RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2021

RELATED PARTY TRANSACTIONS

Schedule of related party transactions, allocation of corporate expenses

	For the Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Selling, general and administrative expense	$	932	$	1,220	$	1,185
Interest expense		46		63		76
Other (income) and expense		10		4		(31)
Total expense and other (income)	$	989	$	1,287	$	1,230

Schedule of net parent investment reconciliation

	For the Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Cash pooling and general financing activities/other	$	(384)	$	(4,167)	$	(4,392)
Allocation of Parent’s corporate expenses/other		1,255		1,668		1,610
Related-party sales and purchases		2,440		2,991		2,944
Related-party intangible assets fee		63		80		38
Taxes (including items settled with Parent)		721		299		399
Issuance of common stock and reclassification of net parent investment		(4,095)		—		—
Total Net transfers (to) from Parent per Consolidated Statement of Equity	$	—	$	872	$	598
Taxes (including items settled with Parent)		(721)		(299)		(399)
Allocation of Parent’s stock-based compensation		(58)		(64)		(51)
Other*		749		(131)		(130)
Total Net transfers (to) from Parent per Consolidated Statement of Cash Flows	$	(30)	$	377	$	18

* Approximately $900 million of the net proceeds from the term loan and the sale of the Notes was transferred to IBM in conjunction with the Separation. See Note 11 – Borrowings.