AIG 2010 Annual Report Download - page 363

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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:
Pension Postretirement
Non-U.S. Plans(a) U.S. Plans(b) Non-U.S. Plans(a) U.S. Plans(b)
(in millions) 2010 2009 2008 2010 2009 2008 2010 2009 2008 2010 2009 2008
Components of net
periodic benefit cost:
Service cost $ 137 $ 121 $ 112 $ 150 $ 155 $ 132 $8$11$ 8$8$8$8
Interest cost 59 60 62 216 219 202 44415 16 16
Expected return on
assets (31) (31) (44) (259) (226) (235) ------
Amortization of prior
service (credit) cost (9) (13) (11) 1-(1)------
Amortization of net
(gain) loss 45 41 29 57 88 22 -1-(1) 1-
Net curtailment (gain)
loss (1) (2) (5) 1(4) - ---(2) 1-
Net settlement (gain)
loss 311 4 58 14 - ---(6) (8) -
Other 21- --2-----5
Net periodic benefit cost $ 205 $ 188 $ 147 $ 224 $ 246 $ 122 $12$16$ 12$14$18$29
Total recognized in
Accumulated other
comprehensive income
(loss) $ 167 $ (134) $ (361) $85$ 492 $ (917) $16$ 11 $ (16) $(3)$ 10 $ (17)
Total recognized in net
periodic benefit cost
and other
comprehensive income
(loss) $ (38) $ (322) $ (508) $ (139) $ 246 $ (1,039) $4$ (5) $ (28) $ (17) $ (8) $ (46)
(a) Amounts for non-U.S. plans include pension costs associated with discontinued operations totaling $123 million, $122 million and $87 million
for the years ended December 31, 2010, 2009 and 2008, respectively.
(b) Amounts for U.S. plans include pension costs associated with discontinued operations totaling $18 million, $20 million and $11 million for the
years ended December 31, 2010, 2009 and 2008, respectively.
The estimated net loss and prior service credit (cost) that will be amortized from Accumulated other
comprehensive income into net periodic benefit cost over the next fiscal year are $70 million and $7 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 gain (loss) and prior service credit
(cost) that will be amortized into net periodic benefit cost over the next fiscal year will be less than $1 million in
the aggregate.
The annual pension expense in 2011 for the AIG U.S. and non-U.S. defined benefit pension plans is expected
to be approximately $282 million. A 100 basis point increase in the discount rate or expected long-term rate of
return would decrease the 2011 expense by approximately $81 million and $44 million, respectively, with all other
items remaining the same. Conversely, a 100 basis point decrease in the discount rate or expected long-term rate
of return would increase the 2011 expense by approximately $97 million and $43 million, respectively, with all
other items remaining the same.
AIG 2010 Form 10-K 347