AIG 2006 Annual Report Download - page 207

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American International Group, Inc. and Subsidiaries
15. Employee Benefits
Continued
The following table sets forth the funded status of the plans, reconciled to the amount reported on the consolidated
balance sheet at December 31, 2006 (these assets and liabilities were not reported on the consolidated balance sheet
at December 31, 2005):
Pension Postretirement(b)
Non-U.S. U.S. Non-U.S. U.S.
(in millions) Plans(a) Plans Total Plans Plans Total
2006
Fair value of plan assets $ 850 $2,760 $ 3,610 $ — $ — $ —
Less projected benefit obligations 1,578 3,079 4,657 53 252 305
Funded status at end of year $ (728) $ (319) $(1,047) $(53) $(252) $(305)
Amounts recognized in the consolidated balance sheet:
Assets $ 18 $ — $ 18 $— $— $—
Liabilities (746) (319) (1,065) (53) (252) (305)
Total amounts recognized $ (728) $ (319) $(1,047) $(53) $(252) $(305)
Amounts recognized in Accumulated other comprehensive
income:
Net loss $ 256 $ 687 $ 943 $ 7 $ 3 $ 10
Prior service cost (credit) (72) (20) (92) — 22 22
Total amounts recognized $ 184 $ 667 $ 851 $ 7 $ 25 $ 32
2005
Fair value of plan assets $ 699 $2,561 $ 3,260 $ — $ — $ —
Less projected benefit obligations 1,351 3,130 4,481 43 205 248
Funded status at end of year $ (652) $ (569) $(1,221) $(43) $(205) $(248)
Amounts not yet recognized:
Actuarial (gains)/losses(c) 303 1,093 1,396 3 5 8
Prior service cost (79) (23) (102) — (32) (32)
Transition obligations 1 — 1 — — —
Net amount recognized $ (427) $ 501 $ 74 $(40) $(232) $(272)
Composition of net amount recognized:
Prepaid benefit cost $ 24 $ 670 $ 694 $ — $ — $ —
Accrued benefit cost (590) (217) (807) (40) (232) (272)
Intangible asset 3 6 9 — — —
Accumulated other comprehensive income 136 42 178 — — —
Net amount recognized $ (427) $ 501 $ 74 $(40) $(232) $(272)
(a) A significant portion of these plans, particularly those in Japan, are not required by local regulation to be funded currently. With respect to the funded
status of these Japanese plans, the projected benefit obligation amounts to approximately $414 million and $410 million of which approximately $379
million and $360 million has been recognized at November 30, 2006 and December 31, 2005, respectively.
(b) AIG does not currently fund postretirement benefits.
(c) Actuarial (gains)/losses are amounts included in the projected benefit obligations but not yet recognized in the financial statements.
Form 10-K 2006 AIG 157