AIG 2012 Annual Report Download - page 339

.....................................................................................................................................................................................
The following table presents the accumulated benefit obligations for U.S. and Non-U.S. pension benefit
plans:
U.S. pension benefit plans $ 4,291
Non-U.S. pension benefit plans $ 895
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the
related plan assets and the accumulated benefit obligation was in excess of the related plan assets were as
follows:
Projected benefit obligation $ 4,438 $ 956 $ 4,438 $ 916
Accumulated benefit obligation 4,291 895 4,291 864
Fair value of plan assets 3,432 422 3,432 388
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:
Components of net periodic benefit cost:
Service cost $ 150 $ 149 $ 66 $ 137 $ 8 $ 8 $ 4 $ 8
Interest cost 207 216 37 59 13 15 2 4
Expected return on assets (250) (259) (25) (31) – – – –
Amortization of prior service (credit) cost (7) 1 (4) (9) (2) – – –
Amortization of net (gain) loss 65 57 15 45 – (1) – –
Net curtailment (gain) loss – 1 – (1) – (2) – –
Net settlement (gain) loss – 58 8 3 – (6) – –
Other –– –2 –– ––
Net periodic benefit cost $ 165 $ 223 $ 97 $ 205 $ 19 $ 14 $ 6 $ 12
Amount associated with discontinued operations $ – $ 1 $ – $ – $ – $ – $ – $ –
Total recognized in Accumulated other comprehensive income
(loss) $ (396) $ 85 $ 261 $ 167 $ 56 $ (3) $ (6) $ 16
Total recognized in net periodic benefit cost and other
comprehensive income (loss) $ (561) $ (139) $ 164 $ (38) $ 37 $ (17) $ (12) $ 4
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 $145 million and $37 million, respectively, for our combined
defined benefit pension plans. For the defined benefit postretirement plans, the estimated amortization from
Accumulated other comprehensive income for net loss and prior service credit that will be amortized into net periodic
benefit cost over the next fiscal year will be less than $9 million in the aggregate.
The annual pension expense in 2013 for the AIG U.S. and non-U.S. defined benefit pension plans is expected to be
approximately $292 million including less than $1 million associated with ILFC. A 100 basis point increase in the
discount rate or expected long-term rate of return would decrease the 2013 expense by approximately $90 million
and $43 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 2013 expense by approximately $96 million and
$43 million, respectively, with all other items remaining the same.
..................................................................................................................................................................................................................................
AIG 2012 Form 10-K322
At December 31,
(in millions) 2012 2011
$ 4,827
$ 1,125
PBO Exceeds Fair Value of Plan Assets ABO Exceeds Fair Value of Plan Assets
U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans
At December 31,
(in millions) 2012 2011 2012 2011 2012 2011 2012 2011
$ 5,161 $ 1,028 $ 5,161 $ 1,018
4,827 964 4,827 959
3,720 485 3,720 478
Pension Postretirement
U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans
(in millions) 2012 2011 2010 2012 2011 2010 2012 2011 2010 2012 2011 2010
$ 154 $ 53 $ 5 $ 3
200 34 11 2
(240) (20) – –
(33) (4) (10) –
118 13 – –
–1–(1)
–4––
––––
$ 199 $ 81 $ 6 $ 4
$ (2) $ – $– $–
$ (250) $ (36) $ (23) $ (11)
$ (447) $ (117) $ (29) $ (15)
ITEM 8 / NOTE 22. EMPLOYEE BENEFITS