NOTE P. ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in components of AOCL consisted of the following (dollars in millions):
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|
|
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Three Months Ended |
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|
Pension
and OPEB
liability
adjustments |
|
|
Interest rate swaps |
|
|
Cross-currency swaps |
|
|
Foreign
currency
items |
|
|
Total |
|
AOCL as of March 31, 2025 |
|
$ |
(4 |
) |
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
(47 |
) |
|
$ |
(47 |
) |
Other comprehensive income before reclassifications |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
13 |
|
|
|
14 |
|
Amounts reclassified from AOCL |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Net current period other comprehensive (loss) income |
|
$ |
(2 |
) |
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
13 |
|
|
$ |
10 |
|
AOCL as of June 30, 2025 |
|
$ |
(6 |
) |
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
(34 |
) |
|
$ |
(37 |
) |
AOCL as of March 31, 2026 |
|
$ |
(21 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(68 |
) |
|
$ |
(89 |
) |
Other comprehensive income before reclassifications |
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
(38 |
) |
|
|
(45 |
) |
Amounts reclassified from AOCL |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
Income tax benefit |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
Net current period other comprehensive loss |
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
(6 |
) |
|
$ |
(38 |
) |
|
$ |
(45 |
) |
AOCL as of June 30, 2026 |
|
$ |
(22 |
) |
|
$ |
— |
|
|
$ |
(6 |
) |
|
$ |
(106 |
) |
|
$ |
(134 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
Pension
and OPEB
liability
adjustments |
|
|
Interest rate swaps |
|
|
Cross-currency swaps |
|
|
Foreign
currency
items |
|
|
Total |
|
AOCL as of December 31, 2024 |
|
$ |
(3 |
) |
|
$ |
5 |
|
|
$ |
— |
|
|
$ |
(53 |
) |
|
$ |
(51 |
) |
Other comprehensive income before reclassifications |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
19 |
|
|
|
20 |
|
Amounts reclassified from AOCL |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
Income tax benefit |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Net current period other comprehensive (loss) income |
|
$ |
(3 |
) |
|
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
19 |
|
|
$ |
14 |
|
AOCL as of June 30, 2025 |
|
$ |
(6 |
) |
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
(34 |
) |
|
$ |
(37 |
) |
AOCL as of December 31, 2025 |
|
$ |
(20 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(36 |
) |
|
$ |
(56 |
) |
Other comprehensive income before reclassifications |
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
(70 |
) |
|
|
(77 |
) |
Amounts reclassified from AOCL |
|
|
(2 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(3 |
) |
Income tax benefit |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
Net current period other comprehensive loss |
|
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
(6 |
) |
|
$ |
(70 |
) |
|
$ |
(78 |
) |
AOCL as of June 30, 2026 |
|
$ |
(22 |
) |
|
$ |
— |
|
|
$ |
(6 |
) |
|
$ |
(106 |
) |
|
$ |
(134 |
) |
The following table shows the location in the Condensed Consolidated Statements of Comprehensive Income affected by reclassifications from AOCL (dollars in millions):
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|
Amounts reclassified from AOCL |
|
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|
AOCL Components |
|
Three Months Ended June 30, 2026 |
|
|
Three Months Ended June 30, 2025 |
|
|
Affected line item in the Condensed
Consolidated Statements of
Comprehensive Income |
Cross-currency swaps |
|
$ |
1 |
|
|
$ |
— |
|
|
Interest expense, net |
Interest rate swaps |
|
|
— |
|
|
|
2 |
|
|
Interest expense, net |
Prior service credit |
|
|
1 |
|
|
|
1 |
|
|
Other (expense) income, net |
Recognized actuarial gain |
|
|
— |
|
|
|
1 |
|
|
Other (expense) income, net |
Total reclassifications, before tax |
|
$ |
2 |
|
|
$ |
4 |
|
|
Income before income taxes |
Income tax expense |
|
|
— |
|
|
|
(1 |
) |
|
Income tax expense |
Total reclassifications, net of tax |
|
$ |
2 |
|
|
$ |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts reclassified from AOCL |
|
|
|
AOCL Components |
|
Six Months Ended June 30, 2026 |
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|
Six Months Ended June 30, 2025 |
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|
Affected line item in the Condensed
Consolidated Statements of
Comprehensive Income |
Prior service credit |
|
$ |
2 |
|
|
$ |
2 |
|
|
Other (expense) income, net |
Cross-currency swaps |
|
|
1 |
|
|
|
— |
|
|
Interest expense, net |
Interest rate swaps |
|
|
— |
|
|
|
4 |
|
|
Interest expense, net |
Recognized actuarial gain |
|
|
— |
|
|
|
2 |
|
|
Other (expense) income, net |
Total reclassifications, before tax |
|
$ |
3 |
|
|
$ |
8 |
|
|
Income before income taxes |
Income tax expense |
|
|
(1 |
) |
|
|
(2 |
) |
|
Income tax expense |
Total reclassifications, net of tax |
|
$ |
2 |
|
|
$ |
6 |
|
|
|
Prior service credits and actuarial gains are included in the computation of the Company’s net periodic benefit cost (credit). See "Note N. Employee Benefit Plans” for additional details.
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