John Deere 2010 Annual Report Download - page 33

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The above benefi t plan costs in net income and other
changes in plan assets and benefi t obligations in other compre-
hensive income in millions of dollars were as follows:
Health Care
and
Pensions Life Insurance
2010 2009 2008 2010 2009 2008
Net costs.............................. $ 104 $ 5 $ 17 $ 554 $ 307 $ 260
Retirement benefi ts
adjustments included in
other comprehensive
(income) loss:
Net actuarial losses
(gains) ...................... 227 2,087 986 (28) 2,024 (435)
Prior service cost
(credit)...................... 14 147 4 (60) 12
Amortization of
actuarial losses ......... (113) (1) (48) (311) (65) (82)
Amortization of prior
service (cost) credit ... (42) (25) (26) 16 12 17
Settlements/
curtailments .............. (24) (27) (3) 1
Total (gain) loss
recognized in other
comprehensive
(income) loss ............ 62 2,181 913 (323) 1,912 (488)
Total recognized
in comprehensive
(income) loss .................... $ 166 $2,186 $ 930 $ 231 $ 2,219 $ (228)
The benefi t plan obligations, funded status and the
assumptions related to the obligations at October 31 in millions
of dollars follow:
Health Care
and
Pensions Life Insurance
___________ ____________
2010 2009 2010 2009
Change in benefi t obligations
Beginning of year balance .................. $ (9,708) $ (7,145) $ (6,318) $ (4,158)
Service cost ...................................... (176) (124) (44) (28)
Interest cost ...................................... (510) (563) (337) (344)
Actuarial losses ................................. (517) (2,248) (69) (2,144)
Amendment s ..................................... (14 ) (147) 60
Benefi ts paid ..................................... 681 589 325 326
Health care subsidy receipts .............. (15) (15)
Early-retirement benefi ts .................... (4) (1)
Settlements/curtailments ................... 17 55
Foreign exchange and other ............... 30 (121) (9) (14)
End of year balance ........................... $ (10,197) $ (9,708) $ (6,467) $ (6,318)
(continued)
Health Care
and
Pensions Life Insurance
___________ ____________
2010 2009 2010 2009
Change in plan assets (fair value)
Beginning of year balance .................. $ 8,401 $ 7,828 $ 1,666 $ 1,623
Actual return on plan assets ............... 1,054 901 219 241
Employer contribution ........................ 763 233 73 125
Benefi ts paid ..................................... (681) (589) (325) (326)
Sett lements ....................................... ( 17 ) (55)
Foreign exchange and other ............... (16) 83 4 3
End of year balance ........................... 9,504 8,401 1,637 1,666
Funded status ................................ $ (693) $ (1,307) $ (4,830) $ (4,652)
Weighted-average assumptions
Discount rates ................................... 5.0% 5.5% 5.2% 5.6%
Rate of compensation increase .......... 3.9% 3.9%
The amounts recognized at October 31 in millions of
dollars consist of the following:
Health Care
and
Pensions Life Insurance
___________ ____________
2010 2009 2010 2009
Amounts recognized in
balance sheet
Noncurrent asset ............................... $ 147 $ 94
Current liability .................................. (55) (76) $ (27) $ (26)
Noncurrent liability .............................. (785) (1,325) (4,803) (4,626)
Total ................................................. $ (693) $ (1,307) $ (4,830) $ (4,652)
Amounts recognized in
accumulated other compre-
hensive income – pretax
Net actuarial losses ........................... $ 3,774 $ 3,684 $ 2,206 $ 2,545
Prior service cost (credit) .................... 184 212 (80) (96)
Total ................................................. $ 3,958 $ 3,896 $ 2,126 $ 2,449
The total accumulated benefi t obligations for all pension
plans at October 31, 2010 and 2009 was $9,734 million and
$9,294 million, respectively.
The accumulated benefi t obligations and fair value of plan
assets for pension plans with accumulated benefi t obligations in
excess of plan assets were $1,039 million and $583 million,
respectively, at October 31, 2010 and $5,567 million and
$4,574 million, respectively, at October 31, 2009. The projected
benefi t obligations and fair value of plan assets for pension plans
with projected benefi t obligations in excess of plan assets were
$6,407 million and $5,567 million, respectively, at October 31,
2010 and $5,976 million and $4,575 million, respectively, at
October 31, 2009.