IBM 1999 Annual Report Download - page 88

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notes to consolidated financial statements
International Business Machines Corporation
and Subsidiary Companies
86
W Retirement Plans
The company and its subsidiaries have defined benefit and defined contribution retirement plans that cover substantially all regular
employees, and a supplemental retirement plan that covers certain executives.
The changes in the benefit obligations and plan assets of the U.S. and material non-U.S. defined benefit plans for 1999 and 1998
were as follows:
U.S. Plan Non-U.S. Plans
(Dollars in millions) 1999 1998 1999 1998
Change in benefit obligation:
Benefit obligation at beginning of year $«36,561 $«33,161 $«22,048 $«18,846
Service cost 566 532 475 399
Interest cost 2,404 2,261 1,282 1,213
Plan participants’ contributions ——29 29
Acquisitions/ divestitures, net 68 22 (47) —
Amendments 75 ——2
Actuarial (gains) losses (2,766) 2,729 522 1,331
Benefits paid from trust (2,474) (2,144) (737) (683)
Direct benefit payments ——(257) (254)
Foreign exchange impact ——(1,552) 1,155
Plan curtailments/ settlements/ termination benefits ——710
Benefit obligation at end of year 34,434 36,561 21,770 22,048
Change in plan assets:
Fair value of plan assets at beginning of year 41,593 38,475 25,294 21,841
Actual return on plan assets 6,397 5,240 5,184 2,400
Employer contribution ——143 452
Acquisitions/ divestitures, net 68 22 (36) —
Plan participants’ contributions ——29 29
Benefits paid from trust (2,474) (2,144) (737) (683)
Foreign exchange impact ——(1,995) 1,283
Settlements ——(39) (28)
Fair value of plan assets at end of year 45,584 41,593 27,843 25,294
Fair value of plan assets in excess of
benefit obligation 11,150 5,032 6,073 3,246
Unrecognized net actuarial gains (7,003) (1,289) (4,597) (2,342)
Unrecognized prior service costs 269 174 140 181
Unrecognized net transition asset (632) (771) (72) (78)
Adjustment to recognize minimum liability ——(84) (87)
Net prepaid pension asset recognized in the
Consolidated Statement of Financial Position $«««3,784 $«««3,146 $«««1,460 $««««««920