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Retirement-Related Benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Description of plans
IBM sponsors the following retirement-related plans/benefits:
PlanEligibilityFundingBenefit CalculationOther
U.S. Defined Benefit (DB) Pension Plans
IBM Personal Pension Plan (Qualified PPP) which includes the Retirement Benefit Account (“RBA”) as of January 1, 2024
U.S. regular, full-time and part-time employees hired prior to January 1, 2005

RBA - U.S. regular, full-time and part time employees with at least one year of service on or after January 1, 2024
Any company contributions, required or voluntary, are to an irrevocable trust fund, held for the sole benefit of participants and beneficiaries
Vary based on the participant:

Based on average earnings, years of service and age

Cash balance formula based on percentage of employees’ annual salary, as well as an interest crediting rate (includes RBA as of January 1, 2024)


Excluding RBA, benefit accruals ceased December 31, 2007

Certain defined benefit pension obligations and related plan assets were transferred in 2024, as described under “IBM Retirement Plan Changes,” below
Excess Personal Pension Plan (“Excess PPP”)
U.S. regular, full-time and part-time employees hired prior to January 1, 2005
Unfunded, provides benefits in excess of IRS limitations for qualified plans
Benefit accruals ceased December 31, 2007
Supplemental Executive Retention Plan (“Retention Plan”)
Eligible U.S. executivesUnfunded
Based on average earnings, years of service and age
U.S. Defined Contribution (DC) Plans
401(k) Plan
U.S. regular, full-time and part-time employees
All plan participant contributions are made in cash and invested in accordance with participants’ investment elections
Employees can save up to 80% of eligible pay, subject to the Internal Revenue Code (IRC) annual contribution limit
All amounts in the plan are 100% vested
Excess Savings Plan U.S. employees whose eligible compensation is expected to exceed IRS compensation limit for qualified plans
Unfunded, non-qualified amounts deferred are record-keeping (notional) accounts and are not held in trust for the participants, but may be invested in accordance with participants’ investment elections (under the 401(k) Plan options)
Company matches contributions on eligible compensation deferred and on compensation earned in excess of the IRC pay limit
Amounts deferred into the Plan, including company contributions, are recorded as liabilities
U.S. Nonpension Postretirement Benefit Plan
Nonpension Postretirement Plan (IBM Benefits Plan for Retired Employees)
Medical and dental benefits for eligible U.S. retirees and eligible dependents, as well as life insurance for eligible U.S. retirees
Company contributes to irrevocable trust fund, held for the sole benefit of participants and beneficiaries
Varies based on plan design formulas and eligibility requirementsSince January 1, 2004, new hires are not eligible for these benefits
Non-U.S. PlansDB or DCEligible regular employees in certain non-U.S. subsidiaries or branchesCompany deposits funds under various fiduciary-type arrangements, purchases annuities under group contracts or provides reserves for these plansBased either on years of service and the employee’s compensation (generally during a fixed number of years immediately before retirement) or on annual credits
In certain countries, benefit accruals have ceased and/or have been closed to new hires as of various dates

