IBM 2003 Annual Report Download - page 115

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The changes in the benefit obligations and plan assets of the qualified portion of the PPP and the significant non-U. S. defined
benefit plans for 2003 and 2002 were as follows:
(dollars in millions)
PPP-QUALIFIED PORTION NON-U.S. PLANS
2003 2002 2003 2002
Change in benefit obligation:
Benefit obligation at beginning of year $«38,357 $«37,762 $«25,699 $«21,801
Service cost 576 650 537 505
Interest cost 2,518 2,591 1,477 1,270
Plan participants’ contributions ——43 34
Acquisitions/divestitures, net —32 75 246
Amendments —18 —(280)
Actuarial losses 3,472 47 1,167 80
Benefits paid from trust (2,819) (2,743) (1,093) (866)
Direct benefit payments ——(253) (221)
Foreign exchange impact ——4,166 3,104
Plan curtailments/settlements/termination benefits ——57 26
Benefit obligation at end of year 42,104 38,357 31,875 25,699
Change in plan assets:
Fair value of plan assets at beginning of year 36,984 39,565 20,637 21,531
Actual return on plan assets 7,514 (3,801) 2,829 (3,135)
Employer contribution —3,963 542 225
Acquisitions/divestitures, net ——7191
Plan participants’ contributions ——43 34
Benefits paid from trust (2,819) (2,743) (1,093) (866)
Foreign exchange impact ——3,581 2,657
Fair value of plan assets at end of year 41,679 36,984 26,546 20,637
Fair value of plan assets in excess of benefit obligation (425) (1,373) (5,329) (5,062)
Unrecognized net actuarial losses 11,849 12,187 10,775 8,991
Unrecognized prior service costs 523 584 (170) (187)
Unrecognized net transition assets (72) (216) (26) (36)
Net prepaid pension asset recognized in the
Consolidated Statement of Financial Position $«11,875 $«11,182 $«««5,250 $«««3,706
Amounts recognized in the Consolidated Statement of
Financial Position captions include:
Prepaid pension assets $«11,875 $«11,182 $«««6,129 $«««4,397
Intangible assets ——52 54
Total prepaid pension assets 11,875 11,182 6,181 4,451
Retirement and nonpension postretirement benefit obligation ——(6,982) (5,865)
Accumulated gains and (losses) not affecting retained earnings ——3,888 3,277
Deferred tax assets (investments and sundry assets) ——2,163 1,843
Net amount recognized $«11,875 $«11,182 $«««5,250 $«««3,706
Accumulated benefit obligation $«40,423 $«36,738 $«30,240 $«24,186
Differences between the aggregate balance sheet amounts
listed above (material pension plans) and on page 116
(material nonpension postretirement plan) and the totals
listed in the Consolidated Statement of Financial Position
and Consolidated Statement of Stockholders’ Equity, relate
to the non-material plans. The increase in the company’s
Prepaid pension asset balance from 2002 to 2003 was primarily
due to pension income and foreign exchange impacts. The
increase in the company’s Retirement and nonpension
postretirement benefit obligation was primarily attributable
to the required accounting for the unfunded status of the
non-U.S. pension plans as discussed on page 114 as well as
accrued pension costs and foreign exchange impacts.
Notes to Consolidated Financial Statements
INTERNATIONAL BUSINESS MACHINES CORPORATION AND SUBSIDIARY COMPANIES
113