EQUITY

6 Months Ended

Sep. 30, 2022

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NOTE 11. EQUITY

The following tables present reclassifications and taxes related to items of other comprehensive income (loss) for the three and six months ended September 30, 2022 and 2021:

	Pretax		Tax (Expense)		Net of Tax
(Dollars in millions)	Amount		Benefit		Amount
For the three months ended September 30, 2022:
Foreign currency translation adjustments	$	(221)	$	—	$	(221)
Retirement-related benefit plans*:
Amortization of net (gains) losses	$	10	$	(3)	$	7
Total retirement-related benefit plans	$	10	$	(3)	$	7
Other comprehensive income (loss)	$	(211)	$	(3)	$	(214)
For the three months ended September 30, 2021:
Foreign currency translation adjustments	$	(127)	$	—	$	(127)
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)	$	(112)	$	(3)	$	(115)

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 12 – Retirement-Related Benefits for additional information.

	Pretax		Tax (Expense)		Net of Tax
(Dollars in millions)	Amount		Benefit		Amount
For the six months ended September 30, 2022:
Foreign currency translation adjustments	$	(488)	$	—	$	(488)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	(5)	$	2	$	(3)
Reclassification of (gains) losses to net income		(1)		—		(1)
Total unrealized gains (losses) on cash flow hedges	$	(6)	$	2	$	(4)
Retirement-related benefit plans*:
Amortization of net (gains) losses	$	20	$	(6)	$	14
Total retirement-related benefit plans	$	20	$	(6)	$	14
Other comprehensive income (loss)	$	(474)	$	(4)	$	(478)
For the six months ended September 30, 2021:
Foreign currency translation adjustments	$	(110)	$	—	$	(110)
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*:
Net (losses) gains arising during the period	$	(5)	$	2	$	(3)
Amortization of net (gains) losses		22		(6)		16
Total retirement-related benefit plans	$	17	$	(4)	$	13
Other comprehensive income (loss)	$	(90)	$	(4)	$	(94)

* 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 tables present 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)
July 1, 2022	$	(1)	$	(1,002)	$	(350)	$	(1,353)
Other comprehensive income (loss)**		—		(221)		7		(214)
September 30, 2022	$	(1)	$	(1,223)	$	(343)	$	(1,567)
July 1, 2021	$	—	$	(957)	$	(204)	$	(1,161)
Net transfers from Parent		—		—		(338)		(338)
Other comprehensive income (loss)**		3		(127)		8		(115)
September 30, 2021	$	3	$	(1,084)	$	(534)	$	(1,614)

	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)
April 1, 2022	$	3	$	(735)	$	(357)	$	(1,089)
Other comprehensive income (loss)**		(4)		(488)		14		(478)
September 30, 2022	$	(1)	$	(1,223)	$	(343)	$	(1,567)
April 1, 2021	$	—	$	(974)	$	(208)	$	(1,182)
Net transfers from Parent		—		—		(338)		(338)
Other comprehensive income (loss)**		3		(110)		13		(94)
September 30, 2021	$	3	$	(1,084)	$	(534)	$	(1,614)

* Foreign currency translation adjustments are presented gross.

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