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:	2022			2021		2022			2021		2022		2021
U.S. Plans
Overfunded plans
Qualified PPP	$	20,091	**	$	46,458	$	25,094	**	$	51,852	$	5,002	$	5,395
Underfunded plans
Excess PPP	$	1,173		$	1,441	$	—		$	—	$	(1,173)	$	(1,441)
Retention Plan		228			283		—			—		(228)		(283)
Nonpension postretirement benefit plan		2,369			3,404		10			8		(2,359)		(3,395)
Total underfunded U.S. plans	$	3,771		$	5,128	$	10		$	8	$	(3,761)	$	(5,119)
Non-U.S. Plans
Overfunded plans
Qualified defined benefit pension plans+	$	15,443		$	21,617	$	18,677		$	26,071	$	3,234	$	4,454
Nonpension postretirement benefit plans		7			—		7			—		0		—
Total overfunded non-U.S. plans	$	15,450		$	21,617	$	18,684		$	26,071	$	3,234	$	4,454
Underfunded plans
Qualified defined benefit pension plans+	$	11,361		$	17,360	$	9,694		$	13,908	$	(1,667)	$	(3,452)
Nonqualified defined benefit pension plans+		4,457			6,120		—			—		(4,457)		(6,120)
Nonpension postretirement benefit plans		524			638		22			31		(502)		(607)
Total underfunded non-U.S. plans	$	16,342		$	24,118	$	9,716		$	13,939	$	(6,626)	$	(10,179)
Total overfunded plans	$	35,541		$	68,075	$	43,778		$	77,924	$	8,236	$	9,850
Total underfunded plans	$	20,113		$	29,246	$	9,726		$	13,947	$	(10,387)	$	(15,300)

*	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).

**	Year-to-year reduction includes the transfer of $16 billion of pension benefit obligations and assets to the Insurers as discussed below.

+ 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
	2022			2021		2022		2021		2022		2021		2022		2021
Change in benefit obligation
Benefit obligation at January 1	$	48,182		$	52,237	$	45,097	$	50,447	$	3,404	$	3,791	$	638	$	756
Service cost		—			—		237		300		5		7		3		4
Interest cost		1,129			1,109		493		424		85		65		24		27
Plan participants' contributions		—			—		14		19		43		50		—		—
Acquisitions/divestitures, net		—			—		(45)		(70)		—		—		—		6
Actuarial losses/(gains)		(7,849)			(1,582)		(8,819)		(876)		(780)		(141)		(87)		(78)
Benefits paid from trust*		(3,133)			(3,181)		(1,572)		(1,736)		(385)		(369)		(6)		(6)
Direct benefit payments		(123)			(125)		(418)		(516)		(2)		(1)		(32)		(28)
Foreign exchange impact		—			—		(3,463)		(2,548)		—		—		(10)		(42)
Amendments/curtailments/ settlements/other*		(16,712)	**		(276)		(262)		(347)		0		3		(1)		(1)
Benefit obligation at December 31	$	21,493		$	48,182	$	31,261	$	45,097	$	2,369	$	3,404	$	531	$	638
Change in plan assets
Fair value of plan assets at January 1	$	51,852		$	54,386	$	39,979	$	42,308	$	8	$	15	$	31	$	40
Actual return on plan assets		(6,914)			924		(6,737)		1,686		—		—		3		(14)
Employer contributions		—			—		103		86		344		313		—		6
Acquisitions/divestitures, net		—			—		(20)		(87)		—		—		—		—
Plan participants' contributions		—			—		14		19		43		50		—		—
Benefits paid from trust*		(3,133)			(3,181)		(1,572)		(1,736)		(385)		(369)		(6)		(6)
Foreign exchange impact		—			—		(3,154)		(1,939)		—		—		2		6
Amendments/curtailments/ settlements/other*		(16,712)	**		(276)		(243)		(358)		0		0		0		0
Fair value of plan assets at December 31	$	25,094		$	51,852	$	28,371	$	39,979	$	10	$	8	$	29	$	31
Funded status at December 31	$	3,600		$	3,671	$	(2,891)	$	(5,118)	$	(2,359)	$	(3,395)	$	(501)	$	(607)
Accumulated benefit obligation+	$	21,493		$	48,182	$	30,961	$	44,628		N/A		N/A		N/A		N/A

*	Prior period amounts for defined benefit pension plans have been recast to conform to 2022 presentation.

