| 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, 2021: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss) | | | | | | | | | | Foreign currency translation adjustments | | $ | 987 | | $ | (414) | | $ | 573 | 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 | | $ | 344 | | $ | (89) | | $ | 256 | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (43) | | | 11 | | | (32) | Cost of sales | | | 16 | | | (3) | | | 13 | Cost of financing | | | 22 | | | (6) | | | 17 | SG&A expense | | | 24 | | | (6) | | | 19 | Other (income) and expense | | | 157 | | | (40) | | | 118 | Interest expense | | | 65 | | | (16) | | | 49 | Total unrealized gains/(losses) on cash flow hedges | | $ | 587 | | $ | (149) | | $ | 438 | Retirement-related benefit plans(1) | | | | | | | | | | Prior service costs/(credits) | | $ | (51) | | $ | (1) | | $ | (52) | Net (losses)/gains arising during the period | | | 2,433 | | | (601) | | | 1,832 | Curtailments and settlements | | | 94 | | | (11) | | | 83 | Amortization of prior service (credits)/costs | | | 9 | | | 0 | | | 9 | Amortization of net (gains)/losses | | | 2,484 | | | (528) | | | 1,956 | Total retirement-related benefit plans | | $ | 4,969 | | $ | (1,140) | | $ | 3,828 | Other comprehensive income/(loss) | | $ | 6,542 | | $ | (1,703) | | $ | 4,839 | | | | | | | | | | |
(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note W, “Retirement-Related Benefits,” for additional information. | | | | | | | | | | ($ in millions) | | | | | | | | | | | | Before Tax | | Tax (Expense)/ | | Net of Tax | For the year ended December 31, 2020: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss) | | | | | | | | | | Foreign currency translation adjustments | | $ | (1,500) | | $ | 535 | | $ | (965) | Net changes related to available-for-sale securities | | | | | | | | | | Unrealized gains/(losses) arising during the period | | $ | (1) | | $ | 0 | | $ | 0 | Reclassification of (gains)/losses to other (income) and expense | | | — | | | — | | | — | Total net changes related to available-for-sale securities | | $ | (1) | | $ | 0 | | $ | 0 | Unrealized gains/(losses) on cash flow hedges | | | | | | | | | | Unrealized gains/(losses) arising during the period | | $ | (349) | | $ | 89 | | $ | (261) | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (23) | | | 6 | | | (18) | Cost of sales | | | (2) | | | 1 | | | (2) | Cost of financing | | | 27 | | | (7) | | | 20 | SG&A expense | | | 0 | | | 0 | | | 0 | Other (income) and expense | | | (101) | | | 25 | | | (75) | Interest expense | | | 78 | | | (20) | | | 58 | Total unrealized gains/(losses) on cash flow hedges | | $ | (370) | | $ | 94 | | $ | (277) | Retirement-related benefit plans(1) | | | | | | | | | | Prior service costs/(credits) | | $ | (37) | | $ | 7 | | $ | (29) | Net (losses)/gains arising during the period | | | (1,678) | | | 295 | | | (1,383) | Curtailments and settlements | | | 52 | | | (14) | | | 38 | Amortization of prior service (credits)/costs | | | 13 | | | (1) | | | 12 | Amortization of net (gains)/losses | | | 2,314 | | | (451) | | | 1,863 | Total retirement-related benefit plans | | $ | 664 | | $ | (163) | | $ | 501 | Other comprehensive income/(loss) | | $ | (1,206) | | $ | 466 | | $ | (740) | | | | | | | | | | |
(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note W, “Retirement-Related Benefits,” for additional information. | | | | | | | | | | ($ 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 W, “Retirement-Related Benefits,” for additional information.
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| Accumulated other comprehensive income/(loss) (net of tax) |
| | | | | | | | | | | | | | | ($ in millions) | | | | | | | | | | | | | | | | | | | | 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 | | Hedges | | Adjustments | * | Plans | | Securities | | Income/(Loss) | 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) | Other comprehensive income before reclassifications | | (261) | | | (965) | | | (1,412) | | | 0 | | | (2,638) | Amount reclassified from accumulated other comprehensive income | | (16) | | | — | | | 1,914 | | | — | | | 1,898 | Total change for the period | | (277) | | | (965) | | | 501 | | | 0 | | | (740) | December 31, 2020 | | (456) | | | (4,665) | | | (24,216) | | | 0 | | | (29,337) | Other comprehensive income before reclassifications | | 256 | | | 573 | | | 1,780 | | | 0 | | | 2,608 | Amount reclassified from accumulated other comprehensive income | | 183 | | | — | | | 2,049 | | | — | | | 2,231 | Separation of Kyndryl** | | — | | | 730 | | | 534 | | | — | | | 1,264 | Total change for the period | | 438 | | | 1,303 | | | 4,362 | | | 0 | | | 6,103 | December 31, 2021 | $ | (18) | | $ | (3,362) | | $ | (19,854) | | $ | (1) | | $ | (23,234) | | | | | | | | | | | | | | | |
* | Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax. |
** Refer to note C, “Separation of Kyndryl,” for additional information.
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