DuPont 2007 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2007 DuPont annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

Components of net periodic benefit cost (credit) and
amounts recognized in other comprehensive income 2007 2006 2005
Other Benefits
Net periodic benefit cost
Service cost $34 $33 $33
Interest cost 242 222 269
Amortization of loss 72 56 90
Amortization of prior service benefit (156) (156) (155)
Net periodic benefit cost $ 192 $ 155 $ 237
Changes in plan assets and benefit obligations recognized in other
comprehensive income
Net gain $(564) $- $-
Amortization of loss (72) --
Prior service cost 2--
Amortization of prior service benefit 156 --
Total recognized in other comprehensive income $(478) $- $-
Total recognized in net periodic benefit cost and other comprehensive
income $(286) $ 155 $ 237
The estimated pretax net loss and prior service cost for the defined benefit pension plans that will be amortized from
Accumulated other comprehensive loss into net periodic benefit cost during 2008 are $57 and $18, respectively. The
estimated pretax net loss and prior service credit for the other long-term employee benefit plans that will be
amortized from Accumulated other comprehensive loss into net periodic benefit cost during 2008 are $32 and
$(106), respectively.
Weighted-average assumptions used to
determine benefit obligations at December 31, 2007 2006 2007 2006
Pension Benefits Other Benefits
Discount rate 6.01% 5.56% 6.25% 5.75%
Rate of compensation increase 4.28% 4.32% 4.50% 4.50%
Weighted-average assumptions used to determine net periodic benefit
cost for the years ended December 31, 2007 2006 2007 2006
Pension Benefits Other Benefits
Discount rate 5.56% 5.43% 5.75% 5.50%
Expected return on plan assets 8.74% 8.74% --
Rate of compensation increase 4.32% 4.31% 4.50% 4.50%
The discount rate and the rate of compensation increase used to determine the benefit obligation in the U.S. were
6.25 percent and 4.50 percent, respectively, for 2007, and 5.75 percent and 4.50 percent, respectively, for 2006. For
determining U.S. plans’ net periodic benefit costs, the discount rate, expected return on plan assets and the rate of
compensation increase were 5.75 percent, 9.00 percent and 4.50 percent for 2007, and 5.50 percent, 9.00 percent
and 4.50 percent for 2006. The discount rate for determining the principal U.S. pension plan’s Net periodic benefit
cost was increased to 6.00 percent as of August 31, 2006 due to remeasurement.
In August 2006, the company announced major changes to its principal U.S. pension plan. Effective January 1, 2008,
covered full service employees on the rolls as of December 31, 2006 will continue to accrue benefits in the principal
U.S. pension plan, but at a reduced rate of about one-third of its previous level. In addition, company-paid
F-37
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)