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12 Months Ended

Dec. 31, 2021

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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		Foreign Currency		Net Change		Accumulated Other
	Gains (Losses)		Translation		Retirement-Related		Comprehensive
(Dollars in millions)	on Cash Flow Hedges		Adjustments*		Benefit Plans		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.