MetLife 2011 Annual Report Download - page 209

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
The aggregate pension accumulated benefit obligation and aggregate fair value of plan assets for pension benefit plans with accumulated benefit
obligations in excess of plan assets was as follows:
Pension Benefits
U.S. Plans Non-U.S. Plans
December 31,
2011 2010 2011 2010
(In millions)
Projected benefit obligations ......................................... $1,164 $844 $708 $592
Accumulated benefit obligations ...................................... $1,045 $770 $644 $537
Fair value of plan assets ............................................ $ 131 $ 13 $121 $ 93
Information for pension and other postretirement benefit plans with a projected benefit obligation in excess of plan assets were as follows:
Pension Benefits Other Postretirement Benefits
U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans
December 31,
2011 2010 2011 2010 2011 2010 2011 2010
(In millions)
Projected benefit obligations ................ $8,327 $1,187 $732 $616 $2,093 $1,808 $39 $37
Fair value of plan assets ................... $7,108 $ 347 $140 $114 $1,240 $1,185 $13 $15
Net periodic pension costs and net periodic other postretirement benefit plan costs are comprised of the following:
i) Service Costs — Service costs are the increase in the projected (expected) pension benefit obligation resulting from benefits payable to
employees of the Subsidiaries on service rendered during the current year.
ii) Interest Costs — Interest costs are the time value adjustment on the projected (expected) pension benefit obligation at the end of each year.
iii) Settlement and Curtailment Costs — The aggregate amount of net gains (losses) recognized in net periodic benefit costs due to
settlements and curtailments. Settlements result from actions that relieve/eliminate the plan’s responsibility for benefit obligations or risks
associated with the obligations or assets used for the settlement. Curtailments result from an event that significantly reduces/eliminates plan
participants’ expected years of future services or benefit accruals.
iv) Expected Return on Plan Assets — Expected return on plan assets is the assumed return earned by the accumulated pension and other
postretirement fund assets in a particular year.
v) Amortization of Net Actuarial Gains (Losses) — Actuarial gains and losses result from differences between the actual experience and the
expected experience on pension and other postretirement plan assets or projected (expected) pension benefit obligation during a particular
period. These gains and losses are accumulated and, to the extent they exceed 10% of the greater of the PBO or the fair value of plan
assets, the excess is amortized into pension and other postretirement benefit costs over the expected service years of the employees.
vi) Amortization of Prior Service Costs (Credit) — These costs relate to the recognition of increases or decreases in pension and other
postretirement benefit obligation due to amendments in plans or initiation of new plans. These increases or decreases in obligation are
recognized in accumulated other comprehensive income (loss) at the time of the amendment. These costs are then amortized to pension
and other postretirement benefit costs over the expected service years of the employees affected by the change.
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