Equity Activity (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022:	Amount		Benefit		Amount
Other comprehensive income/(loss)
Foreign currency translation adjustments	$	176	$	(406)	$	(229)
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	$	241	$	(64)	$	178
Reclassification of (gains)/losses to:
Cost of services		(24)		6		(18)
Cost of sales		(99)		28		(70)
Cost of financing		24		(6)		18
SG&A expense		(38)		11		(28)
Other (income) and expense		(349)		88		(261)
Interest expense		86		(22)		64
Total unrealized gains/(losses) on cash flow hedges	$	(158)	$	41	$	(117)
Retirement-related benefit plans*
Prior service costs/(credits)	$	463	$	(99)	$	364
Net (losses)/gains arising during the period		878		(183)		695
Curtailments and settlements		5,970		(1,490)		4,480
Amortization of prior service (credits)/costs		12		(3)		9
Amortization of net (gains)/losses		1,596		(304)		1,293
Total retirement-related benefit plans	$	8,919	$	(2,078)	$	6,841
Other comprehensive income/(loss)	$	8,936	$	(2,442)	$	6,494

* 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 $5.9 billion ($4.4 billion net of tax). 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, 2021:	Amount		Benefit		Amount
Other comprehensive income/(loss)
Foreign currency translation adjustments	$	987	$	(414)	$	573
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	$	344	$	(89)	$	256
Reclassification of (gains)/losses to:
Cost of services		(43)		11		(32)
Cost of sales		16		(3)		13
Cost of financing		22		(6)		17
SG&A expense		24		(6)		19
Other (income) and expense		157		(40)		118
Interest expense		65		(16)		49
Total unrealized gains/(losses) on cash flow hedges	$	587	$	(149)	$	438
Retirement-related benefit plans*
Prior service costs/(credits)	$	(51)	$	(1)	$	(52)
Net (losses)/gains arising during the period		2,433		(601)		1,832
Curtailments and settlements		94		(11)		83
Amortization of prior service (credits)/costs		9		0		9
Amortization of net (gains)/losses		2,484		(528)		1,956
Total retirement-related benefit plans	$	4,969	$	(1,140)	$	3,828
Other comprehensive income/(loss)	$	6,542	$	(1,703)	$	4,839

* 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, 2020:	Amount		Benefit		Amount
Other comprehensive income/(loss)
Foreign currency translation adjustments	$	(1,500)	$	535	$	(965)
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	$	(349)	$	89	$	(261)
Reclassification of (gains)/losses to:
Cost of services		(23)		6		(18)
Cost of sales		(2)		1		(2)
Cost of financing		27		(7)		20
SG&A expense		0		0		0
Other (income) and expense		(101)		25		(75)
Interest expense		78		(20)		58
Total unrealized gains/(losses) on cash flow hedges	$	(370)	$	94	$	(277)
Retirement-related benefit plans*
Prior service costs/(credits)	$	(37)	$	7	$	(29)
Net (losses)/gains arising during the period		(1,678)		295		(1,383)
Curtailments and settlements		52		(14)		38
Amortization of prior service (credits)/costs		13		(1)		12
Amortization of net (gains)/losses		2,314		(451)		1,863
Total retirement-related benefit plans	$	664	$	(163)	$	501
Other comprehensive income/(loss)	$	(1,206)	$	466	$	(740)

* 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)

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

($ in millions)
						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
	Hedges		Adjustments		*	Plans			Securities		Income/(Loss)
December 31, 2019	$	(179)	$	(3,700)		$	(24,718)		$	0	$	(28,597)
Other comprehensive income before reclassifications		(261)		(965)			(1,412)			0		(2,638)
Amount reclassified from accumulated other comprehensive income		(16)		—			1,914			—		1,898
Total change for the period		(277)		(965)			501			0		(740)
December 31, 2020		(456)		(4,665)			(24,216)			0		(29,337)
Other comprehensive income before reclassifications		256		573			1,780			0		2,608
Amount reclassified from accumulated other comprehensive income		183		—			2,049			—		2,231
Separation of Kyndryl		—		730			534			—		1,264
Total change for the period		438		1,303			4,362			0		6,103
December 31, 2021		(18)		(3,362)			(19,854)			(1)		(23,234)
Other comprehensive income before reclassifications		178		(229)			1,059			(1)		1,007
Amount reclassified from accumulated other comprehensive income		(295)		—			5,782	**		—		5,487
Total change for the period		(117)		(229)			6,841			(1)		6,494
December 31, 2022	$	(135)	$	(3,591)		$	(13,013)		$	(1)	$	(16,740)

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

** Includes the impact of a one-time, non-cash pension settlement charge of $5.9 billion ($4.4 billion net of tax). Refer to note V, “Retirement-Related Benefits,” for additional information.