UPS 2008 Annual Report Download - page 78

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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 the respective measurement dates in each year (in millions). The measurement date for 2007
was September 30. Under the provisions of FAS 158, we began to use a December 31 measurement date for all
of our pension and postretirement benefit plans beginning in 2008.
U.S. Pension Benefits
U.S. Postretirement
Medical Benefits
International
Pension
Benefits
2008 2007 2008 2007 2008 2007
Benefit Obligations:
Net benefit obligation at beginning of year ............ $15,469 $13,558 $3,153 $2,992 $ 574 $551
Service cost .................................... 707 520 96 101 26 31
Interest cost .................................... 1,051 835 202 182 31 31
Gross benefits paid ............................... (418) (342) (192) (190) (14) (11)
Plan participants’ contributions ..................... — — 14 12 2 2
Plan amendments ................................ 20 1,722 182 47 — —
Actuarial (gain)/loss .............................. (782) (824) (324) 8 (70) (95)
Foreign currency exchange rate changes .............. — — — — (113) 46
Curtailments and settlements ....................... — — — — (4) (6)
Effect of eliminating early measurement date .......... 256 — 34 — 12 —
Other ......................................... — — 1 1 (6) 25
Net benefit obligation at end of year ................. $16,303 $15,469 $3,166 $3,153 $ 438 $574
Fair Value of Plan Assets:
Fair value of plan assets at beginning of year .......... $17,954 $15,374 $ 598 $ 551 $ 470 $348
Actual return on plan assets ........................ (5,124) 2,445 (145) 73 (83) 37
Employer contributions ........................... 120 477 82 152 44 56
Plan participants’ contributions ..................... — — 14 12 2 2
Gross benefits paid ............................... (418) (342) (192) (190) (14) (11)
Foreign currency exchange rate changes .............. — — — — (103) 32
Curtailments and settlements ....................... — — — — (4) 6
Effect of eliminating early measurement date .......... 277 — (8) — 31 —
Fair value of plan assets at end of year ............... $12,809 $17,954 $ 349 $ 598 $ 343 $470
67