AIG 2006 Annual Report Download - page 211

American International Group, Inc. and Subsidiaries
15. Employee Benefits
Continued
(i) Components of net periodic benefit cost and other amounts recognized in other comprehensive income:
The following table presents the components of net periodic benefit cost recognized in income and other amounts
recognized in other comprehensive income with respect to the defined benefit pension plans and other postretirement
benefit plans for the year ended December 31, 2006 (no amounts were recognized in other comprehensive income for
the years ended 2005 and 2004):
Pensions Postretirement
Non-U.S. U.S. Non-U.S. U.S.
(in millions) Plans Plans Total Plans Plans Total
2006
Components of net periodic benefit cost:
Service cost $ 78 $ 130 $ 208 $ 4 $ 6 $10
Interest cost 36 169 205 2 11 13
Expected return on assets (28) (201) (229) — — —
Amortization of prior service cost (9) (3) (12) — (6) (6)
Amortization of transitional obligation 1— 1 ———
Recognition of net actuarial (gains)/losses 16 75 91 — — —
Other 167 ———
Net periodic benefit cost $ 95 $ 176 $ 271 $ 6 $11 $17
Total recognized in other comprehensive income $ 38 $ 24 $ 62 $ — $ — $ —
Total recognized in net periodic benefit cost and other comprehensive
income $133 $ 200 $ 333 $ 6 $11 $17
2005
Components of net periodic benefit cost:
Service cost $ 71 $ 111 $ 182 $ 4 $ 5 $ 9
Interest cost 32 153 185 2 11 13
Expected return on assets (21) (180) (201) — — —
Amortization of prior service cost (10) (3) (13) — (6) (6)
Amortization of transitional obligation 1 — 1 — — —
Recognition of net actuarial (gains)/losses 21 55 76 — — —
Other 718 ———
Net periodic benefit cost $101 $ 137 $ 238 $ 6 $10 $16
2004
Components of net periodic benefit cost:
Service cost $ 59 $ 101 $ 160 $ 3 $ 6 $ 9
Interest cost 33 147 180 2 14 16
Expected return on assets (22) (170) (192) — — —
Amortization of prior service cost (8) — (8) — (7) (7)
Amortization of transitional obligation 2 — 2 — — —
Recognition of net actuarial (gains)/losses 15 53 68 11 2 13
Other* (24) — (24) 3 — 3
Net periodic benefit cost $ 55 $ 131 $ 186 $19 $15 $34
* The reduction resulted from transferring to the Japanese government certain Japanese plan obligations approximating $50 million reduced by
approximately $26 million loss incurred with respect to the settlement of those obligations.
For the U.S. plans, the estimated net loss, prior service credit and transition obligation for the defined benefit pension plans that will be
amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $37 million,
$3 million and $0 million, respectively. For the non-U.S. plans, the estimated net loss, prior service credit and transition obligation for
the defined benefit pension plans that will be amortized from Accumulated other comprehensive income into net periodic benefit cost
over the next fiscal year are $11 million, $10 million and $1 million, respectively. The estimated net loss, prior service credit and
transition obligation for the other defined benefit postretirement plans that will be amortized from Accumulated other comprehensive
income into net periodic benefit cost over the next fiscal year will be less than $5 million in the aggregate.
Form 10-K 2006 AIG 161