| ($ 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 | 1 | 0 | |||||||||||||||
| 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).
| 2013 | 2012 | ||||||||||||
| Benefit | Plan | Benefit | Plan | ||||||||||
| At December 31: | Obligation | Assets | Obligation | Assets | |||||||||
| Plans with PBO in excess of plan assets | $ | 41,003 | $ | 29,223 | $ | 99,184 | $ | 83,799 | |||||
| Plans with ABO in excess of plan assets | 40,315 | 29,213 | 98,263 | 83,677 | |||||||||
| Plans with assets in excess of PBO | 58,651 | 64,194 | 6,944 | 7,889 | |||||||||
The following table presents the company’s defined benefit pension plans’ asset classes and their associated fair value at December 31, 2013. The U.S. Plan consists of the Qualified PPP and the Non-U.S. Plans consist of all plans sponsored by the company’s subsidiaries.
| ($ in millions) | |||||||||||||||||||||||||||
| U.S. Plan | Non-U.S. Plans | ||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Equity | |||||||||||||||||||||||||||
| Equity securities(a) | $ | 15,929 | $ | — | $ | — | $ | 15,929 | $ | 6,489 | $ | — | $ | — | $ | 6,489 | |||||||||||
| Equity commingled/mutual funds(b)(c) | 216 | 2,593 | — | 2,809 | 132 | 8,325 | — | 8,457 | |||||||||||||||||||
| Fixed income | |||||||||||||||||||||||||||
| Government and related(d) | — | 7,093 | 1 | 7,094 | — | 8,682 | 42 | 8,724 | |||||||||||||||||||
| Corporate bonds(e) | — | 14,639 | 5 | 14,644 | — | 1,881 | 4 | 1,885 | |||||||||||||||||||
| Mortgage and asset-backed securities | — | 691 | 19 | 709 | — | 8 | — | 8 | |||||||||||||||||||
| Fixed income commingled/ | |||||||||||||||||||||||||||
| mutual funds(b)(f) | 221 | 716 | 274 | 1,211 | 75 | 8,596 | — | 8,670 | |||||||||||||||||||
| Insurance contracts | — | — | — | — | — | 1,196 | — | 1,196 | |||||||||||||||||||
| Cash and short-term investments(g) | 427 | 1,915 | — | 2,343 | 154 | 451 | — | 605 | |||||||||||||||||||
| Hedge funds | — | 1,368 | 860 | 2,228 | — | 740 | — | 740 | |||||||||||||||||||
| Private equity(h) | — | — | 3,771 | 3,771 | — | — | 410 | 410 | |||||||||||||||||||
| Private real estate(h) | — | — | 3,038 | 3,038 | — | — | 655 | 655 | |||||||||||||||||||
| Derivatives(i) | 1 | 6 | — | 7 | 1 | 150 | — | 151 | |||||||||||||||||||
| Other commingled/mutual funds(b)(j) | — | — | — | — | 36 | 1,518 | — | 1,554 | |||||||||||||||||||
| Subtotal | 16,795 | 29,021 | 7,968 | 53,784 | 6,886 | 31,547 | 1,110 | 39,544 | |||||||||||||||||||
| Other(k) | — | — | — | 170 | — | — | — | (80) | |||||||||||||||||||
| Fair value of plan assets | $ | 16,795 | $ | 29,021 | $ | 7,968 | $ | 53,954 | $ | 6,886 | $ | 31,547 | $ | 1,110 | $ | 39,464 | |||||||||||
The following table presents the company’s defined benefit pension plans’ asset classes and their associated fair value at December 31, 2012. The U.S. Plan consists of the Qualified PPP and the Non-U.S. Plans consist of all plans sponsored by the company’s subsidiaries.
