AIG 2009 Annual Report Download - page 333

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents the funded status of the plans, reconciled to the amount reported in the Consolidated
Balance Sheet. The measurement date for most 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.
As of or for the Years Ended December 31, Pension Postretirement(a)
Non-U.S. Plans(b) U.S. Plans(c) Non-U.S. Plans U.S. Plans
(in millions) 2009 2008 2009 2008 2009 2008 2009 2008
Change in projected benefit obligation:
Benefit obligation, beginning of year $ 2,080 $ 1,745 $ 3,745 $ 3,156 $ 101 $79$ 285 $ 257
Service cost 121 112 155 132 11 888
Interest cost 60 62 219 202 4416 16
Participant contributions 14------
Actuarial (gain) loss 155 89 108 376 (9) 15 921
Plan amendments and mergers (1) 116 ---(3) -
Benefits paid:
AIG assets (57) (38) (7) (25) (1) (1) (17) (17)
Plan assets (40) (40) (110) (96) ----
Plan curtailments (3) (4) (119) ---(16) -
Plan settlements (46) (25) (320) ---(8) -
Foreign exchange effect 212 107 --3(5) --
Other (169) 67 --(3) 1--
Projected benefit obligation, end of year $ 2,313 $ 2,080 $ 3,687 $ 3,745 $ 106 $ 101 $ 274 $ 285
Change in plan assets:
Fair value of plan assets, at beginning of
year $ 765 $ 952 $ 2,733 $ 3,129 $-$-$-$-
Actual return on plan assets, net of
expenses 49 (205) 541 (334) ----
AIG contributions 146 115 446 59 1117 17
Participant contributions 14------
Benefits paid:
AIG assets (57) (38) (7) (25) (1) (1) (17) (17)
Plan assets (40) (40) (110) (96) ----
Plan settlements (46) (25) (241) -----
Foreign exchange effect 69 5------
Other (137) (3) ------
Fair value of plan assets, end of year $ 750 $ 765 $ 3,362 $ 2,733 $-$-$-$-
Funded status, end of year $ (1,563) $ (1,315) $ (325) $ (1,012) $ (106) $ (101) $ (274) $ (285)
Amounts recognized in the consolidated
balance sheet:
Assets $23$32$-$-$-$-$-$-
Liabilities (1,586) (1,347) (325) (1,012) (106) (101) (274) (285)
Total amounts recognized $ (1,563) $ (1,315) $ (325) $ (1,012) $ (106) $ (101) $ (274) $ (285)
Pre tax amounts recognized in Accumulated
other comprehensive income (loss):
Net loss $ (727) $ (601) $ (921) $ (1,429) $ (10) $ (21) $(7)$ (12)
Prior service (cost) credit 58 66 (15) 1(1) -(16) (23)
Total amounts recognized $ (669) $ (535) $ (936) $ (1,428) $ (11) $ (21) $ (23) $ (35)
(a) AIG does not currently fund postretirement benefits.
(b) Includes unfunded plans for which the aggregate pension benefit obligation was $990 million and $859 million at December 2009 and 2008,
respectively. For 2009 and 2008, approximately 79 percent and 82 percent pertain to Japanese plans, which are not required by local regulation to be
funded. The projected benefit obligation for these plans total $785 million and $702 million, respectively.
(c) Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $224 million and $270 million at December 2009
and 2008, respectively.
325 AIG 2009 Form 10-K