future impacts of several of the Act’s provisions are incorporated into our postretirement benefit liability including the elimination of lifetime maximums and the imposition of an excise tax on high cost health plans.These changes resulted in a $24 million increase in our postretirement benefit liability as of May 30, 2010. Given the complexity of the Act, the extended time period over which the reforms will be implemented, and the unknown impact of future regulatory guidance, further financial impacts to our pos- tretirement benefit liability and related future expense may occur. A one percentage point change in the health care cost trend rate would have the following effects: Any arising health care claims cost-related experience gain or loss is recognized in the calculation of expected future claims. Once recognized, experience gains and losses are amortized using a straight-line method over 15 years, resulting in at least the minimum amortization required being recorded. Financial Statement Impact In fiscal 2010, we recorded net defined benefit pension, other postretirement, and postemployment ben- efit plan income of $11 million compared to $4 million of income in fiscal 2009 and $19 million of expense in fiscal 2008. As of May 30, 2010, we had cumulative unrecognized actuarial net losses of $1.4 billion on our defined benefit pension plans and $225 million on our postretirement benefit plans, mainly as the result of declines in the values of plan assets.These unrecognized actuarial net losses will result in decreases in our future pension income and increases in postretirement expense since they currently exceed the corridors defined by GAAP. We use the Retirement Plans (RP) 2000 Mortality Table pro- jected forward to our plans’ measurement dates to calculate the year-end defined benefit pension, other postretirement, and postemployment benefit obligations and annual expense. Actual future net defined benefit pension, other postretire- ment, and postemployment benefit plan income or expense will depend on investment performance, changes in future discount rates, changes in health care cost trend rates, and other factors related to the populations participating in these plans. The Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 was signed into law in March 2010. The Act codifies health care reforms with staggered effective dates from 2010 to 2018 with many provisions in the Act requiring the issuance of additional guidance from various government agencies. Estimates of the 41 Annual Report 2010 In June 2009, the FASB issued new accounting guidance that changes the consolidation model for variable interest entities (VIEs). The guidance requires companies to qualitatively assess the determination of the primary beneficiary of a VIE based on whether the company (1) has the power to direct matters that most significantly impact the VIE’s economic performance, and (2) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The guidance is effective for fiscal years beginning after November 15, 2009, which for us is fiscal 2011. We are currently evaluating the impact of the guidance on our results of operations and financial position. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In Millions One Percentage Point Increase One Percentage Point Decrease ......................................................................................................................................................................................... Effect on the aggregate of the service and interest cost components in fiscal 2011 $ 7.9 $ (6.8) Effect on the other postretirement accumulated benefit obligation as of May 30, 2010 96.7 (85.0)