Archer Daniels Midland 2009 Annual Report Download - page 74

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68
Archer Daniels Midland Company
Notes to Consolidated Financial Statements (Continued)
Note 14.
Employee Benefit Plans (Continued)
Pension Benefits
Postretirement Benefits
2009
2008
2007
2009
2008
2007
(In millions)
(In millions)
Retirement plan expense
Defined benefit plans:
Service cost (benefits earned during the
period)
$ 52
$ 68
$ 62
$ 7
$ 9
$ 7
Interest cost
111
109
94
13
12
10
Expected return on plan assets
(113)
(121)
(102)
–
–
–
Curtailment/Plan settlements
–
–
–
(15)
–
–
Amortization of actuarial loss
2
17
19
1
2
1
Other amortization
6
5
6
(1)
(1)
(1)
Net periodic defined benefit plan
expense
58
78
79
5
22
17
Defined contribution plans
35
31
29
–
–
–
Total retirement plan expense
$ 93
$ 109
$ 108
$ 5
$ 22
$ 17
The Company historically has used March 31 as its measurement date. On July 1, 2008, the Company adopted the
measurement date provisions of SFAS No. 158, Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106, and 132(R) (SFAS 158). SFAS 158
requires companies to measure the funded status of defined benefit postretirement plans as of the end of the fiscal
year instead of a date up to three months prior to the end of the fiscal year. As a result, the Company recorded a
decrease in retained earnings of $21 million, net of tax, and an increase to accumulated other comprehensive
income of $2 million, net of tax, representing the periodic benefit cost for the period from April 1, 2008 through
June 30, 2008.
The Company uses a June 30 measurement date for substantially all defined benefit plans. The following tables
set forth changes in the defined benefit obligation and the fair value of defined benefit plan assets: