Chevron 2009 Annual Report Download - page 63

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Chevron Corporation 2009 Annual Report 61
FS-PB
Note 21 Employee Benefit Plans – Continued
The components of net periodic benefit cost and amounts recognized in other comprehensive income for 2009, 2008 and 2007
are shown in the table below:
Pension Benefits
2009 2008 2007 Other Benefits
U.S. Int’l. U.S. Int’l. U.S. Int’l. 2009 2008 2007
Net Periodic Benefit Cost
Service cost $ 266 $ 128 $ 250 $ 132 $ 260 $ 125 $ 43 $ 44 $ 49
Interest cost 481 292 499 292 483 255 180 178 184
Expected return on plan assets (395) (203) (593) (273) (578) (266) – – –
Amortization of prior-service
(credits) costs (7) 23 (7) 24 46 17 (81) (81) (81)
Recognized actuarial losses 298 108 60 77 128 82 27 38 81
Settlement losses 141 1 306 2 65 – – – –
Curtailment losses – – – – – 3 (5) – –
Special termination benefit recognition – – – 1 – – – – –
Total net periodic benefit cost 784 349 515 255 404 216 164 179 233
Changes Recognized in Other
Comprehensive Income
Net actuarial loss (gain) during period 823 194 2,624 646 (160) 31 82 (42) (401)
Amortization of actuarial loss (439) (109) (366) (79) (193) (82) (27) (38) (81)
Prior service cost (credit) during period 1 13 – 32 (301) 97 20 – –
Amortization of prior-service
credits (costs) 7 (23) 7 (24) (46) (20) 81 81 81
Total changes recognized in
other comprehensive income 392 75 2,265 575 (700) 26 156 1 (401)
Recognized in Net Periodic
Benefit Cost and Other
Comprehensive Income $ 1,176 $ 424 $ 2,780 $ 830 $ (296) $ 242 $ 320 $ 180 $ (168)
Net actuarial losses recorded in “Accumulated other
comprehensive loss” at December 31, 2009, for the company’s
U.S. pension, international pension and OPEB plans are
being amortized on a straight-line basis over approximately
11, 13 and 10 years, respectively. These amortization periods
represent the estimated average remaining service of employ-
ees 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
determined on a plan-by-plan basis. During 2010, the com-
pany estimates actuarial losses of $318, $102 and $26 will be
amortized from “Accumulated other comprehensive loss” for
U.S. pension, international pension and OPEB plans, respec-
tively. In addition, the company estimates an additional $220
will be recognized from “Accumulated other comprehensive
loss” during 2010 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, 2009, was approximately
eight and 12 years for U.S. and international pension plans,
respectively, and eight years for other postretirement benefit
plans. During 2010, the company estimates prior service
(credits) costs of $(7), $27 and $(74) will be amortized from
“Accumulated other comprehensive loss” for U.S. pension,
international pension and OPEB plans, respectively.