UPS 2010 Annual Report Download - page 94

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
our U.S. plans. The amount of assets having significant unobservable inputs (Level 3), if any, in these plans
would be immaterial to our financial statements.
Expected Cash Flows
Information about expected cash flows for the pension and postretirement benefit plans is as follows (in
millions):
U.S.
Pension Benefits
U.S. Postretirement
Medical Benefits
International Pension
Benefits
Employer Contributions:
2011 (expected) to plan trusts ..................... $1,200 $ — $ 41
2011 (expected) to plan participants ................ 12 102 2
Expected Benefit Payments:
2011 ..................................... $ 611 $ 213 $ 14
2012 ..................................... 690 226 16
2013 ..................................... 772 246 17
2014 ..................................... 862 228 18
2015 ..................................... 958 244 21
2016 - 2020 ............................... 6,483 1,436 142
Our funding policy for U.S. plans is to contribute amounts annually that are at least equal to the amounts
required by applicable laws and regulations, or to directly fund payments to plan participants, as applicable.
International plans will be funded in accordance with local regulations. The 2011 (expected) to plan trusts
contribution of $1.2 billion for U.S. pension benefits was made in January 2011. Additional discretionary
contributions may be made when deemed appropriate to meet the long-term obligations of the plans. Expected
benefit payments for pensions will be primarily paid from plan trusts. Expected benefit payments for
postretirement medical benefits will be paid from plan trusts and corporate assets.
NOTE 6. BUSINESS ACQUISITIONS, GOODWILL AND INTANGIBLE ASSETS
The following table indicates the allocation of goodwill by reportable segment (in millions):
U.S. Domestic
Package
International
Package
Supply Chain &
Freight Consolidated
December 31, 2008 balance ...................... $— $288 $1,698 $1,986
Acquired ................................. — 82 — 82
Disposals ................................ — — (6) (6)
Currency / Other .......................... — 4 23 27
December 31, 2009 balance ...................... $— $374 $1,715 $2,089
Acquired ................................. — — — —
Purchase Accounting Adjustments ............ — 5 (2) 3
Currency / Other .......................... — (2) (9) (11)
December 31, 2010 balance ...................... $— $377 $1,704 $2,081
Business Acquisitions
The increase to goodwill in the International Package segment during 2010 was due to adjustments to the
purchase price allocation for Unsped Paket Servisi San ve Ticaret A.S. (“Unsped”), which was acquired in
82