IBM 2015 Annual Report Download - page 133

Download and view the complete annual report

Please find page 133 of the 2015 IBM annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

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)
Defi ned Benefi t Pension Plans Nonpension Postretirement Benefi t Plans
U.S. Plans Non-U.S. Plans U.S. Plan Non-U.S. Plans
2015 2014 2015 2014 2015 2014 2015 2014
Change in benefi t obligation
Benefi t obligation at January 1 $56,643 $51,034 $49,834 $ 48,620 $ 5,053 $ 4,633 $ 817 $ 832
Service cost ——454 449 24 26 77
Interest cost 2,028 2,211 1,075 1,533 163 187 50 63
Plan participants’ contributions ——34 37 52 61 ——
Acquisitions/divestitures, net ——39 (90)(8) 000
Actuarial losses/(gains) (1,920) 6,968 (861) 6,662 (204) 548 (52) 38
Benefi ts paid from trust (3,514) (3,455)(1,784) (1,985)(406) (388) (5) (5)
Direct benefi t payments (117) (114)(402) (465)(23) (37) (26) (26)
Foreign exchange impact ——(3,907) (5,073)——(174) (91)
Medicare/Government subsidies ————123 ——
Amendments/curtailments/settlements/other ——235 146 000(1)
Benefi t obligation at December 31 $53,120 $56,643 $44,717 $ 49,834 $ 4,652 $ 5,053 $ 618 $ 817
Change in plan assets
Fair value of plan assets at January 1 $55,772 $53,954 $39,543 $ 39,464 $ 16 $ 177 $ 84 $ 92
Actual return on plan assets (542) 5,274 417 5,579 0079
Employer contributions ——474 465 409 166 00
Acquisitions/divestitures, net ——53 (59)0000
Plan participants’ contributions ——34 37 52 61 ——
Benefi ts paid from trust (3,514) (3,455)(1,784) (1,985)(406) (388) (5) (5)
Foreign exchange impact ——(3,004) (4,049)——(26) (11)
Amendments/curtailments/settlements/other ——14* 93*——(1) 0
Fair value of plan assets at December 31 $51,716 $55,772 $35,748 $ 39,543 $ 71 $ 16 $ 59 $ 84
Funded status at December 31 $ (1,405) $ (871) $ (8,969) $(10,291) $(4,582) $(5,037) $(558) $(733)
Accumulated benefi t obligation** $53,120 $56,643 $44,071 $ 47,516 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.
Return of assets to IBM over a three-year period began June 2011 and September 2013 respectively, with approximately $33million returned in 2015 and $122million returned
during 2014. The remaining surplus in Brazil at December 31, 2015 is excluded from total plan assets due to continued restrictions imposed by the government on the use of
those plan assets.
** Represents the benefit obligation assuming no future participant compensation increases.
N/A—Not applicable
The following table presents the net funded status recognized in the Consolidated Statement of Financial Position.
($ inmillions)
Defi ned Benefi t Pension Plans Nonpension Postretirement Benefi t Plans
U.S. Plans Non-U.S. Plans U.S. Plan Non-U.S. Plans
At December 31: 2015 2014 2015 2014 2015 2014 2015 2014
Prepaid pension assets $ 429 $ 1,065 $ 1,304 $ 1,095 $ 0 $ 0 $ 0 $ 0
Current liabilities—compensation and benefi ts (116) (111)(297) (326)(320) (381) (11) (13)
Noncurrent liabilities—retirement and nonpension
postretirement benefi t obligations (1,718) (1,825) (9,976) (11,060)(4,262) (4,656) (547) (720)
Funded status—net $(1,405) $ (871) $(8,969) $(10,291)$(4,582) $(5,037) $(558) $(733)