| ($ in millions) | |||||||||||||||||||||||||||
| U.S. Plan | Non-U.S. Plans | ||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Equity | |||||||||||||||||||||||||||
| Equity securities(a) | $ | 15,161 | $ | 1 | $ | — | $ | 15,163 | $ | 6,395 | $ | — | $ | — | $ | 6,395 | |||||||||||
| Equity commingled/mutual funds(b)(c) | 96 | 2,556 | — | 2,652 | 138 | 7,641 | — | 7,779 | |||||||||||||||||||
| Fixed income | |||||||||||||||||||||||||||
| Government and related(d) | — | 12,945 | 6 | 12,951 | — | 8,978 | 76 | 9,054 | |||||||||||||||||||
| Corporate bonds (e) | — | 8,499 | 11 | 8,510 | — | 1,878 | 5 | 1,883 | |||||||||||||||||||
| Mortgage and asset-backed securities | — | 922 | 45 | 968 | — | 9 | — | 9 | |||||||||||||||||||
| Fixed income commingled/ | |||||||||||||||||||||||||||
| mutual funds(b)(f) | 155 | 804 | 267 | 1,226 | 78 | 8,018 | — | 8,096 | |||||||||||||||||||
| Insurance contracts | — | — | — | — | — | 1,019 | — | 1,019 | |||||||||||||||||||
| Cash and short-term investments(g) | 244 | 3,198 | — | 3,442 | 134 | 373 | — | 507 | |||||||||||||||||||
| Hedge funds | — | 1,402 | 756 | 2,159 | — | 646 | — | 646 | |||||||||||||||||||
| Private equity(h) | — | — | 4,085 | 4,085 | — | — | 353 | 353 | |||||||||||||||||||
| Private real estate(h) | — | — | 2,861 | 2,861 | — | — | 609 | 609 | |||||||||||||||||||
| Derivatives(i) | (6) | 62 | — | 56 | 0 | 856 | — | 857 | |||||||||||||||||||
| Other commingled/mutual funds(b)(j) | — | — | — | — | 12 | 907 | — | 919 | |||||||||||||||||||
| Subtotal | 15,650 | 30,390 | 8,032 | 54,072 | 6,757 | 30,325 | 1,042 | 38,124 | |||||||||||||||||||
| Other(k) | — | — | — | (442) | — | — | — | (66) | |||||||||||||||||||
| Fair value of plan assets | $ | 15,650 | $ | 30,390 | $ | 8,032 | $ | 53,630 | $ | 6,757 | $ | 30,325 | $ | 1,042 | $ | 38,058 | |||||||||||
| ($ in millions) | |||||||||||||
| Defined Benefit | Nonpension Postretirement | ||||||||||||
| Pension Plans | Benefit Plans | ||||||||||||
| U.S. Plans | Non-U.S. Plans | U.S. Plan | Non-U.S. Plans | ||||||||||
| Net loss | $ | 1,076 | $ | 1,461 | $ | — | $ | 11 | |||||
| Prior service costs/(credits) | 10 | (127) | (7) | (6) | |||||||||
| Transition (assets)/liabilities | — | 0 | — | 0 | |||||||||
| ($ 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) | ||||||||||
| ($ 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 | ||||||||||||||||||||
| Net loss at January 1 | $ | 19,488 | $ | 18,561 | $ | 22,188 | $ | 18,309 | $ | 806 | $ | 734 | $ | 269 | $ | 211 | |||||||||||
| Current period loss/(gain) | (3,989) | 2,258 | (814) | 4,905 | (480) | 104 | (85) | 75 | |||||||||||||||||||
| Curtailments and settlements | — | — | 3 | 2 | — | — | 0 | — | |||||||||||||||||||
| Amortization of net loss included in | |||||||||||||||||||||||||||
| net periodic (income)/cost | (1,790) | (1,331) | (1,600) | (1,027) | (21) | (32) | (23) | (17) | |||||||||||||||||||
| Net loss at December 31 | $ | 13,709 | $ | 19,488 | $ | 19,777 | $ | 22,188 | $ | 304 | $ | 806 | $ | 161 | $ | 269 | |||||||||||
| Prior service costs/(credits) at January 1 | $ | 130 | $ | 139 | $ | (614) | $ | (768) | $ | — | $ | — | $ | (6) | $ | (10) | |||||||||||
| Current period prior service costs/(credits) | — | — | 0 | — | 15 | — | (31) | — | |||||||||||||||||||
| Amortization of prior service (costs)/ | |||||||||||||||||||||||||||
| credits included in net periodic | |||||||||||||||||||||||||||
| (income)/cost | (10) | (10) | 119 | 154 | — | — | 5 | 4 | |||||||||||||||||||
| Prior service costs/(credits) at | |||||||||||||||||||||||||||
| December 31 | $ | 120 | $ | 130 | $ | (496) | $ | (614) | $ | 15 | $ | — | $ | (32) | $ | (6) | |||||||||||
| Transition (assets)/liabilities at January 1 | $ | — | $ | — | $ | 0 | $ | (0) | $ | — | $ | — | $ | 0 | $ | 0 | |||||||||||
| Amortization of transition assets/ | |||||||||||||||||||||||||||
| (liabilities) included in net periodic | |||||||||||||||||||||||||||
| (income)/cost | — | — | 0 | 0 | — | — | 0 | (0) | |||||||||||||||||||
| Transition (assets)/liabilities at | |||||||||||||||||||||||||||
| December 31 | $ | — | $ | — | $ | 0 | $ | (0) | $ | — | $ | — | $ | 0 | $ | 0 | |||||||||||
| Total loss recognized in accumulated | |||||||||||||||||||||||||||
| other comprehensive income/(loss)* | $ | 13,829 | $ | 19,618 | $ | 19,281 | $ | 21,574 | $ | 319 | $ | 806 | $ | 129 | $ | 263 | |||||||||||
* See note L, “Equity Activity,” on pages 116 through 118 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.
