National Oilwell Varco 2010 Annual Report Download - page 85

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The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United States, United Kingdom, and
Norway and defined postretirement plans in the United States, using a measurement date of December 31, 2010 and December 31, 2009, is as
follows (in millions):
Pension benefits Postretirement benefits
At year end 2010 2009 2010 2009
Benefit obligation at beginning of year $ 262 $ 214 $ 39 $ 20
Service cost 5 5
Interest cost 14 14 2 2
Actuarial loss (gain) 10 19 (3) 1
Benefits paid (12) (10) (5) (2)
Participants contributions 1 1
Exchange rate loss (gain) (7) 19 18
Other (1) 
Benefit obligation at end of year $ 272 $ 262 $ 33 $ 39
Accumulated benefit obligation at end of year $ 254 $ 244
Fair value of plan assets at beginning of year $ 193 $ 153 $ $
Actual return 18 21
Benefits paid (12) (10) (5) (2)
Company contributions 8 12 5 2
Participants contributions 1 1
Exchange rate (loss) gain (4) 16
Other (1) 
Fair value of plan assets at end of year $ 203 $ 193 $ $
Funded status $ (69) $ (69) $ (33) $ (39)
Defined Benefit Pension Plans
Assumed long-term rates of return on plan assets, discount rates and rates of compensation increases vary for the different plans according to the
local economic conditions. The assumption rates used for benefit obligations are as follows:
Years Ended December 31,
2010 2009
Discount rate:
United States plan 4.95% 5.26%
International plans 5.25% - 5.50% 5.25% - 5.75%
Salary increase:
United States plan N/A N/A
International plans 2.50% - 4.33% 2.50% - 4.25%
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