Retirement-Related Benefits (Tables)

9 Months Ended

Sep. 30, 2022

Pre-tax cost for all retirement-related plans


						Yr. to Yr.
(Dollars in millions)						Percent
For the three months ended September 30:	2022			2021		Change
Retirement-related plans — cost:
Defined benefit and contribution pension plans — cost	$	6,319	*	$	598	nm
Nonpension postretirement plans — cost		31			44	(30.2)	%
Total	$	6,350		$	642	nm

*	Includes the impact of a one-time, non-cash, pre-tax pension settlement charge of $5.9 billion related to the Qualified PPP, as described below.

nm - not meaningful


						Yr. to Yr.
(Dollars in millions)						Percent
For the nine months ended September 30:	2022			2021		Change
Retirement-related plans — cost:
Defined benefit and contribution pension plans — cost	$	7,252	*	$	1,816	nm
Nonpension postretirement plans — cost		97			133	(26.7)	%
Total	$	7,350		$	1,949	nm

*	Includes the impact of a one-time, non-cash, pre-tax pension settlement charge of $5.9 billion related to the Qualified PPP, as described below.

nm – not meaningful

Components of net periodic (income)/cost of the company's retirement-related benefit plans


(Dollars in millions)	U.S. Plans					Non-U.S. Plans
For the three months ended September 30:	2022			2021		2022		2021
Service cost	$	—		$	—	$	57	$	67
Interest cost*		282			277		124		106
Expected return on plan assets*		(432)			(451)		(246)		(274)
Amortization of prior service costs/(credits)*		2			4		3		(2)
Recognized actuarial losses*		132			249		247		347
Curtailments and settlements*		5,894	**		—		19		13
Multi-employer plans		—			—		4		2
Other costs/(credits)*		—			—		8		7
Total net periodic pension (income)/cost of defined benefit plans	$	5,877		$	80	$	216	$	266
Cost of defined contribution plans		134			152		91		100
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	$	6,012		$	232	$	307	$	366

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

**	Reflects the impact of a one-time, non-cash, pre-tax pension settlement charge related to the Qualified PPP, as described below.


(Dollars in millions)	U.S. Plans					Non-U.S. Plans
For the nine months ended September 30:	2022			2021		2022		2021
Service cost	$	—		$	—	$	180	$	201
Interest cost*		885			832		394		322
Expected return on plan assets*		(1,382)			(1,352)		(778)		(833)
Amortization of prior service costs/(credits)*		6			12		10		(9)
Recognized actuarial losses*		490			747		784		1,055
Curtailments and settlements*		5,894	**		—		38		46
Multi-employer plans		—			—		11		13
Other costs/(credits)*		—			—		24		21
Total net periodic pension (income)/cost of defined benefit plans	$	5,893		$	239	$	663	$	817
Cost of defined contribution plans		416			455		280		306
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	$	6,309		$	694	$	943	$	1,122

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

**	Reflects the impact of a one-time, non-cash, pre-tax pension settlement charge related to the Qualified PPP, as described below.

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:	2022		2021		2022		2021
Service cost	$	1	$	2	$	1	$	1
Interest cost*		21		16		8		8
Expected return on plan assets*		—		—		0		(1)
Amortization of prior service costs/(credits)*		(2)		1		0		0
Recognized actuarial losses*		1		13		1		4
Curtailments and settlements*		—		—		—		—
Total nonpension postretirement plans cost recognized in the Consolidated Income Statement	$	21	$	32	$	10	$	12

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


(Dollars in millions)	U.S. Plan				Non-U.S. Plans
For the nine months ended September 30:	2022		2021		2022		2021
Service cost	$	4	$	5	$	2	$	3
Interest cost*		58		49		26		25
Expected return on plan assets*		—		—		(2)		(2)
Amortization of prior service costs/(credits)*		(1)		3		0		0
Recognized actuarial losses*		6		39		3		11
Curtailments and settlements*		—		—		—		0
Total nonpension postretirement plans cost recognized in the Consolidated Income Statement	$	67	$	96	$	30	$	37

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

Changes in plan assets


				Nonpension
	Qualified PPP			Postretirement Plan
(Dollars in millions)	U.S. Plan			U.S. Plan
Change in benefit obligation:
Benefit obligation at January 1, 2022	$	46,457		$	3,404
Service cost		—			4
Interest cost		853			58
Plan participants' contributions		—			33
Actuarial losses/(gains)*		(6,973)			(624)
Benefits paid from trust		(2,376)			(285)
Direct benefit payments		—			(2)
Amendments/curtailments/settlements/other		(16,644)	**		—
Benefit obligation at September 30, 2022	$	21,316		$	2,588
Change in plan assets:
Fair value of plan assets at January 1, 2022	$	51,851		$	8
Actual return on plan assets		(5,746)			—
Employer contributions		—			272
Plan participants' contributions		—			33
Benefits paid from trust		(2,376)			(285)
Amendments/curtailments/settlements/other		(16,644)	**		—
Fair value of plan assets at September 30, 2022	$	27,085		$	28
Funded status at September 30, 2022	$	5,769		$	(2,560)
Accumulated benefit obligation+	$	21,316			N/A

*	Reflects an increase in the discount rate from 2.60 percent at December 31, 2021 to 4.70 percent at the remeasurement date for the Qualified PPP and from 2.30 percent at December 31, 2021 to 4.10 percent at the remeasurement date for the nonpension postretirement plan.

** Primarily represents the transfer of Qualified PPP pension obligations and related plan assets to the Insurers pursuant to group annuity contracts and lump sum payments to plan participants.

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

Changes in benefit obligations


				Nonpension
	Qualified PPP			Postretirement Plan
(Dollars in millions)	U.S. Plan			U.S. Plan
Change in benefit obligation:
Benefit obligation at January 1, 2022	$	46,457		$	3,404
Service cost		—			4
Interest cost		853			58
Plan participants' contributions		—			33
Actuarial losses/(gains)*		(6,973)			(624)
Benefits paid from trust		(2,376)			(285)
Direct benefit payments		—			(2)
Amendments/curtailments/settlements/other		(16,644)	**		—
Benefit obligation at September 30, 2022	$	21,316		$	2,588
Change in plan assets:
Fair value of plan assets at January 1, 2022	$	51,851		$	8
Actual return on plan assets		(5,746)			—
Employer contributions		—			272
Plan participants' contributions		—			33
Benefits paid from trust		(2,376)			(285)
Amendments/curtailments/settlements/other		(16,644)	**		—
Fair value of plan assets at September 30, 2022	$	27,085		$	28
Funded status at September 30, 2022	$	5,769		$	(2,560)
Accumulated benefit obligation+	$	21,316			N/A

*	Reflects an increase in the discount rate from 2.60 percent at December 31, 2021 to 4.70 percent at the remeasurement date for the Qualified PPP and from 2.30 percent at December 31, 2021 to 4.10 percent at the remeasurement date for the nonpension postretirement plan.

** Primarily represents the transfer of Qualified PPP pension obligations and related plan assets to the Insurers pursuant to group annuity contracts and lump sum payments to plan participants.

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

Schedule of contributions


(Dollars in millions)	Plan Contributions
For the nine months ended September 30:		2022	2021
U.S. and non-U.S. nonpension postretirement benefit plans	$	272	$	263
Non-U.S. DB and multi-employer plans*		85		43
Total plan contributions	$	357	$	306

* Amounts reported net of refunds.