PACCAR 2009 Annual Report Download - page 59

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Year Ended December 31, 2009 2008 2007
Components of Pension Expense:
Service cost $ 36.2 $ 46.6 $ 49.7
Interest on projected benefit obligation 71.1 73.9 68.7
Expected return on assets (93.1) (92.8) (89.7)
Amortization of prior service costs 1.7 2.4 2.9
Recognized actuarial loss 9.5 3.0 8.4
Curtailment (gain) loss (.1) .9 2.7
Net pension expense $ 25.3 $ 34.0 $ 42.7
Pension expense for multi-employer and foreign-insured plans was $41.2, $45.8 and $37.9 in 2009, 2008 and 2007.
The Company has certain defined contribution benefit plans whereby it generally matches employee contributions
up to 5% of base wages. In 2009, the Company match was 1% of base wages and 5% in 2008 and 2007. The majority
of participants in these plans are non-union employees located in the United States. Expenses for these plans were
$6.8, $22.1 and $22.6 in 2009, 2008 and 2007.
During the second quarter of 2009, the Company discontinued subsidizing postretirement medical costs for the
majority of its U.S. employees and recognized a curtailment gain of $47.7. The Company also recognized a
curtailment gain of $18.3 in the third quarter for the discontinuation of postretirement healthcare related to the
permanent closure of the Peterbilt facility in Madison, Tennessee.
The following data relates to unfunded postretirement medical and life insurance plans:
2009 2008
Change in Projected Benefit Obligation:
Benefit obligation at January 1 $ 80.9 $ 88.0
Service cost 3.2
Interest cost .5 4.7
Benefits paid (3.2) (4.1)
Curtailment gain (66.0)
Actuarial gain (5.5) (10.9)
Projected benefit obligation at December 31 6.7 80.9
Unfunded Status at December 31 $ (6.7) $ (80.9)
Amounts Recorded in Balance Sheet:
Other liabilities $ (6.7) $ (80.9)
Accumulated other comprehensive (income) loss:
Actuarial (gain) loss (.9) 1.8
Prior service cost .1
Net initial transition amount .8
Year Ended December 31, 2009 2008 2007
Components of Retiree Expense:
Service cost $ 3.2 $ 4.8
Interest cost $ .5 4.7 5.2
Recognized actuarial loss .9
Recognized prior service cost .1 .1
Curtailment gain (66.0)
Recognized net initial obligation .4 .4
Net retiree (income) expense $ (65.5) $ 8.4 $ 11.4
56
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2009, 2008 and 2007 (currencies in millions)