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, 2026 and 2025: | | | | | | | | | | | | Pretax | | Tax (Expense) | | Net-of-Tax | (Dollars in millions) | | Amount | | Benefit | | Amount | For the three months ended June 30, 2026: | | | | | | | | | | Foreign currency translation adjustments: | | | | | | | | | | Foreign currency translation adjustments | | $ | (16) | | $ | — | | $ | (16) | Unrealized gains (losses) on net investment hedges | | | 14 | | | — | | | 14 | Total foreign currency translation adjustments | | $ | (2) | | $ | — | | $ | (2) | Unrealized gains (losses) on cash flow hedges: | | | | | | | | | | Unrealized gains (losses) arising during the period | | $ | 6 | | $ | — | | $ | 6 | Reclassification of (gains) losses to net income | | | — | | | — | | | (1) | Total unrealized gains (losses) on cash flow hedges | | $ | 6 | | $ | — | | $ | 6 | Retirement-related benefit plans: | | | | | | | | | | Amortization of prior service costs (credits) | | $ | 2 | | $ | — | | $ | 1 | Amortization of net (gains) losses | | | — | | | — | | | — | Total retirement-related benefit plans | | $ | 2 | | $ | — | | $ | 2 | Other comprehensive income (loss) | | $ | 6 | | $ | (1) | | $ | 6 | | | | | | | | | | | 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 |
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, 2026 | | $ | (6) | | $ | (961) | | $ | (108) | | $ | (1,074) | Other comprehensive income (loss) | | | 6 | | | (2) | | | 2 | | | 6 | June 30, 2026 | | $ | — | | $ | (962) | | $ | (106) | | $ | (1,069) | | | | | | | | | | | | | | 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) |
* | 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, and in November 2025, the Company announced that the Board of Directors authorized an additional $400 million of repurchase capacity under this program (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, 2026 and 2025, the Company repurchased 5.0 million and 1.8 million shares of its common stock, respectively, at an aggregate cost of $64 million and $65 million under the Share Repurchase Program, respectively. As of June 30, 2026, approximately $238 million of capacity remained available under the Share Repurchase Program.
|