| Defined Benefit Pension Plans | |||||||||||||||
| U.S. Plans | Non-U.S. Plans | ||||||||||||||
| 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||
| Weighted-average assumptions used to measure net | |||||||||||||||
| periodic (income)/cost for the year ended December 31 | |||||||||||||||
| Discount rate | 3.60 | % | 4.20 | % | 5.00 | % | 3.23 | % | 4.28 | % | 4.33 | % | |||
| Expected long-term returns on plan assets | 8.00 | % | 8.00 | % | 8.00 | % | 6.21 | % | 6.26 | % | 6.41 | % | |||
| Rate of compensation increase* | N/A | N/A | N/A | 2.51 | % | 2.43 | % | 2.37 | % | ||||||
| Weighted-average assumptions used to measure | |||||||||||||||
| benefit obligations at December 31 | |||||||||||||||
| Discount rate | 4.50 | % | 3.60 | % | 4.20 | % | 3.32 | % | 3.23 | % | 4.28 | % | |||
| Rate of compensation increase* | N/A | N/A | N/A | 2.52 | % | 2.51 | % | 2.43 | % | ||||||
* Rate of compensation increase is not applicable to the U.S. defined benefit pension plans as benefit accruals ceased December 31, 2007 for all participants.
N/A—Not applicable
| Nonpension Postretirement Benefit Plans | |||||||||||||||
| U.S. Plan | Non-U.S. Plans | ||||||||||||||
| 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||
| Weighted-average assumptions used to measure | |||||||||||||||
| net periodic cost for the year ended December 31 | |||||||||||||||
| Discount rate | 3.30 | % | 3.90 | % | 4.80 | % | 6.43 | % | 7.37 | % | 7.75 | % | |||
| Expected long-term returns on plan assets | 0.35 | % | N/A | N/A | 9.01 | % | 9.01 | % | 9.07 | % | |||||
| Weighted-average assumptions used to measure | |||||||||||||||
| benefit obligations at December 31 | |||||||||||||||
| Discount rate | 4.10 | % | 3.30 | % | 3.90 | % | 7.78 | % | 6.43 | % | 7.37 | % | |||
| N/A—Not applicable | |||||||||||||||
| ($ 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 | — | — | 6 | 161 | 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 | 0 | 0 | 5 | 10 | ||||||||||||||||||
| Employer contributions | — | — | 449 | 557 | 110 | 746 | 0 | 1 | ||||||||||||||||||
| 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 $204 million returned during 2013. The remaining surplus in Brazil at December 31, 2013 remains excluded from total plan assets due to continued restrictions imposed by the government on the use of those plan assets.
** Represents the benefit obligation assuming no future participant compensation increases.
N/A—Not applicable
| ($ in millions) | |||||||||||||||||||||||||||||
| U.S. Plans | Non-U.S. Plans | Total | |||||||||||||||||||||||||||
| 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 | |||||||||||
| ($ in millions) | ||||||||||||||||
| Government | Corporate | Private | Private | |||||||||||||
| and Related | Bonds | Equity | Real Estate | Total | ||||||||||||
| Balance at January 1, 2013 | $ | 76 | $ | 5 | $ | 353 | $ | 609 | $ | 1,042 | ||||||
| Return on assets held at end of year | (12) | (0) | 1 | 33 | 22 | |||||||||||
| Return on assets sold during the year | 1 | (0) | 18 | (3) | 16 | |||||||||||
| Purchases, sales and settlements, net | (24) | (1) | 26 | 1 | 1 | |||||||||||
| Foreign exchange impact | 2 | 0 | 12 | 15 | 29 | |||||||||||
| Balance at December 31, 2013 | $ | 42 | $ | 4 | $ | 410 | $ | 655 | $ | 1,110 | ||||||
| ($ in millions) | ||||||||||||||||
| Government | Corporate | Private | Private | |||||||||||||
| and Related | Bonds | Equity | Real Estate | Total | ||||||||||||
| Balance at January 1, 2012 | $ | 96 | $ | 39 | $ | 262 | $ | 580 | $ | 977 | ||||||
| Return on assets held at end of year | 3 | (1) | 9 | (5) | 6 | |||||||||||
| Return on assets sold during the year | 3 | 1 | 9 | 0 | 14 | |||||||||||
| Purchases, sales and settlements, net | (26) | (29) | 62 | 14 | 21 | |||||||||||
