Retirement-Related Benefits (Tables)

6 Months Ended

Jun. 30, 2018

Retirement-Related Benefits

Pre-tax cost for all retirement-related plans

					Yr. to Yr.
(Dollars in millions)					Percent
For the three months ended June 30:	2018		2017		Change
Retirement-related plans — cost
Defined benefit and contribution pension plans — cost	$	709	$	659	7.5	%
Nonpension postretirement plans — cost	49		60		(18.3	)
Total	$	758	$	719	5.4	%

					Yr. to Yr.
(Dollars in millions)					Percent
For the six months ended June 30:	2018		2017		Change
Retirement-related plans — cost
Defined benefit and contribution pension plans — cost	$	1,447	$	1,323	9.3	%
Nonpension postretirement plans — cost	100		121		(17.8	)
Total	$	1,546	$	1,444	7.1	%

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 June 30:	2018			2017			2018			2017
Service cost	$	—		$	—		$	101		$	101
Interest cost (1)	429			478			211			206
Expected return on plan assets (1)	(675		)	(753		)	(339		)	(327		)
Amortization of prior service costs/(credits) (1)	4			4			(21		)	(24		)
Recognized actuarial losses (1)	378			331			353			371
Curtailments and settlements (1)	—			—			6			3
Multi-employer plans	—			—			10			10
Other costs (1)	—			—			4			5
Total net periodic pension (income)/cost of defined benefit plans	$	136		$	60		$	325		$	344
Cost of defined contribution plans	145			158			103			97
Total defined benefit and contribution plans cost recognized in the Consolidated Statement of Earnings	$	281		$	218		$	428		$	442

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

(Dollars in millions)	U.S. Plans						Non-U.S. Plans
For the six months ended June 30:	2018			2017			2018			2017
Service cost	$	—		$	—		$	205		$	202
Interest cost (1)	859			957			426			406
Expected return on plan assets (1)	(1,351		)	(1,507		)	(687		)	(644		)
Amortization of prior service costs/(credits) (1)	8			8			(42		)	(48		)
Recognized actuarial losses (1)	763			668			712			733
Curtailments and settlements (1)	—			—			6			1
Multi-employer plans	—			—			20			19
Other costs (1)	—			—			11			10
Total net periodic pension (income)/cost of defined benefit plans	$	279		$	127		$	651		$	679
Cost of defined contribution plans	305			319			211			198
Total defined benefit and contribution plans cost recognized in the Consolidated Statement of Earnings	$	584		$	446		$	863		$	877

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

Components of the cost/(income) for the company's nonpension postretirement plans

(Dollars in millions)	U.S. Plan						Non-U.S. Plans
For the three months ended June 30:	2018			2017			2018			2017
Service cost	$	3		$	3		$	1		$	1
Interest cost (1)	33			38			11			14
Expected return on plan assets (1)	—			—			(1		)	(2		)
Amortization of prior service costs/(credits) (1)	(2		)	(2		)	0			0
Recognized actuarial losses (1)	2			5			1			2
Curtailments and settlements (1)	—			—			0			0
Total nonpension postretirement plan cost recognized in Consolidated Statement of Earnings	$	37		$	45		$	12		$	16

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

(Dollars in millions)	U.S. Plan						Non-U.S. Plans
For the six months ended June 30:	2018			2017			2018			2017
Service cost	$	6		$	7		$	3		$	3
Interest cost (1)	66			77			24			29
Expected return on plan assets (1)	—			—			(3		)	(4		)
Amortization of prior service costs/(credits) (1)	(4		)	(4		)	0			0
Recognized actuarial losses (1)	5			10			3			3
Curtailments and settlements (1)	—			—			0			0
Total nonpension postretirement plan cost recognized in Consolidated Statement of Earnings	$	74		$	90		$	26		$	31

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