AIG 2007 Annual Report Download - page 244

American International Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements Continued
18. Employee Benefits
Continued
The accumulated benefit obligations for both non-U.S. and U.S. pension benefit plans at December 31, 2007 and 2006
were as follows:
(in millions) 2007 2006
Non-U.S. pension benefit plans $1,504 $1,384
U.S. pension benefit plans $2,752 $2,689
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan
assets and in which the accumulated benefit obligation was in excess of the related plan assets at December 31,
2007 and 2006 were as follows:
PBO exceeds fair value of plan assets ABO exceeds fair value of plan assets
Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans
(in millions) 2007 2006 2007 2006 2007 2006 2007 2006
Projected benefit obligation $1,676 $1,486 $368 $3,079 $1,415 $1,465 $240 $240
Accumulated benefit obligation 1,462 1,323 317 2,689 1,277 1,311 206 204
Fair value of plan assets 855 740 113 2,760 652 723 —11
The following table presents the components of net periodic benefit cost recognized in income and other amounts
recognized in Accumulated other comprehensive income (loss) with respect to the defined benefit pension plans and
other postretirement benefit plans for the year ended December 31, 2007 and 2006 (no amounts related to the
adoption of FAS 158 were recognized in Accumulated other comprehensive income (loss) for the year ended 2005):
Pension Postretirement
Non-U.S. Plans U.S. Plans Non-U.S. Plans U.S. Plans
(in millions) 2007 2006 2005 2007 2006 2005 2007 2006 2005 2007 2006 2005
Components of net periodic benefit cost:
Service cost $90 $78 $71 $ 135 $130 $ 111 $5 $4 $4 $11 $6 $5
Interest cost 50 36 32 186 169 153 32215 11 11
Expected return on assets (36) (28) (21) (216) (201) (180) ——— ———
Amortization of prior service cost (10) (9) (10) (3) (3) (3) ——— (2) (6) (6)
Amortization of transitional obligation 111—————— ———
Recognition of net actuarial (gains)/losses 916 21 43 75 55 ——— ———
Other 11714 61——— ———
Net periodic benefit cost $105 $ 95 $101 $ 159 $176 $ 137 $8 $6 $6 $24 $11 $10
Total recognized in Accumulated other
comprehensive income (loss) $ (10) $38 — $(155) $24 — $(2) $——$(7) $— $—
Total recognized in net periodic benefit cost
and other comprehensive income $95 $133 $101 $4$200 $ 137 $6 $6 $6 $17 $11 $10
The estimated net loss and prior service credit that will be amortized from Accumulated other comprehensive income into net periodic
benefit cost over the next fiscal year are $31 million and $11 million, respectively, for AIG’s combined defined benefit pension plans. For
the defined benefit postretirement plans, the estimated amortization from Accumulated other comprehensive income for net loss, prior
service credit and transition obligation that will be amortized into net periodic benefit cost over the next fiscal year will be less than
$5 million in the aggregate.
190 AIG 2007 Form 10-K