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3 Months Ended

Jun. 30, 2023

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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 June 30, 2023 and 2022:

	Pretax		Tax (Expense)		Net of Tax
(Dollars in millions)	Amount		Benefit		Amount
For the three months ended June 30, 2023:
Foreign currency translation adjustments	$	(15)	$	—	$	(15)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	15	$	(1)	$	13
Reclassification of (gains) losses to net income		(1)		—		—
Total unrealized gains (losses) on cash flow hedges	$	14	$	(1)	$	13
Retirement-related benefit plans – amortization of net (gains) losses*		2		—		2
Other comprehensive income (loss)	$	1	$	(1)	$	—
For the three months ended June 30, 2022:
Foreign currency translation adjustments	$	(267)	$	—	$	(267)
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*	$	10	$	(3)	$	7
Other comprehensive income (loss)	$	(263)	$	(1)	$	(264)

* 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)
April 1, 2023	$	—	$	(921)	$	(142)	$	(1,062)
Other comprehensive income (loss)		13		(15)		2		—
June 30, 2023	$	13	$	(936)	$	(140)	$	(1,062)
April 1, 2022	$	3	$	(735)	$	(357)	$	(1,089)
Other comprehensive income (loss)		(4)		(267)		7		(264)
June 30, 2022	$	(1)	$	(1,002)	$	(350)	$	(1,353)

* Foreign currency translation adjustments are presented gross.