Boeing 2013 Annual Report Download - page 98

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86
During the quarter ended September 30, 2011, we determined the accumulated benefit obligation (ABO)
for certain other postretirement benefit plans was understated. As a result, we recognized an additional
$294 of postretirement benefit obligations at September 30, 2011. This increased net periodic benefit cost
during 2011 by $184, which includes service cost of $73, interest cost of $68 and recognized net actuarial
loss of $43.
Under our accounting policy, a portion of net periodic benefit cost is allocated to production as inventoried
costs. Of the $184 increase in net periodic benefit cost described above, the associated cost included in
Earnings from operations was $161 for the quarter ended September 30, 2011, with the remaining cost
of $23 classified as inventory.
The following tables show changes in the benefit obligation, plan assets and funded status of both pensions
and OPB for the years ended December 31, 2013 and 2012. Benefit obligation balances presented below
reflect the PBO for our pension plans, and accumulated postretirement benefit obligations (APBO) for our
OPB plans.
Pension
Other
Postretirement
Benefits
2013 2012 2013 2012
Change in benefit obligation
Beginning balance $75,895 $67,651 $7,981 $7,997
Service cost 1,886 1,649 148 146
Interest cost 2,906 3,005 263 313
Plan participants’ contributions 89
Amendments 111 13 412
Actuarial (gain)/loss (9,205) 6,378 (905) (53)
Settlement/curtailment/other (81) (76) (57) (1)
Gross benefits paid (2,874) (2,744) (451) (474)
Subsidies 32 37
Exchange rate adjustment (21) 10 (7) 4
Ending balance $68,625 $75,895 $7,008 $7,981
Change in plan assets
Beginning balance at fair value $56,178 $51,051 $110 $102
Actual return on plan assets 3,316 6,300 23 1
Company contribution 1,542 1,550 14 15
Plan participants’ contributions 8933
Settlement/curtailment/other (103) (71) 11 10
Benefits paid (2,792) (2,669) (21) (21)
Exchange rate adjustment (18) 8
Ending balance at fair value $58,131 $56,178 $140 $110
Amounts recognized in statement of financial
position at December 31 consist of:
Other assets $60 $5
Other accrued liabilities (80) (71) ($340) ($343)
Accrued retiree health care (6,528) (7,528)
Accrued pension plan liability, net (10,474) (19,651)
Net amount recognized ($10,494) ($19,717) ($6,868) ($7,871)