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84 Chevron Corporation 2008 Annual Report
Net actuarial losses recorded in “Accumulated other com-
prehensive loss” at December 31, 2008, for the company’s U.S.
pension, international pension and OPEB plans are being
amortized on a straight-line basis over approximately 10, 13
and 10 years, respectively. These amortization periods repre-
sent the estimated average remaining service of employees
expected to receive benefits under the plans. These losses are
amortized to the extent they exceed 10 percent of the higher of
the projected benefit obligation or market-related value of
plan assets. The amount subject to amortization is deter-
mined on a plan-by-plan basis. During 2009, the company
estimates actuarial losses of $298, $103 and $28 will be amor-
tized from “Accumulated other comprehensive loss” for U.S.
pension, international pension and OPEB plans, respectively. In
Note 22 Employee Benefit Plans – Continued
The components of net periodic benefit cost for 2008, 2007 and 2006 and amounts recognized in other comprehensive income
for 2008 and 2007 are shown in the table below. For 2008 and 2007, changes in pension plan assets and benefit obligations were
recognized as changes in other comprehensive income.
Pension Benefits
2008 2007 2006 Other Benefits
U.S. Int’l. U.S. Int’l. U.S. Int’l. 2008 2007 2006
Net Periodic Benefit Cost
Service cost $ 250 $ 132 $ 260 $ 125 $ 234 $ 98 $ 44 $ 49 $ 35
Interest cost 499 292 483 255 468 214 178 184 181
Expected return on plan assets (593) (273) (578) (266) (550) (227) – – –
Amortization of transitional assets – – – – – 1 – – –
Amortization of prior-service
(credits) costs (7) 24 46 17 46 14 (81) (81) (86)
Recognized actuarial losses 60 77 128 82 149 69 38 81 97
Settlement losses 306 2 65 – 70 – – – –
Curtailment losses – – – 3 – – – – –
Special termination benefit recognition – 1 – – – – – – –
Net periodic benefit cost 515 255 404 216 417 169 179 233 227
Changes Recognized in Other
Comprehensive Income
Net actuarial loss (gain) during period 2,624 646 (160) 31 – – (42) (401) –
Amortization of actuarial loss (366) (79) (193) (82) – – (38) (81) –
Prior service cost (credit) during period – 32 (301) 97 – – – – –
Amortization of prior-service
credits (costs) 7 (24) (46) (20) – – 81 81 –
Total changes recognized in
other comprehensive income 2,265 575 (700) 26 – – 1 (401) –
Recognized in Net Periodic
Benefit Cost and Other
Comprehensive Income $ 2,780 $ 830 $ (296) $ 242 $ 417 $ 169 $ 180 $ ( 1 6 8 ) $ 227
addition, the company estimates an additional $201 will be rec-
ognized from “Accumulated other comprehensive loss” during
2009 related to lump-sum settlement costs from U.S. pension
plans.
The weighted-average amortization period for recognizing
prior service costs (credits) recorded in “Accumulated other
comprehensive loss” at December 31, 2008, was approximately
nine and 13 years for U.S. and international pension plans,
respectively, and eight years for other postretirement benefit
plans. During 2009, the company estimates prior service
(credits) costs of $(7), $25 and $(81) will be amortized from
“Accumulated other comprehensive loss” for U.S. pension,
international pension and OPEB plans, respectively.
Notes to the Consolidated Financial Statements
Millions of dollars, except per-share amounts