Net pension cost for 2012, 2011 and 2010 included the following components:
(Stated in millions)
US
International
2012 2011 2010 2012 2011 2010
Service cost – benefits earned during the period
$ 68
$ 59 $ 56
$ 86
$ 64 $ 51
Interest cost on projected benefit obligation
152
150 142
241
226 208
Expected return on plan assets
(185)
(170) (191)
(328)
(279) (228)
Amortization of net loss
93
90
60
76
31
19
Amortization of prior service cost
16
12
4
120
120 113
$ 144
$ 141 $ 71
$ 195
$ 162 $ 163
The weighted-average assumed discount rate and compensation increases used to determine the projected benefit
obligations for the US and International plans were as follows:
US
International
2012 2011 2012 2011
Discount rate
4.25%
5.00%
4.38%
4.95%
Compensation increases
4.00%
4.00%
4.83%
4.91%
The changes in the projected benefit obligation, plan assets and funded status of the plans were as follows:
(Stated in millions)
US
International
2012 2011 2012 2011
Change in Projected Benefit Obligations
Projected benefit obligation at beginning of year
$3,073
$2,769
$4,666
$4,088
Service cost
68
59
86
64
Interest cost
152
150
241
226
Contributions by plan participants
–
–
97
102
Actuarial losses
399
225
786
321
Currency effect
–
–
62
(8)
Benefits paid
(134)
(130)
(140)
(127)
Projected benefit obligation at end of year
$3,558
$3,073
$5,798
$4,666
Change in Plan Assets
Plan assets at fair value at beginning of year
$2,655
$2,635
$4,097
$3,764
Actual return on plan assets
336
78
490
–
Currency effect
–
–
62
(6)
Company contributions
53
72
514
364
Contributions by plan participants
–
–
97
102
Benefits paid
(134)
(130)
(140)
(127)
Plan assets at fair value at end of year
$2,910
$2,655
$5,120
$4,097
Unfunded Liability
$ (648)
$ (418)
$ (678)
$ (569)
Amounts Recognized in Balance Sheet
Postretirement Benefits
$ (648)
$ (418)
$ (687)
$ (569)
Other Assets
–
–
9
–
$ (648)
$ (418)
$ (678)
$ (569)
Amounts Recognized in Accumulated Other Comprehensive Loss
Actuarial losses
$1,197
$1,048
$1,234
$1,002
Prior service cost
90
101
598
729
$1,287
$1,149
$1,832
$1,731
Accumulated benefit obligation
$3,262
$2,861
$5,401
$4,336
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