| | | | | | | | | | (Dollars in millions) | | Before Tax | | Tax (Expense)/ | | Net of Tax | For the three months ended June 30, 2021: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss): | | | | | | | | | | Foreign currency translation adjustments | | $ | 28 | | $ | 44 | | $ | 72 | 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 | | $ | (34) | | $ | 9 | | $ | (26) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (7) | | | 2 | | | (5) | Cost of sales | | | 10 | | | (3) | | | 8 | Cost of financing | | | 6 | | | (1) | | | 4 | SG&A expense | | | 16 | | | (4) | | | 12 | Other (income) and expense | | | 49 | | | (12) | | | 37 | Interest expense | | | 16 | | | (4) | | | 12 | Total unrealized gains/(losses) on cash flow hedges | | $ | 56 | | $ | (14) | | $ | 42 | Retirement-related benefit plans (1): | | | | | | | | | | Prior service costs/(credits) | | $ | 0 | | $ | 0 | | $ | 0 | Net (losses)/gains arising during the period | | | 2 | | | 10 | | | 11 | Curtailments and settlements | | | 16 | | | (5) | | | 11 | Amortization of prior service (credits)/costs | | | 1 | | | 1 | | | 1 | Amortization of net (gains)/losses | | | 643 | | | (175) | | | 467 | Total retirement-related benefit plans | | $ | 661 | | $ | (170) | | $ | 491 | Other comprehensive income/(loss) | | $ | 745 | | $ | (140) | | $ | 605 |
| (1) | These accumulated other comprehensive income (AOCI) components are included in the computation of net periodic pension cost. Refer to note 17, “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 June 30, 2020: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss): | | | | | | | | | | Foreign currency translation adjustments | | $ | 4 | | $ | 135 | | $ | 139 | 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 | | $ | (36) | | $ | 9 | | $ | (26) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | 1 | | | 0 | | | 1 | Cost of sales | | | (9) | | | 3 | | | (7) | Cost of financing | | | 7 | | | (2) | | | 5 | SG&A expense | | | (7) | | | 2 | | | (5) | Other (income) and expense | | | (70) | | | 18 | | | (52) | Interest expense | | | 19 | | | (5) | | | 15 | Total unrealized gains/(losses) on cash flow hedges | | $ | (94) | | $ | 25 | | $ | (70) | Retirement-related benefit plans (1): | | | | | | | | | | Prior service costs/(credits) | | $ | — | | $ | 0 | | $ | 0 | Net (losses)/gains arising during the period | | | 57 | | | (22) | | | 35 | Curtailments and settlements | | | 13 | | | (4) | | | 9 | Amortization of prior service (credits)/costs | | | 0 | | | 1 | | | 1 | Amortization of net (gains)/losses | | | 566 | | | (155) | | | 411 | Total retirement-related benefit plans | | $ | 637 | | $ | (180) | | $ | 457 | Other comprehensive income/(loss) | | $ | 548 | | $ | (21) | | $ | 527 |
| (1) | These AOCI components are included in the computation of net periodic pension cost. Refer to note 17, “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 six months ended June 30, 2021: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss): | | | | | | | | | | Foreign currency translation adjustments | | $ | 577 | | $ | (184) | | $ | 393 | 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 | | $ | 153 | | $ | (39) | | $ | 114 | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (21) | | | 5 | | | (16) | Cost of sales | | | 32 | | | (8) | | | 24 | Cost of financing | | | 12 | | | (3) | | | 9 | SG&A expense | | | 31 | | | (8) | | | 23 | Other (income) and expense | | | 165 | | | (41) | | | 123 | Interest expense | | | 31 | | | (8) | | | 24 | Total unrealized gains/(losses) on cash flow hedges | | $ | 404 | | $ | (102) | | $ | 301 | Retirement-related benefit plans (1): | | | | | | | | | | Prior service costs/(credits) | | $ | 0 | | $ | 0 | | $ | 0 | Net (losses)/gains arising during the period | | | 22 | | | 4 | | | 25 | Curtailments and settlements | | | 34 | | | (10) | | | 23 | Amortization of prior service (credits)/costs | | | 4 | | | 0 | | | 4 | Amortization of net (gains)/losses | | | 1,291 | | | (352) | | | 938 | Total retirement-related benefit plans | | $ | 1,350 | | $ | (359) | | $ | 991 | Other comprehensive income/(loss) | | $ | 2,330 | | $ | (645) | | $ | 1,685 |
| (1) | These AOCI components are included in the computation of net periodic pension cost. Refer to note 17, “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 six months ended June 30, 2020: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss): | | | | | | | | | | Foreign currency translation adjustments | | $ | (915) | | $ | 13 | | $ | (902) | 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 | | $ | (216) | | $ | 55 | | $ | (162) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (9) | | | 2 | | | (6) | Cost of sales | | | (18) | | | 5 | | | (13) | Cost of financing | | | 15 | | | (4) | | | 11 | SG&A expense | | | (17) | | | 4 | | | (13) | Other (income) and expense | | | 19 | | | (5) | | | 15 | Interest expense | | | 41 | | | (10) | | | 31 | Total unrealized gains/(losses) on cash flow hedges | | $ | (184) | | $ | 47 | | $ | (137) | Retirement-related benefit plans (1): | | | | | | | | | | Prior service costs/(credits) | | $ | (4) | | $ | 1 | | $ | (3) | Net (losses)/gains arising during the period | | | 65 | | | (24) | | | 41 | Curtailments and settlements | | | 21 | | | (6) | | | 15 | Amortization of prior service (credits)/costs | | | 1 | | | 1 | | | 2 | Amortization of net (gains)/losses | | | 1,136 | | | (312) | | | 824 | Total retirement-related benefit plans | | $ | 1,219 | | $ | (341) | | $ | 879 | Other comprehensive income/(loss) | | $ | 121 | | $ | (281) | | $ | (160) |
| (1) | These AOCI components are included in the computation of net periodic pension cost. Refer to note 17, “Retirement-Related Benefits,” for additional information. |
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