UPS 2007 Annual Report Download - page 82

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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
2007 2006 2007 2006 2007 2006
Funded Status:
Fair value of plan assets at September 30 ......... $17,954 $ 15,374 $ 598 $ 551 $ 470 $ 348
Benefit obligation at September 30 .............. (15,469) (13,558) (3,153) (2,992) (574) (551)
Funded Status at September 30 ................. 2,485 1,816 (2,555) (2,441) (104) (203)
Employer contributions in the fourth quarter ...... 4 9 25 20 24 22
Funded Status at December 31 ................. $ 2,489 $ 1,825 $(2,530) $(2,421) $ (80) $(181)
Amounts Not Yet Recognized in Net Periodic
Cost:
Unrecognized net transition obligation ........... 9 12 — — — —
Unrecognized net prior service cost / (benefit) ..... 2,197 532 (51) (106) 13 12
Unrecognized net actuarial loss ................ 113 2,189 683 727 5 110
Net unrecognized cost at December 31 ........... $ 2,319 $ 2,733 $ 632 $ 621 $ 18 $ 122
Amounts Recognized in our Balance Sheet:
Pension and postretirement benefit assets ......... $ 4,406 $ 2,043 $ — $ — $ 15 $ 1
Other current liabilities ....................... (36) (19) (65) (52) (3) (2)
Pension and postretirement benefit obligations .... (1,881) (199) (2,465) (2,369) (92) (180)
Accumulated other comprehensive loss .......... 2,319 2,733 632 621 18 122
Net asset / (liability) at December 31 ............ $ 4,808 $ 4,558 $(1,898) $(1,800) $ (62) $ (59)
The accumulated benefit obligation for our pension plans as of September 30, 2007 and 2006 was $14.419
and $12.481 billion, respectively. In general, we use a measurement date of September 30 for our pension and
postretirement benefit plans with the primary exception of the UPS IBT Pension Plan, which has a measurement
date of December 31. Under the provisions of FAS 158, we will be required to use a December 31 measurement
date for all of our pension and postretirement benefit plans beginning in 2008.
Employer contributions and benefits paid under the pension plans include $19 and $24 million paid from
employer assets in 2007 and 2006, respectively. Employer contributions and benefits paid (net of participant
contributions) under the postretirement medical benefit plans include $80 and $72 million paid from employer
assets in 2007 and 2006, respectively.
F-19