Morgan Stanley 2010 Annual Report Download - page 233

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Benefit Obligations and Funded Status.
The following table provides a reconciliation of the changes in the benefit obligation and fair value of plan assets
for 2010 and 2009:
Pension Postretirement
(dollars in millions)
Reconciliation of benefit obligation:
Benefit obligation at December 31, 2008 ................................. $2,658 $215
Service cost(1) ....................................................... 117 12
Interest cost ......................................................... 152 12
Actuarial gain ........................................................ (154) (25)
Plan amendments ..................................................... (16) —
Plan settlements ...................................................... (2) —
Benefits paid ........................................................ (172) (11)
Transfers/divestitures(2) ............................................... 25 —
Other, including foreign currency exchange rate changes ...................... 22 —
Benefit obligation at December 31, 2009 ................................. $2,630 $203
Service cost ......................................................... 99 7
Interest cost ......................................................... 152 11
Actuarial loss(3) ...................................................... 264 2
Plan amendments ..................................................... (1) (54)
Plan curtailments ..................................................... (82) —
Plan settlements ...................................................... (11) —
Benefits paid ........................................................ (100) (14)
Other, including foreign currency exchange rate changes ...................... 2 —
Benefit obligation at December 31, 2010 ................................. $2,953 $155
Reconciliation of fair value of plan assets:
Fair value of plan assets at December 31, 2008 ............................ $2,739 $—
Actual return on plan assets ............................................. (538) —
Employer contributions ................................................ 321 11
Benefits paid ........................................................ (172) (11)
Plan settlements ...................................................... (2) —
Transfers/divestitures(3) ............................................... 35 —
Other, including foreign currency exchange rate changes ...................... 23 —
Fair value of plan assets at December 31, 2009 ............................ $2,406 $—
Actual return on plan assets ............................................. 276 —
Employer contributions ................................................ 72 14
Benefits paid ........................................................ (100) (14)
Plan settlements ...................................................... (11) —
Other, including foreign currency exchange rate changes ...................... (1) —
Fair value of plan assets at December 31, 2010 ............................ $2,642 $—
(1) Pension amounts included in discontinued operations were $1 million.
(2) Transfers and divestitures primarily related to the impact of MSCI and the formation of MSSB.
(3) Change in actuarial loss under benefit obligation is primarily attributed to a decrease in the discount rates at December 31, 2010.
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