Aetna 2011 Annual Report Download - page 98

Annual Report- Page 92
The amounts in accumulated other comprehensive loss that have not yet been recognized in net periodic benefit cost
as of December 31, 2011 and 2010 were as follows:
(Millions)
Unrecognized prior service credit
Unrecognized net actuarial losses
Amount recognized in accumulated other comprehensive loss
Pension Plans
2011
$ (2.4)
2,734.8
$ (2,732.4)
2010
$ (2.8)
2,380.3
$ (2,377.5)
OPEB Plans
2011
$ (37.1)
86.7
$ (49.6)
2010
$ (40.8)
101.7
$ (60.9)
The liabilities recognized on our balance sheets at December 31, 2011 and 2010 for our pension and OPEB plans
were comprised of the following:
(Millions)
Accrued benefit liabilities reflected in other current liabilities
Accrued benefit liabilities reflected in other long-term liabilities
Net amount of liabilities recognized at December 31,
Pension Plans
2011
$ 82.6
750.9
$ 833.5
2010
$ 84.6
492.8
$ 577.4
OPEB Plans
2011
$ 24.0
224.5
$ 248.5
2010
$ 26.9
239.8
$ 266.7
At December 31, 2011, we had approximately $2.7 billion and $87 million of net actuarial losses for our pension and
OPEB plans, respectively, and approximately $2 million and $37 million of prior service credits for our pension and
OPEB plans, respectively, that have not been recognized as components of net periodic benefit costs. We expect to
recognize approximately $70 million and $4 million in amortization of net actuarial losses for our pension and OPEB
plans, respectively, and approximately $4 million in amortization of prior service credits for our OPEB plans in
2012. Our amortization of prior service credits for our pension plans in 2012 is not expected to be material.
Components of the net periodic benefit (income) cost of our tax-qualified noncontributory defined benefit pension
plans and OPEB plans for December 31, 2011, 2010 and 2009 were as follows:
(Millions)
Operating component:
Service cost
Amortization of prior service cost
Curtailment gain
Total operating component (1)
Financing component:
Interest cost
Expected return on plan assets
Recognized net actuarial losses
Total financing component (1)
Net periodic benefit (income) cost
Pension Plans
2011
$ —
(.4)
—
(.4)
312.3
(385.0)
58.3
(14.4)
$ (14.8)
2010
$ 65.7
(1.6)
(11.9)
52.2
299.5
(350.9)
163.3
111.9
$ 164.1
2009
$ 48.3
(2.2)
—
46.1
316.5
(319.0)
215.8
213.3
$ 259.4
OPEB Plans
2011
$ .2
(3.7)
—
(3.5)
16.6
(3.6)
4.9
17.9
$ 14.4
2010
$ .2
(3.6)
—
(3.4)
17.9
(3.7)
4.6
18.8
$ 15.4
2009
$ .2
(3.7)
—
(3.5)
21.7
(3.6)
3.4
21.5
$ 18.0
(1) The operating component of this expense is allocated to our business segments and the financing component is allocated to our Corporate
Financing segment. Our Corporate Financing segment is not a business segment but is added to our business segments to reconcile to our
consolidated results. Refer to Note 19 beginning on page 108 for additional information on our business segments.
As a result of the August 31, 2010 announcement freezing the Aetna Pension Plan and related requirement to
remeasure the Aetna Pension Plan's obligations and plan assets as of August 31, 2010, our pension obligation
increased by approximately $743 million (due primarily to a lower discount rate), accumulated other comprehensive
income decreased by approximately $836 million ($543 million after-tax), and the fair value of plan assets increased
by approximately $156 million. In performing this re-measurement, we used a discount rate of 4.77%, consistent
with our methodology for determining the discount rate using a yield curve, and an expected long-term rate of return
of 7.50%. Additionally, as a result of this re-measurement, we revised the amortization period we use for actuarial
gains and losses from 9 years to 31 years, reflecting the estimated average remaining participation period for current
participants.