Fluor 2011 Annual Report Download - page 118

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
plans of approximately $109 million, $96 million and $99 million in the years ended December 31, 2011,
2010 and 2009, respectively, is primarily related to domestic engineering and construction operations. The
defined benefit pension plans are primarily related to domestic and international engineering and
construction salaried employees and U.S. craft employees. Contributions to defined benefit pension plans
are at least the minimum annual amount required by applicable regulations. Payments to retired
employees under these plans are generally based upon length of service, age and/or a percentage of
qualifying compensation.
Net periodic pension expense for the U.S. and non-U.S. defined benefit pension plans includes the
following components:
U.S. Pension Plan Non-U.S. Pension Plans
Year Ended December 31, Year Ended December 31,
(in thousands) 2011 2010 2009 2011 2010 2009
Service cost $ 37,172 $ 36,668 $ 37,167 $ 8,219 $ 10,509 $ 9,337
Interest cost 36,136 38,417 33,595 34,502 31,328 30,349
Expected return on assets (40,430) (42,396) (38,113) (42,852) (36,611) (31,147)
Amortization of prior service
cost/(credits) (168) — 10———
Recognized net actuarial loss 13,955 18,765 25,669 5,874 8,203 11,631
(Gain on curtailment)/loss on
settlement (618) — — 1,111 — —
Net periodic pension expense $ 46,047 $ 51,454 $ 58,328 $ 6,854 $ 13,429 $ 20,170
The ranges of assumptions indicated below cover defined benefit pension plans in the United States,
the Netherlands, the United Kingdom, Australia, the Philippines (2011 only) and Germany, and are based
on the economic environment in each host country at the end of each respective annual reporting period.
The discount rate assumption for the U.S. defined benefit plan was determined by discounting the
expected future benefit payments using yields based on a portfolio of high quality corporate bonds having
maturities that are consistent with the expected timing of future payments to plan participants. The
discount rates for the non-U.S. defined benefit plans were determined primarily based on a hypothetical
yield curve developed from the yields on high quality corporate bonds with durations consistent with the
pension obligations in that country. The expected long-term rate of return on asset assumptions utilizing
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