IBM 2007 Annual Report Download - page 112

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110
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 the funded status recognized in the Consolidated Statement of Financial Position for the company’s significant
retirement-related benefit plans:
($ in millions)
NONPENSION
POSTRETIREMENT
SIGNIFICANT DEFINED BENEFIT PENSION PLANS BENEFIT PLAN
U.S. PLAN NON-U.S. PLANS U.S. PLAN
AT DECEMBER 31: 2007 2006 2007 2006 2007 2006
Prepaid pension assets $10,868 $6,415 $ 6,473 $ 4,153 $ — $ —
Current liabilities, Compensation and benefits — — (304) (269) — (487)
Noncurrent liabilities, Retirement and
nonpension postretirement benefit obligations — — (5,914) (5,706) (4,968) (5,239)
Funded status — net $10,868 $6,415 $ 255 $(1,822) $(4,968) $(5,726)
The following table presents the pre-tax net loss and prior service costs/(credits) recognized in Gains and (losses) not affecting retained earn-
ings and the changes in pre-tax net loss, prior service costs/(credits) and transition assets recognized in Accumulated gains and (losses) not
affecting retained earnings for the company’s significant retirement-related benefit plans:
($ in millions)
NONPENSION
SIGNIFICANT DEFINED POSTRETIREMENT
BENEFIT PENSION PLANS BENEFIT PLAN
FOR THE YEAR ENDED DECEMBER 31, 2007: U.S. PLAN NON-U.S. PLANS U.S. PLAN
Net loss at January 1 $ 6,944 $11,298 $ 935
Current period net gain (4,086) (1,337) (254)
Amortization of net loss included in net periodic cost (679) (911) (24)
Net loss at December 31 $ 2,179 $ 9,050 $ 657
Prior service costs/(credits) at January 1 $ 61 $ (1,269) $(177)
Current period prior service costs — 51 —
Amortization of prior service (costs)/credits included in net periodic cost (61) 125 62
Prior service credits at December 31 $ — $ (1,093) $(115)
Transition assets at January 1 $ — $ (4) $ —
Amortization of transition assets included in net periodic cost — 3 —
Transition assets at December 31 $ — $ (1) $ —
Total recognized in Accumulated gains and (losses) not affecting retained earnings* $ 2,179 $ 7,956 $ 542
* See note M, “Stockholders’ Equity Activity,” on page 93 for the total net-of-tax change in the Accumulated gains and (losses) not affecting retained earnings and the Consolidated
Statement of Stockholders’ Equity for components of net periodic cost, including the related tax effects, recognized in Gains and (losses) not affecting retained earnings for the company’s
retirement-related benefit plans.