INTERNATIONAL BUSINESS MACHINES CORP | 2013 | FY |

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

Represents U.S. and international securities. The U.S. Plan includes IBM common stock of $83 million, representing 0.2 percent of the U.S. Plan assets. Non-U.S. Plans include IBM common stock of $31 million, representing 0.1 percent of the non-U.S. Plans assets.
Commingled funds represent pooled institutional investments.
Invests in predominantly equity securities.
Includes debt issued by national, state and local governments and agencies.
The U.S. Plan includes IBM corporate bonds of $9 million, representing 0.02 percent of the U.S. Plan assets. Non-U.S. plans include IBM corporate bonds of $1 million representing 0.001 percent of the non-U.S. Plan assets.
Invests in predominantly fixed-income securities.
Includes cash and cash equivalents and short-term marketable securities.
Includes limited partnerships and venture capital partnerships.
Primarily includes interest rate derivatives and, to a lesser extent, forwards, exchange traded and other over-the-counter derivatives.
Invests in both equity and fixed-income securities.
Represents net unsettled transactions, relating primarily to purchases and sales of plan assets.

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

Represents U.S. and international securities. The U.S. Plan includes IBM common stock of $113 million, representing 0.2 percent of the U.S. Plan assets. Non-U.S. Plans include IBM common stock of $40 million, representing 0.1 percent of the non-U.S. Plans assets.
Commingled funds represent pooled institutional investments.
Invests in predominantly equity securities.
Includes debt issued by national, state and local governments and agencies.
The U.S. Plan includes IBM corporate bonds of $6 million, representing 0.01 percent of the U.S. Plan assets. Non-U.S. plans include IBM corporate bonds of $2 million representing 0.004 percent of the non-U.S. Plan assets.
Invests in predominantly fixed-income securities.
Includes cash and cash equivalents and short-term marketable securities.
Includes limited partnerships and venture capital partnerships.
Primarily includes interest rate derivatives and, to a lesser extent, forwards, exchange traded and other over-the-counter derivatives.
Invests in both equity and fixed-income securities.
Represents net unsettled transactions, relating primarily to purchases and sales of plan assets.

INTERNATIONAL BUSINESS MACHINES CORP | 2013 | FY |

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