Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Financial Assets and Liabilities

Effect of Derivative Instruments in the Combined Income Statement

					Gains (Losses) from
(Dollars in millions)	Total				Hedge Activity
For the three months ended September 30:	2021		2020		2021		2020
Cost of services	$	4,182	$	4,332	$	2	$	3
Selling, general and administrative expenses		854		654		—		(2)
Other (income) and expense		(17)		8		5		1

	Gain (Loss) Recognized in Combined Income Statement
	Combined	Recognized on				Attributable to Risk
(Dollars in millions)	Income Statement	Derivatives				Being Hedged
For the three months ended September 30:	Line Item	2021		2020		2021		2020
Derivative instruments not designated as hedging instruments:
Foreign exchange contracts	Other (income) and expense	$	1	$	—		NA		NA
Total		$	1	$	—	$	—	$	—

	Gain (Loss) Recognized in Combined Income Statement and Other Comprehensive Income
(Dollars in millions)					Combined	Reclassified				Amounts Excluded from
For the three months	Recognized in OCI				Income Statement	from AOCI				Effectiveness Testing (1)
ended September 30:	2021		2020		Line Item	2021		2020		2021		2020
Derivative instruments in cash flow hedges:
Foreign exchange contracts	$	3	$	—	Cost of services	$	2	$	3	$	—	$	—
					Selling, general and administrative expenses		—		(2)		—		—
					Other (income) and expense		4		1		—		—
Total	$	3	$	—		$	6	$	3	$	—	$	—

(1) The Company’s policy is to recognize all fair value changes in amounts excluded from effectiveness testing in net income each period.

NA - not applicable

					Gains (Losses) from
(Dollars in millions)	Total				Hedge Activity
For the nine months ended September 30:	2021		2020		2021		2020
Cost of services	$	12,727	$	12,876	$	11	$	5
Selling, general and administrative expenses		2,421		2,123		(6)		2
Other (income) and expense		16		17		(3)		10

	Gain (Loss) Recognized in Combined Income Statement
	Combined	Recognized on				Attributable to Risk
(Dollars in millions)	Income Statement	Derivatives				Being Hedged
For the nine months ended September 30:	Line Item	2021		2020		2021		2020
Derivative instruments not designated as hedging instruments:
Foreign exchange contracts	Other (income) and expense	$	1	$	—		NA		NA
Total		$	1	$	—	$	—	$	—

	Gain (Loss) Recognized in Combined Income Statement and Other Comprehensive Income
(Dollars in millions)					Combined	Reclassified				Amounts Excluded from
For the nine months	Recognized in OCI				Income Statement	from AOCI				Effectiveness Testing (1)
ended September 30:	2021		2020		Line Item	2021		2020		2021		2020
Derivative instruments in cash flow hedges:
Foreign exchange contracts	$	3	$	—	Cost of services	$	11	$	5	$	—	$	—
					Selling, general and administrative expenses		(6)		2		—		—
					Other (income) and expense		(4)		10		—		—
Total	$	3	$	—		$	1	$	17	$	—	$	—

(1) The Company’s policy is to recognize all fair value changes in amounts excluded from effectiveness testing in net income each period.

NA - not applicable