UPS 2010 Annual Report Download - page 89

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Benefit Obligations and Fair Value of Plan Assets
The following table provides a reconciliation of the changes in the plans’ benefit obligations and fair value
of plan assets as of the respective measurement dates in each year (in millions).
U.S. Pension Benefits
U.S. Postretirement
Medical Benefits
International
Pension
Benefits
2010 2009 2010 2009 2010 2009
Benefit Obligations:
Net benefit obligation at beginning of year ............. $17,763 $16,303 $3,336 $3,166 $575 $438
Service cost ..................................... 723 689 86 85 24 17
Interest cost ..................................... 1,199 1,130 214 211 34 28
Gross benefits paid ............................... (574) (504) (207) (202) (13) (12)
Plan participants’ contributions ...................... — — 17 16 1 1
Plan amendments ................................. (7) 1 8 (21) — —
Actuarial (gain)/loss .............................. 2,238 141 142 80 58 53
Foreign currency exchange rate changes .............. — — — — (4) 49
Curtailments and settlements ....................... — — — — (1) (3)
Other .......................................... — 3 1 1 6 4
Net benefit obligation at end of year .................. $21,342 $17,763 $3,597 $3,336 $680 $575
Fair Value of Plan Assets:
Fair value of plan assets at beginning of year ........... $15,351 $12,809 $ 298 $ 349 $481 $343
Actual return on plan assets ........................ 2,215 2,258 30 44 48 60
Employer contributions ............................ 3,100 788 95 91 45 45
Plan participants’ contributions ...................... — — 17 16 1 1
Gross benefits paid ............................... (574) (504) (207) (202) (13) (12)
Foreign currency exchange rate changes .............. — — — — — 44
Curtailments and settlements ....................... — — — — (1) (3)
Other .......................................... — — — — — 3
Fair value of plan assets at end of year ................ $20,092 $15,351 $ 233 $ 298 $561 $481
77