AIG 2005 Annual Report Download - page 172

Download and view the complete annual report

Please find page 172 of the 2005 AIG annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 210

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210

Notes to Consolidated Financial Statements Continued
15. Employee Benefits
Continued
The following table sets forth the funded status of the plans, reconciled to the amount reported on the consolidated balance
sheet at December 31, 2005 and 2004:
Pension Postretirement(b)
Non-U.S. U.S. Non-U.S. U.S.
(in millions) Plans(a) Plans Total Plans Plans Total
2005
Fair value of plan assets $ 699 $ 2,561 $ 3,260 $ – $ – $ –
Less projected benefit obligations 1,351 3,130 4,481 43 205 248
Funded status (652) (569) (1,221) (43) (205) (248)
Amounts not yet recognized:
Actuarial (gains)/losses(c) 303 1,093 1,396 3 5 8
Prior service cost (79) (23) (102) – (32) (32)
Transition obligations 1 – 1 –––
Net amount recognized $ (427) $ 501 $ 74 $(40) $ (232) $ (272)
Composition of net amount recognized:
Prepaid benefit cost $ 24 $ 670 $ 694 $ – $ – $ –
Accrued benefit cost (590) (217) (807) (40) (232) (272)
Intangible asset 3 6 9 –––
Accumulated other comprehensive income 136 42 178 – – –
Net amount recognized $ (427) $ 501 $ 74 $(40) $ (232) $ (272)
2004
Fair value of plan assets $ 624 $2,247 $ 2,871 $ – $ – $ –
Less projected benefit obligations 1,376 2,750 4,126 35 243 278
Funded status (752) (503) (1,255) (35) (243) (278)
Amounts not yet recognized:
Actuarial (gains)/losses(c) 380 840 1,220 – 44 44
Prior service cost (101) 3 (98) – (39) (39)
Transition obligations 2 – 2 – – –
Net amount recognized $ (471) $ 340 $ (131) $ (35) $ (238) $ (273)
Composition of net amount recognized:
Prepaid benefit cost $ 13 $ 499 $ 512 $ – $ – $ –
Accrued benefit cost (697) (191) (888) (35) (238) (273)
Intangible asset 5 6 11 – – –
Accumulated other comprehensive income 208 26 234 – – –
Net amount recognized $ (471) $ 340 $ (131) $ (35) $ (238) $ (273)
(a) A significant portion of these plans, particularly those in Japan, are not required by local regulation to be funded currently. With respect to the funded
status of these Japanese plans, the projected benefit obligation amounts to approximately $410 million and $480 million and approximately $360 million
and $400 million has been recognized at December 31, 2005 and December 31, 2004, respectively.
(b) AIG does not currently fund postretirement benefits.
(c) Actuarial (gains)/losses are amounts included in the projected benefit obligations but not yet recognized in the financial statements.
Defined benefit pension plan obligations where the projected benefit obligation was in excess of the related plan assets at
December 31, 2005 and 2004 were as follows:
2005 2004
Non-U.S. U.S. Non-U.S. U.S.
(in millions) Plans Plans Plans Plans
Projected benefit obligation $ 1,284 $ 3,130 $1,344 $2,750
Accumulated benefit obligation 1,163 2,704 1,240 2,367
Fair value of plan assets 610 2,561 576 2,247
120 AIG m Form 10-K