Federal Express 2011 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2011 Federal Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

59
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The increase in pension costs from 2010 to 2011 was due to a significantly lower discount rate used to measure our benefit obligations at our
May 31, 2010 measurement date.
Amounts recognized in OCI for all plans were as follows (in millions):
Benefit payments, which reflect expected future service, are expected
to be paid as follows for the years ending May 31 (millions):
These estimates are based on assumptions about future events.
Actual benefit payments may vary significantly from these estimates.
Future medical benefit claims costs are estimated to increase at an
annual rate of 8.3% during 2012, decreasing to an annual growth rate
of 4.5% in 2029 and thereafter. Future dental benefit costs are esti-
mated to increase at an annual rate of 7.0% during 2012, decreasing
to an annual growth rate of 4.5% in 2029 and thereafter. A 1% change
in these annual trend rates would not have a significant impact on the
APBO at May 31, 2011 or 2011 benefit expense because the level of
these benefits is capped.
Pension Plans
Postretirement
Healthcare Plans
2012 $ 562 $ 31
2013 633 31
2014 694 33
2015 754 35
2016 843 37
2017–2021 5,667 225
Net periodic benefit cost for the three years ended May 31 were as follows (in millions):
Pension Plans
Postretirement
Healthcare Plans
2011 2010 2009 2011 2010 2009
Service cost $ 521 $ 417 $ 499 $ 31 $ 24 $ 31
Interest cost 900 823 798 34 30 33
Expected return on plan assets (1,062) (955) (1,059) – – –
Recognized actuarial losses (gains) and other 184 23 (61) (5) (12) (7)
Net periodic benefit cost $ 543 $ 308 $ 177 $ 60 $ 42 $ 57
2011 2010
Pension Plans
Postretirement
Healthcare Plans Pension Plans
Postretirement
Healthcare Plans
Gross
Amount
Net of Tax
Amount
Gross
Amount
Net of Tax
Amount
Gross
Amount
Net of Tax
Amount
Gross
Amount
Net of Tax
Amount
Net loss and other arising during period $ 511 $ 321 $ 44 $ 26 $ 1,562 $ 986 $ 102 $ 59
Loss from settlements and curtailments (13) (8) – – – – – –
Amortizations:
Prior services credit 113 71 – – 113 99 – –
Actuarial (losses) gains and other (284) (178) 5 3 (130) (114) 12 12
Total recognized in OCI $ 327 $ 206 $ 49 $ 29 $ 1,545 $ 971 $ 114 $ 71