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Retirement-Related Benefits
 9 Months Ended
Sep. 30, 2025
Retirement Benefits [Abstract]  
Retirement-Related Benefits Retirement-Related Benefits:
The company offers DB pension plans, defined contribution (DC) plans, as well as nonpension postretirement plans primarily consisting of retiree medical benefits.
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 30:20252024Change
Retirement-related plans — cost:   
Defined benefit pension and defined contribution plans — cost (1)
$233 $3,024 (92.3)%
Nonpension postretirement plans — cost33 30 10.2 %
Total$265 $3,053 (91.3)%
(1) 2024 includes the impact of a pension settlement charge, as described below.
Yr.-to-Yr.
(Dollars in millions)Percent
For the nine months ended September 30:20252024Change
Retirement-related plans — cost:   
Defined benefit pension and defined contribution plans — cost (1)
$714 $3,667 (80.5)%
Nonpension postretirement plans — cost97 90 8.2 %
Total$812 $3,757 (78.4)%
(1) 2024 includes the impact of a pension settlement charge, as described below.
Cost/(Income) of Retirement Plans
The following tables provide the components of the cost/(income) for the company’s retirement-related benefit plans.
(Dollars in millions)U.S. PlansNon-U.S. Plans
For the three months ended September 30:2025 202420252024
Service cost $88 $98 $45 $43 
Interest cost (1)
187 228 273 271 
Expected return on plan assets (1)
(268)(313)(376)(395)
Amortization of prior service costs/(credits) (1)
— — 6 6 
Recognized actuarial losses (1)
70 113 88 131 
Curtailments and settlements (1) (2)
— 2,725 2 2 
Multi-employer plans— — 3 3 
Other costs/(credits) (1)
— — 0 0 
Total net periodic pension (income)/cost of defined benefit plans$77 $2,851 $40 $62 
Cost of defined contribution plans16 15 100 95 
Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement$93 $2,866 $140 $158 
(1)These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement.
(2)2024 includes the impact of a pension settlement charge, as described below.
(Dollars in millions)U.S. PlansNon-U.S. Plans
For the nine months ended September 30:2025 202420252024
Service cost
$264 $295 $130 $128 
Interest cost (1)
561 735 790 803 
Expected return on plan assets (1)
(804)(994)(1,091)(1,168)
Amortization of prior service costs/(credits) (1)
— — 17 17 
Recognized actuarial losses (1)
210 370 257 389 
Curtailments and settlements (1) (2)
— 2,725 8 7 
Multi-employer plans— — 10 10 
Other costs/(credits) (1)
— — 18 20 
Total net periodic pension (income)/cost of defined benefit plans$230 $3,131 $139 $206 
Cost of defined contribution plans46 42 299 288 
Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement$276 $3,173 $438 $494 
(1)These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement.
(2)2024 includes the impact of a pension settlement charge, as described below.
Cost of Nonpension Postretirement Plans
The following tables provide the components of the cost for the company’s nonpension postretirement plans.
(Dollars in millions)U.S. PlanNon-U.S. Plans
For the three months ended September 30:2025202420252024
Service cost$0 $1 $1 $1 
Interest cost (1)
28 27 11 10 
Expected return on plan assets (1)
— — 0 0 
Amortization of prior service costs/(credits) (1)
(7)(7)0 0 
Recognized actuarial losses (1)
— — 0 0 
Curtailments and settlements (1)
— — — — 
Total nonpension postretirement plans cost recognized in the Consolidated Income Statement$22 $20 $11 $10 
(Dollars in millions)U.S. PlanNon-U.S. Plans
For the nine months ended September 30:2025202420252024
Service cost$1 $2 $1 $2 
Interest cost (1)
85 80 31 31 
Expected return on plan assets (1)
— — (1)(1)
Amortization of prior service costs/(credits) (1)
(22)(22)0 0 
Recognized actuarial losses (1)
— — 1 (1)
Curtailments and settlements (1)
— — — — 
Total nonpension postretirement plans cost recognized in the Consolidated Income Statement$65 $59 $33 $30 
(1)These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement.
IBM U.S. Retirement Plan Changes
In September 2024, the Qualified PPP irrevocably transferred to an insurer approximately $6 billion of the Qualified PPP’s DB pension obligations and related plan assets, thereby reducing the company’s pension obligations and assets by the same amount. As a result, the company recognized a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024 primarily related to the accelerated recognition of actuarial losses included within AOCI in the Consolidated Statement of Equity. Refer to Note U, "Retirement-Related Benefits", in the company’s 2024 annual report for additional information.
Plan Contributions
The company does not anticipate any significant changes to the expected plan contributions in 2025 from the amounts disclosed in the 2024 Annual Report. The table below includes contributions to the following plans:
(Dollars in millions)Plan Contributions
For the nine months ended September 30:20252024
U.S. nonpension postretirement benefit plan
$159 $155 
Non-U.S. DB and multi-employer plans (1)
21 53 
Total plan contributions$179 $208 
(1)Amounts reported net of refunds.
The U.S. nonpension postretirement benefit plan contributions in the table above were made in U.S. Treasury Securities. Additionally, during the nine months ended September 30, 2025 and 2024, contributions of $580 million and $600 million, respectively, were made to the Active Medical Trust in U.S. Treasury securities. Contributions made with U.S. Treasury securities are considered a non-cash transaction.