IBM 2005 Annual Report Download - page 90

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NotestoConsolidatedFinancialStatements
INTERNATIONALBUSINESSMACHINESCORPORATION ANDSUBSIDIARYCOMPANIES
_89
DEFINEDBENEFITPENSIONANDNONPENSIONPOSTRETIREMENTBENEFITPLANFINANCIALINFORMATION
Thefollowingrepresentsfinancialinformationforthecompany’ssignificant(1)definedbenefitpensionand(2)nonpensionpostretire-
mentplans.Thesignificantdefinedbenefitpensionplans primarily consistofthequalifiedportionoftheIBMPPPintheU.S.andthe
materialnon-U.S.Plans.Thematerialnon-U.S.pensionplans includeplansinthefollowingcountries:Germany, theUnited Kingdom,
Japan, theNetherlands,Canada,Switzerland,Brazil andSpain. Thesignificantnonpensionpostretirementbenefitplanrepresents
theU.S.nonpensionpostretirementplan.
The following table presents the components of net periodic pension cost/(income) and net periodic postretirement benefit
cost/(income):
(Dollarsinmillions)
NONPENSIONPOSTRETIREMENT
SIGNIFICANTDEFINEDBENEFITPENSIONPLANS BENEFITPLANS
U.S. PLANS NON-U.S. PLANS U.S. PLANS
FORTHEYEARENDEDDECEMBER31: 2005 2004 2003 2005 2004 2003 2005 2004 2003
Servicecost $«««««682 $«««««652 $«««««576 $«««««694 $«««««611 $«««««537 $«««45 $«««40 $«««36
Interestcost «2,463 «2,453 «2,518 «1,635 «1,618 «1,477 «««324 «337 «382
Expectedreturnonplanassets ««(3,672) «(3,607) «(3,703) (2,245) (2,380) (2,228) «««— «— «—
Amortizationoftransitionassets «— «(72) «(144) «(6) «(10) «(15) «««—«— «—
Amortizationofpriorservicecost 61 «61 «61 8517«««(62) «(62) «(130)
Settlementofcertainlegalclaims «—«320 «— «—«— «— «««—«— «—
Recognizedactuariallosses «567 «223 «— 578 221 101 «««25 «12 «6
Planamendments/
curtailments/settlement 280 ——65 —————
Totalnetperiodiccost/(income) «$«««««381 $«««««««30 «$««««(692) «$«««««729 «$«««««««65 «$««««(111) ««$«332 «$«327 «$«294