UPS 2008 Annual Report Download - page 80

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
At the respective measurement dates in 2008 and 2007, the projected benefit obligation, the accumulated
benefit obligation, and the fair value of plan assets for pension plans with an accumulated benefit obligation in
excess of plan assets were as follows (in millions):
Accumulated Benefit Obligation
Exceeds the Fair Value of Plan
Assets
2008 2007
U.S. Pension Benefits
Projected benefit obligation ........................................ $4,274 $1,920
Accumulated benefit obligation ..................................... 4,249 1,883
Fair value of plan assets ........................................... 1,908 —
International Pension Benefits
Projected benefit obligation ........................................ $ 165 $ 180
Accumulated benefit obligation ..................................... 137 150
Fair value of plan assets ........................................... 89 99
The accumulated postretirement benefit obligation exceeds plan assets for all of our U.S. postretirement
benefit plans.
Accumulated Other Comprehensive Income
The amounts in AOCI expected to be amortized and recognized as a component of net periodic benefit cost
in 2009 are as follows (in millions):
U.S. Pension Benefits
U.S. Postretirement
Medical Benefits
International Pension
Benefits
Transition obligation ......................... $ 4 $— $—
Prior service cost / (benefit) .................... 178 6 1
Actuarial loss ............................... 46 14 2
$228 $ 20 $ 3
Plan Asset Investment Policy
The asset allocation for our U.S. pension and other postretirement plans as of the respective measurement
dates in 2008 and 2007, and the target allocation as of December 31, 2008, by asset category, are as follows:
Weighted Average
Target Allocation
2008
Percentage of
Plan Assets
2008 2007
Equity securities ....................................... 45%–60% 44.2% 59.0%
Debt securities ........................................ 20%–35% 31.0% 25.0%
Real estate / other ...................................... 10%–25% 24.8% 16.0%
Total ................................................ 100.0% 100.0%
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