UPS 2006 Annual Report Download - page 82

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
At September 30, 2006 and 2005, the projected benefit obligation, the accumulated benefit obligation, and
the fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and for
pension plans with an accumulated benefit obligation in excess of plan assets were as follows (in millions):
Projected Benefit Obligation
Exceeds the Fair Value of
Plan Assets
Accumulated Benefit Obligation
Exceeds the Fair Value of
Plan Assets
As of September 30 2006 2005 2006 2005
U.S. Pension Benefits
Projected benefit obligation .................... $227 $229 $227 $229
Accumulated benefit obligation ................. 176 192 176 192
Fair value of plan assets ....................... ————
International Pension Benefits
Projected benefit obligation .................... $551 $476 $541 $476
Accumulated benefit obligation ................. 453 386 448 386
Fair value of plan assets ....................... 347 266 342 266
The accumulated postretirement benefit obligation exceeds plan assets for all of our U.S. postretirement
benefit plans.
Accumulated Other Comprehensive Income
The amounts recorded in AOCI (pre-tax), which have not yet been recognized as components of net periodic
cost, are as follows (in millions):
U.S. Pension Benefits
U.S. Postretirement
Medical Benefits
International
Pension Benefits
2006 2005 2006 2005 2006 2005
Accumulated Other Comprehensive Income:
Unrecognized transition obligation ............ $ 12 $— $— $— $— $—
Unrecognized prior service cost / (benefit) ...... 532 — (106) — 12 —
Unrecognized actuarial loss .................. 2,189 — 727 — 110 —
Net asset / (liability) at December 31 ........... $2,733 $— $ 621 $— $122 $—
The amounts in AOCI expected to be amortized and recognized as a component of net periodic benefit cost
in 2007 are as follows (in millions):
U.S. Pension Benefits
U.S. Postretirement
Medical Benefits
International
Pension Benefits
Transition obligation .................. $ 3 $— $—
Prior service cost / (benefit) ............ 57 (8) 1
Actuarial loss ....................... 110 23 5
$170 $ 15 $ 6
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