Certain defined benefit pension obligations and related plan assets were transferred in 2024, as described under “IBM Retirement Plan Changes,” below
Nonpension Postretirement PlanMedical and dental benefits for eligible non-U.S. retirees and eligible dependents, as well as life insurance for certain eligible non-U.S. retireesPrimarily unfunded except for a few select countries where the company contributes to irrevocable trust funds held for the sole benefit of participants and beneficiariesVaries based on plan design formulas and eligibility requirements by countryMost non-U.S. retirees are covered by local government sponsored and administered programs
Pre-tax cost for all retirement-related plans
The following table presents a summary of the total retirement-related benefits net periodic (income)/cost recorded in the Consolidated Income Statement.
($ in millions)
U.S. PlansNon-U.S. PlansTotal
For the year ended December 31:202520242023202520242023202520242023
Total defined benefit pension plans (income)/cost (1)
$307 $3,265 $(329)$170 $652 $359 $477 $3,918 $30 
Total defined contribution plans cost (2)
$61 $57 $615 $400 $383 $376 $461 $440 $991 
Nonpension postretirement benefit plans cost$86 $79 $92 $44 $41 $36 $130 $120 $128 
Total retirement-related benefits net periodic cost (1)
$455 $3,402 $378 $614 $1,077 $771 $1,068 $4,478 $1,149 
(1)In 2024, U.S. and Non-U.S. Plans include the impact of pension settlement charges of $2.7 billion and $0.4 billion, respectively, and starting in 2024 the U.S. Plans include the RBA that was effective January 1, 2024. Refer to the section below entitled “IBM Retirement Plan Changes,” for additional information.
(2)Lower U.S. Plans total defined contributions plans cost in 2025 and 2024, compared to 2023, is due to the introduction of the RBA that was effective January 1, 2024. Refer to the section below entitled “IBM Retirement Plan Changes,” for additional information.
Summary of the total PBO for defined benefit plans, APBO for nonpension postretirement benefit plans, fair value of plan assets and associated funded status
The following table presents a summary of the total PBO for DB pension plans, APBO for nonpension postretirement benefit plans, fair value of plan assets and the associated funded status recorded in the Consolidated Balance Sheet.
($ in millions)
Benefit ObligationsFair Value of Plan Assets
Funded Status (1)
At December 31:2025 20242025 202420252024
U.S. Plans
Overfunded plans
Qualified PPP
$13,207 $12,941 $18,073 $17,591 $4,866 $4,651 
Underfunded plans
Nonqualified defined benefit pension plans (2)
1,253 1,278 — — (1,253)(1,278)
Nonpension postretirement benefit plan 2,224 2,257 5 6 (2,219)(2,251)
Total underfunded U.S. plans$3,477 $3,535 $5 $6 $(3,472)$(3,529)
Non-U.S. Plans
Overfunded plans
Qualified defined benefit pension plans (3)
$14,632 $13,568 $17,310 $16,410 $2,679 $2,842 
Total overfunded non-U.S. plans$14,632 $13,568 $17,310 $16,410 $2,679 $2,842 
Underfunded plans
Qualified defined benefit pension plans (3)
$10,697 $10,482 $9,423 $8,795 $(1,274)$(1,688)
Nonqualified defined benefit pension plans (3)
4,544 4,440 — — (4,544)(4,440)
Nonpension postretirement benefit plans 547 507 9 14 (538)(493)
Total underfunded non-U.S. plans$15,788 $15,429 $9,432 $8,809 $(6,356)$(6,620)
Total overfunded plans$27,839 $26,509 $35,383 $34,001 $7,544 $7,492 
Total underfunded plans$19,264 $18,964 $9,437 $8,815 $(9,828)$(10,149)
(1)Funded status is recognized in the Consolidated Balance Sheet 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).
(2)Excess PPP and Retention Plan.
(3)Non-U.S. qualified plans represent plans funded outside of the U.S. Non-U.S. nonqualified plans are unfunded.
Components of net periodic (income)/cost of the company's retirement-related benefit plans
The following tables present the components of net periodic (income)/cost of the retirement-related benefit plans recognized in the Consolidated Income Statement, excluding DC plans.
($ in millions)
Defined Benefit Pension Plans
U.S. PlansNon-U.S. Plans
For the year ended December 31:202520242023202520242023
Service cost (1)
$352 $394 $— $174 $170 $177 
Interest cost (2)
748 911 1,090 1,070 1,077 1,170 
Expected return on plan assets (2)
(1,073)(1,253)(1,529)(1,467)(1,546)(1,440)
Amortization of prior service costs/(credits) (2)
— — 0 22 22 20 
Recognized actuarial losses (2)
280 452 109 343 516 400 
Curtailments and settlements (2) (3)
— 2,761 — 9 398 7 
Multi-employer plans— — — 13 13 13 
Other costs/(credits) (2)
— — — 5 3 13 
