Retirement-Related Benefits (Tables)

9 Months Ended

Sep. 30, 2018

Retirement-Related Benefits

Pre-tax cost for all retirement-related plans

					Yr. to Yr.
(Dollars in millions)					Percent
For the three months ended September 30:	2018		2017		Change
Retirement-related plans — cost
Defined benefit and contribution pension plans — cost	$	705	$	592	19.0	%
Nonpension postretirement plans — cost	49		61		(19.5	)
Total	$	754	$	653	15.5	%

					Yr. to Yr.
(Dollars in millions)					Percent
For the nine months ended September 30:	2018		2017		Change
Retirement-related plans — cost
Defined benefit and contribution pension plans — cost	$	2,152	$	1,915	12.3	%
Nonpension postretirement plans — cost	149		182		(18.3	)
Total	$	2,300	$	2,097	9.7	%

Components of the cost/(income) for the company's pension plans

(Dollars in millions)	U.S. Plans						Non-U.S. Plans
For the three months ended September 30:	2018			2017			2018			2017
Service cost	$	—		$	—		$	104		$	106
Interest cost (1)	430			478			204			215
Expected return on plan assets (1)	(675		)	(753		)	(330		)	(340		)
Amortization of prior service costs/(credits) (1)	4			4			(20		)	(25		)
Recognized actuarial losses (1)	381			334			346			387
Curtailments and settlements (1)	—			—			2			2
Multi-employer plans	—			—			9			11
Other costs (1)	—			—			5			(85		)
Total net periodic pension (income)/cost of defined benefit plans	$	140		$	63		$	318		$	271
Cost of defined contribution plans	152			156			95			102
Total defined benefit and contribution pension plans cost recognized in the Consolidated Statement of Earnings	$	292		$	219		$	413		$	373

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

(Dollars in millions)	U.S. Plans						Non-U.S. Plans
For the nine months ended September 30:	2018			2017			2018			2017
Service cost	$	—		$	—		$	309		$	308
Interest cost (1)	1,289			1,435			630			622
Expected return on plan assets (1)	(2,026		)	(2,260		)	(1,017		)	(985		)
Amortization of prior service costs/(credits) (1)	12			12			(62		)	(73		)
Recognized actuarial losses (1)	1,144			1,003			1,057			1,120
Curtailments and settlements (1)	—			—			7			3
Multi-employer plans	—			—			29			30
Other costs (1)	—			—			16			(76		)
Total net periodic pension (income)/cost of defined benefit plans	$	419		$	190		$	969		$	950
Cost of defined contribution plans	457			475			306			301
Total defined benefit and contribution pension plans cost recognized in the Consolidated Statement of Earnings	$	876		$	665		$	1,276		$	1,250

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

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:	2018			2017			2018			2017
Service cost	$	3		$	4		$	1		$	1
Interest cost (1)	33			38			11			14
Expected return on plan assets (1)	—			—			(1		)	(2		)
Amortization of prior service costs/(credits) (1)	(2		)	(2		)	0			0
Recognized actuarial losses (1)	2			5			1			2
Curtailments and settlements (1)	—			—			0			0
Total nonpension postretirement plans cost recognized in Consolidated Statement of Earnings	$	37		$	45		$	12		$	16

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

(Dollars in millions)	U.S. Plan						Non-U.S. Plans
For the nine months ended September 30:	2018			2017			2018			2017
Service cost	$	10		$	11		$	4		$	4
Interest cost (1)	99			115			34			43
Expected return on plan assets (1)	—			—			(4		)	(6		)
Amortization of prior service costs/(credits) (1)	(6		)	(6		)	0			0
Recognized actuarial losses (1)	7			15			4			5
Curtailments and settlements (1)	—			—			0			0
Total nonpension postretirement plans cost recognized in Consolidated Statement of Earnings	$	111		$	135		$	38		$	47

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