UPS 2006 Annual Report Download - page 80

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Benefit Obligations and Fair Value of Plan Assets
The following table provides a reconciliation of the changes in the plans’ benefit obligations and fair value
of plan assets as of our measurement date on September 30 (in millions):
U.S. Pension Benefits
U.S. Postretirement
Medical Benefits
International
Pension Benefits
2006 2005 2006 2005 2006 2005
Benefit Obligations:
Net benefit obligation at October 1, prior year . . . $12,299 $ 9,042 $2,927 $2,648 $476 $238
Service cost .............................. 474 374 102 92 24 14
Interest cost .............................. 726 612 170 170 26 16
Gross benefits paid ......................... (304) (242) (158) (149) (13) (7)
Plan participants’ contributions ............... — — 13 10 2 1
Plan amendments .......................... 309 — — (21) — 13
Acquired businesses ........................ — 1,327 — 119 5 149
Actuarial (gain)/loss ........................ 54 1,186 (62) 58 (5) 74
Foreign currency exchange rate changes ........ — — — — 40 (16)
Curtailments and settlements ................. — — — — (4) (6)
Net benefit obligation at September 30 ......... $13,558 $12,299 $2,992 $2,927 $551 $476
Fair Value of Plan Assets:
Fair value of plan assets at October 1, prior
year ................................... $12,943 $ 9,962 $ 509 $ 455 $266 $132
Actual return on plan assets .................. 1,310 1,473 50 62 36 26
Employer contributions ..................... 1,425 842 137 131 35 22
Plan participants’ contributions ............... — — 13 10 2 1
Gross benefits paid ......................... (304) (242) (158) (149) (13) (7)
Acquired businesses ........................ — 908 — — 3 104
Foreign currency exchange rate changes ........ — — — — 23 (7)
Curtailments and settlements ................. — — — — (4) (5)
Fair value of plan assets at September 30 ....... $15,374 $12,943 $ 551 $ 509 $348 $266
F-20