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

+	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
	2022			2021		2022		2021		2022		2021		2022		2021
Change in benefit obligation
Benefit obligation at January 1	$	48,182		$	52,237	$	45,097	$	50,447	$	3,404	$	3,791	$	638	$	756
Service cost		—			—		237		300		5		7		3		4
Interest cost		1,129			1,109		493		424		85		65		24		27
Plan participants' contributions		—			—		14		19		43		50		—		—
Acquisitions/divestitures, net		—			—		(45)		(70)		—		—		—		6
Actuarial losses/(gains)		(7,849)			(1,582)		(8,819)		(876)		(780)		(141)		(87)		(78)
Benefits paid from trust*		(3,133)			(3,181)		(1,572)		(1,736)		(385)		(369)		(6)		(6)
Direct benefit payments		(123)			(125)		(418)		(516)		(2)		(1)		(32)		(28)
Foreign exchange impact		—			—		(3,463)		(2,548)		—		—		(10)		(42)
Amendments/curtailments/ settlements/other*		(16,712)	**		(276)		(262)		(347)		0		3		(1)		(1)
Benefit obligation at December 31	$	21,493		$	48,182	$	31,261	$	45,097	$	2,369	$	3,404	$	531	$	638
Change in plan assets
Fair value of plan assets at January 1	$	51,852		$	54,386	$	39,979	$	42,308	$	8	$	15	$	31	$	40
Actual return on plan assets		(6,914)			924		(6,737)		1,686		—		—		3		(14)
Employer contributions		—			—		103		86		344		313		—		6
Acquisitions/divestitures, net		—			—		(20)		(87)		—		—		—		—
Plan participants' contributions		—			—		14		19		43		50		—		—
Benefits paid from trust*		(3,133)			(3,181)		(1,572)		(1,736)		(385)		(369)		(6)		(6)
Foreign exchange impact		—			—		(3,154)		(1,939)		—		—		2		6
Amendments/curtailments/ settlements/other*		(16,712)	**		(276)		(243)		(358)		0		0		0		0
Fair value of plan assets at December 31	$	25,094		$	51,852	$	28,371	$	39,979	$	10	$	8	$	29	$	31
Funded status at December 31	$	3,600		$	3,671	$	(2,891)	$	(5,118)	$	(2,359)	$	(3,395)	$	(501)	$	(607)
Accumulated benefit obligation+	$	21,493		$	48,182	$	30,961	$	44,628		N/A		N/A		N/A		N/A

*	Prior period amounts for defined benefit pension plans have been recast to conform to 2022 presentation.

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

+	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
	2022			2021		2022		2021		2022		2021		2022		2021
Net loss at January 1	$	14,273		$	15,972	$	13,412	$	16,310	$	464	$	656	$	183	$	263
Current period loss/(gain)		794			(704)		(1,115)		(1,411)		(365)		(141)		(93)		(65)
Curtailments and settlements		(5,923)	*		—		(47)		(94)		—		—		0		0
Amortization of net loss included in net periodic (income)/cost		(527)			(996)		(1,031)		(1,392)		(5)		(52)		(4)		(15)
Net loss at December 31	$	8,617		$	14,273	$	11,219	$	13,412	$	94	$	464	$	86	$	183
Prior service costs/(credits) at January 1	$	8		$	24	$	397	$	325	$	26	$	30	$	(4)	$	(4)
Current period prior service costs/(credits)		—			—		(53)		60		(415)		—		5		0
Curtailments, settlements and other		—			—		—		—		—		—		—		—
Amortization of prior service (costs)/credits included in net periodic (income)/cost		(8)			(16)		(14)		12		10		(4)		0		0
Prior service costs/(credits) at December 31	$	0		$	8	$	330	$	397	$	(379)	$	26	$	0	$	(4)
Transition (assets)/liabilities at January 1	$	—		$	—	$	0	$	0	$	—	$	—	$	0	$	0
Amortization of transition assets/(liabilities) included in net periodic (income)/cost		—			—		—		—		—		—		—		0
Transition (assets)/liabilities at December 31	$	—		$	—	$	0	$	0	$	—	$	—	$	0	$	0
Total loss recognized in accumulated other comprehensive income/(loss)**	$	8,617		$	14,281	$	11,549	$	13,809	$	(285)	$	490	$	86	$	179

* 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 above.

** Refer to note S, “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⁾	$	518	$	—	$	—	$	518		$	247	$	—	$	—	$	247
Equity mutual funds ^{( 2)}		114		—		—		114			0		—		—		0
Fixed income
Government and related ⁽³⁾		—		9,074		—		9,074			—		6,837		—		6,837
Corporate bonds ⁽⁴⁾		—		6,885		721		7,606			—		2,546		—		2,546
Mortgage and asset-backed securities		—		238		—		238			—		2		—		2
Fixed income mutual funds ⁽⁵⁾		234		—		—		234			—		—		9		9
Insurance contracts ⁽⁶⁾		—		—		—		—			—		3,654		—		3,654
Cash and short-term investments ⁽⁷⁾		72		570		—		643			286		263		—		549
Private equity		—		—		421		421			—		—		—		—
Real estate		—		8		—		8			—		—		145		145
Derivatives ⁽⁸⁾		—		—		—		—			32		262		—		294
Other mutual funds⁽⁹⁾		—		—		—		—			25		—		—		25
Subtotal		937		16,776		1,142		18,855			590		13,563		155		14,308
Investments measured at net asset value using the NAV practical expedient ⁽¹⁰⁾		—		—		—		6,242			—		—		—		14,141
Other ⁽¹¹⁾		—		—		—		(4)			—		—		—		(78)
Fair value of plan assets	$	937	$	16,776	$	1,142	$	25,094		$	590	$	13,563	$	155	$	28,371

⁽¹⁾

Represents U.S. and international securities. The U.S. Plan includes IBM common stock of $1 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 $6 million. Non-U.S. Plans include IBM corporate bonds of $3 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⁾	$	2,023	$	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 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:	2022		2021
Non-U.S. DB plans	$	103	$	86
Nonpension postretirement benefit plans		344		319
Multi-employer plans		15		17
DC plans		924		992
Direct benefit payments		576		671
Total	$	1,962	$	2,085

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


($ in millions)
	2022				2021
	Benefit		Plan		Benefit		Plan
At December 31:	Obligation		Assets		Obligation		Assets
Plans with PBO in excess of plan assets	$	17,220	$	9,694	$	25,204	$	13,908
Plans with ABO in excess of plan assets		16,979		9,694		24,853		13,908
Plans with plan assets in excess of PBO		35,534		43,770		68,075		77,924