Fluor 2011 Annual Report Download - page 125

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
During 2012, approximately $14 million for the U.S. plan and $3 million for the non-U.S. plans of the
amount of accumulated other comprehensive loss shown above is expected to be recognized as
components of net periodic pension expense.
For the defined benefit pension plans in Australia, the Philippines and Germany, the projected benefit
obligations exceeded the plan assets. In the aggregate, these plans had projected benefit obligations of
$26 million and plan assets with a fair value of $22 million.
The total accumulated benefit obligation for the U.S. and non-U.S. plans as of December 31, 2011 was
$677 million and $590 million, respectively. The total accumulated benefit obligation for the U.S. and
non-U.S. plans as of December 31, 2010 was $605 million and $546 million, respectively. As of
December 31, 2011 and 2010, plan assets for each of the company’s benefit plans exceeded the
accumulated benefit obligation, except for Germany in which the accumulated benefit obligation exceeded
plan assets by less than $1 million as of December 31, 2011.
In addition to the company’s U.S. defined benefit pension plans, the company and certain of its
subsidiaries provide health care and life insurance benefits for certain retired U.S. employees. The health
care and life insurance plans are generally contributory, with retiree contributions adjusted annually. The
accumulated postretirement benefit obligation as of December 31, 2011 and 2010 was determined in
accordance with the current terms of the company’s health care plans, together with relevant actuarial
assumptions and health care cost trend rates projected at annual rates ranging from 8.5 percent in 2012
down to five percent in 2019 and beyond. The effect of a one percent annual increase in these assumed
cost trend rates would increase the accumulated postretirement benefit obligation and interest cost by
approximately $0.6 million and less than $0.1 million, respectively. The effect of a one percent annual
decrease in these assumed cost trend rates would decrease the accumulated postretirement benefit
obligation and interest cost by approximately $0.5 million and less than $0.1 million, respectively.
Net periodic postretirement benefit cost includes the following components:
Year Ended December 31,
(in thousands) 2011 2010 2009
Service cost $ — $ — $ —
Interest cost 723 951 1,394
Expected return on assets — — —
Amortization of prior service cost — — —
Recognized net actuarial loss 679 827 787
Net periodic postretirement benefit cost $1,402 $1,778 $2,181
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