Equity Activity (Tables)

6 Months Ended

Jun. 30, 2025

Stockholders' Equity Note [Abstract]

Reclassifications and taxes related to items of other comprehensive income


(Dollars in millions)	Before Tax Amount		Tax (Expense)/ Benefit		Net of Tax Amount
For the three months ended June 30, 2025:
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(613)	$	399	$	(215)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	(5)	$	1	$	(4)
Reclassification of (gains)/losses to other (income) and expense	—		—		—
Total net changes related to available-for-sale securities	$	(5)	$	1	$	(4)
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	(82)	$	24	$	(59)
Reclassification of (gains)/losses to:
Cost of services	4		(1)		3
Cost of sales	5		(2)		4
Cost of financing	1		0		1
SG&A expense	2		(1)		1
Other (income) and expense	(436)		110		(327)
Interest expense	6		(1)		4
Total unrealized gains/(losses) on cash flow hedges	$	(501)	$	128	$	(373)
Retirement-related benefit plans: (1)
Prior service costs/(credits)	$	0	$	0	$	0
Net gains/(losses) arising during the period	0		8		8
Curtailments and settlements	5		(2)		3
Amortization of prior service costs/(credits)	(2)		1		(1)
Amortization of net (gains)/losses	157		(42)		115
Total retirement-related benefit plans	$	160	$	(35)	$	125
Other comprehensive income/(loss)	$	(959)	$	493	$	(466)

(1)These accumulated other comprehensive income (AOCI) components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information.


(Dollars in millions)	Before Tax Amount		Tax (Expense)/ Benefit		Net of Tax Amount
For the three months ended June 30, 2024:
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	2	$	(68)	$	(66)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	1	$	0	$	0
Reclassification of (gains)/losses to other (income) and expense	—		—		—
Total net changes related to available-for-sale securities	$	1	$	0	$	0
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	103	$	(28)	$	75
Reclassification of (gains)/losses to:
Cost of services	(9)		3		(7)
Cost of sales	(15)		5		(10)
Cost of financing	2		0		1
SG&A expense	(7)		2		(5)
Other (income) and expense	(21)		5		(16)
Interest expense	8		(2)		6
Total unrealized gains/(losses) on cash flow hedges	$	61	$	(16)	$	45
Retirement-related benefit plans: (1)
Prior service costs/(credits)	$	—	$	—	$	—
Net gains/(losses) arising during the period	0		2		2
Curtailments and settlements	2		(1)		2
Amortization of prior service costs/(credits)	(2)		0		(1)
Amortization of net (gains)/losses	258		(71)		187
Total retirement-related benefit plans	$	259	$	(69)	$	190
Other comprehensive income/(loss)	$	322	$	(153)	$	169

(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information.


(Dollars in millions)	Before Tax Amount		Tax (Expense)/ Benefit		Net of Tax Amount
For the six months ended June 30, 2025:
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	(956)	$	602	$	(354)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	2	$	(1)	$	2
Reclassification of (gains)/losses to other (income) and expense	—		—		—
Total net changes related to available-for-sale securities	$	2	$	(1)	$	2
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	(141)	$	40	$	(101)
Reclassification of (gains)/losses to:
Cost of services	5		(1)		4
Cost of sales	(2)		1		(2)
Cost of financing	2		(1)		2
SG&A expense	(2)		0		(1)
Other (income) and expense	(758)		191		(567)
Interest expense	12		(3)		9
Total unrealized gains/(losses) on cash flow hedges	$	(883)	$	227	$	(656)
Retirement-related benefit plans: (1)
Prior service costs/(credits)	$	0	$	0	$	0
Net gains/(losses) arising during the period	0		8		8
Curtailments and settlements	7		(2)		5
Amortization of prior service costs/(credits)	(4)		1		(2)
Amortization of net (gains)/losses	308		(83)		225
Total retirement-related benefit plans	$	311	$	(76)	$	236
Other comprehensive income/(loss)	$	(1,525)	$	753	$	(772)

(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information.


(Dollars in millions)	Before Tax Amount		Tax (Expense)/ Benefit		Net of Tax Amount
For the six months ended June 30, 2024:
Other comprehensive income/(loss):
Foreign currency translation adjustments	$	57	$	(222)	$	(165)
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period	$	1	$	0	$	1
Reclassification of (gains)/losses to other (income) and expense	—		—		—
Total net changes related to available-for-sale securities	$	1	$	0	$	1
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period	$	279	$	(75)	$	204
Reclassification of (gains)/losses to:
Cost of services	(14)		4		(10)
Cost of sales	(27)		9		(18)
Cost of financing	3		(1)		2
SG&A expense	(10)		3		(7)
Other (income) and expense	58		(15)		44
Interest expense	17		(4)		13
Total unrealized gains/(losses) on cash flow hedges	$	307	$	(79)	$	227
Retirement-related benefit plans: (1)
Prior service costs/(credits)	$	—	$	—	$	—
Net gains/(losses) arising during the period	1		2		2
Curtailments and settlements	4		(1)		3
Amortization of prior service costs/(credits)	(4)		1		(3)
Amortization of net (gains)/losses	519		(143)		376
Total retirement-related benefit plans	$	520	$	(141)	$	379
Other comprehensive income/(loss)	$	885	$	(442)	$	442

(1)These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information.

Accumulated other comprehensive income/(loss) (net of tax)


(Dollars in millions)	Foreign Currency Translation Adjustments (1)		Net Unrealized Gains/(Losses) on Available- For-Sale Securities		Net Unrealized Gains/(Losses) on Cash Flow Hedges		Net Change Retirement- Related Benefit Plans		Accumulated Other Comprehensive Income/(Loss)
January 1, 2025	$	(3,512)	$	0	$	237	$	(11,994)	$	(15,269)
Other comprehensive income before reclassifications	(354)		2		(101)		8		(445)
Amount reclassified from accumulated other comprehensive income	—		—		(555)		228		(328)
Total change for the period	$	(354)	$	2	$	(656)	$	236	$	(772)
June 30, 2025	$	(3,865)	$	2	$	(419)	$	(11,759)	$	(16,041)


(Dollars in millions)	Foreign Currency Translation Adjustments (1)		Net Unrealized Gains/(Losses) on Available- For-Sale Securities		Net Unrealized Gains/(Losses) on Cash Flow Hedges		Net Change Retirement- Related Benefit Plans		Accumulated Other Comprehensive Income/(Loss)
January 1, 2024	$	(3,488)	$	(1)	$	(106)	$	(15,165)	$	(18,761)
Other comprehensive income before reclassifications	(165)		1		204		2		42
Amount reclassified from accumulated other comprehensive income	—		—		24		377		400
Total change for the period	$	(165)	$	1	$	227	$	379	$	442
June 30, 2024	$	(3,653)	$	(1)	$	121	$	(14,786)	$	(18,319)

(1)Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.

INTERNATIONAL BUSINESS MACHINES CORP 10-Q