2010 Annual Report - AO Smith

13. Pension and Other Post-retirement Benefits (continued)
contribution plan in lieu of participation in a defined benefit plan. The company also has defined benefit and contribution
plans for certain union hourly employees.
The company has unfunded defined-benefit post-retirement plans covering certain hourly and salaried employees that provide
medical and life insurance benefits from retirement to age 65. Certain hourly employees retiring after January 1, 1996, are
subject to a maximum annual benefit and salaried employees hired after December 31, 1993, are not eligible for postretirement
medical benefits.
Obligations and Funded Status
Pension and Post-Retirement Disclosure Information Under ASC 715
The following tables present the changes in benefit obligations, plan assets and funded status for domestic pension and postretirement
plans and the components of net periodic benefit costs.
Pension Benefits
Post-retirement Benefits
Years ended December 31 (dollars in millions) 2010 2009 2010 2009
Accumulated Benefit Obligation (ABO) at December 31 $ 850.3 $ 816.6 N/A N/A
Change in benefit obligations (PBO)
PBO at beginning of year $ (826.7) $ (782.8) $ (17.0) $ (16.9)
Service cost (8.6) (8.4) (0.2) (0.1)
Interest cost (46.7) (49.8) (0.8) (1.0)
Participant contributions - - (0.4) (0.3)
Plan amendments - 12.3 - -
Actuarial (loss)/gain including assumption changes (38.7) (57.2) 2.1 -
Benefits paid 58.6 59.2 1.4 1.3
PBO at end of year $ (862.1) $ (826.7) $ (14.9) $ (17.0)
Change in Fair Value of Plan Assets
Plan assets at beginning of year $ 594.0 $ 519.1 $ - $ -
Actual return on plan assets 74.8 83.3 - -
Contribution by the company 30.6 50.8 1.0 1.0
Participant contributions - - 0.4 0.3
Benefits paid (58.6) (59.2) (1.4) (1.3)
Plan assets at end of year $ 640.8 $ 594.0 $ - $ -
Funded status $ (221.3) $ (232.7) $ (14.9) $ (17.0)
Amount recognized in the balance sheet
Current liabilities $ - $ - $ (1.3) $ (1.5)
Non-current liabilities (221.3) (232.7) (13.6) (15.5)
Net pension liability at end of year $ (221.3)* $ (232.7)* $ (14.9) $ (17.0)
Amounts recognized in Accumulated Other
Comprehensive Loss Before Tax
Net actuarial loss/(gain) $ 447.2 $ 425.8 $ (3.3) $ (1.6)
Prior service cost (12.7) - - -
Total recognized in accumulated other comprehensive loss $ 434.5 $ 425.8 $ (3.3) $ (1.6)
* In addition the company has recorded a liability for a foreign pension plan of $1.6 million and $0.1 million at
December 31, 2010 and 2009, respectively and an accumulated other comprehensive loss of $1.9 and $0.5 million at
December 31, 2010 and 2009, respectively.
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