Alcoa 2009 Annual Report Download - page 137

Pension Plan Benefit Obligations
Pension benefits
2009 2008
The projected benefit obligation and accumulated benefit obligation for all defined benefit
pension plans was as follows:
Projected benefit obligation $11,638 $10,765
Accumulated benefit obligation 11,332 10,485
The aggregate projected benefit obligation and fair value of plan assets for pension plans
with projected benefit obligations in excess of plan assets was as follows:
Projected benefit obligation 10,797 10,233
Fair value of plan assets 7,626 7,256
The aggregate accumulated benefit obligation and fair value of plan assets for pension plans
with accumulated benefit obligations in excess of plan assets was as follows:
Accumulated benefit obligation 10,083 9,660
Fair value of plan assets 7,181 6,923
Components of Net Periodic Benefit Costs
Pension benefits Postretirement benefits
2009 2008 2007 2009 2008 2007
Service cost $ 139 $ 166 $ 200 $ 21 $ 24 $ 28
Interest cost 682 678 666 184 193 195
Expected return on plan assets (758) (805) (787) (11) (18) (17)
Amortization of prior service cost (benefit) 16 18 15 (11) (11) (3)
Recognized actuarial loss 111 99 127 41 44 55
Settlements 14 20 (2) - - -
Curtailments 3 2 2 (1) 9 (3)
Net periodic benefit costs* $ 207 $ 178 $ 221 $223 $241 $255
* Amounts attributed to joint venture partners are not included.
Amounts Expected to be Recognized in Net Periodic Benefit Costs
Pension benefits Postretirement benefits
2010 2010
Prior service cost (benefit) recognition $ 14 $(15)
Actuarial loss recognition 171 41
Settlements and Curtailments of Benefit Plans
2009. During 2009, Alcoa completed the divestiture of the wire harness and electrical portion of the EES business to
Platinum Equity (see Note F) and continued to execute its global workforce reduction plan (see Note D). As a result,
certain pension and postretirement benefit plans were remeasured and Alcoa recognized curtailment gains and losses
due to the significant reduction in the expected aggregate years of future service of the employees of the EES business
and the employees subject to the global workforce reduction plan, respectively. Alcoa recorded curtailment gains of $5
and $1 related to the pension and postretirement benefit plans, respectively, that include the EES employees in Loss
from discontinued operations and curtailment losses of $9 related to the pension plans that include the employees
subject to the global workforce reduction plan in Restructuring and other charges on the accompanying Statement of
Consolidated Operations. The curtailment gains and losses include recognition of the change in the projected benefit
obligation (PBO) or accumulated postretirement benefit obligation (APBO) and a portion of the previously
unrecognized prior service cost reflecting the reduction in expected future service.
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