IBM · 10-Q · 2026Q3 · Full report
Retirement-Related Plan Costs
INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 26 · Surprise 24 · No source text
Total pre-tax retirement-related plan cost increased $71 million year over year in the third quarter of 2026 and $230 million in the first nine months. The first-nine-month increase was driven by $124 million of higher recognized actuarial losses, $46 million of higher interest cost, and $31 million of higher amortization of prior service costs. Non-operating retirement costs increased to $91 million in the third quarter and $283 million in the first nine months, compared with $13 million and $61 million, respectively, in the prior-year periods.
Key facts
- Non-operating retirement-related (costs)/income was $(91) million in the three months ended September 30, 2026 versus $(13) million in the prior-year period; for the nine months ended September 30, 2026 non-operating retirement-related (costs)/income was $(283) million versus $(61) million in prior-year period. source
- Non-operating retirement-related costs were $283 million for the first nine months of 2026 compared to $61 million in the prior-year period. source
- Non-operating retirement-related costs were $91 million in the third quarter of 2026 compared to $13 million in the prior-year period. source
- The company stated it does not anticipate any significant changes to expected plan contributions in 2026 from the amounts disclosed in the 2025 Annual Report. source
- Operating retirement-related costs for the first nine months of 2026 were $758 million, an increase of $7 million compared to the prior-year period. source
- Total pre-tax retirement-related plan cost in the third quarter of 2026 increased by $71 million compared to the third quarter of 2025. source
- Total retirement-related plan cost for the first nine months of 2026 increased by $230 million compared to the first nine months of 2025. source
- Contributions to the U.S. nonpension postretirement benefit plan in the nine months ended September 30, 2026 were made in U.S. Treasury securities; contributions of $[amounts redacted in text] million and $[amounts redacted in text] million were made to the Active Medical Trust in U.S. Treasury securities during the nine months ended September 30, 2026 and 2025, respectively (contributions made with U.S. Treasury securities are considered non-cash transactions). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -1.3% | Non-operating retirement-related (costs)/income was $(91) million in the three months ended September 30, 2026 versus $(13) million in the… |
| net_income | negative | realized | -0.5% | Non-operating retirement-related (costs)/income was $(91) million in the three months ended September 30, 2026 versus $(13) million in the… |