NOTE 11. EQUITY The following table presents reclassifications and taxes related to items of other comprehensive income (loss) for the three months ended June 30, 2025 and 2024: | | | | | | | | | | | | Pretax | | Tax (Expense) | | Net-of-Tax | (Dollars in millions) | | Amount | | Benefit | | Amount | For the three months ended June 30, 2025: | | | | | | | | | | Foreign currency translation adjustments: | | | | | | | | | | Foreign currency translation adjustments | | $ | 222 | | $ | — | | $ | 222 | Unrealized gains (losses) on net investment hedges | | | (152) | | | — | | | (152) | Total foreign currency translation adjustments | | $ | 71 | | $ | — | | $ | 71 | Unrealized gains (losses) on cash flow hedges: | | | | | | | | | | Unrealized gains (losses) arising during the period | | $ | (10) | | $ | 1 | | $ | (9) | Reclassification of (gains) losses to net income | | | 2 | | | — | | | 2 | Total unrealized gains (losses) on cash flow hedges | | $ | (8) | | $ | 1 | | $ | (7) | Retirement-related benefit plans – amortization of net (gains) losses | | $ | 3 | | $ | (1) | | $ | 2 | Other comprehensive income (loss) | | $ | 66 | | $ | — | | $ | 66 | | | | | | | | | | | 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) |
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, 2025 | | $ | 1 | | $ | (1,016) | | $ | (145) | | $ | (1,160) | Other comprehensive income (loss) | | | (7) | | | 71 | | | 2 | | | 66 | June 30, 2025 | | $ | (6) | | $ | (945) | | $ | (143) | | $ | (1,094) | | | | | | | | | | | | | | April 1, 2024 | | $ | — | | $ | (967) | | $ | (178) | | $ | (1,145) | Other comprehensive income (loss) | | | (2) | | | (49) | | | 3 | | | (48) | June 30, 2024 | | $ | (1) | | $ | (1,016) | | $ | (175) | | $ | (1,192) |
* | Foreign currency translation adjustments are presented gross except for any associated hedges, which are presented net of tax. |
Share Repurchase Program In November 2024, the Company’s Board of Directors authorized a share repurchase program of up to $300 million of the Company’s common stock (the “Share Repurchase Program”). Under the Share Repurchase Program, the Company may repurchase shares of its common stock from time to time in open market transactions and may also repurchase shares in accelerated share buyback programs, tender offers, privately negotiated transactions or by other means. Repurchases may also be made under a Rule 10b5-1 trading plan. The timing and amount of repurchase transactions will be determined by the Company’s management based on its evaluation of market conditions, share price, legal requirements and other factors. The program does not have a set expiration date and may be suspended, modified or discontinued at any time without prior notice. During the three months ended June 30, 2025, the Company repurchased 1.8 million shares of its common stock at an aggregate cost of $65 million under the Share Repurchase Program.
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