Northrop Grumman 2011 Annual Report Download - page 99
Download and view the complete annual report
Please find page 99 of the 2011 Northrop Grumman annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
 |
 |
NORTHROP GRUMMAN CORPORATION
The table below summarizes the components of changes in unamortized benefit plan costs for the years ended
December 31, 2011, 2010, and 2009:
Pension Medical and
$ in millions Benefits Life Benefits Total
Changes in unamortized benefit plan costs
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 expense 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 expense related to above items 171 12 183
Change in unamortized benefit plan costs – 2010 $ (279) $ (18) $ (297)
Change in net actuarial loss $2,687 $138 $2,825
Change in prior service cost (608) 6 (602)
Amortization of
Prior service (cost) credit (23) 51 28
Net loss from previous years (162) (17) (179)
Tax benefit related to above items (752) (71) (823)
Change in unamortized benefit plan costs – 2011 $1,142 $107 $1,249
Unamortized benefit plan costs consist primarily of accumulated net after-tax actuarial losses totaling $3.9 billion
and $2.8 billion as of December 31, 2011 and 2010, respectively. The change in net actuarial loss from pension
benefits in 2011 was primarily due to a $1.2 billion after tax impact from the reduction in the discount rate
assumption to 5.03 percent at December 31, 2011, from 5.75 percent at December 31, 2010. 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.
-89-