IBM 2008 Annual Report Download - page 111

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
Notes to Consolidated Financial Statements
INTERNATIONAL BUSINESS MACHINES CORPORATION and Subsidiary Companies
At December ,, the company’s qualified defined benefit pension
plans were  percent funded compared to the benefit obligations.
The U.S. Qualified PPP was  percent funded. Overall, including
nonqualifed plans, the company’s defined benefit pension plans were
 percent funded.
Defined Benefit Pension and Nonpension
Postretirement Benefit Plan Financial Information
The following tables represent financial information for the compa-
ny’s retirement-related benefit plans. Defined benefit pension plans
in U.S. Plans consist of the Qualified PPP, the Excess PPP and the
Retention Plan. Defined benefit pension plans in the Non-U.S. Plans
consist of all such plans sponsored by the company’s subsidiaries. The
nonpension postretirement benefit plan in the U.S. Plan represents
the U.S. Non pension Postretirement Benefit Plan. Nonpension post-
retirement benefit plans in the Non-U.S. Plans consist of all such
plans sponsored by the company’s subsidiaries. Prior-year amounts
were reclassified to conform with  presentation.
The following table presents the components of net periodic
(income)/cost of the company’s retirement-related benefit plans rec-
ognized in Consoli dated Statement of Earnings.
($  )
Defined Benefit Pension Plans
U.S. Plans Non-U.S. Plans
For the year ended December : 2008 2007 2006 2008 2007 2006
Service cost $ — $ 773 $ 791 $ 660 $ 688 $ 640
Interest cost 2,756 2,660 2,525 2,042 1,825 1,626
Expected return on plan assets (3,978) (3,703) (3,613) (2,725) (2,528) (2,314)
Amortization of transition assets —— — 0(3) (6)
Amortization of prior service costs/(credits) (7) 57 54 (129) (125) (105)
Recognized actuarial losses 291 703 810 612 934 883
Curtailments and settlements 25 — (139) 2 —
Multiemployer plan/other costs —— — 59 29 1
TOTAL NET PERIODIC (INCOME)/COST $ (936) $ 496 $ 569 $ 380 $ 822 $ 724
($  )
Nonpension Postretirement Benefit Plans
U.S. Plan Non-U.S. Plans
For the year ended December : 2008 2007 2006 2008 2007 2006
Service cost $ 55 $ 69 $ 62 $ 10 $ 12 $ 12
Interest cost 312 311 306 53 46 45
Expected return on plan assets (8) — — (10) (11) (10)
Amortization of transition assets — — — 0 1 0
Amortization of prior service costs/(credits) (62) (62) (62) (7) (8) (8)
Recognized actuarial losses 9 24 29 14 17 15
Curtailments and settlements 3 — — (6) — —
TOTAL NET PERIODIC COST $310 $342 $335 $ 53 $ 57 $ 53