IBM 2012 Annual Report Download - page 123

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122 Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
122
Plan Financial Information
Summary of Financial Information
The following table presents a summary of the total retirement-related benefits net periodic (income)/cost recorded in the Consolidated
Statement of Earnings.
($ in millions)
U.S. Plans Non-U.S. Plans Tot a l
For the year ended December 31: 2012 2011 2010 2012 2011 2010 2012 2011 2010
Defined benefit pension plans $(526) $(774) $(949) $1,040 $ 734 $ 541 $ 515 $ (40)$ (408)
Retention Plan 18 15 14 —— — 18 15 14
Total defined benefit
pension plans (income)/cost $(507) $(759) $(935) $1,040 $ 734 $ 541 $ 533 $ (25)$ (394)
IBM 401(k) Plus Plan
and Non-U.S. plans $ 857 $ 875 $ 882 $ 621 $ 608 $ 527 $1,478 $1,483 $1,409
Excess 401(k) 29 30 20 —— — 29 30 20
Total defined contribution plans cost $ 885 $ 905 $ 902 $ 621 $ 608 $ 527 $1,506 $1,513 $1,430
Nonpension postretirement
benefit plans cost $ 268 $ 269 $ 281 $ 82 $ 76 $ 66 $ 350 $ 345 $ 347
Total retirement-related
benefits net periodic cost $ 646 $ 415 $ 248 $1,743 $1,418 $1,134 $2,389 $1,832 $1,382
The following table presents a summary of the total PBO for defined benefit pension plans, APBO for nonpension postretirement benefit
plans, fair value of plan assets and the associated funded status recorded in the Consolidated Statement of Financial Position.
($ in millions)
Benefit Obligations Fair Value of Plan Assets Funded Status*
At December 31: 2012 2011 2012 2011 2012 2011
U.S. Plans
Underfunded plans
Qualified PPP $ 54,907 $52,318 $53,630 $51,218 $ (1,277) $ (1,100)
Excess PPP 1,576 1,462 ——(1,576) (1,462)
Retention Plan 327 305 ——(327) (305)
Nonpension postretirement benefit plan 5,282 5,273 433 38 (4,849) (5,235)
Total underfunded U.S. plans $ 62,092 $59,358 $54,063 $51,256 $ (8,029) $ (8,102)
Non-U.S. Plans
Overfunded plans
Qualified defined benefit pension plans $ 6,944 $13,169 $ 7,889 $16,011 $ 945 $ 2,843
Nonpension postretirement benefit plans 12 712 700
Total overfunded non-U.S. plans $ 6,956 $13,175 $ 7,901 $16,018 $ 945 $ 2,843
Underfunded plans
Qualified defined benefit pension plans $ 35,956 $24,659 $30,169 $19,351 $ (5,788) $ (5,308)
Nonqualified defined benefit pension plans 6,418 5,033 ——(6,418) (5,033)
Nonpension postretirement benefit plans 1,007 894 107 105 (900) (789)
Total underfunded non-U.S. plans $ 43,381 $30,587 $30,276 $19,456 $(13,106) $(11,131)
Total overfunded plans $ 6,956 $13,175 $ 7,901 $16,018 $ 945 $ 2,843
Total underfunded plans $105,473 $89,944 $84,338 $70,712 $(21,134) $(19,232)
* Funded status is 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).
At December 31, 2012, the company’s qualified defined benefit pension plans worldwide were 94 percent funded compared to the benefit
obligations, with the U.S. qualified PPP 98 percent funded. Overall, including nonqualifed plans, the company’s defined benefit pension plans
were 86 percent funded.