Avon 2006 Annual Report Download - page 70

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Reconciliation of Benefit Obligations, Plan Assets and Funded Status
The following table summarizes changes in the benefit obligation, plan assets and the funded status of our significant pension and
postretirement plans. We use a December 31 measurement date for all of our employee benefit plans.
Pension Plans Postretirement
BenefitsU.S. Plans Non-U.S. Plans
2006 2005 2006 2005 2006 2005
Change in Benefit Obligation:
Beginning balance $(883.9) $(814.6) $(694.7) $(675.5) $(178.2) $(196.6)
Service cost (25.8) (29.5) (21.4) (20.3) (3.4) (2.3)
Interest cost (48.4) (48.9) (34.2) (33.0) (10.5) (9.3)
Actuarial gain (loss) 49.7 (72.4) (34.7) (61.4) (4.5) 4.2
Plan participant contributions – – (2.8) (3.3) (7.6) (6.0)
Benefits paid 97.8 83.0 32.6 32.4 20.1 19.8
Federal subsidy – – – – (1.7) –
Plan amendments – (1.3) 25.3 6.8 4.6 12.5
Settlements/ curtailments (13.2) – 29.8 4.5 2.6 –
Special termination benefits (6.3) (.2) (.6) – (3.3) –
Foreign currency changes – – (63.0) 55.1 (.3) (.5)
Ending balance $(830.1) $(883.9) $(763.7) $(694.7) $(182.2) $(178.2)
Change in Plan Assets:
Beginning balance $ 693.0 $ 624.4 $ 428.7 $ 386.6 $ – $ –
Actual return on plan assets 86.9 35.4 48.6 56.0 – –
Company contributions 56.7 116.2 104.8 45.0 10.8 13.8
Federal subsidy – – – – 1.7
Plan participant contributions – – 2.8 3.3 7.6 6.0
Benefits paid (97.8) (83.0) (32.6) (32.4) (20.1) (19.8)
Foreign currency changes – – 42.3 (25.3) – –
Settlements/ curtailments – – (21.1) (4.5) – –
Ending balance $ 738.8 $ 693.0 $ 573.5 $ 428.7 $ – $ –
Funded Status:
Funded status at end of year $ (91.3) $(190.9) $(190.2) $(266.0) $(182.2) $(178.1)
Unrecognized actuarial loss N/A 527.2 N/A 213.6 N/A 41.0
Unrecognized prior service (credit) cost N/A (11.6) N/A .1 N/A (50.1)
Unrecognized net transition obligation N/A – N/A .9 N/A .2
Net amount recognized $ (91.3) $ 324.7 $(190.2) $ (51.4) $(182.2) $(187.0)
Amount Recognized in Balance Sheet:
Prepaid benefit (other assets) $ 3.5 $ – $ 10.3 $ 22.8 $ – $ –
Accrued compensation (22.9) (62.6) (1.9) (34.8) (10.7) (10.5)
Employee benefit plans liability (71.9) (42.5) (198.6) (206.3) (171.5) (176.5)
Intangible asset (other assets) – .6 – 4.5 – –
Accumulated other comprehensive loss, pretax – 429.2 – 162.4 – –
Net amount recognized $ 91.3 $ 324.7 $(190.2) $ (51.4) $(182.2) $(187.0)
Pretax Amounts Recognized in Accumulated
Other Comprehensive Loss:
Net actuarial loss $ 412.1 N/A $ 227.8 N/A $ 41.1 N/A
Prior service credit (7.6) N/A (25.6) N/A (46.3) N/A
Transition obligation – N/A .7 N/A – N/A
Total pretax amount recognized $ 404.5 N/A $ 202.9 N/A (5.2) N/A
Supplemental Information:
Accumulated benefit obligation $ 800.1 $ 798.1 $ 724.0 $ 644.7 N/A N/A
Plans with Projected Benefit Obligation in
Excess of Plan Assets:
Projected benefit obligation $ 94.8 $ 883.9 $ 657.9 $ 674.6 N/A N/A
Fair value plan assets – 693.0 457.5 406.1 N/A N/A
Plans with Accumulated Benefit Obligation in
Excess of Plan Assets:
Projected benefit obligation $ 94.8 $ 883.9 $ 651.7 $ 580.2 N/A N/A
Accumulated benefit obligation 82.2 798.1 633.3 551.5 N/A N/A
Fair value plan assets – 693.0 452.2 314.6 N/A N/A