Lockheed Martin 2013 Annual Report Download - page 83

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The following table provides a reconciliation of benefit obligations, plan assets, and unfunded status related to our
qualified defined benefit pension plans and our retiree medical and life insurance plans (in millions):
Qualified Defined Benefit
Pension Plans
Retiree Medical and
Life Insurance Plans
2013 2012 2013 2012
Change in benefit obligation
Beginning balance $46,017 $ 40,616 $3,184 $ 3,023
Service cost 1,142 1,055 27 28
Interest cost 1,800 1,884 116 131
Benefits paid (a) (2,023) (2,094) (353) (364)
Actuarial losses (gains) (4,882) 4,442 (319) 169
Plan amendments 107 114 —(6)
Medicare Part D subsidy ——10 48
Participants’ contributions ——158 155
Ending balance $42,161 $ 46,017 $2,823 $ 3,184
Change in plan assets
Beginning balance at fair value $30,924 $ 27,292 $1,964 $ 1,749
Actual return on plan assets 1,859 2,089 44 141
Benefits paid (a) (2,023) (2,094) (353) (364)
Company contributions 2,250 3,637 98 235
Medicare Part D subsidy ——10 48
Participants’ contributions ——158 155
Ending balance at fair value $33,010 $ 30,924 $1,921 $ 1,964
Unfunded status of the plans $ (9,151) $(15,093) $ (902) $(1,220)
(a) Benefits paid in 2012 for qualified defined benefit pension plans include $310 million in the form of lump-sum settlement payments to
former employees who had not commenced receiving their vested benefit payments. The corresponding benefit obligation that was
released was $375 million. The settlement payments had no impact on our 2012 FAS pension expense and CAS pension cost.
The following table provides amounts recognized on our Balance Sheets related to our qualified defined benefit pension
plans and our retiree medical and life insurance plans (in millions):
Qualified Defined Benefit
Pension Plans
Retiree Medical and
Life Insurance Plans
2013 2012 2013 2012
Prepaid pension asset $ 210 $ 185 $— $—
Accrued postretirement benefit liabilities (9,361) (15,278) (902) (1,220)
Accumulated other comprehensive loss (pre-tax) related to:
Net actuarial losses 13,453 19,121 516 777
Prior service cost (credit) 443 418 13 (3)
Total (a) $13,896 $19,539 $ 529 $ 774
(a) Accumulated other comprehensive loss related to postretirement benefit plans, after tax, of $9.6 billion and $13.5 billion at
December 31, 2013 and 2012 (Note 11) includes $13.9 billion ($9.0 billion after tax) and $19.5 billion ($12.6 billion after tax) for
qualified defined benefit pension plans, $529 million ($342 million after tax) and $774 million ($500 million after tax) for retiree
medical and life insurance plans, and $508 million ($328 million after tax) and $626 million ($406 million after tax) for other plans.
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