IBM 2013 Annual Report Download - page 130

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
129
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 To t a l
For the year ended December 31: 2013 2012 2011 2013 2012 2011 2013 2012 2011
Defined benefit pension plans $(223) $(526) $(774) $1,396 $1,040 $ 734 $1,173 $ 515 $ (40)
Retention Plan 21 18 15 —— — 21 18 15
Total defined benefit
pension plans (income)/cost $(202) $(507) $(759) $1,396 $1,040 $ 734 $1,195 $ 533 $ (25)
IBM 401(k) Plus Plan
and non-U.S. plans $ 785 $ 857 $ 875 $ 575 $ 621 $ 608 $1,361 $1,478 $1,483
Excess 401(k) 24 29 30 —— — 24 29 30
Total defined contribution plans cost $ 809 $ 885 $ 905 $ 575 $ 621 $ 608 $1,384 $1,506 $1,513
Nonpension postretirement
benefit plans cost $ 218 $ 268 $ 269 $ 79 $ 82 $ 76 $ 298 $ 350 $ 345
Total retirement-related
benefits net periodic cost $ 826 $ 646 $ 415 $2,051 $1,743 $1,418 $2,876 $2,389 $1,832
The following table presents a summary of the total PBO for defined benefit pension plans, APBO for nonpension postretirement benefit
plans, fair value of plan assets and the associated funded status recorded in the Consolidated Statement of Financial Position.
($ in millions)
Benefit Obligations Fair Value of Plan Assets Funded Status*
At December 31: 2013 2012 2013 2012 2013 2012
U.S. Plans
Overfunded plans
Qualified PPP $49,315 $ —$53,954 $ —$ 4,639 $ —
Underfunded plans
Qualified PPP $ — $ 54,907 $ — $53,630 $ — $ (1,277)
Excess PPP 1,425 1,576 — — (1,425) (1,576)
Retention Plan 294 327 ——(294) (327)
Nonpension postretirement benefit plan 4,633 5,282 177 433 (4,456) (4,849)
Total underfunded U.S. plans $ 6,352 $ 62,092 $ 177 $54,063 $ (6,175) $ (8,029)
Non-U.S. Plans
Overfunded plans
Qualified defined benefit pension plans $ 9,336 $ 6,944 $10,240 $ 7,889 $ 904 $ 945
Nonpension postretirement benefit plans 10 12 11 12 10
Total overfunded non-U.S. plans $ 9,346 $ 6,956 $10,251 $ 7,901 $ 905 $ 945
Underfunded plans
Qualified defined benefit pension plans $32,697 $ 35,956 $29,223 $30,169 $ (3,474) $ (5,788)
Nonqualified defined benefit pension plans 6,587 6,418 ——(6,587) (6,418)
Nonpension postretirement benefit plans 822 1,007 81 107 (741) (900)
Total underfunded non-U.S. plans $40,106 $ 43,381 $29,304 $30,276 $(10,802) $(13,106)
Total overfunded plans $58,661 $ 6,956 $64,205 $ 7,901 $ 5,544 $ 945
Total underfunded plans $46,458 $105,473 $29,481 $84,338 $(16,977) $(21,134)
* 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, 2013, the company’s qualified defined benefit pension plans worldwide were 102 percent funded compared to the benefit
obligations, with the U.S. Qualified PPP 109 percent funded. Overall, including nonqualifed plans, the company’s defined benefit pension plans
were 94 percent funded.