IBM 2013 Annual Report Download - page 132

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
131
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
2013 2012 2013 2012 2013 2012 2013 2012
Change in benefit obligation
Benefit obligation at January 1 $56,810 $54,085 $49,319 $ 42,861 $ 5,282 $ 5,273 $1,019 $ 901
Service cost ——501 443 35 36 10 14
Interest cost 1,980 2,196 1,524 1,779 164 200 60 64
Plan participants’ contributions ——42 47 191 200 ——
Acquisitions/divestitures, net ——89 26 (2) 2(0) —
Actuarial losses/(gains) (4,344) 3,810 (362) 6,365 (481) 104 (89) 76
Benefits paid from trust (3,303) (3,184)(1,920) (1,987)(557) (551)(6) (6)
Direct benefit payments (108) (97)(464) (454)(43) (35)(28) (27)
Foreign exchange impact ——(115) 77 ——(89) (24)
Medicare/Government subsidies ————30 53 ——
Amendments/curtailments/settlements/other ——6161 15 —(44) 21
Benefit obligation at December 31 $51,034 $56,810 $48,620 $ 49,319 $ 4,633 $ 5,282 $ 832 $1,019
Change in plan assets
Fair value of plan assets at January 1 $53,630 $51,218 $38,058 $ 35,362 $ 433 $ 38 $ 119 $ 112
Actual return on plan assets 3,626 5,596 2,515 3,742 00510
Employer contributions ——449 557 110 746 01
Acquisitions/divestitures, net ——35 40 ——0—
Plan participants’ contributions ——42 47 191 200 ——
Benefits paid from trust (3,303) (3,184)(1,920) (1,987)(557) (551)(6) (6)
Foreign exchange impact ——121 305 ——(14) (8)
Amendments/curtailments/settlements/other ——164* (8) ——(12) 10
Fair value of plan assets at December 31 $53,954 $53,630 $39,464 $ 38,058 $ 177 $ 433 $ 92 $ 119
Funded status at December 31 $ 2,920 $ (3,180) $ (9,157) $(11,261) $(4,456) $(4,849)$ (740) $ (900)
Accumulated benefit obligation** $51,034 $56,810 $47,806 $ 48,369 N/A N/A N/A N/A
*
Includes the reinstatement of certain plan assets in Brazil due to government rulings in 2011 and 2013 allowing certain previously restricted plan assets to be returned to IBM. The
assets will be returned to IBM monthly over a three-year period, starting June 2011 and September 2013 respectively, with approximately $204 million returned during 2013. The
remaining surplus in Brazil at December 31, 2013 remains excluded from total plan assets due to continued restrictions imposed by the government on the use of those plan
assets.
** Represents the benefit obligation assuming no future participant compensation increases.
N/A—Not applicable
The following table presents the net funded status recognized in the Consolidated Statement of Financial Position.
($ 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: 2013 2012 2013 2012 2013 2012 2013 2012
Prepaid pension assets $ 4,639 $ 0 $ 912 $ 944 $ 0 $ 0 $ 1 $ 0
Current liabilities—compensation and benefits (107) (102)(364) (356)(256) (239)(16) (20)
Noncurrent liabilities—retirement and nonpension
postretirement benefit obligations (1,612) (3,078) (9,705) (11,849)(4,200) (4,610)(725) (880)
Funded status—net $ 2,920 $(3,180) $(9,157) $(11,261)$(4,456) $(4,849)$(740) $(900)