EQUITY

9 Months Ended

Dec. 31, 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 nine months ended December 31, 2023 and 2022:

	Pretax		Tax (Expense)		Net-of-Tax
(Dollars in millions)	Amount		Benefit		Amount
For the three months ended December 31, 2023:
Foreign currency translation adjustments	$	183	$	—	$	183
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	(5)	$	4	$	—
Reclassification of (gains) losses to net income		(12)		—		(12)
Total unrealized gains (losses) on cash flow hedges	$	(17)	$	4	$	(12)
Retirement-related benefit plans*:
Amortization of prior service (credits) costs	$	—	$	(1)	$	(1)
Amortization of net (gains) losses		(1)		3		2
Total retirement-related benefit plans	$	(1)	$	2	$	1
Other comprehensive income (loss)	$	166	$	6	$	171
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
Other comprehensive income (loss)	$	267	$	(3)	$	265

* 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, 2023:
Foreign currency translation adjustments	$	58	$	—	$	58
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	21	$	1	$	22
Reclassification of (gains) losses to net income		(17)		—		(17)
Total unrealized gains (losses) on cash flow hedges	$	4	$	1	$	5
Retirement-related benefit plans*:
Amortization of prior service (credits) costs	$	1	$	(1)	$	(1)
Amortization of net (gains) losses		2		2		4
Total retirement-related benefit plans	$	3	$	1	$	4
Other comprehensive income (loss)	$	66	$	1	$	67
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
Other comprehensive income (loss)	$	(207)	$	(7)	$	(214)

* 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)
October 1, 2023	$	17	$	(1,045)	$	(139)	$	(1,167)
Other comprehensive income (loss)		(12)		183		1		171
December 31, 2023	$	5	$	(862)	$	(138)	$	(995)
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)

	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)		5		58		4		67
December 31, 2023	$	5	$	(862)	$	(138)	$	(995)
April 1, 2022	$	3	$	(735)	$	(357)	$	(1,089)
Other comprehensive income (loss)		(6)		(229)		21		(214)
December 31, 2022	$	(3)	$	(963)	$	(336)	$	(1,303)

* Foreign currency translation adjustments are presented gross.