UPS 2009 Annual Report Download - page 85

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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).
U.S. Pension Benefits
U.S. Postretirement
Medical Benefits
International
Pension
Benefits
2009 2008 2009 2008 2009 2008
Benefit Obligations:
Net benefit obligation at beginning of year ............ $16,303 $15,469 $3,166 $3,153 $438 $ 574
Service cost .................................... 689 707 85 96 17 26
Interest cost .................................... 1,130 1,051 211 202 28 31
Gross benefits paid ............................... (504) (418) (202) (192) (12) (14)
Plan participants’ contributions ..................... — — 16 14 2 2
Plan amendments ................................ 1 20 (21) 182 — —
Actuarial (gain)/loss .............................. 141 (782) 80 (324) 53 (70)
Foreign currency exchange rate changes .............. — — — — 48 (113)
Curtailments and settlements ....................... — — — — (3) (4)
Effect of eliminating early measurement date .......... — 256 — 34 — 12
Other ......................................... 3 — 1 1 4 (6)
Net benefit obligation at end of year ................. $17,763 $16,303 $3,336 $3,166 $575 $ 438
Fair Value of Plan Assets:
Fair value of plan assets at beginning of year .......... $12,809 $17,954 $ 349 $ 598 $343 $ 470
Actual return on plan assets ........................ 2,258 (5,124) 44 (145) 60 (83)
Employer contributions ........................... 788 120 91 82 45 44
Plan participants’ contributions ..................... — — 16 14 1 2
Gross benefits paid ............................... (504) (418) (202) (192) (12) (14)
Foreign currency exchange rate changes .............. — — — — 44 (103)
Curtailments and settlements ....................... — — — — (3) (4)
Effect of eliminating early measurement date .......... — 277 — (8) — 31
Other ......................................... — — — — 3 —
Fair value of plan assets at end of year ............... $15,351 $12,809 $ 298 $ 349 $481 $ 343
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