EQUITY

6 Months Ended

Sep. 30, 2023

EQUITY

EQUITY

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, 2023 and 2022:

	Pretax		Tax (Expense)		Net-of-Tax
(Dollars in millions)	Amount		Benefit		Amount
For the three months ended September 30, 2023:
Foreign currency translation adjustments	$	(109)	$	—	$	(109)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	11	$	(4)	$	7
Reclassification of (gains) losses to net income		(4)		1		(3)
Total unrealized gains (losses) on cash flow hedges	$	7	$	(3)	$	4
Retirement-related benefit plans*:
Amortization of prior service (credits) costs	$	—	$	—	$	—
Amortization of net (gains) losses		1		—		1
Total retirement-related benefit plans	$	1	$	—	$	1
Other comprehensive income (loss)	$	(101)	$	(3)	$	(105)
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
Other comprehensive income (loss)	$	(211)	$	(3)	$	(214)

	Pretax		Tax (Expense)		Net-of-Tax
(Dollars in millions)	Amount		Benefit		Amount
For the six months ended September 30, 2023:
Foreign currency translation adjustments	$	(125)	$	—	$	(125)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	26	$	(5)	$	21
Reclassification of (gains) losses to net income		(5)		1		(4)
Total unrealized gains (losses) on cash flow hedges	$	21	$	(4)	$	17
Retirement-related benefit plans*:
Amortization of prior service (credits) costs	$	1	$	—	$	1
Amortization of net (gains) losses		3		(1)		2
Total retirement-related benefit plans	$	4	$	(1)	$	3
Other comprehensive income (loss)	$	(100)	$	(5)	$	(104)
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
Other comprehensive income (loss)	$	(474)	$	(4)	$	(478)

* 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, 2023	$	13	$	(936)	$	(140)	$	(1,062)
Other comprehensive income (loss)		4		(109)		1		(105)
September 30, 2023	$	17	$	(1,045)	$	(139)	$	(1,167)
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)

	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)		17		(125)		3		(104)
September 30, 2023	$	17	$	(1,045)	$	(139)	$	(1,167)
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)

* Foreign currency translation adjustments are presented gross.