General Motors 2010 Annual Report Download - page 205

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
the actual fair value of plan assets for U.S. pension plans and $319 million lower than the actual fair value of plan assets for non-U.S.
pension plans. Therefore, the effect of the improvement in the financial markets will not be fully reflected in net pension expense in
the year ending December 31, 2011. Refer to Note 4 for additional information on our use of the market-related value of plan assets
accounting policy.
The following table summarizes the total accumulated benefit obligations (ABO), the fair value of plan assets for defined benefit
pension plans with ABO in excess of plan assets, and the PBO and fair value of plan assets for defined benefit pension plans with
PBO in excess of plan assets (dollars in millions):
Successor
December 31, 2010 December 31, 2009
U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans
ABO............................................................ $103,110 $24,371 $101,397 $23,615
Plans with ABO in excess of plan assets
ABO.......................................................... $103,090 $23,519 $101,397 $22,708
Fair value of plan assets .......................................... $ 90,983 $13,959 $ 84,500 $12,721
Plans with PBO in excess of plan assets
PBO .......................................................... $103,375 $24,350 $101,571 $23,453
Fair value of plan assets .......................................... $ 90,983 $14,419 $ 84,500 $13,008
The following tables summarize the components of net periodic pension and OPEB expense along with the assumptions used to
determine benefit obligations (dollars in millions):
Successor
Year Ended December 31, 2010
U.S. Plans
Pension Benefits
Non-U.S. Plans
Pension Benefits
U.S. Plans
Other Benefits
Non-U.S. Plans
Other Benefits
Components of expense
Service cost (a) ............................................ $ 548 $ 386 $ 21 $ 32
Interest cost ............................................... 5,275 1,187 288 200
Expected return on plan assets ................................ (6,611) (987) — —
Amortization of prior service cost (credit) ....................... (1) (1) 3 (9)
Recognition of net actuarial loss ............................... — 21 — —
Curtailments, settlements, and other losses ....................... — 60 — —
Net periodic pension and OPEB (income) expense .............. $ (789) $ 666 $ 312 $ 223
Weighted-average assumptions used to determine benefit
obligations at December 31
Discount rate .............................................. 4.96% 5.09% 5.07% 4.97%
Rate of compensation increase ................................ 3.96% 3.25% 1.41% 4.33%
Weighted-average assumptions used to determine net expense for
the year ended December 31 (b)
Discount rate .............................................. 5.36% 5.19% 5.57% 5.22%
Expected return on plan assets ................................ 8.48% 7.42% 8.50% —
Rate of compensation increase ................................ 3.94% 3.25% 1.48% 4.45%
(a) U.S. pension plan service cost includes plan administrative expenses of $97 million.
(b) Determined at the beginning of the period and updated for remeasurements.
General Motors Company 2010 Annual Report 203