Total net periodic (income)/cost (3)
$307 $3,265 $(329)$170 $652 $359 
($ in millions)
Nonpension Postretirement Benefit Plans
U.S. PlanNon-U.S. Plans
For the year ended December 31:202520242023202520242023
Service cost$2 $2 $4 $2 $2 $2 
Interest cost (2)
114 106 117 42 41 39 
Expected return on plan assets (2)
— — — (1)(1)(2)
Amortization of prior service costs/(credits) (2)
(29)(29)(29)0 0 0 
Recognized actuarial losses (2)
— — — 1(1)(1)
Curtailments and settlements (2)
— — — 0 0 (2)
Other costs/(credits) (2)
0 — — — 0 0 
Total net periodic cost$86 $79 $92 $44 $41 $36 
(1)U.S. Plans Service cost includes the RBA that was effective January 1, 2024. Refer to the section below entitled “IBM Retirement Plan Changes,” for additional information.
(2)These components of net periodic pension costs are included in other (income) and expense in the Consolidated Income Statement.
(3)In 2024, U.S. and Non-U.S. Plans include the impact of pension settlement charges of $2.7 billion and $0.4 billion, respectively. Refer to the section below entitled “IBM Retirement Plan Changes,” for additional information.
Changes in plan assets
The following table presents the changes in benefit obligations and plan assets of the company’s retirement-related benefit plans, excluding DC plans.
($ in millions)
Defined Benefit Pension PlansNonpension Postretirement Benefit Plans
U.S. PlansNon-U.S. PlansU.S. PlanNon-U.S. Plans
2025 2024202520242025202420252024
Change in benefit obligation
Benefit obligation at January 1$14,219 $21,235 $28,490 $33,479 $2,257 $2,233 $507 $586 
Service cost 352 394 174 170 2 2 2 2 
Interest cost748 911 1,070 1,077 114 106 42 41 
Plan participants' contributions— — 19 17 33 33 — — 
Acquisitions/divestitures, net— — 3 7 — — — — 
Actuarial losses/(gains)316 (589)(644)(1,076)61 116 1 0 
Benefits paid from trust(749)(1,432)(1,656)(1,635)(239)(233)(8)(4)
Direct benefit payments(120)(122)(442)(422)(3)(2)(34)(32)
Foreign exchange impact— — 3,031 (1,850)— — 36 (85)
Amendments/curtailments/settlements/other (1)
(306)(6,178)(173)(1,277)0 — 0 (1)
Benefit obligation at December 31$14,460 $14,219 $29,872 $28,490 $2,224 $2,257 $547 $507 
Change in plan assets
Fair value of plan assets at January 1$17,591 $24,437 $25,205 $29,059 $6 $10 $14 $23 
Actual return on plan assets1,536 764 645 499 1 — 1 1 
Employer contributions— — 40 67 204 194 — — 
Acquisitions/divestitures, net— — 2 4 — — — — 
Plan participants' contributions— — 19 17 33 33 — — 
Benefits paid from trust(749)(1,432)(1,656)(1,635)(239)(233)(8)(4)
Foreign exchange impact— — 2,654 (1,530)— — 2 (5)
Amendments/curtailments/settlements/other (1)
(306)(6,178)(175)(1,277)— 2 0 0 
Fair value of plan assets at December 31$18,073 $17,591 $26,733 $25,205 $5 $6 $9 $14 
Funded status at December 31$3,613 $3,373 $(3,139)$(3,286)$(2,219)$(2,251)$(538)$(493)
Accumulated benefit obligation (2)
$14,460 $14,219 $29,540 $28,187 N/AN/AN/AN/A
(1)In 2024, the amount related to U.S. Defined Benefit Pension Plans primarily represents the transfer of Qualified PPP pension obligations and related plan assets to an insurer pursuant to a group annuity contract and the amount related to Non-U.S. Defined Benefit Pension Plans primarily represents the transfer of IBMC IBM Retirement Plan pension obligations and related plan assets to two insurers pursuant to group annuity contracts.
(2) Represents the benefit obligation assuming no future participant compensation increases.
N/A–Not applicable
Net funded status
The following table presents the net funded status recognized in the Consolidated Balance Sheet.
($ in millions)
Defined Benefit Pension PlansNonpension Postretirement Benefit Plans
U.S. PlansNon-U.S. PlansU.S. PlanNon-U.S. Plans
At December 31:20252024202520242025202420252024
Prepaid pension assets$4,866 $4,651 $2,679 $2,842 $0 $0 $0 $0 
Current liabilities—compensation and benefits(116)(117)(407)(362)(254)(218)(32)(20)
Noncurrent liabilities—retirement and nonpension postretirement benefit obligations(1,137)(1,160)(5,411)(5,766)(1,965)(2,033)(505)(473)
Funded status—net$3,613 $3,373 $(3,139)$(3,286)$(2,219)$(2,251)$(538)$(493)
Pre-tax net loss and prior service costs/(credits) and transition (assets)/liabilities recognized in OCI and changes in pre-tax net loss, prior service costs/(credits) and transition (assets)/liabilities recognized in AOCI
The following table presents the pre-tax net loss, prior service costs/(credits) and transition (assets)/liabilities recognized in OCI and the changes in the pre-tax net loss, prior service costs/(credits) and transition (assets)/liabilities recognized in AOCI for the retirement-related benefit plans.
