| | | | | | | | | | (Dollars in millions) | | Before Tax | | Tax (Expense)/ | | Net of Tax | For the three months ended September 30, 2019: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss): | | | | | | | | | | Foreign currency translation adjustments | | $ | (509) | | $ | (109) | | $ | (618) | Net changes related to available-for-sale securities: | | | | | | | | | | Unrealized gains/(losses) arising during the period | | $ | 3 | | $ | (1) | | $ | 2 | Reclassification of (gains)/losses to other (income) and expense | | | — | | | — | | | — | 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 | | $ | (439) | | $ | 110 | | $ | (329) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (22) | | | 6 | | | (17) | Cost of sales | | | (10) | | | 3 | | | (7) | Cost of financing | | | 21 | | | (5) | | | 15 | SG&A expense | | | (11) | | | 3 | | | (8) | Other (income) and expense | | | 447 | | | (112) | | | 334 | Interest expense | | | 64 | | | (16) | | | 48 | Total unrealized gains/(losses) on cash flow hedges | | $ | 49 | | $ | (12) | | $ | 36 | Retirement-related benefit plans (1): | | | | | | | | | | Net (losses)/gains arising during the period | | $ | 0 | | $ | 0 | | $ | 0 | Curtailments and settlements | | | 3 | | | (1) | | | 2 | Amortization of prior service (credits)/costs | | | (3) | | | 3 | | | (1) | Amortization of net (gains)/losses | | | 461 | | | (128) | | | 333 | Total retirement-related benefit plans | | $ | 461 | | $ | (127) | | $ | 335 | Other comprehensive income/(loss) | | $ | 4 | | $ | (249) | | $ | (245) |
| (1) | These AOCI components are included in the computation of net periodic pension cost. Refer to note 10, “Retirement-Related Benefits,” for additional information. |
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 September 30, 2018: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss): | | | | | | | | | | Foreign currency translation adjustments | | $ | (22) | | $ | (22) | | $ | (44) | 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 | | $ | (46) | | $ | 11 | | $ | (35) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (1) | | | 0 | | | (1) | Cost of sales | | | (8) | | | 3 | | | (6) | Cost of financing* | | | 18 | | | (5) | | | 14 | SG&A expense | | | (7) | | | 2 | | | (5) | Other (income) and expense | | | 8 | | | (2) | | | 6 | Interest expense* | | | 18 | | | (5) | | | 14 | Total unrealized gains/(losses) on cash flow hedges | | $ | (18) | | $ | 4 | | $ | (14) | Retirement-related benefit plans (1): | | | | | | | | | | Prior service costs/(credits) | | $ | 0 | | $ | 0 | | $ | 0 | Net (losses)/gains arising during the period | | | (1) | | | 1 | | | (1) | Curtailments and settlements | | | 2 | | | 0 | | | 1 | Amortization of prior service (credits)/costs | | | (18) | | | 5 | | | (13) | Amortization of net (gains)/losses | | | 737 | | | (196) | | | 540 | Total retirement-related benefit plans | | $ | 719 | | $ | (191) | | $ | 527 | Other comprehensive income/(loss) | | $ | 678 | | $ | (209) | | $ | 470 |
* 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. |
Reclassifications and Taxes Related to Items of Other Comprehensive Income | | | | | | | | | | (Dollars in millions) | | Before Tax | | Tax (Expense)/ | | Net of Tax | For the nine months ended September 30, 2019: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss): | | | | | | | | | | Foreign currency translation adjustments | | $ | (333) | | $ | (72) | | $ | (405) | 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 | | $ | (798) | | $ | 196 | | $ | (601) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (52) | | | 13 | | | (38) | Cost of sales | | | (40) | | | 11 | | | (29) | Cost of financing | | | 73 | | | (18) | | | 55 | SG&A expense | | | (45) | | | 12 | | | (33) | Other (income) and expense | | | 331 | | | (83) | | | 248 | Interest expense | | | 150 | | | (38) | | | 112 | Total unrealized gains/(losses) on cash flow hedges | | $ | (380) | | $ | 93 | | $ | (287) | Retirement-related benefit plans (1): | | | | | | | | | | Net (losses)/gains arising during the period | | $ | 113 | | $ | (23) | | $ | 90 | Curtailments and settlements | | | 7 | | | (1) | | | 6 | Amortization of prior service (credits)/costs | | | (9) | | | 4 | | | (5) | Amortization of net (gains)/losses | | | 1,385 | | | (380) | | | 1,005 | Total retirement-related benefit plans | | $ | 1,496 | | $ | (401) | | $ | 1,095 | Other comprehensive income/(loss) | | $ | 784 | | $ | (380) | | $ | 404 |
| (1) | These AOCI components are included in the computation of net periodic pension cost. Refer to note 10, “Retirement-Related Benefits,” for additional information. |
Reclassifications and Taxes Related to Items of Other Comprehensive Income | | | | | | | | | | (Dollars in millions) | | Before Tax | | Tax (Expense)/ | | Net of Tax | For the nine months ended September 30, 2018: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss): | | | | | | | | | | Foreign currency translation adjustments | | $ | (535) | | $ | (128) | | $ | (663) | Net changes related to available-for-sale securities: | | | | | | | | | | Unrealized gains/(losses) arising during the period | | $ | (2) | | $ | 1 | | $ | (1) | Reclassification of (gains)/losses to other (income) and expense | | | — | | | — | | | — | Total net changes related to available-for-sale securities | | $ | (2) | | $ | 1 | | $ | (1) | Unrealized gains/(losses) on cash flow hedges: | | | | | | | | | | Unrealized gains/(losses) arising during the period | | $ | (134) | | $ | 39 | | $ | (95) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (29) | | | 7 | | | (22) | Cost of sales | | | 15 | | | (4) | | | 11 | Cost of financing* | | | 56 | | | (14) | | | 42 | SG&A expense | | | 14 | | | (4) | | | 10 | Other (income) and expense | | | 301 | | | (76) | | | 225 | Interest expense* | | | 52 | | | (13) | | | 39 | Total unrealized gains/(losses) on cash flow hedges | | $ | 274 | | $ | (63) | | $ | 210 | Retirement-related benefit plans (1): | | | | | | | | | | Prior service costs/(credits) | | $ | (1) | | $ | 0 | | $ | (1) | Net (losses)/gains arising during the period | | | 83 | | | (22) | | | 60 | Curtailments and settlements | | | 7 | | | (2) | | | 5 | Amortization of prior service (credits)/costs | | | (55) | | | 15 | | | (40) | Amortization of net (gains)/losses | | | 2,231 | | | (607) | | | 1,624 | Total retirement-related benefit plans | | $ | 2,264 | | $ | (616) | | $ | 1,648 | Other comprehensive income/(loss) | | $ | 2,001 | | $ | (807) | | $ | 1,194 |
* 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. |
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