Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Amounts related to cumulative basis adjustments for fair value hedges

At December 31, 2023 and 2022, the following amounts were recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:

($ in millions)
At December 31:	2023		2022
Short-term debt
Carrying amount of the hedged item	$	(1)	$	(199)
Cumulative hedging adjustments included in the carrying amount—assets/(liabilities)	(1)		1
Long-term debt
Carrying amount of the hedged item	(6,629)		(6,216)
Cumulative hedging adjustments included in the carrying amount—assets/(liabilities) (1)	61		72

(1)    Includes ($200) million and ($250) million of hedging adjustments on discontinued hedging relationships at December 31, 2023 and 2022, respectively.

Effect of derivative instruments in the Consolidated Income Statement

The total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value hedges, cash flow hedges, net investment hedges and derivatives not designated as hedging instruments are recorded and the total effect of hedge activity on these income and expense line items are as follows:

($ in millions)
	Total						Gains/(Losses) of Total Hedge Activity
For the year ended December 31:	2023		2022		2021		2023		2022		2021
Cost of services	$	21,051	$	21,062	$	19,147	$	(5)	$	24	$	43
Cost of sales	6,127		6,374		6,184		22		99		(16)
Cost of financing	382		406		534		(11)		2		1
SG&A expense	19,003		18,609		18,745		165		(211)		176
Other (income) and expense	(914)		5,803		873		17		(225)		(205)
Interest expense	1,607		1,216		1,155		(54)		6		3

($ in millions)
	Gain/(Loss) Recognized in Consolidated Income Statement
	Consolidated Income Statement Line Item	Recognized on Derivatives						Attributable to Risk Being Hedged(2)
For the year ended December 31:		2023		2022		2021		2023		2022		2021
Derivative instruments in fair value hedges (1)
Interest rate contracts	Cost of financing	$	(17)	$	(73)	$	(1)	$	(2)	$	85	$	18
	Interest expense	(83)		(257)		(2)		(11)		299		53
Derivative instruments not designated as hedging instruments
Foreign exchange contracts	Other (income) and expense	(192)		(492)		(48)		N/A		N/A		N/A
Equity contracts	SG&A expense	153		(249)		201		N/A		N/A		N/A
	Other (income) and expense	—		(83)		—		N/A		N/A		N/A
Total		$	(140)	$	(1,153)	$	150	$	(13)	$	384	$	71

($ in millions)
	Gain/(Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income
For the year ended	Recognized in OCI						Consolidated Income Statement Line Item	Reclassified from AOCI						Amounts Excluded from Effectiveness Testing (3)
December 31:	2023		2022		2021			2023		2022		2021		2023		2022		2021
Derivative instruments in cash flow hedges
Interest rate contracts	$	—	$	—	$	—	Cost of financing	$	(3)	$	(4)	$	(4)	$	—	$	—	$	—
							Interest expense	(15)		(14)		(13)		—		—		—
Foreign exchange contracts							Cost of services	(5)		24		43		—		—		—
Amount included in the assessment of effectiveness	213		241		344		Cost of sales	22		99		(16)		—		—		—
Amount excluded from the assessment of effectiveness	(6)		—		—		Cost of financing	(11)		(21)		(18)		—		—		—
							SG&A expense	12		38		(24)		—		—		—
							Other (income) and expense	239		349		(157)		(29)		—		—
							Interest expense	(51)		(72)		(52)		—		—		—
Instruments in net investment hedges (4)
Foreign exchange contracts	(397)		1,613		1,644		Cost of financing	—		—		—		22		14		6
							Interest expense	—		—		—		105		50		17
Total	$	(190)	$	1,854	$	1,989		$	189	$	400	$	(243)	$	98	$	64	$	23

(1)    The amount includes changes in clean fair values of the derivative instruments in fair value hedging relationships and the periodic accrual for coupon payments required under these derivative contracts.

(2)    The amount includes basis adjustments to the carrying value of the hedged item recorded during the period and amortization of basis adjustments recorded on de-designated hedging relationships during the period.

(3)    The company’s policy is to recognize all fair value changes in amounts excluded from effectiveness testing in net income each period.

(4)    Instruments in net investment hedges include derivative and non-derivative instruments with the amounts recognized in OCI providing an offset to the translation of foreign subsidiaries.

N/A–Not applicable