Capital One 2007 Annual Report Download - page 111

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89
During 2007, the Company recognized curtailments attributable to the freezing of one of the qualified plans assumed in the North
Fork acquisition and special termination benefits attributable to the freezing of one of the qualified plans assumed in the North Fork
acquisition and to the termination of employees in the closure of GreenPoints mortgage origination operations. The $22.1 million
reduction in other postretirement benefit obligation from plan amendments in 2007 relates to the Companys decision to begin phasing
out its contributions toward retiree health care costs so that employees becoming retirement eligible in 2013 and later years will
receive no employer contributions.
Pension Benefits
2007 2006 2007 2006
Transition obligation $ 
$  $ 
$ (331)
Prior service credit
31,940
14,712
Net actuarial gain (loss) 15,574
(2,928) 4,858
(6,163)
Cumulative other comprehensive income $ 15,574 $ (2,928) $ 36,798 $ 8,218
Pretax amounts in cumulative other comprehensive income that are expected to be recognized as decreases (increases) of net periodic
benefit cost for the year ending December 31, 2008 consist of:
Pension Benefits
Postretirement
Benefits
Prior service credit $  $ 9,628
Net actuarial gain (loss) (125) 114
Total $ (125) $ 9,742
The following table sets forth the aggregate benefit obligation and aggregate fair value of plan assets for plans with benefit obligations
in excess of plan assets. Based on the status of the Companys pension plans, the information presented also represents the aggregate
pension accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations
in excess of plan assets.
Pension Benefits
2007 2006 2007 2006
Benefit obligation $ 10,604 $ 17,704 $ 59,783 $ 84,210
Fair value of plan assets $ 
$ 4,498 $ 8,356
$ 7,682
The following table presents weighted-average assumptions used in the accounting for the plans.
Pension Benefits
Postretirement
Benefits
2007 2006 2007 2006
Assumptions for benefit obligations at measurement date:
Discount rate 6.2% 5.6% 6.3% 5.7%
Rate of compensation increase n/a 4.0% n/a n/a
Assumptions for periodic benefit cost for the year ended:
Discount rate 5.6% 5.5% 5.7% 5.5%
Expected rate of return on plan assets 7.5% 7.5% 7.5% 7.5%
Rate of compensation increase 4.0% 4.0% n/a n/a
Assumptions for year-end valuations:
Health care cost trend rate assumed for next year n/a n/a 9.3% 9.3%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) n/a n/a 5.0% 5.0%
Year the rate reaches the ultimate trend rate n/a n/a 2017 2016
To develop the expected long-term rate of return on plan assets assumption, consideration was given to the current level of expected
returns on risk-free investments (primarily government bonds), the historical level of the risk premium associated with the other asset
classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset
class was then weighted based on the target asset allocation to develop the expected long-term rate of return on assets assumption for
the portfolio.
Postretirement
Benefits
Postretirement
Benefits