EQUITY (Tables)

12 Months Ended

Mar. 31, 2024

EQUITY

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

(Dollars in millions)	Pretax		Tax (Expense)		Net-of-Tax
For the year ended March 31, 2024	Amount		Benefit		Amount
Foreign currency translation adjustments:
Foreign currency translation adjustments	$	(36)	$	—	$	(36)
Unrealized losses on net investment hedges		(11)		—		(11)
Total foreign currency translation adjustments	$	(47)	$	—	$	(47)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	22	$	(1)	$	21
Reclassification of (gains) losses to net income		(21)		—		(21)
Total unrealized gains (losses) on cash flow hedges	$	1	$	(1)	$	—
Retirement-related benefit plans*:
Prior service (credits) costs	$	(3)	$	1	$	(2)
Net gains (losses) arising during the period		(56)		10		(45)
Curtailments and settlements		10		(2)		8
Amortization of prior service (credits) costs		1		(0)		1
Amortization of net (gains) losses		5		(2)		3
Total retirement-related benefit plans	$	(42)	$	7	$	(36)
Other comprehensive income (loss)	$	(88)	$	6	$	(82)

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 16 – Retirement-Related Benefits for additional information.

(Dollars in millions)	Pretax		Tax (Expense)		Net-of-Tax
For the year ended March 31, 2023	Amount		Benefit		Amount
Foreign currency translation adjustments	$	(186)	$	—	$	(186)
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	$	(3)	$	—	$	(2)
Retirement-related benefit plans*:
Prior service (credits) costs	$	4	$	—	$	3
Net gains (losses) arising during the period		175		—		175
Curtailments and settlements		10		(2)		8
Amortization of prior service (credits) costs		1		—		1
Amortization of net (gains) losses		40		(11)		29
Total retirement-related benefit plans	$	229	$	(14)	$	215
Other comprehensive income (loss)	$	40	$	(14)	$	27

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 16 – Retirement-Related Benefits for additional information.

(Dollars in millions)	Pretax		Tax (Expense)		Net-of-Tax
For the three months ended March 31, 2022:	Amount		Benefit		Amount
Foreign currency translation adjustments	$	(51)	$	—	$	(51)
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	$	—	$	—	$	—
Retirement-related benefit plans*:
Net gains (losses) arising during the period	$	136	$	(45)	$	91
Curtailments and settlements		4		(1)		3
Amortization of net (gains) losses		16		(4)		12
Total retirement-related benefit plans	$	156	$	(50)	$	105
Other comprehensive income (loss)	$	105	$	(50)	$	54

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 16 – Retirement-Related Benefits for additional information.

(Dollars in millions)	Pretax		Tax (Expense)		Net-of-Tax
For the year ended December 31, 2021:	Amount		Benefit		Amount
Foreign currency translation adjustments	$	194	$	—	$	194
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 (credits) costs	$	1	$	(2)	$	(1)
Net gains (losses) arising during the period		72		(17)		54
Curtailments and settlements		3		(1)		2
Amortization of net (gains) losses		51		(13)		38
Total retirement-related benefit plans	$	127	$	(33)	$	94
Other comprehensive income (loss)	$	324	$	(33)	$	292

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 16 – Retirement-Related Benefits for additional information.

Accumulated other comprehensive income (loss), net of taxes

	Net Unrealized		Foreign Currency		Net Change in		Accumulated Other
	Gains (Losses)		Translation		Retirement-Related		Comprehensive
(Dollars in millions)	on Cash Flow Hedges		Adjustments*		Benefit Plans		Income (Loss)
December 31, 2020	$	—	$	(878)	$	(218)	$	(1,096)
Net transfers from Parent		—		—		(339)		(339)
Other comprehensive income (loss)		3		194		94		292
December 31, 2021	$	3	$	(684)	$	(463)	$	(1,143)
Other comprehensive income (loss)		—		(51)		105		54
March 31, 2022	$	3	$	(735)	$	(357)	$	(1,089)
Other comprehensive income (loss)		(2)		(186)		215		27
March 31, 2023	$	—	$	(921)	$	(142)	$	(1,062)
Other comprehensive income (loss)		—		(47)		(36)		(82)
March 31, 2024	$	—	$	(967)	$	(178)	$	(1,145)

* Foreign currency translation adjustments are presented gross.