INTERNATIONAL BUSINESS MACHINES CORP | 2013 | FY | 3


($ in millions)
Defined Benefit Pension PlansNonpension Postretirement Benefit Plans
U.S. PlansNon-U.S. PlansU.S. PlanNon-U.S. Plans
20132012201320122013201220132012
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$ 48,369N/AN/AN/AN/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


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