Other (Income) and Expense (Tables)

3 Months Ended

Mar. 31, 2023

Other (Income) and Expense.

Schedule of other (income) and expense

(Dollars in millions)
For the three months ended March 31:	2023		2022
Other (income) and expense:
Foreign currency transaction losses/(gains)*	$	88	$	(176)
(Gains)/losses on derivative instruments		(142)		102
Interest income		(170)		(17)
Net (gains)/losses from securities and investment assets		5		218	**
Retirement-related costs/(income)		(5)		202
OtherÈ		(22)		(83)
Total other (income) and expense	$	(245)	$	246

* The company uses financial hedging instruments to limit specific currency risks related to foreign currency-based transactions. The hedging program does not hedge 100 percent of currency exposures and defers, versus eliminates, the impact of currency. Refer to note 16, “Derivative Financial Instruments,” for additional information on foreign exchange risk.

** Includes an unrealized loss on Kyndryl retained shares of $222 million. See note 5, “Acquisitions & Divestitures,” for additional information.

^È Other primarily consists of (gains)/losses from divestitures and dispositions of land/buildings.