UPS 2006 Annual Report Download - page 81

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Funded Status
The following table discloses the funded status of our plans as of our measurement date on September 30
and the amounts recognized in our balance sheet as of year-end, on a pre-tax basis (in millions):
U.S. Pension Benefits
U.S. Postretirement
Medical Benefits
International
Pension Benefits
2006 2005 2006 2005 2006 2005
Funded Status:
Fair value of plan assets at September 30 .......... $15,374 $ 12,943 $ 551 $ 509 $ 348 $ 266
Benefit obligation at September 30 ............... (13,558) (12,299) (2,992) (2,927) (551) (476)
Funded Status at September 30 .................. 1,816 644 (2,441) (2,418) (203) (210)
Amounts Not Yet Recognized in Net Periodic
Cost:
Unrecognized net transition obligation ............ 12 15 — — — —
Unrecognized net prior service cost / (benefit) ...... 532 260 (106) (118) 12 14
Unrecognized net actuarial loss ................. 2,189 2,486 727 817 110 127
Employer contributions ........................ 9 2 20 15 22 6
Net asset / (liability) at December 31 ............. $ 4,558 $ 3,407 $(1,800) $(1,704) $ (59) $ (63)
Amounts Recognized in our Balance Sheet:
Pension and postretirement benefit assets .......... $ 2,043 $ 3,931 $ — $ — $ 1 $ 1
Intangible assets, net .......................... — 2 — — — 11
Other current liabilities ........................ (19) — (52) — (2) —
Pension and postretirement benefit obligations ..... (199) (619) (2,369) (1,704) (180) (131)
Accumulated other comprehensive loss ........... 2,733 93 621 — 122 56
Net asset / (liability) at December 31 ............. $ 4,558 $ 3,407 $(1,800) $(1,704) $ (59) $ (63)
The accumulated benefit obligation for our pension plans as of September 30, 2006 and 2005 was $12.481
and $11.485 billion, respectively. In general, we use a measurement date of September 30 for our pension and
postretirement benefit plans.
Employer contributions and benefits paid under the pension plans include $24 and $9 million paid from
employer assets in 2006 and 2005, respectively. Employer contributions and benefits paid (net of participant
contributions) under the postretirement medical benefit plans include $72 and $69 million paid from employer
assets in 2006 and 2005, respectively.
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