Retirement-Related Benefits (Tables)

9 Months Ended

Sep. 30, 2023

The following tables provide the pre-tax cost for all retirement-related plans.


						Yr. to Yr.
(Dollars in millions)						Percent
For the three months ended September 30:	2023		2022			Change
Retirement-related plans — cost:
Defined benefit and contribution pension plans — cost	$	250	$	6,319	*	(96.0)	%
Nonpension postretirement plans — cost	33		31			5.3
Total	$	283	$	6,350		(95.5)	%

*Includes the impact of a one-time, non-cash, pre-tax pension settlement charge of $5.9 billion related to the Qualified PPP, as described below.


						Yr. to Yr.
(Dollars in millions)						Percent
For the nine months ended September 30:	2023		2022			Change
Retirement-related plans — cost:
Defined benefit and contribution pension plans — cost	$	791	$	7,252	*	(89.1)	%
Nonpension postretirement plans — cost	98		97			0.4
Total	$	888	$	7,350		(87.9)	%

*Includes the impact of a one-time, non-cash, pre-tax pension settlement charge of $5.9 billion related to the Qualified PPP, as described below.

The following tables provide the components of the cost/(income) for the company’s pension plans.


(Dollars in millions)	U.S. Plans					Non-U.S. Plans
For the three months ended September 30:	2023		2022			2023		2022
Service cost	$	—	$	—		$	44	$	57
Interest cost*	272		282			293		124
Expected return on plan assets*	(382)		(432)			(363)		(246)
Amortization of prior service costs/(credits)*	—		2			5		3
Recognized actuarial losses*	27		132			99		247
Curtailments and settlements*	—		5,894		**	2		19
Multi-employer plans	—		—			4		4
Other costs/(credits)*	—		—			3		8
Total net periodic pension (income)/cost of defined benefit plans	$	(82)	$	5,877		$	88	$	216
Cost of defined contribution plans	150		134			95		91
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	$	68	$	6,012		$	182	$	307


(Dollars in millions)	U.S. Plans					Non-U.S. Plans
For the nine months ended September 30:	2023		2022			2023		2022
Service cost	$	—	$	—		$	133	$	180
Interest cost*	817		885			873		394
Expected return on plan assets*	(1,146)		(1,382)			(1,081)		(778)
Amortization of prior service costs/(credits)*	0		6			15		10
Recognized actuarial losses*	82		490			302		784
Curtailments and settlements*	—		5,894		**	7		38
Multi-employer plans	—		—			10		11
Other costs/(credits)*	—		—			21		24
Total net periodic pension (income)/cost of defined benefit plans	$	(247)	$	5,893		$	281	$	663
Cost of defined contribution plans	473		416			283		280
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	$	226	$	6,309		$	565	$	943

*These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement.

** Reflects the impact of a one-time, non-cash, pre-tax pension settlement charge related to the Qualified PPP, as described below.

The following tables provide the components of the cost for the company’s nonpension postretirement plans.


(Dollars in millions)	U.S. Plan				Non-U.S. Plans
For the three months ended September 30:	2023		2022		2023		2022
Service cost	$	1	$	1	$	1	$	1
Interest cost*	29		21		10		8
Expected return on plan assets*	—		—		(1)		0
Amortization of prior service costs/(credits)*	(7)		(2)		0		0
Recognized actuarial losses*	—		1		0		1
Curtailments and settlements*	—		—		—		—
Total nonpension postretirement plans cost recognized in the Consolidated Income Statement	$	23	$	21	$	10	$	10


(Dollars in millions)	U.S. Plan				Non-U.S. Plans
For the nine months ended September 30:	2023		2022		2023		2022
Service cost	$	3	$	4	$	2	$	2
Interest cost*	88		58		29		26
Expected return on plan assets*	—		—		(2)		(2)
Amortization of prior service costs/(credits)*	(22)		(1)		0		0
Recognized actuarial losses*	—		6		(1)		3
Curtailments and settlements*	—		—		—		—
Total nonpension postretirement plans cost recognized in the Consolidated Income Statement	$	69	$	67	$	28	$	30

*These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement.

The table below includes contributions to the following plans:


(Dollars in millions)	Plan Contributions
For the nine months ended September 30:	2023		2022
U.S. nonpension postretirement benefit plans	$	188	$	272
Non-U.S. DB and multi-employer plans*	45		85
Total plan contributions	$	233	$	357

*Amounts reported net of refunds.