UPS 2011 Annual Report Download - page 95

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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 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
2011 2010 2011 2010 2011 2010
Funded Status:
Fair value of plan assets ....................... $22,663 $ 20,092 $ 174 $ 233 $ 613 $ 561
Benefit obligation ............................ (24,386) (21,342) (3,836) (3,597) (841) (680)
Funded status recognized at December 31 ......... $ (1,723) $ (1,250) $(3,662) $(3,364) $(228) $(119)
Funded Status Amounts Recognized in our
Balance Sheet:
Other non-current assets ....................... $ — $ 42 $ — $ — $ 1 $ 1
Other current liabilities ........................ (13) (11) (93) (99) (3) (3)
Pension and postretirement benefit obligations ..... (1,710) (1,281) (3,569) (3,265) (226) (117)
Net liability at December 31 .................... $ (1,723) $ (1,250) $(3,662) $(3,364) $(228) $(119)
Amounts Recognized in AOCI:
Unrecognized net prior service cost .............. $ (1,492) $ (1,660) $ (82) $ (113) $ (14) $ (8)
Unrecognized net actuarial loss ................. (2,439) (1,777) (307) (157) (52) (22)
Gross unrecognized cost at December 31 .......... (3,931) (3,437) (389) (270) (66) (30)
Deferred tax asset at December 31 ............... 1,479 1,292 146 102 16 3
Net unrecognized cost at December 31 ............ $ (2,452) $ (2,145) $ (243) $ (168) $ (50) $ (27)
The accumulated benefit obligation for our pension plans as of the measurement dates in 2011 and 2010 was
$23.307 and $20.241 billion, respectively.
Benefit payments under the pension plans include $14 million paid from employer assets in both 2011 and
2010. Benefit payments (net of participant contributions) under the postretirement medical benefit plans include
$108 and $94 million paid from employer assets in 2011 and 2010, respectively. Such benefit payments from
employer assets are also categorized as employer contributions.
At December 31, 2011 and 2010, the projected benefit obligation, the accumulated benefit obligation, and
the fair value of plan assets for pension plans with benefit obligations in excess of plan assets were as follows (in
millions):
Projected Benefit Obligation
Exceeds the Fair Value of Plan
Assets
Accumulated Benefit Obligation
Exceeds the Fair Value of Plan
Assets
2011 2010 2011 2010
U.S. Pension Benefits
Projected benefit obligation ........... $24,386 $3,227 $7,499 $3,227
Accumulated benefit obligation ........ 22,574 3,195 7,395 3,195
Fair value of plan assets .............. 22,663 1,934 6,646 1,934
International Pension Benefits
Projected benefit obligation ........... $ 814 $ 662 $ 499 $ 362
Accumulated benefit obligation ........ 714 323 448 323
Fair value of plan assets .............. 594 543 296 257
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