Verizon Wireless 2009 Annual Report Download - page 64

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62
Notes to Consolidated Financial Statements continued
NOTE 12
EMPLOYEE BENEFITS
We maintain non-contributory defined benefit pension plans for many
of our employees. In addition, we maintain postretirement health care
and life insurance plans for our retirees and their dependents, which
are both contributory and non-contributory, and include a limit on the
Company’s share of cost for certain recent and future retirees. We also
sponsor defined contribution savings plans to provide opportunities for
eligible employees to save for retirement on a tax-deferred basis. We use
a measurement date of December 31 for our pension and postretirement
health care and life insurance plans.
Pension and Other Postretirement Benefits
Pension and other postretirement benefits for many of our employees
are subject to collective bargaining agreements. Modifications in benefits
have been bargained from time to time, and we may also periodically
amend the benefits in the management plans. The following tables sum-
marize benefit costs, as well as the benefit obligations, plan assets, funded
status and rate assumptions associated with pension and postretirement
health care and life insurance benefit plans.
Obligations and Funded Status
(dollars in millions)
Pension Health Care and Life
At December 31, 2009 2008 2009 2008
Change in Benefit
Obligations
Beginning of year $ 30,394 $ 32,495 $ 27,096 $ 27,306
Service cost 384 382 311 306
Interest cost 1,924 1,966 1,766 1,663
Plan amendments –300 (5) 24
Actuarial (gain) loss, net 2,056 (154) (469) (483)
Benefits paid (2,565) (2,577) (1,740) (1,529)
Termination benefits 75 32 18 7
Curtailment (gain) loss, net 1,245 – 352 (29)
Acquisitions and
divestitures, net 192 (183) 8 (169)
Settlements (1,887) (1,867) ––
End of year 31,818 30,394 27,337 27,096
Change in Plan Assets
Beginning of year 27,791 42,659 2,555 4,142
Actual return on plan assets 4,793 (10,680) 638 (1,285)
Company contributions 337 487 1,638 1,227
Benefits paid (2,565) (2,577) (1,740) (1,529)
Settlements (1,887) (1,867) ––
Acquisitions and
divestitures, net 123 (231) ––
End of year 28,592 27,791 3,091 2,555
Funded Status
End of year $ (3,226) $ (2,603) $ (24,246) $ (24,541)
Amounts recognized on
the balance sheet
Noncurrent assets $ 3,141 $ 3,132 $ – $ –
Current liabilities (139) (122) (542) (496)
Noncurrent liabilities (6,228) (5,613) (23,704) (24,045)
Total $ (3,226) $ (2,603) $ (24,246) $ (24,541)
Amounts recognized in
Accumulated Other
Comprehensive Loss
(Pretax)
Actuarial loss, net $ 12,200 $ 13,296 $ 5,806 $ 6,848
Prior service cost 999 1,162 2,667 3,235
Total $ 13,199 $ 14,458 $ 8,473 $ 10,083
Changes in benefit obligations were caused by factors including changes
in actuarial assumptions, settlements and curtailments.
The accumulated benefit obligation for all defined benefit pension plans
was $30,793 million and $29,405 million at December 31, 2009 and 2008,
respectively.
Information for pension plans with an accumulated benefit obligation in
excess of plan assets follows:
(dollars in millions)
At December 31, 2009 2008
Projected benefit obligation $ 28,719 $ 27,171
Accumulated benefit obligation 28,128 26,641
Fair value of plan assets 22,352 21,436