| | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | For the year ended December 31, 2025: | | Before Tax
Amount | | Tax (Expense)/
Benefit | | Net of Tax
Amount | | Other comprehensive income/(loss) | | | | | | | | Foreign currency translation adjustments | | $ | (972) | | | $ | 528 | | | $ | (445) | | | | | | | | | | | | | | | | | | | | | | | | Net unrealized gains/(losses) on available-for-sale securities | | $ | (1) | | | $ | 0 | | | $ | (1) | | | Unrealized gains/(losses) on cash flow hedges | | | | | | | | Unrealized gains/(losses) arising during the period | | $ | (66) | | | $ | 8 | | | $ | (58) | | | Reclassification of (gains)/losses to: | | | | | | | | Cost of services | | 27 | | | (7) | | | 20 | | | Cost of sales | | 15 | | | (4) | | | 11 | | | Cost of financing | | 4 | | | (1) | | | 3 | | | SG&A expense | | 6 | | | (2) | | | 4 | | | Other (income) and expense | | (525) | | | 132 | | | (393) | | | Interest expense | | 24 | | | (6) | | | 18 | | | Total unrealized gains/(losses) on cash flow hedges | | $ | (514) | | | $ | 121 | | | $ | (394) | | Retirement-related benefit plans (1) | | | | | | | | Prior service costs/(credits) | | $ | (469) | | | $ | 117 | | | $ | (351) | | | Net gains/(losses) arising during the period | | 392 | | | (168) | | | 224 | | | Curtailments and settlements | | 9 | | | (3) | | | 6 | | | Amortization of prior service costs/(credits) | | (7) | | | 2 | | | (5) | | | Amortization of net (gains)/losses | | 623 | | | (104) | | | 519 | | | Total retirement-related benefit plans | | $ | 548 | | | $ | (154) | | | $ | 394 | | | Other comprehensive income/(loss) | | $ | (939) | | | $ | 494 | | | $ | (445) | |
(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note U, “Retirement-Related Benefits,” for additional information. | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | For the year ended December 31, 2024: | | Before Tax
Amount | | Tax (Expense)/
Benefit | | Net of Tax
Amount | | Other comprehensive income/(loss) | | | | | | | | Foreign currency translation adjustments | | $ | 301 | | | $ | (324) | | | $ | (23) | | | | | | | | | | | | | | | | | | | | | | | | Net unrealized gains/(losses) on available-for-sale securities | | $ | 2 | | | $ | 0 | | | $ | 1 | | | Unrealized gains/(losses) on cash flow hedges | | | | | | | | Unrealized gains/(losses) arising during the period | | $ | 389 | | | $ | (113) | | | $ | 276 | | | Reclassification of (gains)/losses to: | | | | | | | | Cost of services | | (22) | | | 6 | | | (16) | | | Cost of sales | | (40) | | | 13 | | | (27) | | | Cost of financing | | 6 | | | (2) | | | 5 | | | SG&A expense | | (16) | | | 5 | | | (11) | | | Other (income) and expense | | 125 | | | (32) | | | 94 | | | Interest expense | | 31 | | | (8) | | | 24 | | | Total unrealized gains/(losses) on cash flow hedges | | $ | 474 | | | $ | (130) | | | $ | 343 | | Retirement-related benefit plans (1) | | | | | | | | Prior service costs/(credits) | | $ | (56) | | | $ | 11 | | | $ | (45) | | | Net gains/(losses) arising during the period | | 70 | | | (65) | | | 6 | | | Curtailments and settlements | | 3,159 | | | (719) | | | 2,441 | | | Amortization of prior service costs/(credits) | | (7) | | | 2 | | | (5) | | | Amortization of net (gains)/losses | | 975 | | | (201) | | | 775 | | | Total retirement-related benefit plans | | $ | 4,142 | | | $ | (971) | | | $ | 3,171 | | | Other comprehensive income/(loss) | | $ | 4,919 | | | $ | (1,426) | | | $ | 3,492 | |
(1)These AOCI components are included in the computation of net periodic pension cost and include the impact of pension settlement charges of $3.1 billion ($2.4 billion net of tax). Refer to note U, “Retirement-Related Benefits,” for additional information. Accumulated Other Comprehensive Income/(Loss) (net of tax) | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | For the year ended December 31, 2023: | | Before Tax
Amount | | Tax (Expense)/
Benefit | | Net of Tax
Amount | | Other comprehensive income/(loss) | | | | | | | | Foreign currency translation adjustments | | $ | 3 | | | $ | 100 | | | $ | 103 | | | | | | | | | | | | | | | | | | | | | | | | Net unrealized gains/(losses) on available-for-sale securities | | $ | 0 | | | $ | 0 | | | $ | 0 | | | Unrealized gains/(losses) on cash flow hedges | | | | | | | | Unrealized gains/(losses) arising during the period | | $ | 207 | | | $ | (63) | | | $ | 144 | | | Reclassification of (gains)/losses to: | | | | | | | | Cost of services | | 5 | | | (1) | | | 5 | | | Cost of sales | | (22) | | | 8 | | | (14) | | | Cost of financing | | 14 | | | (3) | | | 10 | | | SG&A expense | | (12) | | | 4 | | | (8) | | | Other (income) and expense | | (209) | | | 53 | | | (157) | | | Interest expense | | 66 | | | (17) | | | 49 | | | Total unrealized gains/(losses) on cash flow hedges | | $ | 47 | | | $ | (19) | | | $ | 28 | | Retirement-related benefit plans (1) | | | | | | | | Prior service costs/(credits) | | $ | 2 | | | $ | 0 | | | $ | 2 | | | Net gains/(losses) arising during the period | | (3,115) | | | 536 | | | (2,579) | | | Curtailments and settlements | | 5 | | | (1) | | | 4 | | | Amortization of prior service costs/(credits) | | (9) | | | 3 | | | (6) | | | Amortization of net (gains)/losses | | 515 | | | (88) | | | 427 | | | Total retirement-related benefit plans | | $ | (2,602) | | | $ | 450 | | | $ | (2,152) | | | Other comprehensive income/(loss) | | $ | (2,552) | | | $ | 531 | | | $ | (2,021) | |
(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note U, “Retirement-Related Benefits,” for additional information.
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