IBM 2007 Annual Report Download - page 110

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108
Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
Management Discussion ..................................14
Consolidated Statements ..................................14
Notes ........................................................... 64
A-F ...................................................................64
G-M ..................................................................84
N-S ...................................................................94
T-W ........................................................... 102
T. Stock-Based Compensation ......................102
U. Retirement-Related Benefits .............. 105
V. Segment Information ................................116
W. Subsequent Events ....................................119
The following table presents a summary of the total projected benefit obligation (PBO) for defined benefit plans, accumulated postretirement
benefit obligation (APBO) for nonpension postretirement benefit plans (benefit obligations), fair value of plan assets and the associated funded
status recorded in the Consolidated Statement of Financial Position:
($ in millions)
BENEFIT FAIR VALUE
OBLIGATIONS OF PLAN ASSETS FUNDED STATUS**
AT DECEMBER 31: 2007 2006 2007 2006 2007 2006
U.S. Plans:
Overfunded plans:
Qualified portion of the PPP $46,323 $46,498 $57,191 $52,913 $ 10,868 $ 6,415
Underfunded plans:
Non-qualified portion of the PPP $ 1,135 $ 1,123 $ — $ — $ (1,135) $ (1,123)
SERP 215 217 — — (215) (217)
Nonpension postretirement benefit plan 5,472 5,773 504 47 (4,968) (5,726)
Total underfunded U.S. Plans $ 6,822 $ 7,113 $ 504 $ 47 $ (6,318) $ (7,066)
Non-U.S. Plans*:
Overfunded plans:
Qualified defined benefit pension plans
$29,031 $25,613 $35,504 $29,766 $ 6,473 $ 4,153
Underfunded plans:
Qualified defined benefit pension plans
$ 6,777 $ 9,076 $ 5,566 $ 7,866 $ (1,211) $ (1,210)
Non-qualified defined benefit pension plans 5,007 4,765 — — (5,007) (4,765)
Nonpension postretirement benefit plans 851 637 — — (851) (637)
Total underfunded non-U.S. plans $12,635 $14,478 $ 5,566 $ 7,866 $ (7,069) $ (6,612)
Total overfunded plans $75,354 $72,111 $92,695 $82,679 $ 17,341 $ 10,568
Total underfunded plans* $19,457 $21,591 $ 6,070 $ 7,913 $(13,387) $(13,678)
* Excludes non-material non-U.S. defined benefit pension plans; see following section for a list of significant plans.
** Funded status was recognized in the Consolidated Statement of Financial Position as follows: Asset amounts as Prepaid pension assets; (Liability) amounts as Compensation and benefits
(current liability) and Retirement and nonpension postretirement benefit obligations (noncurrent liability).
DEFINED BENEFIT PENSION AND NONPENSION POSTRETIREMENT BENEFIT PLAN FINANCIAL INFORMATION
The following represents financial information for the company’s significant retirement-related benefit plans. The significant defined benefit
pension plans consist of the qualified portion of the PPP in the U.S. and material non-U.S. pension plans, including plans in Germany, the
United Kingdom, Japan, the Netherlands, Canada, Switzerland and Spain. The significant nonpension postretirement benefit plan represents
the U.S. nonpension postretirement benefit plan.