($ in millions)
Defined Benefit Pension PlansNonpension Postretirement Benefit Plans
U.S. PlansNon-U.S. PlansU.S. PlanNon-U.S. Plans
2025 2024202520242025202420252024
Net loss at January 1$6,153 $9,467 $11,950 $12,937 $188 $73 $125 $123 
Current period loss/(gain)(147)(101)(291)(73)60 115 1 0 
Curtailments and settlements (1)
— (2,761)(9)(398)— — 0 0 
Amortization of net loss included in net periodic (income)/cost (280)(452)(343)(516)— — (1)1 
Net loss at December 31$5,726 $6,153 $11,307 $11,950 $249 $188 $125 $125 
Prior service costs/(credits) at January 1$0 $0 $342 $309 $(321)$(350)$(1)$(1)
Current period prior service costs/(credits)0 — 469 56 0 — 0 0 
Curtailments, settlements and other— — — — — — — — 
Amortization of prior service (costs)/credits included in net periodic (income)/cost— 0 (22)(22)29 29 0 0 
Prior service costs/(credits) at December 31$0 $0 $789 $342 $(292)$(321)$(1)$(1)
Transition (assets)/liabilities at January 1$— $— $— $0 $— $— $0 $0 
Transition (assets)/liabilities at December 31$— $— $— $0 $— $— $0 $0 
Total loss recognized in accumulated other comprehensive income/(loss) (2)
$5,726 $6,153 $12,096 $12,293 $(43)$(133)$124 $124 
(1)In 2024, the amount related to U.S. Defined Benefit Pension Plans includes the impact of a pension settlement charge of $2.7 billion, and the amount related to Non-U.S. Defined Benefit Pension Plans includes the impact of a pension settlement charge of $0.4 billion. Refer to the section above entitled “IBM Retirement Plan Changes,” for additional information.
(2)Refer to note R, “Equity Activity,” 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.
Assumptions used to measure the net periodic (income)/cost and year-end benefit obligations
The following tables present the assumptions used to measure the net periodic (income)/cost and the year-end benefit obligations for retirement-related benefit plans.
Defined Benefit Pension Plans
U.S. PlansNon-U.S. Plans
202520242023202520242023
Weighted-average assumptions used to measure net periodic (income)/cost for the year ended December 31
Discount rate (1) (2)
5.50 %5.00 %5.30 %3.61 %3.37 %3.80 %
Expected long-term returns on plan assets (1) (2)
5.50 %5.08 %5.50 %4.86 %4.89 %4.44 %
Rate of compensation increase (3)
4.00 %5.00 %N/A4.04 %4.18 %4.00 %
Interest crediting rate (1)
4.30 %3.80 %4.40 %0.32 %0.28 %0.34 %
Weighted-average assumptions used to measure benefit obligations at December 31
Discount rate5.20 %5.50 %5.00 %4.05 %3.61 %3.36 %
Rate of compensation increase4.00 %4.00 %5.00 %4.36 %4.04 %4.18 %
Interest crediting rate4.10 %4.30 %3.80 %0.29 %0.32 %0.28 %
(1)The Qualified PPP discount rate, expected long-term return on plan assets and interest crediting rate of 5.00 percent, 5.00 percent, and 3.80 percent, respectively, for the period January 1, 2024 through August 31, 2024, changed to 5.00 percent, 5.25 percent and 3.80 percent, respectively, for the period September 1, 2024 through December 31, 2024 due to remeasurement of the plan as a result of the changes described in the section above entitled “IBM Retirement Plan Changes.”
(2)The Non-U.S. Plan discount rate and expected long-term return on plan assets of 4.60 percent, and 5.50 percent, respectively, for the period January 1, 2024 through October 29, 2024, changed to 4.70 percent and 4.50 percent, respectively, for the period October 30, 2024 through December 31, 2024 due to remeasurement of the IBMC IBM Retirement Plan as a result of the changes described in the section above entitled “IBM Retirement Plan Changes.”
(3)The rate of compensation increase in 2024 is due to the RBA that was effective January 1, 2024. Refer to the section above entitled “IBM Retirement Plan Changes,” for additional information.
N/A–Not applicable
Nonpension Postretirement Benefit Plans
U.S. PlanNon-U.S. Plans
202520242023202520242023
Weighted-average assumptions used to measure net periodic cost for the year ended December 31
Discount rate 5.30 %5.00 %5.30 %8.21 %7.66 %7.25 %
Expected long-term returns on plan assetsN/A N/A N/A 8.25 %8.12 %8.05 %
Interest crediting rate 4.30 %3.80 %4.40 %N/A N/A N/A 
Weighted-average assumptions used to measure benefit obligations at December 31
Discount rate4.80 %5.30 %5.00 %9.01 %8.21 %7.66 %
Interest crediting rate4.10 %4.30 %3.80 %N/A N/A N/A 
N/A–Not applicable
ItemDescription of Assumptions
Discount Rate
Changes in discount rate assumptions impact net periodic (income)/cost and the PBO.

