Retirement-Related Benefits (Tables)

9 Months Ended

Sep. 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 September 30:	2019		2018		Change
Retirement-related plans — cost
Defined benefit and contribution pension plans — cost	$	459	$	705	(34.9)	%
Nonpension postretirement plans — cost		53		49	8.6
Total	$	512	$	754	(32.1)	%

					Yr. to Yr.
(Dollars in millions)					Percent
For the nine months ended September 30:	2019		2018		Change
Retirement-related plans — cost
Defined benefit and contribution pension plans — cost	$	1,337	$	2,152	(37.8)	%
Nonpension postretirement plans — cost		160		149	7.4
Total	$	1,497	$	2,300	(34.9)	%

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:	2019		2018		2019		2018
Service cost	$	—	$	—	$	93	$	104
Interest cost (1)		470		430		202		204
Expected return on plan assets (1)		(650)		(675)		(391)		(330)
Amortization of prior service costs/(credits) (1)		4		4		(7)		(20)
Recognized actuarial losses (1)		140		381		313		346
Curtailments and settlements (1)		—		—		3		2
Multi-employer plans		—		—		10		9
Other costs/(credits) (1)		—		—		11		5
Total net periodic pension (income)/cost of defined benefit plans	$	(36)	$	140	$	235	$	318
Cost of defined contribution plans		151		152		109		95
Total defined benefit and contribution pension plans cost recognized in the Consolidated Statement of Earnings	$	115	$	292	$	344	$	413

(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 nine months ended September 30:	2019		2018		2019		2018
Service cost	$	—	$	—	$	279	$	309
Interest cost (1)		1,411		1,289		616		630
Expected return on plan assets (1)		(1,949)		(2,026)		(1,186)		(1,017)
Amortization of prior service costs/(credits) (1)		12		12		(20)		(62)
Recognized actuarial losses (1)		419		1,144		939		1,057
Curtailments and settlements (1)		—		—		7		7
Multi-employer plans		—		—		26		29
Other costs/(credits) (1)		—		—		22		16
Total net periodic pension (income)/cost of defined benefit plans	$	(107)	$	419	$	683	$	969
Cost of defined contribution plans		440		457		321		306
Total defined benefit and contribution pension plans cost recognized in the Consolidated Statement of Earnings	$	333	$	876	$	1,004	$	1,276

(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 September 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 nine months ended September 30:	2019		2018		2019		2018
Service cost	$	8	$	10	$	4	$	4
Interest cost (1)		109		99		37		34
Expected return on plan assets (1)		—		—		(4)		(4)
Amortization of prior service costs/(credits) (1)		(2)		(6)		0		0
Recognized actuarial losses (1)		0		7		8		4
Curtailments and settlements (1)		—		—		0		0
Total nonpension postretirement plans cost recognized in Consolidated Statement of Earnings	$	115	$	111	$	45	$	38

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