UPS 2010 Annual Report Download - page 90

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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, as of the respective measurement dates in each year, of our
plans and the amounts recognized in our balance sheet as of December 31 (in millions):
U.S. Pension Benefits
U.S. Postretirement
Medical Benefits
International
Pension Benefits
2010 2009 2010 2009 2010 2009
Funded Status:
Fair value of plan assets ....................... $20,092 $ 15,351 $ 233 $ 298 $ 561 $ 481
Benefit obligation ............................ (21,342) (17,763) (3,597) (3,336) (680) (575)
Funded status recognized at December 31 ......... $ (1,250) $ (2,412) $(3,364) $(3,038) $(119) $ (94)
Funded Status Amounts Recognized in our
Balance Sheet:
Other non-current assets ....................... $ 42 $ — $ — $ — $ 1 $ 15
Other current liabilities ........................ (11) (11) (99) (87) (3) (4)
Pension and postretirement benefit obligations ..... (1,281) (2,401) (3,265) (2,951) (117) (105)
Net asset (liability) at December 31 .............. $ (1,250) $ (2,412) $(3,364) $(3,038) $(119) $ (94)
Amounts Recognized in AOCI:
Unrecognized net prior service cost .............. $ (1,660) $ (1,839) $ (113) $ (109) $ (8) $ (9)
Unrecognized net actuarial loss ................. (6,833) (5,289) (702) (584) (114) (70)
Gross unrecognized cost at December 31 .......... (8,493) (7,128) (815) (693) (122) (79)
Deferred tax asset at December 31 ............... 3,193 2,680 306 261 31 22
Net unrecognized cost at December 31 ............ $ (5,300) $ (4,448) $ (509) $ (432) $ (91) $ (57)
The accumulated benefit obligation for our pension plans as of the measurement dates in 2010 and 2009 was
$20.241 and $16.968 billion, respectively.
Benefit payments under the pension plans include $14 and $15 million paid from employer assets in 2010
and 2009, respectively. Benefit payments (net of participant contributions) under the postretirement medical
benefit plans include $94 and $90 million paid from employer assets in 2010 and 2009, respectively. Such benefit
payments from employer assets are also categorized as employer contributions.
At December 31, 2010 and 2009, 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):
Project Benefit Obligation
Exceeds the Fair Value of Plan
Assets
Accumulated Benefit Obligation
Exceeds the Fair Value of Plan
Assets
2010 2009 2010 2009
U.S. Pension Benefits
Projected benefit obligation ............. $3,227 $17,763 $3,227 $4,995
Accumulated benefit obligation .......... 3,195 4,963 3,195 4,963
Fair value of plan assets ................ 1,934 15,351 1,934 2,962
International Pension Benefits
Projected benefit obligation ............. $ 662 $ 346 $ 362 $ 82
Accumulated benefit obligation .......... 323 69 323 69
Fair value of plan assets ................ 543 237 257 18
78