DIRECTV 2006 Annual Report Download - page 104

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS —(continued)
Components of net periodic benefit cost for the years ended December 31:
Other Postretirement
Pension Benefits Benefits
2006 2005 2004 2006 2005 2004
(Dollars in Millions)
Components of net periodic benefit cost
Benefits earned during the year ....................... $14.0 $ 17.6 $ 24.2 $ 0.4 $ 0.4 $ 0.5
Interest accrued on benefits earned in prior years .......... 27.1 28.0 33.8 1.5 1.6 1.6
Expected return on plan assets ........................ (29.8) (27.5) (31.6) — — —
Amortization components
Amount resulting from changes in plan provisions ...... 1.3 1.7 2.2 (0.6) (0.6) (0.7)
Net amount resulting from changes in plan experience
and actuarial assumptions ...................... 5.3 6.3 6.1———
Subtotal ................................. 17.9 26.1 34.7 1.3 1.4 1.4
Other costs
Curtailment costs .............................. — — 5.1 — (0.5) —
Special termination benefits ...................... — 7.9 36.5 — — —
Settlement costs ............................... — 15.1 14.8 — — —
Net periodic benefit cost ..................... $17.9 $ 49.1 $ 91.1 $ 1.3 $ 0.9 $ 1.4
Additional information
Increase (decrease) in minimum liability included in other
comprehensive income (loss), net of taxes .............. $23.8 $ 7.0 $ 7.4———
Assumptions
Weighted-average assumptions used to determine benefit obligations at December 31:
Other
Pension Postretirement
Benefits Benefits
2006 2005 2006 2005
Discount rate—Qualified Plans .............................. 5.67% 5.78% 5.43% 5.46%
Discount rate—Non-Qualified Plans ........................... 5.69% 5.74% — —
Rate of compensation increase ............................... 4.00% 4.00% 4.00% 4.00%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended
December 31:
Other Postretirement
Pension Benefits Benefits
2006 2005 2004 2006 2005 2004
Discount rate—Qualified Plan ................... 5.78% 6.00% 6.14% 5.46% 5.75% 5.89%
Discount rate—Non-Qualified Plan ................ 5.74% 6.00% 6.14% — — —
Expected long-term return on plan assets ........... 8.75% 9.00% 9.00% — — —
Rate of compensation increase ................... 4.00% 4.00% 4.50% 4.00% 4.00% 4.50%
We base our expected long-term return on plan assets assumption on a periodic review and
modeling of the plans’ asset allocation and liability structure over a long-term horizon. Expectations of
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