Travelers 2009 Annual Report Download - page 245

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
The following table summarizes the components of net periodic benefit cost and other amounts
recognized in accumulated other changes in equity from nonowner sources related to the benefit plans
for the years ended December 31, 2009, 2008 and 2007.
Postretirement
Pension Plans Benefit Plans
(in millions) 2009 2008 2007 2009 2008 2007
Net Periodic Benefit Cost:
Service cost ................................... $80 $77 $69 $1 $— $ 1
Interest cost on benefit obligation . . . . . . . . . . . . . . . . . . . 125 117 111 17 15 16
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . (176) (158) (150) (1) (1) (1)
Amortization of unrecognized:
Prior service benefit............................ (6) (6) (6) ———
Net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . 22 84—(3) (3)
Net benefit expense .......................... $45 $38 $28 $17 $11 $13
Other Changes in Benefit Plan Assets and Benefit
Obligations Recognized in Accumulated Other Changes
in Equity from Nonowner Sources:
Prior service benefit ............................. $— $— $— $— $— $—
Net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . 147 605 76 (5) 25 (1)
Amortization of prior service benefit . . . . . . . . . . . . . . . . . 666———
Amortization of net actuarial (loss) gain . . . . . . . . . . . . . . . (22) (8) (4) —33
Total other changes recognized in accumulated other
changes in equity from nonowner sources . . . . . . . . . 131 603 78 (5) 28 2
Total other changes recognized in net benefit expense
and accumulated other changes in equity from
nonowner sources.......................... $ 176 $ 641 $ 106 $12 $39 $15
The estimated net actuarial loss (gain) and prior service benefit for the defined benefit pension
plans that will be amortized from other changes in equity from nonowner sources into net periodic
benefit cost over the next fiscal year are $60 million and $(3) million, respectively. There is no
estimated net loss (gain) or prior service cost for the postretirement benefit plans to be amortized from
other changes in equity from nonowner sources into net periodic benefit cost over the next fiscal year.
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