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. |
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