Summary of the total PBO for defined benefit plans, APBO for nonpension postretirement benefit plans, fair value of plan assets and associated funded status


($ in millions)
	Benefit Obligations				Fair Value of Plan Assets				Funded Status *
At December 31:	2021		2020		2021		2020		2021		2020
U.S. Plans
Overfunded plans
Qualified PPP	$	46,458	$	50,375	$	51,852	$	54,386	$	5,395	$	4,011
Underfunded plans
Excess PPP	$	1,441	$	1,556	$	—	$	—	$	(1,441)	$	(1,556)
Retention Plan		283		306		—		—		(283)		(306)
Nonpension postretirement benefit plan		3,404		3,791		8		15		(3,395)		(3,776)
Total underfunded U.S. plans	$	5,128	$	5,652	$	8	$	15	$	(5,119)	$	(5,638)
Non-U.S. Plans
Overfunded plans
Qualified defined benefit pension plans**	$	21,617	$	20,504	$	26,071	$	24,051	$	4,454	$	3,546
Nonpension postretirement benefit plans		—		9		—		9		—		0
Total overfunded non-U.S. plans	$	21,617	$	20,513	$	26,071	$	24,060	$	4,454	$	3,546
Underfunded plans
Qualified defined benefit pension plans**	$	17,360	$	23,207	$	13,908	$	18,257	$	(3,452)	$	(4,950)
Nonqualified defined benefit pension plans		6,120		6,736		—		—		(6,120)		(6,736)
Nonpension postretirement benefit plans		638		747		31		31		(607)		(716)
Total underfunded non-U.S. plans	$	24,118	$	30,690	$	13,939	$	18,288	$	(10,179)	$	(12,402)
Total overfunded plans	$	68,075	$	70,888	$	77,924	$	78,445	$	9,850	$	7,557
Total underfunded plans	$	29,246	$	36,342	$	13,947	$	18,302	$	(15,300)	$	(18,040)

*	Funded status is recognized in the Consolidated Balance Statement 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).

**	Non-U.S. qualified plans represent plans funded outside of the U.S. Non-U.S. nonqualified plans are unfunded.

Changes in benefit obligations


($ in millions)
	Defined Benefit Pension Plans								Nonpension Postretirement Benefit Plans
	U.S. Plans				Non-U.S. Plans				U.S. Plan				Non-U.S. Plans
	2021		2020		2021		2020		2021		2020		2021		2020
Change in benefit obligation
Benefit obligation at January 1	$	52,237	$	50,232	$	50,447	$	45,947	$	3,791	$	3,857	$	756	$	830
Service cost		—		—		300		328		7		9		4		4
Interest cost		1,109		1,501		424		541		65		103		27		35
Plan participants' contributions		—		—		19		18		50		56		—		—
Acquisitions/divestitures, net		—		1		(70)		63		—		—		6		0
Actuarial losses/(gains)		(1,582)		4,071		(876)		2,794		(141)		135		(78)		(2)
Benefits paid from trust		(3,459)		(3,445)		(2,090)		(1,908)		(369)		(369)		(6)		(4)
Direct benefit payments		(125)		(123)		(516)		(391)		(1)		0		(28)		(24)
Foreign exchange impact		—		—		(2,548)		3,085		—		—		(42)		(83)
Amendments/curtailments/ settlements/other		1		0		7		(29)		3		—		(1)		(1)
Benefit obligation at December 31	$	48,182	$	52,237	$	45,097	$	50,447	$	3,404	$	3,791	$	638	$	756
Change in plan assets
Fair value of plan assets at January 1	$	54,386	$	51,784	$	42,308	$	38,891	$	15	$	3	$	40	$	52
Actual return on plan assets		924		6,046		1,686		2,559		—		0		(14)		2
Employer contributions		—		—		86		166		313		325		6		—
Acquisitions/divestitures, net		—		1		(87)		106		—		—		—		—
Plan participants' contributions		—		—		19		18		50		56		—		—
Benefits paid from trust		(3,459)		(3,445)		(2,090)		(1,908)		(369)		(369)		(6)		(4)
Foreign exchange impact		—		—		(1,939)		2,479		—		—		6		(10)
Amendments/curtailments/ settlements/other		1		—		(4)		(2)		0		0		0		0
Fair value of plan assets at December 31	$	51,852	$	54,386	$	39,979	$	42,308	$	8	$	15	$	31	$	40
Funded status at December 31	$	3,671	$	2,149	$	(5,118)	$	(8,140)	$	(3,395)	$	(3,776)	$	(607)	$	(716)
Accumulated benefit obligation*	$	48,182	$	52,237	$	44,628	$	50,019		N/A		N/A		N/A		N/A

* Represents the benefit obligation assuming no future participant compensation increases.

