Retirement-Related Benefits

3 Months Ended

Mar. 31, 2023

Retirement-Related Benefits

Retirement-Related Benefits

18. Retirement-Related Benefits:

The company offers defined benefit (DB) pension plans, defined contribution pension plans, as well as nonpension postretirement plans primarily consisting of retiree medical benefits. The following tables provide the pre-tax cost for all retirement-related plans.

					Yr. to Yr.
(Dollars in millions)					Percent
For the three months ended March 31:	2023		2022		Change
Retirement-related plans — cost:
Defined benefit and contribution pension plans — cost	$	281	$	478	(41.1)	%
Nonpension postretirement plans — cost		32		33	(1.6)
Total	$	314	$	510	(38.5)

The following table provides the components of the cost/(income) for the company’s pension plans.

Cost/(Income) of Pension Plans

(Dollars in millions)	U.S. Plans				Non-U.S. Plans
For the three months ended March 31:	2023		2022		2023		2022
Service cost	$	—	$	—	$	44	$	64
Interest cost*		272		302		288		139
Expected return on plan assets*		(382)		(475)		(356)		(274)
Amortization of prior service costs/(credits)*		—		2		5		4
Recognized actuarial losses*		27		179		102		278
Curtailments and settlements*		—		—		(1)		8
Multi-employer plans		—		—		4		4
Other costs/(credits)*		—		—		9		9
Total net periodic pension (income)/cost of defined benefit plans	$	(82)	$	8	$	95	$	231
Cost of defined contribution plans		172		141		97		98
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	$	90	$	149	$	192	$	328

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

The following table provides the components of the cost for the company’s nonpension postretirement plans.

Cost of Nonpension Postretirement Plans

(Dollars in millions)	U.S. Plan				Non-U.S. Plans
For the three months ended March 31:	2023		2022		2023		2022
Service cost	$	1	$	1	$	1	$	1
Interest cost*		29		18		9		9
Expected return on plan assets*		—		—		(1)		0
Amortization of prior service costs/(credits)*		(7)		1		0		0
Recognized actuarial losses*		—		2		0		1
Curtailments and settlements*		—		—		—		—
Total nonpension postretirement plans cost recognized in the Consolidated Income Statement	$	23	$	23	$	9	$	10

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

The company does not anticipate any significant changes to the expected plan contributions in 2023 from the amounts disclosed in the 2022 Annual Report.

The table below includes contributions to the following plans:

(Dollars in millions)	Plan Contributions
For the three months ended March 31:		2023	2022
U.S. nonpension postretirement benefit plan	$	109	$	120
Non-U.S. DB and multi-employer plans*		7		35
Total plan contributions	$	117	$	154

* Amounts reported net of refunds.

During the three months ended March 31, 2023 and 2022, the company contributed $109 million and $105 million of U.S. Treasury Securities, respectively, to the U.S. nonpension postretirement benefit plan. Additionally, during the three months ended March 31, 2023 and 2022, the company contributed $192 million and $156 million of U.S. Treasury Securities, respectively, to the Active Medical Trust. Contributions made with U.S. Treasury securities are considered a non-cash transaction.