Equity Activity (Tables)

9 Months Ended

Sep. 30, 2021

Equity Activity

Reclassifications and taxes related to items of other comprehensive income

Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)

(Dollars in millions)	Pretax		Tax (Expense)		Net of Tax
For the three months ended September 30, 2021:	Amount		Benefit		Amount
Other comprehensive income (loss):
Foreign currency translation adjustments	$	(125)	$	—	$	(125)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	3	$	—	$	3
Total unrealized gains (losses) on cash flow hedges	$	3	$	—	$	3
Retirement-related benefit plans*:
Amortization of net (gains) losses	$	12	$	(3)	$	8
Total retirement-related benefit plans	$	12	$	(3)	$	8
Other comprehensive income (loss)	$	(110)	$	(3)	$	(114)

* These AOCI components are included in the computation of net periodic pension cost. Refer to note 12, “Retirement-Related Benefits,” for additional information.

Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)

(Dollars in millions)	Pretax		Tax (Expense)		Net of Tax
For the three months ended September 30, 2020:	Amount		Benefit		Amount
Other comprehensive income (loss):
Foreign currency translation adjustments	$	121	$	—	$	121
Retirement-related benefit plans*:
Net (losses) gains arising during the period	$	—	$	1	$	1
Amortization of net (gains) losses		9		(3)		6
Total retirement-related benefit plans	$	9	$	(2)	$	7
Other comprehensive income (loss)	$	131	$	(2)	$	128

* These AOCI components are included in the computation of net periodic pension cost. Refer to note 12, “Retirement-Related Benefits,” for additional information.

Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)

(Dollars in millions)	Pretax		Tax (Expense)		Net of Tax
For the nine months ended September 30, 2021:	Amount		Benefit		Amount
Other comprehensive income (loss):
Foreign currency translation adjustments	$	(203)	$	—	$	(203)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	3	$	—	$	3
Total unrealized gains (losses) on cash flow hedges	$	3	$	—	$	3
Retirement-related benefit plans*:
Amortization of net (gains) losses	$	32	$	(10)	$	22
Total retirement-related benefit plans	$	32	$	(10)	$	22
Other comprehensive income (loss)	$	(168)	$	(10)	$	(178)

* These AOCI components are included in the computation of net periodic pension cost. Refer to note 12, “Retirement-Related Benefits,” for additional information.

Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)

(Dollars in millions)	Pretax		Tax (Expense)		Net of Tax
For the nine months ended September 30, 2020:	Amount		Benefit		Amount
Other comprehensive income (loss):
Foreign currency translation adjustments	$	(1)	$	—	$	(1)
Retirement-related benefit plans*:
Net (losses) gains arising during the period	$	—	$	—	$	1
Amortization of net (gains) losses		27		(9)		18
Total retirement-related benefit plans	$	27	$	(8)	$	19
Other comprehensive income (loss)	$	26	$	(8)	$	18

* These AOCI components are included in the computation of net periodic pension cost. Refer to note 12, “Retirement-Related Benefits,” for additional information.

Accumulated other comprehensive income (loss) (net of tax)

Accumulated Other Comprehensive Income (Loss) (net of tax)

					Net Change
	Net Unrealized		Foreign		Retirement-		Accumulated
	Gain (Losses)		Currency		Related		Other
	on Cash		Translation		Benefit		Comprehensive
(Dollars in millions)	Flow Hedges		Adjustments*		Plans		Income (Loss)
January 1, 2021	$	—	$	(882)	$	(218)	$	(1,100)
Net transfers from Parent		—		—		(338)		(338)
Other comprehensive income (loss)**		3		(203)		22		(178)
September 30, 2021	$	3	$	(1,084)	$	(534)	$	(1,615)

* Foreign currency translation adjustments are presented gross.

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

					Net Change
	Net Unrealized		Foreign		Retirement-		Accumulated
	Gain (Losses)		Currency		Related		Other
	on Cash		Translation		Benefit		Comprehensive
(Dollars in millions)	Flow Hedges		Adjustments*		Plans		Income (Loss)
January 1, 2020	$	—	$	(1,007)	$	(214)	$	(1,220)
Other comprehensive income (loss)**		—		(1)		19		18
September 30, 2020	$	—	$	(1,007)	$	(195)	$	(1,202)

* Foreign currency translation adjustments are presented gross.

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