Hess 2011 Annual Report Download - page 91

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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
The following table summarizes the Corporation’s benefit obligations and the fair value of plan assets and
shows the funded status of the pension and postretirement medical plans:
Funded
Pension Plans
Unfunded
Pension Plan
Postretirement
Medical Plan
2011 2010 2011 2010 2011 2010
(Millions of dollars)
Change in benefit obligation
Balance at January 1 ........................... $1,497 $1,359 $ 192 $ 188 $ 107 $84
Service cost .................................. 49 41 9865
Interest cost .................................. 81 78 8854
Actuarial (gain) loss ........................... 294 75 31 7918
Benefit payments .............................. (51) (46) (13) (2) (2) (4)
Plan settlements ............................... –––(17) ––
Foreign currency exchange rate changes ........... (4) (10) ––––
Balance at December 31 ...................... 1,866 1,497 227 192 125 107
Change in fair value of plan assets
Balance at January 1 ........................... 1,365 1,072 ––––
Actual return on plan assets ..................... (3) 155 ––––
Employer contributions ......................... 185 192 13 20 24
Benefit payments .............................. (51) (46) (13) (20) (2) (4)
Foreign currency exchange rate changes ........... (3) (8) ––––
Balance at December 31 ...................... 1,493 1,365 ––––
Funded status (plan assets less than benefit
obligations) at December 31 ..................... (373) (132) (227)* (192)* (125) (107)
Unrecognized net actuarial losses ................... 829 460 103 83 39 32
Net amount recognized ......................... $ 456 $ 328 $(124) $(109) $ (86) $ (75)
* The trust established by the Corporation for the supplemental plan held assets valued at $7 million at December 31, 2011 and $21 million
at December 31, 2010.
Amounts recognized in the Consolidated Balance Sheet at December 31 consist of the following:
Funded
Pension Plans
Unfunded
Pension Plan
Postretirement
Medical Plan
2011 2010 2011 2010 2011 2010
(Millions of dollars)
Accrued benefit liability .......................... $(373) $(132) $(227) $(192) $(125) $(107)
Accumulated other comprehensive loss, pre-tax* ...... 829 460 103 83 39 32
Net amount recognized ........................... $ 456 $ 328 $(124) $(109) $ (86) $ (75)
* The after-tax reduction to equity recorded in Accumulated other comprehensive income (loss) was $631 million at December 31, 2011 and
$385 million at December 31, 2010.
The accumulated benefit obligation for the funded defined benefit pension plans increased to $1,703 million
at December 31, 2011 from $1,355 million at December 31, 2010 primarily due to a reduction in the discount
rate. The accumulated benefit obligation for the unfunded defined benefit pension plan was $202 million at
December 31, 2011 and $176 million at December 31, 2010.
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