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
Notes to Consolidated Financial Statements
INTERNATIONAL BUSINESS MACHINES CORPORATION and Subsidiary Companies
($  )
Qualified Qualified Nonqualified Total Expected
PPP Excess PPP Non-U.S. Plans Non-U.S. Plans Benefit
Payments Payments Payments Payments Payments
2009 $ 3,492 $ 86 $1,791 $ 349 $ 5,718
2010 3,226 87 1,804 348 5,465
2011 3,234 90 1,830 351 5,506
2012 3,249 93 1,853 356 5,551
2013 3,266 95 1,874 362 5,598
2014 – 2018 16,630 511 9,888 1,922 28,952
The  expected benefit payments to defined benefit pension plan participants not covered by the respective plan assets (underfunded plans)
represent a component of compensation and benefits, within current liabilities, in the Consolidated Statement of Financial Position.
NONPENSION POSTRETIREMENT BENEFIT PLAN EXPECTED PAYMENTS
The following table reflects the total expected benefit payments to nonpension postretirement benefit plan participants, as well as the expected
receipt of the company’s share of the Medicare subsidy described below. These payments have been estimated based on the same assumptions
used to measure the plan’s APBO at December ,.
($  )
Less: IBM Share Net Expected Qualified Nonqualified Total Expected
U.S. Plan of Expected U.S. Plan Non-U.S. Plans Non-U.S. Plans Benefit
Payments Medicare Subsidy Payments Payments Payments Payments
2009 $ 496 $32 $ 464 $ 5 $ 23 $ 492
2010 487 34 453 4 25 482
2011 473 37 436 5 26 467
2012 453 39 414 5 28 447
2013 446 — 446 5 29 481
2014 – 2018 2,190 — 2,190 33 175 2,398
The  expected benefit payments to nonpension postretirement
benefit plan participants not covered by the respective plan assets
represent a component of compensation and benefits, within current
liabilities, in the Consolidated Statement of Financial Position.
   
In connection with the Medicare Prescription Drug Improvement and
Modernization Act of , the company is expected to continue to
receive a federal subsidy of approximately $ million to subsidize
and pension obligations for funding purposes and raises tax deduc-
tion limits for contributions to retirement-related benefit plans. The
additional funding requirements by the Act apply to plan years
beginning after December ,. The Act was updated by the
Worker, Retiree and Employer Recovery Act of , which revised
the funding requirements in the Act by clarifying that pension plans
may smooth the value of pension plans over  months. The adop-
tion of the Act, as modified, is not expected to have a material effect
on the company’s minimum mandatory contributions to its PPP.
In , the company estimates contributions to its non-U.S.
plans to be approximately $, million, which will be mainly con-
tributed to defined benefit pension plans in Japan, the Netherlands,
Spain, Switzerland, Belgium and the United Kingdom. These 
contributions represent the legally mandated minimum contribu-
tions. Financial market performance in  could increase the legally
mandated minimum contribution in certain countries which require
monthly or daily remeasurement of the funded status. The company
could also elect to contribute more than the legally mandated
amount based on market conditions or other factors.
NONPENSION POSTRETIREMENT BENEFIT PLANS
The company contributed $ million and $ million to the non-
pension postretirement benefit plans during the years ended
December ,  and . These contribution amounts exclude
the Medicare-related subsidy discussed below. The  funding
included a $ million voluntary contribution to the U.S. nonpen-
sion postretirement benefit plan to fund benefit payments.
Expected Benefit Payments
DEFINED BENEFIT PENSION PLAN EXPECTED PAYMENTS
The following table presents the total expected benefit payments to
defined benefit pension plan participants. These payments have been
estimated based on the same assumptions used to measure the plans’
PBO at December ,  and include benefits attributable to esti-
mated future compensation increases, where applicable.