v3.25.2
FINANCIAL ASSETS AND LIABILITIES (Tables)
3 Months Ended
Jun. 30, 2025
FINANCIAL ASSETS AND LIABILITIES  
Financial assets and financial liabilities measured at fair value on a recurring basis

Fair Value

Hierarchy

At June 30, 2025

At March 31, 2025

(Dollars in millions)

    

Level

    

Assets

    

Liabilities

    

Fair Value

    

Assets

    

Liabilities

    

Fair Value

Derivatives designated as hedging instruments:

Foreign exchange contracts

2

$

7

$

137

$

(130)

$

6

$

29

$

(23)

Cross-currency swap contracts

2

11

32

(21)

12

11

Derivatives not designated as hedging instruments:

Foreign exchange contracts

2

34

5

29

27

2

25

Total

$

52

$

174

$

(123)

$

45

$

43

$

2

Summary of notional amounts of outstanding derivatives

At June 30, 2025

At March 31, 2025

(Dollars in millions)

Foreign Exchange Contracts

    

Cross-currency Swap Contracts

    

Total Notional Amount

Foreign Exchange Contracts

    

Cross-currency Swap Contracts

    

Total Notional Amount

Derivatives designated as hedging instruments

Cash flow hedges

$

726

$

$

726

$

357

$

$

357

Net investment hedges

1,381

500

1,881

1,485

500

1,985

Derivatives not designated as hedging instruments

$

1,566

$

$

1,566

$

1,148

$

$

1,148

Effect of derivative instruments in the Consolidated Income Statement - designated

Unrealized Gain (Loss)

Consolidated

Gain (Loss) Reclassified

Amounts Excluded from

(Dollars in millions)

Recognized in OCI

Income Statement

from AOCI to Income

Effectiveness Testing

Three months ended June 30:

    

2025

    

2024

    

Line Item

    

2025

    

2024

    

2025

    

2024

Derivative instruments in cash flow hedges:

Foreign exchange contracts

(10)

(1)

Cost of services

(2)

 $

 $

Derivative instruments in net investment hedges:

Cross-currency swaps

(24)

16

Interest expense

3

3

3

Foreign exchange contracts

(127)

2

Interest expense

1

8

1

Total

$

(161)

$

17

  

$

(2)

$

4

$

10

$

4

Effect of derivative instruments in the Consolidated Income Statement- Not designated

Consolidated

Gain (Loss)

(Dollars in millions)

Income Statement

Recognized on Derivatives

Three months ended June 30:

    

Line Item

2025

    

2024

Foreign exchange contracts

Other expense (income)

47

(28)

Total

  

$

47

$

(28)