N/A–Not applicable

Accumulated benefit obligation


($ in millions)
	Defined Benefit Pension Plans								Nonpension Postretirement Benefit Plans
	U.S. Plans				Non-U.S. Plans				U.S. Plan				Non-U.S. Plans
	2021		2020		2021		2020		2021		2020		2021		2020
Change in benefit obligation
Benefit obligation at January 1	$	52,237	$	50,232	$	50,447	$	45,947	$	3,791	$	3,857	$	756	$	830
Service cost		—		—		300		328		7		9		4		4
Interest cost		1,109		1,501		424		541		65		103		27		35
Plan participants' contributions		—		—		19		18		50		56		—		—
Acquisitions/divestitures, net		—		1		(70)		63		—		—		6		0
Actuarial losses/(gains)		(1,582)		4,071		(876)		2,794		(141)		135		(78)		(2)
Benefits paid from trust		(3,459)		(3,445)		(2,090)		(1,908)		(369)		(369)		(6)		(4)
Direct benefit payments		(125)		(123)		(516)		(391)		(1)		0		(28)		(24)
Foreign exchange impact		—		—		(2,548)		3,085		—		—		(42)		(83)
Amendments/curtailments/ settlements/other		1		0		7		(29)		3		—		(1)		(1)
Benefit obligation at December 31	$	48,182	$	52,237	$	45,097	$	50,447	$	3,404	$	3,791	$	638	$	756
Change in plan assets
Fair value of plan assets at January 1	$	54,386	$	51,784	$	42,308	$	38,891	$	15	$	3	$	40	$	52
Actual return on plan assets		924		6,046		1,686		2,559		—		0		(14)		2
Employer contributions		—		—		86		166		313		325		6		—
Acquisitions/divestitures, net		—		1		(87)		106		—		—		—		—
Plan participants' contributions		—		—		19		18		50		56		—		—
Benefits paid from trust		(3,459)		(3,445)		(2,090)		(1,908)		(369)		(369)		(6)		(4)
Foreign exchange impact		—		—		(1,939)		2,479		—		—		6		(10)
Amendments/curtailments/ settlements/other		1		—		(4)		(2)		0		0		0		0
Fair value of plan assets at December 31	$	51,852	$	54,386	$	39,979	$	42,308	$	8	$	15	$	31	$	40
Funded status at December 31	$	3,671	$	2,149	$	(5,118)	$	(8,140)	$	(3,395)	$	(3,776)	$	(607)	$	(716)
Accumulated benefit obligation*	$	48,182	$	52,237	$	44,628	$	50,019		N/A		N/A		N/A		N/A

* Represents the benefit obligation assuming no future participant compensation increases.

N/A–Not applicable

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

($ in millions)
	Defined Benefit Pension Plans								Nonpension Postretirement Benefit Plans
	U.S. Plans				Non-U.S. Plans				U.S. Plan				Non-U.S. Plans
	2021		2020		2021		2020		2021		2020		2021		2020
Net loss at January 1	$	15,972	$	16,608	$	16,310	$	16,361	$	656	$	551	$	263	$	284
Current period loss/(gain)		(704)		194		(1,411)		1,334		(141)		135		(65)		0
Curtailments and settlements		—		—		(94)		(49)		—		—		0		0
Amortization of net loss included in net periodic (income)/cost		(996)		(829)		(1,392)		(1,336)		(52)		(29)		(15)		(21)
Net loss at December 31	$	14,273	$	15,972	$	13,412	$	16,310	$	464	$	656	$	183	$	263
Prior service costs/(credits) at January 1	$	24	$	41	$	325	$	280	$	30	$	34	$	(4)	$	(4)
Current period prior service costs/(credits)		—		—		60		36		—		—		0		—
Curtailments, settlements and other		—		—		—		0		—		—		—		—
Amortization of prior service (costs)/credits included in net periodic (income)/cost		(16)		(16)		12		9		(4)		(4)		0		0
Prior service costs/(credits) at December 31	$	8	$	24	$	397	$	325	$	26	$	30	$	(4)	$	(4)
Transition (assets)/liabilities at January 1	$	—	$	—	$	0	$	0	$	—	$	—	$	0	$	0
Amortization of transition assets/(liabilities) included in net periodic (income)/cost		—		—		—		0		—		—		0		0
Transition (assets)/liabilities at December 31	$	—	$	—	$	0	$	0	$	—	$	—	$	0	$	0
Total loss recognized in accumulated other comprehensive income/(loss)*	$	14,281	$	15,997	$	13,809	$	16,635	$	490	$	687	$	179	$	259

* Refer to note T, “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.

Defined benefit pension plans' asset classes and their associated fair value


($ in millions)
	U.S. Plan								Non-U.S. Plans
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Equity
Equity securities⁽¹⁾	$	2,023	$	0	$	—	$	2,023	$	485	$	—	$	—	$	485
Equity mutual funds⁽²⁾		133		—		—		133		0		—		—		0
Fixed income
Government and related⁽³⁾		—		21,751		—		21,751		—		9,900		—		9,900
Corporate bonds⁽⁴⁾		—		16,246		598		16,844		—		3,842		—		3,842
Mortgage and asset-backed securities		—		660		—		660		—		3		—		3
Fixed income mutual funds⁽⁵⁾		281		—		—		281		—		—		—		—
Insurance contracts⁽⁶⁾		—		—		—		—		—		5,662		—		5,662
Cash and short-term investments⁽⁷⁾		104		1,269		—		1,373		324		403		—		728
Real estate		—		—		—		—		—		—		174		174
Derivatives⁽⁸⁾		3		3		—		5		61		489		—		550
Other mutual funds⁽⁹⁾		—		—		—		—		30		—		—		30
Subtotal		2,543		39,930		598		43,070		900		20,300		174		21,374
Investments measured at net asset value using the NAV practical expedient⁽¹⁰⁾		—		—		—		9,078		—		—		—		18,652
Other⁽¹¹⁾		—		—		—		(296)		—		—		—		(47)
Fair value of plan assets	$	2,543	$	39,930	$	598	$	51,852	$	900	$	20,300	$	174	$	39,979

