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3 Months Ended

Jun. 30, 2024

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NOTE 12. EQUITY

The following table presents reclassifications and taxes related to items of other comprehensive income (loss) for the three months ended June 30, 2024 and 2023:

	Pretax		Tax (Expense)		Net-of-Tax
(Dollars in millions)	Amount		Benefit		Amount
For the three months ended June 30, 2024:
Foreign currency translation adjustments:
Foreign currency translation adjustments	$	(63)	$	—	$	(63)
Unrealized gains on net investment hedges		14		—		14
Total foreign currency translation adjustments	$	(49)	$	—	$	(49)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	$	(1)	$	(1)	$	(2)
Reclassification of (gains) losses to net income		—		—		—
Total unrealized gains (losses) on cash flow hedges	$	(1)	$	(1)	$	(2)
Retirement-related benefit plans – amortization of net (gains) losses*	$	4	$	(1)	$	3
Other comprehensive income (loss)	$	(46)	$	(2)	$	(48)
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)	$	—

* These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 13 – 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, 2024	$	—	$	(967)	$	(178)	$	(1,145)
Other comprehensive income (loss)		(2)		(49)		3		(48)
June 30, 2024	$	(1)	$	(1,016)	$	(175)	$	(1,192)
April 1, 2023	$	—	$	(921)	$	(142)	$	(1,062)
Other comprehensive income (loss)		13		(15)		2		—
June 30, 2023	$	13	$	(936)	$	(140)	$	(1,062)

* Foreign currency translation adjustments are presented gross.