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3 Months Ended

Mar. 31, 2022

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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.