EQUITY

3 Months Ended

12 Months Ended

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

EQUITY

EQUITY

NOTE 11. EQUITY

The following table presents reclassifications and taxes related to items of other comprehensive income (loss) for the three months ended June 30, 2022 and 2021:

	Pretax		Tax (Expense)		Net of Tax
(Dollars in millions)	Amount		Benefit		Amount
For the three months ended June 30, 2022:
Foreign currency translation adjustments	$	(267)	$	—	$	(267)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period		(5)		2		(3)
Reclassification of (gains) losses to net income		(1)		—		(1)
Total unrealized gains (losses) on cash flow hedges	$	(6)	$	2	$	(4)
Retirement-related benefit plans*:
Amortization of net (gains) losses	$	10	$	(3)	$	7
Total retirement-related benefit plans	$	10	$	(3)	$	7
Other comprehensive income (loss)	$	(263)	$	(1)	$	(264)
For the three months ended June 30, 2021:
Foreign currency translation adjustments	$	17	$	—	$	17
Retirement-related benefit plans*:
Net (losses) gains arising during the period	$	(5)	$	2	$	(3)
Amortization of net (gains) losses		10		(3)		7
Total retirement-related benefit plans	$	5	$	(1)	$	4
Other comprehensive income (loss)	$	22	$	(1)	$	21

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 12 – Retirement-Related Benefits for additional information.

The following table presents the components of accumulated other comprehensive income (loss), net of taxes:

	Net Unrealized		Foreign		Net Change		Accumulated
	Gain (Losses)		Currency		Retirement-		Other
	on Cash		Translation		Related		Comprehensive
(Dollars in millions)	Flow Hedges		Adjustments*		Benefit Plans		Income (Loss)
April 1, 2022	$	3	$	(735)	$	(357)	$	(1,089)
Other comprehensive income (loss)**		(4)		(267)		7		(264)
June 30, 2022	$	(1)	$	(1,002)	$	(350)	$	(1,353)
April 1, 2021	$	—	$	(974)	$	(208)	$	(1,182)
Other comprehensive income (loss)**		—		17		4		21
June 30, 2021	$	—	$	(957)	$	(204)	$	(1,161)

*Foreign currency translation adjustments are presented gross.

**No amounts were reclassified from accumulated other comprehensive income.

NOTE 11. EQUITY

The following table presents reclassifications and taxes related to items of other comprehensive income (loss) for the three months ended March 31, 2022 and 2021:

	Pretax		Tax (Expense)		Net of Tax
(Dollars in millions)	Amount		Benefit		Amount
For the three months ended March 31, 2022:
Foreign currency translation adjustments	$	(51)	$	—	$	(51)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period		1		—		1
Reclassification of (gains) losses to net income		(1)		—		(1)
Total unrealized gains (losses) on cash flow hedges	$	—	$	—	$	—
Retirement-related benefit plans*:
Net (losses) gains arising during the period	$	136	$	(45)	$	91
Curtailments and settlements		4		(1)		3
Amortization of net (gains) losses		16		(4)		12
Total retirement-related benefit plans	$	156	$	(50)	$	105
Other comprehensive income (loss)	$	105	$	(50)	$	54
For the three months ended March 31, 2021:
Foreign currency translation adjustments	$	(96)	$	—	$	(96)
Retirement-related benefit plans*:
Net (losses) gains arising during the period	$	5	$	(2)	$	3
Amortization of net (gains) losses		11		(4)		7
Total retirement-related benefit plans	$	16	$	(5)	$	10
Other comprehensive income (loss)	$	(81)	$	(5)	$	(86)

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 12 – Retirement-Related Benefits for additional information.

