(Dollars in millions)

Before Tax

Tax (Expense)/

Net of Tax

For the three months ended March 31, 2019:

Amount

Benefit

Amount

Other comprehensive income/(loss):

Foreign currency translation adjustments

$

$

$

Net changes related to available-for-sale securities:

Unrealized gains/(losses) arising during the period

$

)

$

$

)

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

—

—

—

Total net changes related to available-for-sale securities

$

)

$

$

)

Unrealized gains/(losses) on cash flow hedges:

Unrealized gains/(losses) arising during the period

$

)

$

$

)

Reclassification of (gains)/losses to:

Cost of services

)

)

Cost of sales

)

)

Cost of financing

)

SG&A expense

)

)

Other (income) and expense

)

Interest expense

)

Total unrealized gains/(losses) on cash flow hedges

$

)

$

$

)

Retirement-related benefit plans(1):

Net (losses)/gains arising during the period

$

)

$

$

)

Curtailments and settlements

Amortization of prior service (credits)/costs

)

)

Amortization of net (gains)/losses

)

Total retirement-related benefit plans

$

$

)

$

Other comprehensive income/(loss)

$

$

)

$

(1)

These AOCI components are included in the computation of net periodic pension cost. Refer to note 10, “Retirement-Related Benefits,” for additional information.

(Dollars in millions)

Before Tax

Tax (Expense)/

Net of Tax

For the three months ended March 31, 2018:

Amount

Benefit

Amount

Other comprehensive income/(loss):

Foreign currency translation adjustments

$

)

$

$

)

Net changes related to available-for-sale securities:

Unrealized gains/(losses) arising during the period

$

)

$

$

)

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

Total net changes related to available-for-sale securities

$

)

$

$

)

Unrealized gains/(losses) on cash flow hedges:

Unrealized gains/(losses) arising during the period

$

$

)

$

Reclassification of (gains)/losses to:

Cost of services

)

)

Cost of sales

)

Cost of financing*

)

SG&A expense

)

Other (income) and expense

)

)

Interest expense*

)

Total unrealized gains/(losses) on cash flow hedges

$

$

$

Retirement-related benefit plans(1):

Prior service costs/(credits)

$

)

$

$

)

Net (losses)/gains arising during the period

)

Curtailments and settlements

Amortization of prior service (credits)/costs

)

)

Amortization of net (gains)/losses

)

Total retirement-related benefit plans

$

$

)

$

Other comprehensive income/(loss)

$

$

)

$

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

$

$

)

$

)

$

$

)

Other comprehensive income before reclassifications

)

)

)

)

Amount reclassified from accumulated other comprehensive income

—

—

Total change for the period

$

)

$

$

$

)

$

March 31, 2019

$

$

)

$

)

$

)

$

)

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, 2018

$

$

)

$

)

$

$

)

Cumulative effect of a change in accounting principle **

)

)

)

Other comprehensive income before reclassifications

)

)

)

Amount reclassified from accumulated other comprehensive income

)

Total change for the period

$

$

)

$

$

)

$

March 31, 2018

$

$

)

$

)

$

)

$

)