Northrop Grumman 2009 Annual Report Download - page 102

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(or earlier at some segments), newly hired employees are not eligible for post-employment medical and life
benefits.
The effect of the Medicare prescription drug subsidy from the Medicare Prescription Drug, Improvement and
Modernization Act of 2003 to reduce the company’s net periodic post-retirement benefit cost and accumulated
post-retirement benefit obligation for the periods presented was not material.
Summary Plan Results
The cost to the company of its retirement benefit plans in each of the three years ended December 31 is shown
in the following table:
$ in millions 2009 2008 2007 2009 2008 2007
Pension Benefits
Medical and
Life Benefits
Components of Net Periodic Benefit Cost
Service cost $ 661 $ 721 $ 786 $48 $55 $52
Interest cost 1,350 1,335 1,250 164 166 164
Expected return on plan assets (1,559) (1,895) (1,774) (48) (64) (58)
Amortization of
Prior service cost (credit) 50 40 40 (59) (65) (65)
Net loss from previous years 337 24 48 28 22 25
Other 17 2
Net periodic benefit cost $ 856 $ 225 $ 352 $ 133 $ 114 $ 118
The table below summarizes the changes in the components of unrecognized benefit plan costs for the years
ended December 31, 2009, and 2008:
$ in millions
Pension
Benefits
Medical and
Life Benefits Total
Changes in Unrecognized Benefit Plan Costs
Net actuarial loss $ 4,558 $132 $ 4,690
Prior service cost 73 30 103
Amortization of
Prior service (cost) credit (40) 65 25
Net loss from previous years (24) (22) (46)
Tax benefits related to above items (1,807) (81) (1,888)
Changes in unrecognized benefit plan costs – 2008 $ 2,760 $124 $ 2,884
Net actuarial gain $ (524) $ (60) $ (584)
Prior service cost (credit) 5 5
Amortization of
Prior service (cost) credit (50) 59 9
Net loss from previous years (337) (28) (365)
Tax benefits related to above items 363 11 374
Changes in unrecognized benefit plan costs – 2009 $ (543) $ (18) $ (561)
-92-
NORTHROP GRUMMAN CORPORATION
eBP - v54508-i003_a.pdf - Page 96 of 124 - March 11, 2010 - 20:02:40