IBM 2012 Annual Report Download - page 125

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124 Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
124
The following table presents the changes in benefit obligations and plan assets of the company’s retirement-related benefit plans, excluding
defined contribution plans.
($ in millions)
Defined Benefit Pension Plans Nonpension Postretirement Benefit Plans
U.S. Plans Non-U.S. Plans U.S. Plan Non-U.S. Plans
2012 2011 2012 2011 2012 2011 2012 2011
Change in benefit obligation
Benefit obligation at January 1 $54,085 $51,293 $ 42,861 $42,584 $ 5,273 $ 5,123 $ 901 $ 872
Service cost ——443 505 36 33 14 11
Interest cost 2,196 2,456 1,779 1,843 200 236 64 67
Plan participants’ contributions ——47 53 200 228 ——
Acquisitions/divestitures, net 0(0)26 (48)2(0)0(1)
Actuarial losses/(gains) 3,810 3,551 6,365 812 104 244 76 47
Benefits paid from trust (3,184) (3,121)(1,987) (1,995)(551) (623)(6) (7)
Direct benefit payments (97) (95)(454) (462)(35) (32)(27) (27)
Foreign exchange impact ——77 (423)——(24) (60)
Medicare/Government subsidies ————53 65 ——
Amendments/curtailments/settlements/other ——161 (8)——21 —
Benefit obligation at December 31 $56,810 $54,085 $ 49,319 $42,861 $ 5,282 $ 5,273 $1,019 $ 901
Change in plan assets
Fair value of plan assets at January 1 $51,218 $50,259 $ 35,362 $35,722 $ 38 $ 35 $ 112 $ 120
Actual return on plan assets 5,596 4,080 3,742 1,052 0010 13
Employer contributions ——557 728 746 397 10
Acquisitions/divestitures, net ——40 (27)———(0)
Plan participants’ contributions ——47 53 200 228 ——
Benefits paid from trust (3,184) (3,121)(1,987) (1,995)(551) (623)(6) (7)
Foreign exchange impact ——305 (537)——(8) (15)
Amendments/curtailments/settlements/other ——(8) 367* ——10 —
Fair value of plan assets at December 31 $53,630 $51,218 $ 38,058 $35,362 $ 433 $ 38 $ 119 $ 112
Funded status at December 31 $ (3,180) $ (2,866) $(11,261) $ (7,499) $(4,849) $(5,235)$ (900) $(789)
Accumulated benefit obligation** $56,810 $54,085 $ 48,369 $42,063 N/A N/A N/A N/A
*
Includes the reinstatement of certain plan assets in Brazil due to a 2011 government ruling allowing certain previously restricted plan assets to be returned to IBM. Beginning June
2011, the assets will be returned to IBM monthly over a three year period, with approximately $200 million returned during 2012. The remaining surplus in Brazil at December 31,
2012 remains excluded from total plan assets due to continued restrictions imposed by the government on the use of those plan assets.
** Represents the benefit obligation assuming no future participant compensation increases.
N/A—Not applicable
The following table presents the net funded status recognized in the Consolidated Statement of Financial Position.
($ in millions)
Defined Benefit Pension Plans Nonpension Postretirement Benefit Plans
U.S. Plans Non-U.S. Plans U.S. Plan Non-U.S. Plans
At December 31: 2012 2011 2012 2011 2012 2011 2012 2011
Prepaid pension assets $ 0 $ 0 $ 944 $ 2,843 $ 0 $ 0 $ 0 $ 0
Current liabilities—compensation and benefits (102) (96)(356) (304)(239) (437)(20) (22)
Noncurrent liabilities—retirement and nonpension
postretirement benefit obligations (3,078) (2,770) (11,849) (10,038)(4,610) (4,798)(880) (768)
Funded status—net $(3,180) $(2,866) $(11,261) $ (7,499)$(4,849) $(5,235)$(900) $(789)