Northrop Grumman 2010 Annual Report Download - page 106
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The table below summarizes the components of changes in unamortized benefit plan costs for the years ended
December 31, 2010, 2009, and 2008:
$ in millions
Pension
Benefits
Medical and
Life Benefits Total
Changes in Unamortized Benefit Plan Costs
Change in net actuarial loss $ 4,558 $132 $ 4,690
Change in 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)
Change in unrecognized benefit plan costs – 2008 $ 2,760 $124 $ 2,884
Change in net actuarial loss $ (524) $ (60) $ (584)
Change in prior service cost 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
Change in unamortized benefit plan costs – 2009 $ (543) $ (18) $ (561)
Change in net actuarial loss $ (158) $ (64) $ (222)
Amortization of
Prior service (cost) credit (48) 60 12
Net loss from previous years (244) (26) (270)
Tax benefits related to above items 171 12 183
Change in unamortized benefit plan costs – 2010 $ (279) $ (18) $ (297)
Unamortized benefit plan costs consist primarily of accumulated net after-tax actuarial losses totaling $2,771
million and $3,082 million as of December 31, 2010, and 2009, respectively. Net actuarial gains or losses are re-
determined annually and principally arise from gains or losses on plan assets due to variations in the fair market
value of the underlying assets and changes in the benefit obligation due to changes in actuarial assumptions. Net
actuarial gains or losses are amortized to expense in future periods when they exceed ten percent of the greater
of plan assets or projected benefit obligations by benefit plan. The excess of gains or losses over the ten percent
threshold are subject to amortization over the average future service period of employees of approximately ten
years.
$ in millions 2010 2009 2010 2009
Pension Benefits
Medical and
Life Benefits
Amounts Recorded in Accumulated Other Comprehensive Loss
Net actuarial loss $(4,246) $(4,648) $(361) $(451)
Prior service (cost) credit (194) (242) 238 298
Income tax benefits related to above items 1,752 1,923 49 61
Unamortized benefit plan costs $(2,688) $(2,967) $ (74) $ (92)
The following tables set forth the funded status and amounts recognized in the consolidated statements of
financial position for the company’s defined benefit pension and retiree health care and life insurance benefit
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NORTHROP GRUMMAN CORPORATION