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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The components of the change in benefit obligation of the Pension Plans are as follows (table in thousands):
December 31,
2006
December 31,
2005
Benefit obligation, at beginning of year $ 362,427 $ 337,004
Interest cost 20,143 19,033
Foreign exchange loss 33 50
Benefits paid (10,644) (9,779)
Settlement payments (25) (13)
Actuarial (gain) loss (12,896) 16,132
Benefit obligation, at end of year $ 359,038 $ 362,427
The reconciliation of the beginning and ending balances of the fair value of the assets of the Pension Plans is as follows (table in thousands):
December 31,
2006
December 31,
2005
Fair value of plan assets, at beginning of year $ 366,383 $ 347,447
Actual return on plan assets 49,954 13,692
Employer contributions — 15,000
Foreign exchange gain 22 36
Benefits paid (10,644) (9,779)
Settlement payments (25) (13)
Fair value of plan assets, at end of year $ 405,690 $ 366,383
In 2005, we contributed $15.0 million to the U.S. pension plan. We did not make any contributions to the Pension Plans in 2006, and we do not expect
to make any contributions to the Pension Plans in 2007. The net funded status of the Pension Plans at December 31, 2006 and 2005 was $46.7 million and
$4.0 million, respectively.
Amounts recognized in the balance sheet as assets and liabilities consist of the following (table in thousands):
December 31,
2006
December 31,
2005
Prepaid benefit cost $ 47,375 $ 146,282
Accrued benefit liability (723) (474)
Net amount recognized at year end $ 46,652 $ 145,808
Prior to our adoption of FAS No. 158, the prepaid benefit cost and accrued benefit liability consisted of both the net funded status and the accumulated
actuarial loss of the Pension Plans. The value of these components as of December 31, 2005 was as follows (table in thousands):
December 31,
2005
Funded status $ 3,956
Accumulated actuarial loss 141,852
Net amount recognized at year end $ 145,808
Upon adoption of FAS No. 158, we reclassified the accumulated actuarial loss associated with the Pension Plans to accumulated other comprehensive
loss. The reclassification consisted of the following items (table in thousands):
December 31,
2006