Avon 2007 Annual Report Download - page 74

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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
2007 2006 2007 2006 2007 2006
Change in Benefit Obligation:
Beginning balance $(830.1) $(883.9) $(763.7) $(694.7) $(182.2) $(178.2)
Service cost (25.4) (25.8) (19.4) (21.4) (3.5) (3.4)
Interest cost (47.3) (48.4) (38.2) (34.2) (10.2) (10.5)
Actuarial gain (loss) 22.0 49.7 38.9 (34.7) 14.6 (4.5)
Plan participant contributions – – (3.0) (2.8) (8.6) (7.6)
Benefits paid 113.0 97.8 35.8 32.6 18.5 20.1
Federal subsidy – – – – (1.7) (1.7)
Plan amendments (4.0) – (1.1) 25.3 (1.6) 4.6
Settlements/ curtailments (4.4) (13.2) 10.3 29.8 – 2.6
Special termination benefits (.5) (6.3) – (.6) – (3.3)
Foreign currency changes – – (46.6) (63.0) (2.2) (.3)
Ending balance $(776.7) $(830.1) $(787.0) $(763.7) $(176.9) $(182.2)
Change in Plan Assets:
Beginning balance $ 738.8 $ 693.0 $ 573.5 $ 428.7 $ – $ –
Actual return on plan assets 65.3 86.9 25.2 48.6 1.2 –
Company contributions 22.2 56.7 79.4 104.8 58.2 10.8
Federal subsidy – – – – 1.7 1.7
Plan participant contributions – – 3.0 2.8 8.6 7.6
Benefits paid (113.0) (97.8) (35.8) (32.6) (18.5) (20.1)
Foreign currency changes – – 34.5 42.3 – –
Settlements/ curtailments – – (8.8) (21.1) – –
Ending balance $ 713.3 $ 738.8 $ 671.0 $ 573.5 $ 51.2 $ –
Funded Status:
Funded status at end of year $ (63.4) $ (91.3) $(116.0) $(190.2) $(125.7) $(182.2)
Amount Recognized in Balance Sheet:
Other assets $ 30.0 $ 3.5 $ 10.0 $ 10.3 $ – $ –
Accrued compensation (9.2) (22.9) (12.6) (1.9) (3.7) (10.7)
Employee benefit plans liability (84.2) (71.9) (113.4) (198.6) (122.0) (171.5)
Net amount recognized $ (63.4) $ (91.3) $(116.0) $(190.2) $(125.7) $(182.2)
Pretax Amounts Recognized in Accumulated
Other Comprehensive Loss:
Net actuarial loss $ 342.3 $ 412.1 $ 198.0 $ 227.8 $ 26.8 $ 41.1
Prior service credit (1.5) (7.6) (23.5) (25.6) (39.8) (46.3)
Transition obligation – – .6 .7 – –
Total pretax amount recognized $ 340.8 $ 404.5 $ 175.1 $ 202.9 $ (13.0) $ (5.2)
Supplemental Information:
Accumulated benefit obligation $ 756.3 $ 800.1 $ 745.5 $ 724.0 N/A N/A
Plans with Projected Benefit Obligation in
Excess of Plan Assets:
Projected benefit obligation $ 93.3 $ 94.8 $ 666.0 $ 657.9 N/A N/A
Fair value plan assets – – 539.9 457.5 N/A N/A
Plans with Accumulated Benefit Obligation
in Excess of Plan Assets:
Projected benefit obligation $ 93.3 $ 94.8 $ 658.2 $ 651.7 N/A N/A
Accumulated benefit obligation 84.4 82.2 640.2 633.3 N/A N/A
Fair value plan assets – – 532.9 452.2 N/A N/A