For the U.S. and certain non-U.S. countries, a portfolio of high-quality corporate bonds is used to construct a yield curve. Cash flows from the company’s expected benefit obligation payments are matched to the yield curve to derive the discount rates.

In other non-U.S. countries where the markets for high-quality long-term bonds are not as well developed, a portfolio of long-term government bonds is used as a base, and a credit spread is added to simulate corporate bond yields at these maturities in the jurisdiction of each plan. This is the benchmark for developing the respective discount rates.
Expected Long-Term Returns on Plan Assets
Represents the expected long-term returns on plan assets based on the calculated market-related value of plan assets and considers long-term expectations for future returns and the investment policies and strategies discussed on page 111. These rates of return are developed and tested for reasonableness against historical returns by the company.

The use of expected returns may result in pension income that is greater or less than the actual return of those plan assets in a given year. Over time, however, the expected long-term returns are designed to approximate the actual long-term returns, and therefore result in a pattern of income or loss recognition that more closely matches the pattern of the services provided by the employees.

The difference between actual and expected returns is recognized as a component of net loss or gain in AOCI, which is amortized as a component of net periodic (income)/cost over the service lives or life expectancy of the plan participants, depending on the plan, provided such amounts exceed certain thresholds provided by accounting standards. The market-related value of plan assets recognizes changes in the fair value of plan assets systematically over a five-year period in the expected return on plan assets line in net periodic (income)/cost.

The projected long-term rate of return on plan assets for 2026 is 5.75 percent for U.S. and 5.07 percent for non-U.S. DB Plans.
Rate of Compensation Increases and Mortality Assumptions
Compensation rate increases are determined based on the company’s long-term plans for such increases.

Mortality assumptions are based on life expectancy and death rates for different types of participants and are periodically updated based on actual experience.
Interest Crediting Rate
Benefits for participants in Cash Balance Plans are calculated using a cash balance formula. An assumption underlying this formula is an interest crediting rate, which impacts both net periodic (income)/cost and the PBO. This provides the basis for projecting the expected interest rate that plan participants will earn on the benefits that they are expected to receive in the following year.
Healthcare Cost Trend Rate
For nonpension postretirement benefit plans, the company determines healthcare cost trend rates based on medical cost inflation expectations in each market and IBM’s plan characteristics. The healthcare cost trend rate is an important consideration when setting future expectations for plan costs or benefit obligations, taking into account the terms of the plan which limit the company’s future obligations to the participants.

