| Reclassifications and taxes related to items of other comprehensive income |
| | | | | | | | | | ($ in millions) | | Before Tax | | Tax (Expense)/ | | Net of Tax | For the year ended December 31, 2019: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss) | | | | | | | | | | Foreign currency translation adjustments | | $ | (39) | | $ | 29 | | $ | (10) | 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 | | $ | (689) | | $ | 167 | | $ | (522) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (68) | | | 17 | | | (50) | Cost of sales | | | (51) | | | 15 | | | (37) | Cost of financing | | | 89 | | | (22) | | | 67 | SG&A expense | | | (53) | | | 14 | | | (39) | Other (income) and expense | | | (39) | | | 10 | | | (29) | Interest expense | | | 197 | | | (50) | | | 148 | Total unrealized gains/(losses) on cash flow hedges | | $ | (614) | | $ | 151 | | $ | (463) | Retirement-related benefit plans (1) | | | | | | | | | | Prior service costs/(credits) | | $ | (73) | | $ | 10 | | $ | (63) | Net (losses)/gains arising during the period | | | (120) | | | 52 | | | (68) | Curtailments and settlements | | | 41 | | | (12) | | | 29 | Amortization of prior service (credits)/costs | | | (9) | | | 5 | | | (4) | Amortization of net (gains)/losses | | | 1,843 | | | (371) | | | 1,471 | Total retirement-related benefit plans | | $ | 1,681 | | $ | (316) | | $ | 1,365 | Other comprehensive income/(loss) | | $ | 1,029 | | $ | (136) | | $ | 893 |
| (1) | These AOCI components are included in the computation of net periodic pension cost. Refer to note V, “Retirement-Related Benefits,” for additional information. |
| | | | | | | | | | ($ in millions) | | Before Tax | | Tax (Expense)/ | | Net of Tax | For the year ended December 31, 2018: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss) | | | | | | | | | | Foreign currency translation adjustments | | $ | (730) | | $ | (172) | | $ | (902) | 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 | | $ | (136) | | $ | 43 | | $ | (93) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (30) | | | 8 | | | (22) | Cost of sales | | | (8) | | | 3 | | | (5) | Cost of financing | | | 75 | | | (19) | | | 56 | SG&A expense | | | 0 | | | 0 | | | 0 | Other (income) and expense | | | 341 | | | (86) | | | 255 | Interest expense | | | 71 | | | (18) | | | 53 | Total unrealized gains/(losses) on cash flow hedges | | $ | 313 | | $ | (69) | | $ | 244 | Retirement-related benefit plans (1) | | | | | | | | | | Prior service costs/(credits) | | $ | (182) | | $ | 31 | | $ | (151) | Net (losses)/gains arising during the period | | | (2,517) | | | 576 | | | (1,941) | Curtailments and settlements | | | 11 | | | (2) | | | 9 | Amortization of prior service (credits)/costs | | | (73) | | | 5 | | | (68) | Amortization of net (gains)/losses | | | 2,966 | | | (632) | | | 2,334 | Total retirement-related benefit plans | | $ | 204 | | $ | (21) | | $ | 184 | Other comprehensive income/(loss) | | $ | (215) | | $ | (262) | | $ | (476) |
| (1) | These AOCI components are included in the computation of net periodic pension cost. Refer to note V, “Retirement-Related Benefits,” for additional information. |
| | | | | | | | | | ($ in millions) | | Before Tax | | Tax (Expense)/ | | Net of Tax | For the year ended December 31, 2017: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss) | | | | | | | | | | Foreign currency translation adjustments | | $ | 152 | | $ | 617 | | $ | 769 | Net changes related to available-for-sale securities | | | | | | | | | | Unrealized gains/(losses) arising during the period | | $ | 1 | | $ | (1) | | $ | 0 | Reclassification of (gains)/losses to other (income) and expense | | | 1 | | | 0 | | | 1 | 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 | | $ | (58) | | $ | 0 | | $ | (58) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (70) | | | 27 | | | (43) | Cost of sales | | | (3) | | | 1 | | | (3) | Cost of financing | | | 23 | | | (9) | | | 14 | SG&A expense | | | (11) | | | 3 | | | (9) | Other (income) and expense | | | (324) | | | 124 | | | (199) | Interest expense | | | 22 | | | (8) | | | 13 | Total unrealized gains/(losses) on cash flow hedges | | $ | (421) | | $ | 137 | | $ | (284) | Retirement-related benefit plans (1) | | | | | | | | | | Prior service costs/(credits) | | $ | 0 | | $ | 0 | | $ | 0 | Net (losses)/gains arising during the period | | | 682 | | | (201) | | | 481 | Curtailments and settlements | | | 19 | | | (5) | | | 14 | Amortization of prior service (credits)/costs | | | (88) | | | 29 | | | (58) | Amortization of net (gains)/losses | | | 2,889 | | | (1,006) | | | 1,883 | Total retirement-related benefit plans | | $ | 3,502 | | $ | (1,182) | | $ | 2,320 | Other comprehensive income/(loss) | | $ | 3,235 | | $ | (429) | | $ | 2,806 |
| (1) | These AOCI components are included in the computation of net periodic pension cost. Refer to note V, “Retirement-Related Benefits,” for additional information. |
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| 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 | ($ in millions) | | Hedges | | Adjustments* | | Plans | | Securities | | Income/(Loss) | December 31, 2016 | | $ | 319 | | $ | (3,603) | | $ | (26,116) | | $ | 2 | | $ | (29,398) | Other comprehensive income before reclassifications | | | (58) | | | 769 | | | 495 | | | 0 | | | 1,206 | Amount reclassified from accumulated other comprehensive income | | | (226) | | | 0 | | | 1,825 | | | 1 | | | 1,599 | Total change for the period | | | (284) | | | 769 | | | 2,320 | | | 1 | | | 2,806 | December 31, 2017 | | | 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 | | | (93) | | | (902) | | | (2,092) | | | (1) | | | (3,089) | Amount reclassified from accumulated other comprehensive income | | | 337 | | | — | | | 2,276 | | | — | | | 2,612 | Total change for the period | | | 244 | | | (902) | | | 184 | | | (1) | | | (476) | December 31, 2018 | | | 284 | | | (3,690) | | | (26,083) | | | 0 | | | (29,490) | Other comprehensive income before reclassifications | | | (522) | | | (10) | | | (131) | | | 1 | | | (663) | Amount reclassified from accumulated other comprehensive income | | | 59 | | | — | | | 1,496 | | | — | | | 1,556 | Total change for the period | | | (463) | | | (10) | | | 1,365 | | | 1 | | | 893 | December 31, 2019 | | $ | (179) | | $ | (3,700) | | $ | (24,718) | | $ | 0 | | $ | (28,597) |
* 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 B, “Accounting Changes,” for additional information.
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