*	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.

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 June 30, 2021:	Amount		Benefit		Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	28	$	44	$	72
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	$	(34)	$	9	$	(26)
Reclassification of (gains)/losses to:
Cost of services		(7)		2		(5)
Cost of sales		10		(3)		8
Cost of financing		6		(1)		4
SG&A expense		16		(4)		12
Other (income) and expense		49		(12)		37
Interest expense		16		(4)		12
Total unrealized gains/(losses) on cash flow hedges	$	56	$	(14)	$	42
*Retirement-related benefit plans:**
Prior service costs/(credits)	$	0	$	0	$	0
Net (losses)/gains arising during the period		2		10		11
Curtailments and settlements		16		(5)		11
Amortization of prior service (credits)/costs		1		1		1
Amortization of net (gains)/losses		643		(175)		467
Total retirement-related benefit plans	$	661	$	(170)	$	491
Other comprehensive income/(loss)	$	745	$	(140)	$	605

*	These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “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 six months ended June 30, 2022:	Amount		Benefit		Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	655	$	(483)	$	172
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	(1)	$	0	$	0
Reclassification of (gains)/losses to other (income) and expense		—		—		—
Total net changes related to available-for-sale securities	$	(1)	$	0	$	0
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	260	$	(69)	$	191
Reclassification of (gains)/losses to:
Cost of services		(28)		7		(21)
Cost of sales		(35)		10		(25)
Cost of financing		12		(3)		9
SG&A expense		(20)		5		(14)
Other (income) and expense		45		(11)		34
Interest expense		43		(11)		32
Total unrealized gains/(losses) on cash flow hedges	$	276	$	(71)	$	205
*Retirement-related benefit plans:**
Prior service costs/(credits)	$	(5)	$	5	$	0
Net (losses)/gains arising during the period		10		(7)		3
Curtailments and settlements		19		(5)		14
Amortization of prior service (credits)/costs		13		(3)		10
Amortization of net (gains)/losses		917		(256)		662
Total retirement-related benefit plans	$	954	$	(266)	$	689
Other comprehensive income/(loss)	$	1,885	$	(819)	$	1,066

*	These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “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 six months ended June 30, 2021:	Amount		Benefit		Amount
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	577	$	(184)	$	393
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	$	153	$	(39)	$	114
Reclassification of (gains)/losses to:
Cost of services		(21)		5		(16)
Cost of sales		32		(8)		24
Cost of financing		12		(3)		9
SG&A expense		31		(8)		23
Other (income) and expense		165		(41)		123
Interest expense		31		(8)		24
Total unrealized gains/(losses) on cash flow hedges	$	404	$	(102)	$	301
*Retirement-related benefit plans:**
Prior service costs/(credits)	$	0	$	0	$	0
Net (losses)/gains arising during the period		22		4		25
Curtailments and settlements		34		(10)		23
Amortization of prior service (credits)/costs		4		0		4
Amortization of net (gains)/losses		1,291		(352)		938
Total retirement-related benefit plans	$	1,350	$	(359)	$	991
Other comprehensive income/(loss)	$	2,330	$	(645)	$	1,685

*	These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “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, 2022	$	(18)	$	(3,362)	$	(19,854)	$	(1)	$	(23,234)
Other comprehensive income before reclassifications		191		172		3		0		366
Amount reclassified from accumulated other comprehensive income		14		—		686		—		699
Total change for the period	$	205	$	172	$	689	$	0	$	1,066
June 30, 2022	$	187	$	(3,189)	$	(19,165)	$	(1)	$	(22,169)

*	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, 2021	$	(456)	$	(4,665)	$	(24,216)	$	0	$	(29,337)
Other comprehensive income before reclassifications		114		393		25		0		532
Amount reclassified from accumulated other comprehensive income		187		—		966		—		1,153
Total change for the period	$	301	$	393	$	991	$	0	$	1,685
June 30, 2021	$	(155)	$	(4,271)	$	(23,225)	$	(1)	$	(27,652)

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