The company’s U.S. healthcare cost trend rate assumption for 2026 is 7.38 percent and is expected to decrease to 4.50 percent over approximately 17 years.
Defined benefit pension plans' asset classes and their associated fair value
The following table presents the company’s DB pension plans’ asset classes and their associated fair value at December 31, 2025. 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. PlanNon-U.S. Plans
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Equity
Equity securities (1)
$738 $— $3 $741 $44 $— $— $44 
Equity mutual funds (2)
349 — — 349 — — — — 
Fixed income
Government and related (3)
— 5,168 — 5,168 93 6,142 — 6,235 
Corporate bonds — 3,839 157 3,997 — 3,084 — 3,084 
Mortgage and asset-backed securities— 127 — 127 — 5 — 5 
Fixed income mutual funds (4)
268 — — 268 — — — — 
Insurance contracts (5)
— — — — — 4,399 — 4,399 
Cash and short-term investments (6)
1,733 (171)— 1,561 204 52 — 256 
Real estate— — — — — — — — 
Derivatives (7)
0 (1)— (1)38 (2)— 36 
Other mutual funds (8)
— — — — 22 — — 22 
Subtotal3,088 8,962 160 12,210 401 13,680 — 14,081 
Investments measured at net asset value using the NAV practical expedient (9)
— — — 5,863 — — — 12,726 
Other (10)
— — — — — — — (74)
Fair value of plan assets$3,088 $8,962 $160 $18,073 $401 $13,680 $— $26,733 
(1)Represents U.S. and international securities.
(2)Invests in predominantly equity securities.
(3)Includes debt issued by national, state and local governments and agencies.
(4)Invests predominantly in fixed-income securities.
(5)Primarily represents insurance policy contracts (Buy-In) in certain non-U.S. plans.
(6)Includes cash, cash equivalents and short-term marketable securities.
(7)Includes interest-rate derivatives, forwards, exchange-traded and other over-the-counter derivatives.
(8)Invests in both equity and fixed-income securities.
(9)Investments measured at fair value using the net asset value (NAV) per share (or its equivalent) as a practical expedient, including commingled funds, hedge funds, private equity and real estate partnerships.
(10)Represents net unsettled transactions, relating primarily to purchases and sales of plan assets.
The following table presents the company’s DB pension plans’ asset classes and their associated fair value at December 31, 2024. The U.S. Plan consists of the Qualified PPP and the non-U.S. Plans consist of all plans sponsored by the company’s subsidiaries.
($ in millions)
U.S. PlanNon-U.S. Plans
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Equity
Equity securities (1)
$655 $— $7 $661 $67 $1 $— $68 
Equity mutual funds (2)
183 — — 183 — — — — 
Fixed income
Government and related (3)
— 7,010 — 7,010 110 6,807 — 6,917 
Corporate bonds — 3,663 186 3,849 7 2,550 — 2,557 
Mortgage and asset-backed securities— 141 — 141 — 4 — 4 
Fixed income mutual funds (4)
240 — — 240 — — — — 
Insurance contracts (5)
— — — — — 3,332 — 3,332 
Cash and short-term investments (6)
670 (24)— 646 170 277 — 447 
Real estate— — — — — — 3 3 
Derivatives (7)
— 8 — 8 39 58 — 97 
Other mutual funds (8)
— — — — 20 — — 20 
Subtotal1,747 10,799 193 12,739 413 13,029 3 13,444 
Investments measured at net asset value using the NAV practical expedient (9)
— — — 4,852 — — — 11,807 
Other (10)
— — — 0 — — — (47)
Fair value of plan assets$1,747 $10,799 $193 $17,591 $413 $13,029 $3 $25,205 
(1)Represents U.S. and international securities.
(2)Invests in predominantly equity securities.
(3)Includes debt issued by national, state and local governments and agencies.
(4)Invests in predominantly fixed-income securities.
(5)Primarily represents insurance policy contracts (Buy-In) in certain non-U.S. plans.
(6)Includes cash, cash equivalents and short-term marketable securities.
(7)Includes interest-rate derivatives, forwards, exchange-traded and other over-the-counter derivatives.
(8)Invests in both equity and fixed-income securities.
(9)Investments measured at fair value using the net asset value (NAV) per share (or its equivalent) as a practical expedient, including commingled funds, hedge funds, private equity and real estate partnerships.
(10)Represents net unsettled transactions, relating primarily to purchases and sales of plan assets.
Reconciliation of the beginning and ending balances of Level 3 assets
