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Equity Activity
9 Months Ended
Sep. 30, 2020
Equity Activity  
Equity Activity

14. 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, 2020:

Amount

Benefit

Amount

Other comprehensive income/(loss):

 

  

 

  

 

  

Foreign currency translation adjustments

$

(439)

$

247

$

(192)

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

$

(32)

$

8

$

(24)

Reclassification of (gains)/losses to:

 

  

 

  

 

  

Cost of services

 

(10)

 

2

 

(7)

Cost of sales

 

4

 

(1)

 

3

Cost of financing

 

6

 

(2)

 

5

SG&A expense

 

5

 

(1)

 

4

Other (income) and expense

 

(93)

 

23

 

(70)

Interest expense

 

19

 

(5)

 

14

Total unrealized gains/(losses) on cash flow hedges

$

(101)

$

26

$

(75)

Retirement-related benefit plans (1):

 

  

 

  

 

  

Prior service costs/(credits)

$

(1)

$

0

$

0

Net (losses)/gains arising during the period

0

0

0

Curtailments and settlements

 

21

(6)

14

Amortization of prior service (credits)/costs

 

0

1

1

Amortization of net (gains)/losses

 

586

(161)

425

Total retirement-related benefit plans

$

607

$

(167)

$

440

Other comprehensive income/(loss)

$

66

$

106

$

172

(1)These accumulated other comprehensive income (AOCI) components are included in the computation of net periodic pension cost. Refer to note 17, “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, 2019:

Amount

Benefit

Amount

Other comprehensive income/(loss):

 

  

 

  

 

  

Foreign currency translation adjustments

$

(509)

$

(109)

$

(618)

Net changes related to available-for-sale securities:

 

  

 

  

 

  

Unrealized gains/(losses) arising during the period

$

3

$

(1)

$

2

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

 

Total net changes related to available-for-sale securities

$

3

$

(1)

$

2

Unrealized gains/(losses) on cash flow hedges:

 

  

 

  

 

  

Unrealized gains/(losses) arising during the period

$

(439)

$

110

$

(329)

Reclassification of (gains)/losses to:

 

 

 

Cost of services

 

(22)

 

6

 

(17)

Cost of sales

 

(10)

 

3

 

(7)

Cost of financing

 

21

 

(5)

 

15

SG&A expense

 

(11)

 

3

 

(8)

Other (income) and expense

 

447

 

(112)

 

334

Interest expense

 

64

 

(16)

 

48

Total unrealized gains/(losses) on cash flow hedges

$

49

$

(12)

$

36

Retirement-related benefit plans (1):

 

  

 

  

 

  

Net (losses)/gains arising during the period

$

0

$

0

$

0

Curtailments and settlements

 

3

(1)

2

Amortization of prior service (credits)/costs

 

(3)

3

(1)

Amortization of net (gains)/losses

 

461

(128)

333

Total retirement-related benefit plans

$

461

$

(127)

$

335

Other comprehensive income/(loss)

$

4

$

(249)

$

(245)

(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note 17, “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, 2020:

Amount

Benefit

Amount

Other comprehensive income/(loss):

 

  

 

  

 

  

Foreign currency translation adjustments

$

(1,354)

$

260

$

(1,094)

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

$

(249)

$

63

$

(186)

Reclassification of (gains)/losses to:

 

  

 

  

 

  

Cost of services

 

(18)

 

5

 

(14)

Cost of sales

 

(14)

 

4

 

(10)

Cost of financing

 

21

 

(5)

 

16

SG&A expense

 

(12)

 

3

 

(9)

Other (income) and expense

 

(74)

 

19

 

(55)

Interest expense

 

60

 

(15)

 

45

Total unrealized gains/(losses) on cash flow hedges

$

(285)

$

73

$

(212)

Retirement-related benefit plans (1):

 

  

 

  

 

  

Prior service costs/(credits)

$

(5)

$

1

$

(3)

Net (losses)/gains arising during the period

65

(24)

41

Curtailments and settlements

 

42

 

(12)

 

30

Amortization of prior service (credits)/costs

 

1

 

2

 

3

Amortization of net (gains)/losses

 

1,722

 

(473)

 

1,249

Total retirement-related benefit plans

$

1,826

$

(507)

$

1,319

Other comprehensive income/(loss)

$

187

$

(175)

$

12

(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note 17, “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, 2019:

Amount

Benefit

Amount

Other comprehensive income/(loss):

 

  

 

  

 

  

Foreign currency translation adjustments

$

(333)

$

(72)

$

(405)

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

$

(798)

$

196

$

(601)

Reclassification of (gains)/losses to:

 

 

 

Cost of services

 

(52)

 

13

 

(38)

Cost of sales

 

(40)

 

11

 

(29)

Cost of financing

 

73

 

(18)

 

55

SG&A expense

 

(45)

 

12

 

(33)

Other (income) and expense

 

331

 

(83)

 

248

Interest expense

 

150

 

(38)

 

112

Total unrealized gains/(losses) on cash flow hedges

$

(380)

$

93

$

(287)

Retirement-related benefit plans (1):

 

  

 

  

 

  

Net (losses)/gains arising during the period

$

113

$

(23)

$

90

Curtailments and settlements

 

7

 

(1)

 

6

Amortization of prior service (credits)/costs

 

(9)

 

4

 

(5)

Amortization of net (gains)/losses

 

1,385

 

(380)

 

1,005

Total retirement-related benefit plans

$

1,496

$

(401)

$

1,095

Other comprehensive income/(loss)

$

784

$

(380)

$

404

(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note 17, “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, 2020

$

(179)

$

(3,700)

$

(24,718)

$

0

$

(28,597)

Other comprehensive income before reclassifications

 

(186)

 

(1,094)

 

37

 

0

 

(1,242)

Amount reclassified from accumulated other comprehensive income

 

(27)

 

 

1,281

 

 

1,255

Total change for the period

$

(212)

$

(1,094)

$

1,319

$

0

$

12

September 30, 2020

$

(391)

$

(4,794)

$

(23,399)

$

0

$

(28,584)

*  Foreign currency translation adjustments are presented gross except for any associated hedges which are presented 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, 2019

$

284

$

(3,690)

$

(26,083)

$

0

$

(29,490)

Other comprehensive income before reclassifications

 

(601)

 

(405)

 

89

 

1

 

(916)

Amount reclassified from accumulated other comprehensive income

 

315

 

 

1,005

 

 

1,320

Total change for the period

$

(287)

$

(405)

$

1,095

$

1

$

404

September 30, 2019

$

(3)

$

(4,095)

$

(24,988)

$

0

$

(29,086)

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