The following table presents the components of accumulated other comprehensive income (loss), net of taxes:

	Net Unrealized		Foreign		Net Change		Accumulated
	Gain (Losses)		Currency		Retirement-		Other
	on Cash		Translation		Related		Comprehensive
(Dollars in millions)	Flow Hedges		Adjustments*		Benefit Plans		Income (Loss)
January 1, 2022	$	3	$	(684)	$	(462)	$	(1,143)
Other comprehensive income (loss)**		—		(51)		105		54
March 31, 2022	$	3	$	(735)	$	(357)	$	(1,089)
January 1, 2021	$	—	$	(878)	$	(218)	$	(1,096)
Other comprehensive income (loss)**		—		(96)		10		(86)
March 31, 2021	$	—	$	(974)	$	(208)	$	(1,182)

* Foreign currency translation adjustments are presented gross.

** No amounts were reclassified from accumulated other comprehensive income.

NOTE 14. EQUITY

The following tables present reclassifications and taxes related to items of other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019:

(Dollars in millions)	Pretax		Tax (Expense)		Net of Tax
For the year ended December 31, 2021:	Amount		Benefit		Amount
Foreign currency translation adjustments	$	194	$	—	$	194
Unrealized gains (losses) on cash flow hedges
Unrealized gains (losses) arising during the period		4		—		4
Reclassification of (gains) losses to net income		(1)		—		(1)
Total unrealized gains (losses) on cash flow hedges		3		—		3
Retirement-related benefit plans*:
Prior service (credits) costs		1		(2)		(1)
Net (losses) gains arising during the period		72		(17)		54
Curtailments and settlements		3		(1)		2
Amortization of net (gains) losses		51		(13)		38
Total retirement-related benefit plans		127		(33)		94
Other comprehensive income (loss)	$	324	$	(33)	$	292

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 16 – Retirement-Related Benefits for additional information.

(Dollars in millions)	Pretax		Tax (Expense)		Net of Tax
For the year ended December 31, 2020:	Amount		Benefit		Amount
Foreign currency translation adjustments	$	129	$	—	$	129
Retirement-related benefit plans*:
Net (losses) gains arising during the period	$	(41)	$	13	$	(28)
Amortization of prior service (credits) costs		(1)		—		—
Amortization of net (gains) losses		36		(12)		24
Total retirement-related benefit plans	$	(6)	$	2	$	(4)
Other comprehensive income (loss)	$	123	$	2	$	125

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 16 – Retirement-Related Benefits for additional information.

(Dollars in millions)	Before Tax		Tax (Expense)		Net of Tax
For the year ended December 31, 2019:	Amount		Benefit		Amount
Foreign currency translation adjustments	$	11	$	—	$	11
Retirement-related benefit plans*:
Prior service costs (credits)	$	(1)	$	—	$	(1)
Net (losses) gains arising during the period		(84)		27		(57)
Amortization of net (gains) losses		27		(9)		18
Total retirement-related benefit plans	$	(57)	$	18	$	(39)
Other comprehensive income (loss)	$	(46)	$	18	$	(28)

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 16 – Retirement-Related Benefits for additional information.

The following table presents the components of accumulated other comprehensive income (loss), net of taxes:

	Net Unrealized
	Gains (Losses)		Foreign Currency		Net Change Retirement-		Accumulated Other
(Dollars in millions)	on Cash Flow Hedges		Translation Adjustments*		Related Benefit Plans		Comprehensive Income (Loss)
December 31, 2018	$	—	$	(1,019)	$	(175)	$	(1,193)
Other comprehensive income (loss)**		—		11		(39)		(28)
December 31, 2019	$	—	$	(1,007)	$	(214)	$	(1,221)
Other comprehensive income (loss)**		—		129		(4)		125
December 31, 2020	$	—	$	(878)	$	(218)	$	(1,096)
Net transfers from Parent		—		—		(339)		(339)
Other comprehensive income (loss)**		3		194		94		292
December 31, 2021	$	3	$	(684)	$	(463)	$	(1,143)

*Foreign currency translation adjustments are presented gross.

**No amounts were reclassified from accumulated other comprehensive income.