Emerson 2012 Annual Report Download - page 47

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2012 Annual Report | 45
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
2011 2012 2011 2012
Projected benefit obligation, beginning $ 3,466 3,644 1,061 960
Service cost 52 55 30 27
Interest cost 172 172 50 50
Actuarial (gain) loss 114 502 (125) 137
Benefits paid (167) (173) (53) (41)
Foreign currency translation and other 7 3 (3) 10
Projected benefit obligation, ending $ 3,644 4,203 960 1,143
Fair value of plan assets, beginning $ 3,206 3,182 714 690
Actual return on plan assets 29 595 – 100
Employer contributions 112 113 30 50
Benefits paid (167) (173) (53) (41)
Foreign currency translation and other 2 2 (1) 10
Fair value of plan assets, ending $ 3,182 3,719 690 809
Net amount recognized in the balance sheet $ (462) (484) (270) (334)
Amounts recognized in the balance sheet:
Noncurrent liability $ (462) (484) (270) (334)
Accumulated other comprehensive pretax loss $(1,659) (1,674) (240) (308)
Approximately $244 of the $1,982 of losses deferred in accumulated other comprehensive income at September 30,
2012, will be amortized into earnings in 2013. As of September 30, 2012, retirement plans in total were underfunded
by $818, which includes $353 of unfunded plans.
As of the plans’ September 30, 2012 and 2011 measurement dates, the total accumulated benefit obligation was
$5,010 and $4,345, 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 $4,763, $4,504 and $3,947, respectively, for 2012, and $4,093, $3,907 and $3,380,
respectively, for 2011.
Future benefit payments by U.S. plans are estimated to be $181 in 2013, $191 in 2014, $200 in 2015, $209 in 2016,
$218 in 2017 and $1,212 in total over the five years 2018 through 2022. Based on foreign currency exchange rates as
of September 30, 2012, future benefit payments by non-U.S. plans are estimated to be $45 in 2013, $47 in 2014, $51
in 2015, $53 in 2016, $56 in 2017 and $309 in total over the five years 2018 through 2022. The Company expects to
contribute approximately $150 to its retirement plans in 2013.
The weighted-average assumptions used in the valuation of pension benefits were as follows:
u.s. plans non-u.s. plans
2010 2011 2012 2010 2011 2012
Net pension expense:
Discount rate 5.50% 5.00% 4.75% 5.3% 4.6% 5.2%
Expected return on plan assets 8.00% 8.00% 7.75% 5.9% 5.9% 5.9%
Rate of compensation increase 3.00% 3.00% 3.00% 3.9% 3.5% 3.5%
Benefit obligations:
Discount rate 5.00% 4.75% 4.00% 4.6% 5.2% 4.1%
Rate of compensation increase 3.00% 3.00% 3.25% 3.5% 3.5% 3.4%