Retirement-Related Benefits (Tables)

6 Months Ended

Jun. 30, 2019

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:	2019		2018		Change
Retirement-related plans — cost
Defined benefit and contribution pension plans — cost	$	441	$	709	(37.7)	%
Nonpension postretirement plans — cost		53		49	7.3
Total	$	494	$	758	(34.8)	%

					Yr. to Yr.
(Dollars in millions)					Percent
For the six months ended June 30:	2019		2018		Change
Retirement-related plans — cost
Defined benefit and contribution pension plans — cost	$	878	$	1,447	(39.3)	%
Nonpension postretirement plans — cost		107		100	6.9
Total	$	985	$	1,546	(36.3)	%

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:	2019		2018		2019		2018
Service cost	$	—	$	—	$	93	$	101
Interest cost(1)		469		429		206		211
Expected return on plan assets(1)		(650)		(675)		(396)		(339)
Amortization of prior service costs/(credits)(1)		4		4		(7)		(21)
Recognized actuarial losses(1)		139		378		312		353
Curtailments and settlements(1)		—		—		3		6
Multi-employer plans		—		—		8		10
Other costs/(credits)(1)		—		—		6		4
Total net periodic pension (income)/cost of defined benefit plans	$	(37)	$	136	$	225	$	325
Cost of defined contribution plans		140		145		114		103
Total defined benefit and contribution pension plans cost recognized in the Consolidated Statement of Earnings	$	103	$	281	$	339	$	428

(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:	2019		2018		2019		2018
Service cost	$	—	$	—	$	185	$	205
Interest cost(1)		941		859		413		426
Expected return on plan assets(1)		(1,300)		(1,351)		(795)		(687)
Amortization of prior service costs/(credits)(1)		8		8		(13)		(42)
Recognized actuarial losses(1)		279		763		626		712
Curtailments and settlements(1)		—		—		4		6
Multi-employer plans		—		—		17		20
Other costs/(credits)(1)		—		—		11		11
Total net periodic pension (income)/cost of defined benefit plans	$	(71)	$	279	$	449	$	651
Cost of defined contribution plans		289		305		212		211
Total defined benefit and contribution pension plans cost recognized in the Consolidated Statement of Earnings	$	218	$	584	$	661	$	863

(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:	2019		2018		2019		2018
Service cost	$	3	$	3	$	1	$	1
Interest cost(1)		36		33		12		11
Expected return on plan assets(1)		—		—		(1)		(1)
Amortization of prior service costs/(credits)(1)		(1)		(2)		0		0
Recognized actuarial losses(1)		0		2		3		1
Curtailments and settlements(1)		—		—		—		0
Total nonpension postretirement plans cost recognized in Consolidated Statement of Earnings	$	38	$	37	$	15	$	12

(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:	2019		2018		2019		2018
Service cost	$	5	$	6	$	3	$	3
Interest cost(1)		73		66		25		24
Expected return on plan assets(1)		—		—		(3)		(3)
Amortization of prior service costs/(credits)(1)		(1)		(4)		0		0
Recognized actuarial losses(1)		0		5		5		3
Curtailments and settlements(1)		—		—		0		0
Total nonpension postretirement plans cost recognized in Consolidated Statement of Earnings	$	77	$	74	$	30	$	26

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