| 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, 2022: | | Amount | | Benefit | | Amount | Other comprehensive income/(loss) | | | | | | | | | | Foreign currency translation adjustments | | $ | 176 | | $ | (406) | | $ | (229) | 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 | | $ | 241 | | $ | (64) | | $ | 178 | Reclassification of (gains)/losses to: | | | | | | | | | | Cost of services | | | (24) | | | 6 | | | (18) | Cost of sales | | | (99) | | | 28 | | | (70) | Cost of financing | | | 24 | | | (6) | | | 18 | SG&A expense | | | (38) | | | 11 | | | (28) | Other (income) and expense | | | (349) | | | 88 | | | (261) | Interest expense | | | 86 | | | (22) | | | 64 | Total unrealized gains/(losses) on cash flow hedges | | $ | (158) | | $ | 41 | | $ | (117) | Retirement-related benefit plans* | | | | | | | | | | Prior service costs/(credits) | | $ | 463 | | $ | (99) | | $ | 364 | Net (losses)/gains arising during the period | | | 878 | | | (183) | | | 695 | Curtailments and settlements | | | 5,970 | | | (1,490) | | | 4,480 | Amortization of prior service (credits)/costs | | | 12 | | | (3) | | | 9 | Amortization of net (gains)/losses | | | 1,596 | | | (304) | | | 1,293 | Total retirement-related benefit plans | | $ | 8,919 | | $ | (2,078) | | $ | 6,841 | Other comprehensive income/(loss) | | $ | 8,936 | | $ | (2,442) | | $ | 6,494 | | | | | | | | | | |
* | These AOCI components are included in the computation of net periodic pension cost and include the impact of a one-time, non-cash pension settlement charge of $5.9 billion ($4.4 billion net of tax). Refer to note V, “Retirement-Related Benefits,” for additional information. |
| | | | | | | | | | ($ in millions) | | | | | | | | | | | | Before Tax | | Tax (Expense)/ | | Net of Tax | For the year ended December 31, 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* | | | | | | | | | | 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 | | | | | | | | | | |
* | 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, 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* | | | | | | | | | | 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) | | | | | | | | | | |
* | 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) |
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, 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) | Other comprehensive income before reclassifications | | 178 | | | (229) | | | 1,059 | | | (1) | | | 1,007 | Amount reclassified from accumulated other comprehensive income | | (295) | | | — | | | 5,782 | ** | | — | | | 5,487 | Total change for the period | | (117) | | | (229) | | | 6,841 | | | (1) | | | 6,494 | December 31, 2022 | $ | (135) | | $ | (3,591) | | $ | (13,013) | | $ | (1) | | $ | (16,740) | | | | | | | | | | | | | | | |
* | Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax. |
** Includes the impact of a one-time, non-cash pension settlement charge of $5.9 billion ($4.4 billion net of tax). Refer to note V, “Retirement-Related Benefits,” for additional information.
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