IBM 2012 Annual Report Download - page 124

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
123
Defined Benefit Pension and Nonpension
Postretirement Benefit Plan Financial Information
The following tables through page 125 represent financial information
for the company’s retirement-related benefit plans, excluding defined
contribution plans. The defined benefit pension plans under U.S.
Plans consists of the Qualified PPP, the Excess PPP and the Reten-
tion Plan. The defined benefit pension plans and the nonpension
postretirement benefit plans under Non-U.S. Plans consists of all
plans sponsored by the company’s subsidiaries. The nonpension
postretirement benefit plan under U.S. Plan consists of only the U.S.
Non pension Postretirement Benefit Plan.
The tables below present the components of net periodic (income)/
cost of the retirement-related benefit plans recognized in the Consoli-
dated Statement of Earnings, excluding defined contribution plans.
($ in millions)
Defined Benefit Pension Plans
U.S. Plans Non-U.S. Plans
For the year ended December 31: 2012 2011 2010 2012 2011 2010
Service cost $ — $ — $ — $ 443 $ 505 $ 508
Interest cost 2,196 2,456 2,601 1,779 1,843 1,841
Expected return on plan assets (4,043) (4,043) (4,017) (2,303) (2,521) (2,461)
Amortization of transition assets —— — (0) (0) (0)
Amortization of prior service costs/(credits) 10 10 10 (154) (162) (174)
Recognized actuarial losses 1,331 818 471 1,027 957 712
Curtailments and settlements —— 1 01 27
Multi-employer plans/other costs* —— — 247 111 89
Total net periodic (income)/cost $ (507) $ (759) $ (935) $ 1,040 $ 734 $ 541
($ in millions)
Nonpension Postretirement Benefit Plans
U.S. Plan Non-U.S. Plans
For the year ended December 31: 2012 2011 2010 2012 2011 2010
Service cost $ 36 $ 33 $ 33 $14 $ 11 $ 9
Interest cost 200 236 262 64 67 59
Expected return on plan assets —— — (9) (10) (9)
Amortization of transition assets —— — 00 0
Amortization of prior service costs/(credits) —— (14) (4) (4) (5)
Recognized actuarial losses 32 — — 17 13 12
Curtailments and settlements —— — 0— —
Total net periodic cost $268 $269 $281 $82 $ 76 $66
* The 2012 Non-U.S. plans amount includes $162 million related to the IBM UK pension litigation. See page 125 for additional information.