AIG 2007 Annual Report Download - page 243

American International Group, Inc. and Subsidiaries
18. Employee Benefits
Continued
The following table presents the funded status of the plans, reconciled to the amount reported in the consolidated
balance sheet at December 31, 2007 and 2006. The measurement date for some of the non-U.S. defined benefit
pension and postretirement plans is November 30, consistent with the fiscal year end of the sponsoring companies. For
all other plans, measurement occurs as of December 31, 2007.
Pension Postretirement(a)
Non-U.S. Plans(b) U.S. Plans(c) Non-U.S. Plans U.S. Plans
(in millions) 2007 2006 2007 2006 2007 2006 2007 2006
Change in projected benefit obligation:
Benefit obligation, beginning of year $1,578 $1,351 $3,079 $3,131 $53 $43 $ 252 $ 205
Service cost 90 78 135 130 5411 6
Interest cost 50 36 186 169 3215 11
Participant contributions 41——————
Actuarial (gain) loss (12) (40) (159) (245) (2) 5(3) (1)
Plan amendments and mergers (2) —17 ————47
Benefits paid:
AIG assets (36) (28) (11) (10) (1) (1) (18) (16)
Plan assets (43) (27) (91) (84) ————
Effect of foreign currency fluctuation 78 71 ——4———
Other 38 136 —(12) 17 ———
Projected benefit obligation, end of year $1,745 $1,578 $3,156 $3,079 $79 $53 $ 257 $ 252
Change in plan assets:
Fair value of plan assets, at beginning of year $850 $ 699 $2,760 $2,561 $— $— $— $—
Actual return on plan assets, net of expenses 36 33 162 282 ————
AIG contributions 87 69 309 11 1118 16
Participant contributions 41——————
Benefits paid:
AIG assets (36) (28) (11) (10) (1) (1) (18) (16)
Plan assets (43) (27) (91) (84) ————
Effect of foreign currency fluctuation 51 41 ——————
Other 362 ——————
Fair value of plan assets, end of year $ 952 $ 850 $3,129 $2,760 $— $— $— $—
Funded status, end of year $ (793) $ (728) $ (27) $ (319) $(79) $(53) $(257) $(252)
Amounts recognized in the consolidated balance sheet:
Assets $28$18$ 228 $—$— $— $— $—
Liabilities (821) (746) (255) (319) (79) (53) (257) (252)
Total amounts recognized $ (793) $ (728) $ (27) $ (319) $(79) $(53) $(257) $(252)
Amounts recognized in Accumulated other comprehensive
income (loss):
Net loss $ 242 $ 256 $ 513 $ 687 $6 $7 $ (5) $3
Prior service cost (credit) (67) (72) (2) (20) ——23 22
Total amounts recognized $ 175 $ 184 $ 511 $ 667 $6 $7 $18 $25
(a) AIG does not currently fund postretirement benefits.
(b) Includes unfunded plans for which the aggregate pension benefit obligation was $559 million and $494 million at December 2007, and 2006,
respectively. For 2007 and 2006, approximately 83% per tain to Japanese plans, which are not required by local regulation to be funded. The projected
benefit obligation for these plans total $464 million and $414 million, respectively.
(c) Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $240 million and $228 million at December 2007 and
2006, respectively.
AIG 2007 Form 10-K 189