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2010 Annual Report
45
(10) Retirement Plans
Retirement plans expense includes the following components:
u.s. plans non-u.s. plans
2008 2009 2010 2008 2009 2010
Defined benefit plans:
Service cost (benefits earned
during the period) $ 48 46 51 23 22 24
Interest cost 167 174 175 45 45 45
Expected return on plan assets (230) (243) (263) (45) (37) (42)
Net amortization 86 70 122 11 17 20
Net periodic pension expense 71 47 85 34 47 47
Defined contribution plans 104 80 81 34 37 36
Total retirement plans expense $ 175 127 166 68 84 83
Reconciliations of the actuarial present value of the projected benefit obligations and of the fair value of plan assets for
defined benefit pension plans follow:
u.s. plans non-u.s. plans
2009 2010 2009 2010
Projected benefit obligation, beginning $ 2,699 3,202 843 864
Service cost 46 51 22 24
Interest cost 174 175 45 45
Actuarial loss 408 207 15 112
Benefits paid (154) (157) (37) (45)
Acquisitions/divestitures, net – (15) 3 61
Effect of ASC 715 measurement date adjustment 21 – 8 –
Foreign currency translation and other 8 3 (35) –
Projected benefit obligation, ending $ 3,202 3,466 864 1,061
Fair value of plan assets, beginning $ 3,030 2,822 619 634
Actual return on plan assets (311) 328 3 60
Employer contributions 228 212 75 35
Benefits paid (154) (157) (37) (45)
Acquisitions/divestitures, net – – – 41
Effect of ASC 715 measurement date adjustment 28 – 6 –
Foreign currency translation and other 1 1 (32) (11)
Fair value of plan assets, ending $ 2,822 3,206 634 714
Net amount recognized in the balance sheet $ (380) (260) (230) (347)
Amounts recognized in the balance sheet:
Noncurrent asset $ – – 3 5
Noncurrent liability $ (380) (260) (233) (352)
Accumulated other comprehensive loss $(1,432) (1,439) (260) (338)
Approximately $169 of the $1,777 of losses deferred in accumulated other comprehensive income at September 30,
2010, will be amortized into earnings in 2011. Retirement plans in total were underfunded by $607 as of
September 30, 2010.
As of the plans’ September 30, 2010 and 2009 measurement dates, the total accumulated benefit obligation was
$4,246 and $3,811, respectively. Also, as of the plans’ respective measurement dates, the projected benefit obligation,
accumulated benefit obligation and fair value of plan assets for retirement plans with accumulated benefit obligations
in excess of plan assets were $1,120, $1,043 and $618, respectively, for 2010, and $3,575, $3,383 and $2,974, respec-
tively, for 2009.