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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
76
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
2013 2012 2013 2012 2013 2012
Funded Status:
Fair value of plan assets $ 26,224 $ 24,941 $ 355 $ 460 $ 931 $ 801
Benefit obligation (29,508)(31,868)(4,046)(4,412)(1,076)(1,089)
Funded status recognized at December 31 $(3,284) $ (6,927) $ (3,691) $ (3,952) $ (145) $ (288)
Funded Status Amounts Recognized in our Balance
Sheet:
Other non-current assets $ — $ — $ — $ — $ 47 $ 26
Other current liabilities (16)(14)(97)(108)(3)(3)
Pension and postretirement benefit obligations (3,268)(6,913)(3,594)(3,844)(189)(311)
Net liability at December 31 $(3,284) $ (6,927) $ (3,691) $ (3,952) $ (145) $ (288)
Amounts Recognized in AOCI:
Unrecognized net prior service cost $(1,286) $ (1,318) $ (79) $ (79) $ (9) $ (13)
Unrecognized net actuarial gain (loss) 1,233 (3,187)(29)(441)(7)(86)
Gross unrecognized cost at December 31 (53)(4,505)(108)(520)(16)(99)
Deferred tax asset at December 31 20 1,694 41 196 2 26
Net unrecognized cost at December 31 $(33) $ (2,811) $ (67) $ (324) $ (14) $ (73)
The accumulated benefit obligation for our pension plans as of the measurement dates in 2013 and 2012 was $28.586 and
$30.350 billion, respectively.
Benefit payments under the pension plans include $16 million paid from employer assets in both 2013 and 2012. Benefit
payments (net of participant contributions) under the postretirement medical benefit plans include $108 and $110 million paid
from employer assets in 2013 and 2012, respectively. Such benefit payments from employer assets are also categorized as
employer contributions.
At December 31, 2013 and 2012, 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
2013 2012 2013 2012
U.S. Pension Benefits
Projected benefit obligation $ 29,508 $ 31,868 $ 29,508 $ 31,868
Accumulated benefit obligation 27,623 29,382 27,623 29,382
Fair value of plan assets 26,224 24,941 26,224 24,941
International Pension Benefits
Projected benefit obligation $ 764 $ 1,028 $ 361 $ 678
Accumulated benefit obligation 658 917 301 606
Fair value of plan assets 580 723 184 388
The accumulated postretirement benefit obligation exceeds plan assets for all of our U.S. postretirement medical benefit
plans.