IBM 2013 Annual Report Download - page 131

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
130
Defined Benefit Pension and Nonpension Postretirement
Benefit Plan Financial Information
The following tables through page 132 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: 2013 2012 2011 2013 2012 2011
Service cost $ — $ — $ — $ 501 $ 443 $ 505
Interest cost 1,980 2,196 2,456 1,524 1,779 1,843
Expected return on plan assets (3,981) (4,043) (4,043) (2,195) (2,303) (2,521)
Amortization of transition assets —— — 0(0) (0)
Amortization of prior service costs/(credits) 10 10 10 (119) (154) (162)
Recognized actuarial losses 1,790 1,331 818 1,600 1,027 957
Curtailments and settlements —— — 00 1
Multi-employer plans/other costs* —— — 85 247 111
Total net periodic (income)/cost $ (202) $ (507) $ (759) $ 1,396 $ 1,040 $ 734
($ in millions)
Nonpension Postretirement Benefit Plans
U.S. Plan Non-U.S. Plans
For the year ended December 31: 2013 2012 2011 2013 2012 2011
Service cost $ 35 $ 36 $ 33 $10 $14 $ 11
Interest cost 164 200 236 60 64 67
Expected return on plan assets (1) — — (9) (9) (10)
Amortization of transition assets —— — 00 0
Amortization of prior service costs/(credits) —— — (5) (4) (4)
Recognized actuarial losses 21 32 — 23 17 13
Curtailments and settlements —— — 00 —
Total net periodic cost $218 $268 $269 $79 $82 $ 76
* The 2012 Non-U.S. plans amount includes $162 million related to the IBM UK pension litigation. See page 132 for additional information.