v3.19.1
Equity Activity (Tables)
 3 Months Ended
Mar. 31, 2019
Equity Activity  
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 March 31, 2019:

 

Amount

 

Benefit

 

Amount

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

$
171

 

$
0

 

$
172

 

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

 

$
(352

)

$
84

 

$
(268

)

Reclassification of (gains)/losses to:

 

 

 

 

 

 

 

Cost of services

 
(10

)
3

 
(7

)

Cost of sales

 
(18

)
5

 
(13

)

Cost of financing

 
29

 
(7

)
22

 

SG&A expense

 
(22

)
6

 
(16

)

Other (income) and expense

 
87

 
(22

)
65

 

Interest expense

 
33

 
(8

)
24

 

 

 

 

 

 

 

 

 

Total unrealized gains/(losses) on cash flow hedges

 

$
(254

)

$
61

 

$
(193

)

 

 

 

 

 

 

 

 

 

 

 

Retirement-related benefit plans(1):

 

 

 

 

 

 

 

Net (losses)/gains arising during the period

 

$
(4

)

$
1

 

$
(2

)

Curtailments and settlements

 
1

 
0

 
1

 

Amortization of prior service (credits)/costs

 
(3

)
1

 
(2

)

Amortization of net (gains)/losses

 
464

 
(130

)
334

 

 

 

 

 

 

 

 

 

Total retirement-related benefit plans

 

$
458

 

$
(128

)

$
330

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss)

 

$
375

 

$
(67

)

$
308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

$
(167

)

$
51

 

$
(115

)

Net changes related to available-for-sale securities:

 

 

 

 

 

 

 

Unrealized gains/(losses) arising during the period

 

$
(2

)

$
1

 

$
(2

)

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

 
0

 
0

 
0

 

 

 

 

 

 

 

 

 

Total net changes related to available-for-sale securities

 

$
(3

)

$
1

 

$
(2

)

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains/(losses) on cash flow hedges:

 

 

 

 

 

 

 

Unrealized gains/(losses) arising during the period

 

$
61

 

$
(9

)

$
51

 

Reclassification of (gains)/losses to:

 

 

 

 

 

 

 

Cost of services

 
(19

)
5

 
(14

)

Cost of sales

 
17

 
(5

)
12

 

Cost of financing*

 
18

 
(4

)
13

 

SG&A expense

 
18

 
(5

)
13

 

Other (income) and expense

 
(104

)
26

 
(78

)

Interest expense*

 
16

 
(4

)
12

 

 

 

 

 

 

 

 

 

Total unrealized gains/(losses) on cash flow hedges

 

$
7

 

$
3

 

$
10

 

 

 

 

 

 

 

 

 

 

 

 

Retirement-related benefit plans(1):

 

 

 

 

 

 

 

Prior service costs/(credits)

 

$
(1

)

$
0

 

$
(1

)

Net (losses)/gains arising during the period

 
2

 
(1

)
1

 

Curtailments and settlements

 
0

 
0

 
0

 

Amortization of prior service (credits)/costs

 
(19

)
5

 
(14

)

Amortization of net (gains)/losses

 
753

 
(203

)
550

 

 

 

 

 

 

 

 

 

Total retirement-related benefit plans

 

$
735

 

$
(199

)

$
537

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss)

 

$
573

 

$
(143

)

$
430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Reclassified to conform to current period presentation.

(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note 10, “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, 2019

 

$
284

 

$
(3,690

)

$
(26,083

)

$
0

 

$
(29,490

)

Other comprehensive income before reclassifications

 
(268

)
172

 
(2

)
(1

)
(99

)

Amount reclassified from accumulated other comprehensive income

 
75

 

—

 
333

 

—

 
407

 

 

 

 

 

 

 

 

 

 

 

 

 

Total change for the period

 

$
(193

)

$
172

 

$
330

 

$
(1

)

$
308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2019

 

$
90

 

$
(3,519

)

$
(25,753

)

$
(1

)

$
(29,182

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*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, 2018

 

$
35

 

$
(2,834

)

$
(23,796

)

$
3

 

$
(26,592

)

Cumulative effect of a change in accounting principle **

 
5

 
46

 
(2,471

)
(2

)
(2,422

)

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income before reclassifications

 
51

 
(115

)
0

 
(2

)
(65

)

Amount reclassified from accumulated other comprehensive income

 
(41

)
0

 
537

 
0

 
495

 

 

 

 

 

 

 

 

 

 

 

 

 

Total change for the period

 

$
10

 

$
(115

)

$
537

 

$
(2

)

$
430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2018

 

$
50

 

$
(2,903

)

$
(25,730

)

$
(1

)

$
(28,583

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

**Reflects the adoption of the FASB guidance on stranded tax effects, hedging and financial instruments. Refer to note 2, “Accounting Changes.”