Retirement-Related Benefits

6 Months Ended

Jun. 30, 2026

Retirement-Related Benefits:

The company offers defined benefit (DB) pension plans, defined contribution (DC) plans, as well as nonpension postretirement plans primarily consisting of retiree medical benefits.

Cost/(Income) of Retirement Plans

The following table provides the components of the cost/(income) for the company’s retirement-related benefit plans.


($ in millions)	U.S. Plans				Non-U.S. Plans
For the three months ended June 30:	2026		2025		2026		2025
Service cost	$	86	$	88	$	46	$	44
Interest cost (1)	180		187		288		267
Expected return on plan assets (1)	(266)		(268)		(361)		(369)
Amortization of prior service costs/(credits) (1)	—		—		16		6
Recognized actuarial losses (1)	122		70		75		87
Curtailments and settlements (1)	—		—		3		5
Multi-employer plans	—		—		4		3
Other costs/(credits) (1)	—		—		9		10
Total net periodic pension (income)/cost of defined benefit plans	$	122	$	77	$	80	$	52
Cost of defined contribution plans	16		17		109		103
Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement	$	138	$	93	$	189	$	155


($ in millions)	U.S. Plans				Non-U.S. Plans
For the six months ended June 30:	2026		2025		2026		2025
Service cost	$	173	$	176	$	89	$	85
Interest cost (1)	359		374		579		518
Expected return on plan assets (1)	(532)		(536)		(724)		(715)
Amortization of prior service costs/(credits) (1)	—		—		32		11
Recognized actuarial losses (1)	243		140		151		169
Curtailments and settlements (1)	—		—		4		7
Multi-employer plans	—		—		7		6
Other costs/(credits) (1)	—		—		20		18
Total net periodic pension (income)/cost of defined benefit plans	$	244	$	154	$	157	$	99
Cost of defined contribution plans	31		30		212		199
Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement	$	274	$	184	$	369	$	298

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

Cost of Nonpension Postretirement Plans

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


($ in millions)	U.S. Plan				Non-U.S. Plans
For the three months ended June 30:	2026		2025		2026		2025
Service cost	$	0	$	0	$	0	$	0
Interest cost (1)	25		28		12		10
Expected return on plan assets (1)	—		—		0		0
Amortization of prior service costs/(credits) (1)	(7)		(7)		0		0
Recognized actuarial losses (1)	1		—		0		0
Total nonpension postretirement plans cost recognized in the Consolidated Income Statement	$	19	$	22	$	12	$	11


($ in millions)	U.S. Plan				Non-U.S. Plans
For the six months ended June 30:	2026		2025		2026		2025
Service cost	$	1	$	1	$	1	$	1
Interest cost (1)	50		57		23		21
Expected return on plan assets (1)	—		—		0		(1)
Amortization of prior service costs/(credits) (1)	(15)		(15)		0		0
Recognized actuarial losses (1)	1		—		0		0
Total nonpension postretirement plans cost recognized in the Consolidated Income Statement	$	38	$	43	$	24	$	22

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

Plan Contributions

The company does not anticipate any significant changes to the expected plan contributions in 2026 from the amounts disclosed in the 2025 Annual Report. The table below includes contributions to the following plans:


($ in millions)	Plan Contributions
For the six months ended June 30:	2026		2025
U.S. nonpension postretirement benefit plan	$	127	$	104
Non-U.S. DB and multi-employer plans (1)	17		20
Total plan contributions	$	144	$	124

(1)Amounts reported net of refunds.

The U.S. nonpension postretirement benefit plan contributions in the table above were made in U.S. Treasury securities. Additionally, during the six months ended June 30, 2026 and 2025, contributions of $413 million and $390 million, respectively, were made to the Active Medical Trust in U.S. Treasury securities. Contributions made with U.S. Treasury securities are considered a non-cash transaction.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

INTERNATIONAL BUSINESS MACHINES CORP 10-Q