IBM 2015 Annual Report Download - page 134

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
132
The following table presents the pre-tax net loss and prior service costs/(credits) and transition (assets)/liabilities recognized in OCI and
the changes in the pre-tax net loss, prior service costs/(credits) and transition (assets)/liabilities recognized in AOCI for the retirement-
related benefit 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
Net loss at January 1 $18,442 $13,709 $21,676 $19,777 $ 852 $304 $189 $161
Current period loss/(gain) 2,576 5,789 661 3,324 (204) 548 (51) 38
Curtailments and settlements ——(33) (25) ——01
Amortization of net loss included
in net periodic (income)/cost (1,654) (1,056) (1,581) (1,400) (39) 0(10) (11)
Net loss at December 31 $19,363 $18,442 $20,724 $21,676 $ 609 $852 $128 $189
Prior service costs/(credits) at January 1 $ 110 $ 120 $ (386) $ (496)$ 23 $ 15 $ (26) $ (32)
Current period prior service costs/(credits) ——(6) (1)——00
Amortization of prior service (costs)/credits
included in net periodic (income)/cost (10) (10)98 111 7755
Prior service costs/(credits) at December 31 $ 101 $ 110 $ (294) $ (386) $ 30 $ 23 $ (21) $ (26)
Transition (assets)/liabilities at January 1 $ — $ — $ 0 $ 0 $ — $ — $ 0 $ 0
Amortization of transition assets/(liabilities)
included in net periodic (income)/cost ——00——00
Transition (assets)/liabilities at December 31 $ — $ — $ 0 $ 0 $ — $ — $ 0 $ 0
Total loss recognized in accumulated other
comprehensive income/(loss)*$19,464 $18,552 $20,429 $21,290 $ 639 $875 $106 $163
* See noteL, “Equity Activity,” for the total change in AOCI, and the Consolidated Statement of Comprehensive Income for the components of net periodic (income)/cost, including
the related tax effects, recognized in OCI for the retirement-related benefit plans.
The following table presents the pre-tax estimated net loss, estimated prior service costs/(credits) and estimated transition (assets)/
liabilities of the retirement-related benefit plans that will be amortized from AOCI into net periodic (income)/cost in 2016.
($ 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
Net loss $1,331 $1,361 $19 $8
Prior service costs/(credits) 10 (96) (7) (4)
Transition (assets)/liabilities ————
On March24, 2014, the Supreme Court of Spain issued a ruling
against IBM Spain in litigation involving its defined benefit and
defined contribution plans. As a result of the ruling, the company
recorded pre-tax retirement-related obligations of $233million in
2015 and $148million in 2014 in selling, general and administrative
expense in the Consolidated Statement of Earnings. These obliga-
tions are reflected in “Non-U.S. Plans—Multi-employer plans/other
costs” in the table on page130. See noteM, “Contingencies and
Commitments,” on page119 for additional information regarding
pension plan litigation matters.