	$	10	$	(63)
Net (losses)/gains arising during the period		(120)		52		(68)
Curtailments and settlements		41		(12)		29
Amortization of prior service (credits)/costs		(9)		5		(4)
Amortization of net (gains)/losses		1,843		(371)		1,471
Total retirement-related benefit plans	$	1,681	$	(316)	$	1,365
Other comprehensive income/(loss)	$	1,029	$	(136)	$	893

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

($ in millions)	Before Tax		Tax (Expense)/		Net of Tax
For the year ended December 31, 2018:	Amount		Benefit		Amount
Other comprehensive income/(loss)
Foreign currency translation adjustments	$	(730)	$	(172)	$	(902)
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	$	(136)	$	43	$	(93)
Reclassification of (gains)/losses to:
Cost of services		(30)		8		(22)
Cost of sales		(8)		3		(5)
Cost of financing		75		(19)		56
SG&A expense		0		0		0
Other (income) and expense		341		(86)		255
Interest expense		71		(18)		53
Total unrealized gains/(losses) on cash flow hedges	$	313	$	(69)	$	244
Retirement-related benefit plans (1)
Prior service costs/(credits)	$	(182)	$	31	$	(151)
Net (losses)/gains arising during the period		(2,517)		576		(1,941)
Curtailments and settlements		11		(2)		9
Amortization of prior service (credits)/costs		(73)		5		(68)
Amortization of net (gains)/losses		2,966		(632)		2,334
Total retirement-related benefit plans	$	204	$	(21)	$	184
Other comprehensive income/(loss)	$	(215)	$	(262)	$	(476)

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

($ in millions)	Before Tax		Tax (Expense)/		Net of Tax
For the year ended December 31, 2017:	Amount		Benefit		Amount
Other comprehensive income/(loss)
Foreign currency translation adjustments	$	152	$	617	$	769
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		1		0		1
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	$	(58)	$	0	$	(58)
Reclassification of (gains)/losses to:
Cost of services		(70)		27		(43)
Cost of sales		(3)		1		(3)
Cost of financing		23		(9)		14
SG&A expense		(11)		3		(9)
Other (income) and expense		(324)		124		(199)
Interest expense		22		(8)		13
Total unrealized gains/(losses) on cash flow hedges	$	(421)	$	137	$	(284)
Retirement-related benefit plans (1)
Prior service costs/(credits)	$	0	$	0	$	0
Net (losses)/gains arising during the period		682		(201)		481
Curtailments and settlements		19		(5)		14
Amortization of prior service (credits)/costs		(88)		29		(58)
Amortization of net (gains)/losses		2,889		(1,006)		1,883
Total retirement-related benefit plans	$	3,502	$	(1,182)	$	2,320
Other comprehensive income/(loss)	$	3,235	$	(429)	$	2,806

(1) These AOCI components are included in the computation of net periodic pension cost. Refer to note V, “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
($ in millions)	Hedges		Adjustments*		Plans		Securities		Income/(Loss)
December 31, 2016	$	319	$	(3,603)	$	(26,116)	$	2	$	(29,398)
Other comprehensive income before reclassifications		(58)		769		495		0		1,206
Amount reclassified from accumulated other comprehensive income		(226)		0		1,825		1		1,599
Total change for the period		(284)		769		2,320		1		2,806
December 31, 2017		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		(93)		(902)		(2,092)		(1)		(3,089)
Amount reclassified from accumulated other comprehensive income		337		—		2,276		—		2,612
Total change for the period		244		(902)		184		(1)		(476)
December 31, 2018		284		(3,690)		(26,083)		0		(29,490)
Other comprehensive income before reclassifications		(522)		(10)		(131)		1		(663)
Amount reclassified from accumulated other comprehensive income		59		—		1,496		—		1,556
Total change for the period		(463)		(10)		1,365		1		893
December 31, 2019	$	(179)	$	(3,700)	$	(24,718)	$	0	$	(28,597)

*   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 B, “Accounting Changes,” for additional information.