UPS 2009 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2009 UPS 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.

Page out of 131

  • 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
  • 129
  • 130
  • 131

UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Funded Status
The following table discloses the funded status, as of the respective measurement dates in each year, of our
plans and the amounts recognized in our balance sheet as of December 31 (in millions):
U.S. Pension Benefits
U.S. Postretirement
Medical Benefits
International
Pension Benefits
2009 2008 2009 2008 2009 2008
Funded Status:
Fair value of plan assets ......................... $15,351 $ 12,809 $ 298 $ 349 $ 481 $ 343
Benefit obligation .............................. (17,763) (16,303) (3,336) (3,166) (575) (438)
Funded status recognized at December 31 ........... $ (2,412) $ (3,494) $(3,038) $(2,817) $ (94) $ (95)
Funded Status Amounts Recognized in our Balance
Sheet:
Pension and postretirement benefit assets ........... $ — $ — $ — $ — $ 15 $ 10
Other current liabilities .......................... (11) (10) (87) (78) (4) (5)
Pension and postretirement benefit obligations ....... (2,401) (3,484) (2,951) (2,739) (105) (100)
Net asset (liability) at December 31 ................ $ (2,412) $ (3,494) $(3,038) $(2,817) $ (94) $ (95)
Amounts Recognized in AOCI:
Unrecognized net transition obligation ............. $ — $ (4) $ — $ — $— $—
Unrecognized net prior service cost ................ (1,839) (2,017) (109) (137) (9) (10)
Unrecognized net actuarial loss ................... (5,289) (5,963) (584) (534) (70) (42)
Gross unrecognized cost at December 31 ........... (7,128) (7,984) (693) (671) (79) (52)
Deferred tax asset at December 31 ................. 2,680 3,002 261 252 22 16
Net unrecognized cost at December 31 ............. $ (4,448) $ (4,982) $ (432) $ (419) $ (57) $ (36)
The accumulated benefit obligation for our pension plans as of the measurement dates in 2009 and 2008 was
$16.968 and $15.301 billion, respectively.
Employer contributions and benefits paid under the pension plans include $15 and $24 million paid from
employer assets in 2009 and 2008, respectively. Employer contributions and benefits paid (net of participant
contributions) under the postretirement medical benefit plans include $90 and $81 million paid from employer
assets in 2009 and 2008, respectively.
At December 31, 2009 and 2008, the projected benefit obligation, the accumulated benefit obligation, and
the fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets
were as follows (in millions):
Accumulated Benefit Obligation
Exceeds the Fair Value of Plan
Assets
2009 2008
U.S. Pension Benefits
Projected benefit obligation ............................................ $4,995 $4,274
Accumulated benefit obligation ......................................... 4,963 4,249
Fair value of plan assets ............................................... 2,962 1,908
International Pension Benefits
Projected benefit obligation ............................................ $ 82 $ 165
Accumulated benefit obligation ......................................... 69 137
Fair value of plan assets ............................................... 18 89
74