GE 2009 Annual Report Download - page 90

88 GE 2009 ANNUAL REPORT
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The following table presents the changes in Level 3 investments for the GE Pension Plan.
CHANGES IN LEVEL 3 INVESTMENTS FOR THE YEAR ENDED DECEMBER 31, 2009
(In millions) January 1, 2009
Net realized
unrealized
gains (losses
/
)
Purchases,
issuances and
settlements
Transfers
in and/or out
of Level 3 (a) December 31
2009
,
Net change
in unrealized
gains (losses
relating to
investments
still held at
December 31
2009
)
,
(b)
EQUITY SECURITIES
Non-U.S. equity securities $ 358 $ (8) $(350) $ — $ — $ —
DEBT SECURITIES
Fixed income and cash investment funds — 3 43 — 46 3
U.S. corporate 112 (1) (12) (2) 97 (7)
Residential mortgage-backed 142 15 124 17 298 (33)
Other debt securities 54 5 3 — 62 (23)
PRIVATE EQUITIES 4,893 88 358 — 5,339 23
REAL ESTATE 4,944 (2,225) 56 — 2,775 (2,407)
OTHER INVESTMENTS 1,613 192 (268) — 1,537 (30)
$12,116 $(1,931) $ (46) $15 $10,154 $(2,474)
(a) Transfers in and out of Level 3 are considered to occur at the beginning of the period.
(b) Represented the amount of unrealized gains or losses for the period included in the GE Pension Plan earnings.
As of December 31, 2009, other pension plans’ assets were
$6,919 million. Equity investment funds amounting to
$3,996 million and fixed income and cash investment funds
amounting to $1,843 million represented approximately 85% of
total investments as of December 31, 2009. The investments
were classified as 15% Level 1, 80% Level 2 and 5% Level 3.
The changes in Level 3 investments were insignificant for the
year ended December 31, 2009.
PENSION ASSET (LIABILITY)
Principal pension plans Other pension plans
December 31 (In millions) 2009 2008 2009 2008
Funded status (a) $ (6,020) $ (4,438) $(2,678) $(2,374)
Pension asset (liability)
recorded in the Statement
of Financial Position
Pension asset $ — $ — $ 98 $ 9
Pension liabilities
Due within one year (b) (133) (117) (54) (51)
Due after one year (5,887) (4,321) (2,722) (2,332)
Net amount recognized $ (6,020) $ (4,438) $(2,678) $(2,374)
Amounts recorded in
shareowners’ equity
(unamortized)
Prior service cost $ 1,313 $ 1,739 $ 61 $ 62
Net actuarial loss 18,076 16,447 2,230 1,753
Total $19,389 $18,186 $ 2,291 $ 1,815
(a) Fair value of assets less PBO, as shown in the preceding tables.
(b) For principal pension plans, represents the GE Supplementary Pension Plan liability.
In 2010, we estimate that we will amortize $260 million of prior
service cost and $1,335 million of net actuarial loss for the principal
pension plans from shareowners’ equity into pension cost. For other
pension plans, the estimated prior service cost and net actuarial
loss to be amortized over the next fiscal year are $15 million
and $210 million, respectively. Comparable amortized amounts
in 2009, respectively, were $426 million and $348 million for the
principal pension plans and $11 million and $134 million for other
pension plans.
ESTIMATED FUTURE BENEFIT PAYMENTS
(In millions) 2010 2011 2012 2013 2014
2015
2019
–
Principal pension
plans $2,850 $2,925 $2,950 $3,000 $3,025 $16,550
Other pension
plans 380 390 400 405 415 2,250
Retiree Health and Life Benefits
We sponsor a number of retiree health and life insurance benefit
plans (retiree benefit plans). Principal retiree benefit plans are
discussed below; other such plans are not significant individually
or in the aggregate. We use a December 31 measurement date
for our plans.
PRINCIPAL RETIREE BENEFIT PLANS provide health and life insurance
benefits to certain employees who retire under the GE Pension
Plan with 10 or more years of service. Eligible retirees share in
the cost of healthcare benefits. These plans cover approximately
220,000 retirees and dependents.