DELPHI 2011 Annual Report Download - page 123

Table of Contents
Other
Postretirement
Benefits
Period from
January 1 to
October 6,
2009
(in millions)
Service cost $ 7
Interest cost 18
Settlement gain (1,175)
Amortization of prior service costs (credit) (30)
Amortization of actuarial losses 9
Net periodic benefit cost $ (1,171)
Other postretirement benefit obligations were not significant at December 31, 2011 or December 31, 2010. Net periodic benefit cost above reflects $5
million that was included in loss from discontinued operations of the Predecessor for the period from January 1 to October 6, 2009.
Experience gains and losses, as well as the effects of changes in actuarial assumptions and plan provisions are amortized over the average future service
period of employees. The estimated actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income
into net periodic benefit cost in 2012 is less than $1 million.
The principal assumptions used to determine the pension expense and the actuarial value of the projected benefit obligation for the U.S. and non-U.S.
pension plans were:
Assumptions used to determine benefit obligations at December 31:
Pension Benefits
U.S. Plans Non-U.S. Plans
2011 2010 2011 2010
Weighted-average discount rate 3.30% 4.10% 5.24% 5.69%
Weighted-average rate of increase in compensation levels N/A N/A 3.66% 3.88%
Assumptions used to determine net expense for years ended December 31:
Pension Benefits
U.S. Plans Non-U.S. Plans
2011 2010 2009 2011 2010 2009
Weighted-average discount rate 4.10% 5.00% 6.16% 5.69% 5.97% 6.22%
Weighted-average rate of increase in compensation levels N/A N/A N/A 3.88% 3.89% 3.95%
Expected long-term rate of return on plan assets N/A N/A 8.25% 6.65% 7.14% 7.81%
Delphi selects discount rates by analyzing the results of matching each plan's projected benefit obligations with a portfolio of high-quality fixed income
investments rated AA-or higher by Standard and Poor's.
Delphi does not have any U.S. pension assets; therefore no U.S. asset rate of return calculation was necessary for 2011 or 2010. The primary funded
non-U.S. plans are in the United Kingdom and Mexico. For the determination of 2011 expense, Delphi assumed a long-term asset rate of return of
approximately 6.25% and 9.50% for the United Kingdom and Mexico, respectively. Delphi evaluated input from local actuaries and asset
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