The following tables present the reconciliation of the beginning and ending balances of Level 3 assets for the years ended December 31, 2025 and 2024 for the U.S. Plan.
($ in millions)
Corporate Bonds
Other (1)
Total
Balance at January 1, 2025$186 $7 $193 
Return on assets held at end of year3 (6)(3)
Return on assets sold during the year(1)0 (1)
Purchases, sales and settlements, net(30)2 (28)
Transfers, net— — — 
Balance at December 31, 2025$157 $3 $160 
($ in millions)
Corporate
Bonds
Other (1)
Total
Balance at January 1, 2024$709 $13 $722 
Return on assets held at end of year4 (2)2 
Return on assets sold during the year16 0 16 
Purchases, sales and settlements, net(545)(9)(554)
Transfers, net1 5 6 
Balance at December 31, 2024$186 $7 $193 
(1)Includes equity securities and private equity. Prior-year amounts have been reclassified to conform to the change in current year presentation.
Schedule of contributions and direct benefit payments
The following table presents the contributions made to the non-U.S. DB plans, nonpension postretirement benefit plans, multi-employer plans, DC plans and direct benefit payments for 2025 and 2024. The cash contributions to the multi-employer plans represent the annual cost included in the net periodic (income)/cost recognized in the Consolidated Income Statement. The company’s participation in multi-employer plans has no material impact on the company’s financial statements.
($ in millions)
For the years ended December 31:20252024
Non-U.S. DB plans$40 $67 
Nonpension postretirement benefit plans204 194 
Multi-employer plans13 13 
DC plans
461 440 
Direct benefit payments599 578 
Total$1,317 $1,291 
Total expected benefit payments, pension benefit plans and nonpension postretirement plans
The following table presents the total expected benefit payments to defined benefit pension plan participants subsequent to the retirement plan changes, as described in ‘IBM Retirement Plan Changes’ section above. These payments have been estimated based on the same assumptions used to measure the plans’ PBO at December 31, 2025 and include benefits attributable to estimated future compensation increases, where applicable.
($ in millions)
Qualified
U.S. Plan
Payments		Nonqualified
U.S. Plans
Payments		Qualified
Non-U.S. Plans
Payments		Nonqualified
Non-U.S. Plans
Payments		Total Expected
Benefit
Payments
2026$1,180 $119 $2,009 $405 $3,713 
20271,210 116 1,938 371 3,635 
20281,224 114 1,920 368 3,625 
20291,227 111 1,906 363 3,608 
20301,187 108 1,877 360 3,533 
2031-20355,587 489 8,959 1,629 16,664 
The following table presents the total expected benefit payments to nonpension postretirement benefit plan participants. These payments have been estimated based on the same assumptions used to measure the plans’ APBO at December 31, 2025.
($ in millions)
U.S. Plan
Payments		Qualified
Non-U.S. Plans
Payments		Nonqualified
Non-U.S. Plans
Payments		Total Expected
Benefit
Payments
2026$265 $20 $27 $312 
2027262 21 27 310 
2028256 22 27 305 
2029248 23 27 298 
2030239 24 28 290 
2031-20351,002 131 158 1,291 
Defined benefit pension plans with accumulated benefit obligations (ABO) in excess of plan assets
The following table presents information for DB pension plans with accumulated benefit obligations (ABO) in excess of plan assets. For a more detailed presentation of the funded status of the company’s DB pension plans, refer to the table on page 107.
($ in millions)
20252024
At December 31:Benefit
Obligation		Plan
Assets		Benefit
Obligation		Plan
Assets
Plans with PBO in excess of plan assets$16,493 $9,423 $16,216 $8,811 
Plans with ABO in excess of plan assets16,487 9,417 16,194 8,789 
Plans with plan assets in excess of PBO27,839 35,383 26,493 33,985 
Schedule of nonpension postretirement benefit plan with APBO in excess of plan assets
The following table presents information for the nonpension postretirement benefit plan with APBO in excess of plan assets. For a more detailed presentation of the funded status of the company’s nonpension postretirement benefit plans, refer to the table on page 107.
($ in millions)
20252024
At December 31:Benefit
Obligation		Plan
Assets		Benefit
Obligation		Plan
Assets
Plans with APBO in excess of plan assets$2,771 $14 $2,764 $20