Bank of America 2010 Annual Report Download - page 217

The table below summarizes the changes in the fair value of plan assets,
changes in the projected benefit obligation (PBO), the funded status of both
the accumulated benefit obligation (ABO) and the PBO, and the weighted-
average assumptions used to determine benefit obligations for the pension
plans and postretirement plans at December 31, 2010 and 2009. Amounts
recognized at December 31, 2010 and 2009 are reflected in other assets,
and accrued expenses and other liabilities on the Consolidated Balance
Sheet. The discount rate assumption is based on a cash flow matching
technique and is subject to change each year. This technique utilizes yield
curves that are based on Aa-rated corporate bonds with cash flows that match
estimated benefit payments of each of the plans to produce the discount rate
assumptions. The asset valuation method for the Qualified Pension Plans
recognizes 60 percent of the prior year’s market gains or losses at the next
measurement date with the remaining 40 percent spread equally over the
subsequent four years.
(Dollars in millions) 2010 2009 2010 2009 2010 2009 2010 2009
Qualified
Pension Plans
(1)
Non-U.S.
Pension Plans
(1)
Nonqualified
and Other
Pension Plans
(1)
Postretirement
Health and Life Plans
(1)
Change in fair value of plan assets
Fair value, January 1
$14,527 $14,254 $1,312 $– $2,535 $2 $113 $110
Merrill Lynch balance, January 1, 2009
– – – 1,025 – 2,763 – –
Actual return on plan assets
1,835 2,238 157 177 272 (235) 13 21
Company contributions
(2)
– – 82 61 196 261 100 92
Plan participant contributions
– – 2 2 – – 139 141
Benefits paid
(714) (791) (55) (53) (314) (256) (275) (272)
Plan transfer
– (1,174) – – – – – –
Federal subsidy on benefits paid
n/a n/a n/a n/a n/a n/a 18 21
Foreign currency exchange rate changes
n/a n/a (26) 100 n/a n/a – –
Fair value, December 31 $15,648 $14,527 $1,472 $1,312 $2,689 $2,535 $108 $113
Change in projected benefit obligation
Projected benefit obligation, January 1
$13,048 $13,724 $1,518 $– $2,918 $1,258 $1,620 $1,404
Merrill Lynch balance, January 1, 2009
– – – 1,280 – 1,683 – 226
Service cost
397 387 30 30 3 4 14 16
Interest cost
748 740 79 76 163 167 92 93
Plan participant contributions
– – 2 2 – – 139 141
Plan amendments
– 37 2 – – – 64 –
Actuarial loss (gain)
459 89 78 75 308 62 32 (11)
Benefits paid
(714) (791) (55) (53) (314) (256) (275) (272)
Plan transfer
– (1,174) – – – – – –
Termination benefits
– 36 – – – – – –
Cur tailments
– – – (3) – – – –
Federal subsidy on benefits paid
n/a n/a n/a n/a n/a n/a 18 21
Foreign currency exchange rate changes
n/a n/a (30) 111 – – – 2
Projected benefit obligation, December 31 $13,938 $13,048 $1,624 $1,518 $3,078 $2,918 $1,704 $1,620
Amount recognized, December 31 $1,710 $1,479 $ (152) $ (206) $ (389) $ (383) $(1,596) $(1,507)
Funded status, December 31
Accumulated benefit obligation $13,192 $12,198 $1,504 $1,401 $3,077 $2,916 n/a n/a
Overfunded (unfunded) status of ABO
2,456 2,329 (32) (89) (388) (381) n/a n/a
Provision for future salaries
746 850 120 117 1 2 n/a n/a
Projected benefit obligation
13,938 13,048 1,624 1,518 3,078 2,918 $1,704 $1,620
Weighted-average assumptions, December 31
Discount rate 5.45% 5.75% 5.29% 5.40% 5.20% 5.75% 5.10% 5.75%
Rate of compensation increase
4.00 4.00 4.88 4.69 4.00 4.00 n/a n/a
(1)
The measurement date for the Qualified Pension Plans, Non-U.S. Pension Plans, Nonqualified and Other Pension Plans, and Postretirement Health and Life Plans was December 31 of each year reported.
(2)
The Corporation’s best estimate of its contributions to be made to the Qualified Pension Plans, Non-U.S. Pension Plans, Nonqualified and Other Pension Plans, and Postretirement Health and Life Plans in 2011 is $0, $82 million,
$103 million and $121 million, respectively.
n/a = not applicable
Amounts recognized in the Corporation’s Consolidated Balance Sheet at December 31, 2010 and 2009 are presented in the table below.
(Dollars in millions) 2010 2009 2010 2009 2010 2009 2010 2009
Qualified
Pension Plans
Non-U.S.
Pension Plans
Nonqualified
and Other
Pension Plans
Postretirement
Health and Life
Plans
Other assets $1,710 $1,479 $32 $1 $809 $830 $– $–
Accrued expenses and other liabilities
– – (184) (207) (1,198) (1,213) (1,596) (1,507)
Net amount recognized at December 31 $1,710 $1,479 $ (152) $(206) $ (389) $ (383) $(1,596) $(1,507)
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