EQUITY (Tables)

9 Months Ended

Dec. 31, 2022

EQUITY

Reclassifications and taxes related to items of other comprehensive income (loss)

	Pretax		Tax (Expense)		Net of Tax
(Dollars in millions)	Amount		Benefit		Amount
For the three months ended December 31, 2022:
Foreign currency translation adjustments	$	260	$	—	$	260
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	(4)	$	—	$	(4)
Reclassification of (gains) losses to net income		2		—		2
Total unrealized gains (losses) on cash flow hedges	$	(2)	$	—	$	(2)
Retirement-related benefit plans*:
Amortization of net (gains) losses	$	10	$	(3)	$	7
Total retirement-related benefit plans	$	10	$	(3)	$	7
Other comprehensive income (loss)	$	267	$	(3)	$	265
For the three months ended December 31, 2021:
Foreign currency translation adjustments	$	400	$	—	$	400
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	$	1	$	—	$	1
Retirement-related benefit plans*:
Prior service costs (credits)	$	1	$	(2)	$	(1)
Net gains (losses) arising during the period		72		(18)		54
Curtailments and settlements		3		(1)		2
Amortization of net (gains) losses		19		(3)		16
Total retirement-related benefit plans	$	94	$	(24)	$	70
Other comprehensive income (loss)	$	495	$	(24)	$	470

* 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 nine months ended December 31, 2022:
Foreign currency translation adjustments	$	(229)	$	—	$	(229)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	(9)	$	2	$	(7)
Reclassification of (gains) losses to net income		1		—		1
Total unrealized gains (losses) on cash flow hedges	$	(8)	$	2	$	(6)
Retirement-related benefit plans*:
Amortization of net (gains) losses	$	30	$	(9)	$	21
Total retirement-related benefit plans	$	30	$	(9)	$	21
Other comprehensive income (loss)	$	(207)	$	(7)	$	(214)
For the nine months ended December 31, 2021:
Foreign currency translation adjustments	$	290	$	—	$	290
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 costs (credits)	$	1	$	(2)	$	(1)
Net gains (losses) arising during the period		67		(16)		51
Curtailments and settlements		3		(1)		2
Amortization of net (gains) losses		41		(9)		32
Total retirement-related benefit plans	$	112	$	(29)	$	84
Other comprehensive income (loss)	$	405	$	(29)	$	375

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

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

	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)
October 1, 2022	$	(1)	$	(1,223)	$	(343)	$	(1,567)
Other comprehensive income (loss)		(2)		260		7		265
December 31, 2022	$	(3)	$	(963)	$	(336)	$	(1,303)
October 1, 2021	$	3	$	(1,084)	$	(534)	$	(1,614)
Other comprehensive income (loss)		1		400		70		470
December 31, 2021	$	3	$	(684)	$	(463)	$	(1,143)

	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)		(6)		(229)		21		(214)
December 31, 2022	$	(3)	$	(963)	$	(336)	$	(1,303)
April 1, 2021	$	—	$	(974)	$	(208)	$	(1,182)
Net transfers from Parent		—		—		(338)		(338)
Other comprehensive income (loss)		3		290		84		375
December 31, 2021	$	3	$	(684)	$	(463)	$	(1,143)

* Foreign currency translation adjustments are presented gross.