⁽¹⁾

Represents U.S. and international securities. The U.S. Plan includes IBM common stock of $2 million. Non-U.S. Plans include IBM common stock of $2 million.

⁽²⁾	Invests in predominantly equity securities.

⁽³⁾	Includes debt issued by national, state and local governments and agencies.

⁽⁴⁾	The U.S. Plans include IBM corporate bonds of $19 million. Non-U.S. Plans include IBM corporate bonds of $4 million.

⁽⁵⁾	Invests predominantly in fixed-income securities.

⁽⁶⁾	Primarily represents insurance policy contracts (Buy-In) in certain non-U.S. plans.

⁽⁷⁾	Includes cash, cash equivalents and short-term marketable securities.

⁽⁸⁾	Includes interest-rate derivatives, forwards, exchange-traded and other over-the-counter derivatives.

⁽⁹⁾	Invests in both equity and fixed-income securities.

⁽¹⁰⁾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.

⁽¹¹⁾Represents net unsettled transactions, relating primarily to purchases and sales of plan assets.


($ in millions)
	U.S. Plan								Non-U.S. Plans
	Level 1		Level 2		Level 3		Total		Level 1			Level 2		Level 3		Total
Equity
Equity securities⁽¹⁾	$	2,714	$	0	$	—	$	2,714		$	466	$	0	$	—	$	466
Equity mutual funds⁽²⁾		105		—		—		105			0		—		—		0
Fixed income
Government and related⁽³⁾		—		21,375		—		21,375			—		9,599		2		9,601
Corporate bonds⁽⁴⁾		—		18,217		542		18,759			—		3,690		—		3,690
Mortgage and asset-backed securities		—		612		—		612			—		3		—		3
Fixed income mutual funds⁽⁵⁾		470		—		—		470			—		—		—		—
Insurance contracts⁽⁶⁾		—		—		—		—			—		6,378		—		6,378
Cash and short-term investments⁽⁷⁾		76		1,001		—		1,077			337		651		—		988
Real estate		—		—		—		—			—		—		298		298
Derivatives⁽⁸⁾		(3)		18		—		15			66		510		—		575
Other mutual funds⁽⁹⁾		—		—		—		—			21		—		—		21
Subtotal		3,363		41,222		542		45,128			891		20,832		300		22,023
Investments measured at net asset value using the NAV practical expedient⁽¹⁰⁾		—		—		—		9,579			—		—		—		20,321
Other⁽¹¹⁾		—		—		—		(321)			—		—		—		(37)
Fair value of plan assets	$	3,363	$	41,222	$	542	$	54,386		$	891	$	20,832	$	300	$	42,308

⁽¹⁾	Represents U.S. and international securities. The U.S. Plan includes IBM common stock of $6 million. Non-U.S. Plans include IBM common stock of $1 million.

⁽²⁾	Invests in predominantly equity securities.

⁽³⁾	Includes debt issued by national, state and local governments and agencies.

⁽⁴⁾	Non-U.S. Plans include IBM corporate bonds of $5 million.

⁽⁵⁾	Invests in predominantly fixed-income securities.

⁽⁶⁾	Primarily represents insurance policy contracts (Buy-In) in certain non-U.S. plans.

⁽⁷⁾	Includes cash, cash equivalents and short-term marketable securities.

⁽⁸⁾	Includes interest-rate derivatives, forwards, exchange-traded and other over-the-counter derivatives.

⁽⁹⁾	Invests in both equity and fixed-income securities.

⁽¹⁰⁾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.

⁽¹¹⁾Represents net unsettled transactions, relating primarily to purchases and sales of plan assets.

Schedule of contributions and direct benefit payments


($ in millions)
For the years ended December 31:	2021		2020
Non-U.S. DB plans	$	86	$	166
Nonpension postretirement benefit plans		319		325
Multi-employer plans		17		23
DC plans		992		1,015
Direct benefit payments		671		538
Total	$	2,085	$	2,066

Defined benefit pension plans with accumulated benefit obligations (ABO) in excess of plan assets


($ in millions)
	2021				2020
	Benefit		Plan		Benefit		Plan
At December 31:	Obligation		Assets		Obligation		Assets
Plans with PBO in excess of plan assets	$	25,204	$	13,908	$	31,805	$	18,257
Plans with ABO in excess of plan assets		24,853		13,908		31,465		18,257
Plans with plan assets in excess of PBO		68,075		77,924		70,879		78,436