| Transfers, net | (2) | (5) | (0) | (3) | (10) | |||||||||||
| Foreign exchange impact | 1 | (0) | 11 | 23 | 34 | |||||||||||
| Balance at December 31, 2012 | $ | 76 | $ | 5 | $ | 353 | $ | 609 | $ | 1,042 | ||||||
| ($ in millions) | |||||||||||||||||||||||||
| Mortgage | |||||||||||||||||||||||||
| and Asset- | Fixed Income | ||||||||||||||||||||||||
| Government | Corporate | Backed | Commingled/ | Hedge | Private | Private | |||||||||||||||||||
| and Related | Bonds | Securities | Mutual Funds | Funds | Equity | Real Estate | Total | ||||||||||||||||||
| Balance at January 1, 2013 | $ | 6 | $ | 11 | $ | 45 | $ | 267 | $ | 756 | $ | 4,085 | $ | 2,861 | $ | 8,032 | |||||||||
| Return on assets held at end of year | 0 | (0) | (1) | 7 | 104 | 1,104 | 889 | 2,103 | |||||||||||||||||
| Return on assets sold during the year | 0 | (0) | (0) | — | (0) | (528) | (412) | (939) | |||||||||||||||||
| Purchases, sales and settlements, net | (5) | 3 | (0) | — | (0) | (891) | (301) | (1,194) | |||||||||||||||||
| Transfers, net | 0 | (8) | (26) | — | — | — | — | (33) | |||||||||||||||||
| Balance at December 31, 2013 | $ | 1 | $ | 5 | $ | 19 | $ | 274 | $ | 860 | $ | 3,771 | $ | 3,038 | $ | 7,968 | |||||||||
| ($ in millions) | |||||||||||||||||||||||||
| Mortgage | |||||||||||||||||||||||||
| and Asset- | Fixed Income | ||||||||||||||||||||||||
| Government | Corporate | Backed | Commingled/ | Hedge | Private | Private | |||||||||||||||||||
| and Related | Bonds | Securities | Mutual Funds | Funds | Equity | Real Estate | Total | ||||||||||||||||||
| Balance at January 1, 2012 | $ | 29 | $ | 12 | $ | 45 | $ | 246 | $ | 713 | $ | 4,098 | $ | 2,790 | $ | 7,932 | |||||||||
| Return on assets held at end of year | 0 | 0 | 1 | 21 | 56 | 855 | 202 | 1,135 | |||||||||||||||||
| Return on assets sold during the year | 0 | 2 | 1 | — | 14 | (334) | (41) | (359) | |||||||||||||||||
| Purchases, sales and settlements, net | (1) | (2) | (9) | — | (26) | (533) | (90) | (660) | |||||||||||||||||
| Transfers, net | (22) | (1) | 8 | — | — | — | — | (15) | |||||||||||||||||
| Balance at December 31, 2012 | $ | 6 | $ | 11 | $ | 45 | $ | 267 | $ | 756 | $ | 4,085 | $ | 2,861 | $ | 8,032 | |||||||||
| ($ in millions) | ||||||||||||||||
| Qualified | Nonqualified | Qualified | Nonqualified | Total Expected | ||||||||||||
| U.S. Plan | U.S. Plans | Non-U.S. Plans | Non-U.S. Plans | Benefit | ||||||||||||
| Payments | Payments | Payments | Payments | Payments | ||||||||||||
| 2014 | $ | 3,393 | 109 | 2,026 | 382 | 5,910 | ||||||||||
| 2015 | 3,430 | 112 | 2,021 | 382 | 5,945 | |||||||||||
| 2016 | 3,460 | 114 | 2,062 | 385 | 6,022 | |||||||||||
| 2017 | 3,477 | 116 | 2,086 | 394 | 6,073 | |||||||||||
| 2018 | 3,441 | 118 | 2,121 | 407 | 6,087 | |||||||||||
| 2019–2023 | 17,454 | 600 | 11,327 | 2,325 | 31,706 | |||||||||||
| ($ in millions) | |||||||||||||
| Total | |||||||||||||
| Qualified | Nonqualified | Expected | |||||||||||
| U.S. Plan | Non-U.S. Plans | Non-U.S. Plans | Benefit | ||||||||||
| Payments | Payments | Payments | Payments | ||||||||||
| 2014 | $ | 427 | $ | 8 | $ | 32 | $ | 467 | |||||
| 2015 | 422 | 8 | 36 | 466 | |||||||||
| 2016 | 416 | 9 | 39 | 464 | |||||||||
| 2017 | 409 | 10 | 42 | 461 | |||||||||
| 2018 | 393 | 10 | 46 | 449 | |||||||||
| 2019–2023 | 1,799 | 63 | 286 | 2,148 | |||||||||
| ($ 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 | — | — | — | 0 | 0 | 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 | — | — | — | 0 | 0 | 0 | |||||||||||||
| Amortization of prior service costs/(credits) | — | — | — | (5) | (4) | (4) | |||||||||||||
| Recognized actuarial losses | 21 | 32 | — | 23 | 17 | 13 | |||||||||||||
| Curtailments and settlements | — | — | — | 0 | 0 | — | |||||||||||||
| 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.