Emerson 2008 Annual Report Download - page 49

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[ 42 ] Emerson 2008

Retirement plan expense includes the following components:
 u.s.p l A n s n o n -u.s.p l A n s
2006  2007  2008 2006  2007  2008
Defined benefit plans:
Service cost (benefits earned
during the period) $ 58 43 48 19 21 23
Interest cost 145 159 167 32 38 45
Expected return on plan assets (202) (211) (230) (32) (38) (45)
Net amortization 100 87 86 16 11 11
Net periodic pension expense 101 78 71 35 32 34
Defined contribution and
multiemployer plans 85 94 104 25 27 34
Total retirement plan expense $ 186 172 175 60 59 68
The reconciliations of the actuarial present value of the projected benet obligations and of the fair value of plan assets
for dened benet pension plans follow:
 u.s.p l A n s n o n -u.s.p l A n s
2007  2008 2007  2008
Projected benefit obligation, beginning $2,464 2,678 711 837
Service cost 43 48 21 23
Interest cost 159 167 38 45
Actuarial loss (gain) 127 (64) 10 21
Benefits paid (129) (136) (36) (35)
Acquisitions/divestitures, net – – 18 21
Foreign currency translation and other 14 6 75 (69)
Projected benefit obligation, ending $2,678 2,699 837 843
Fair value of plan assets, beginning $2,785 3,204 555 690
Actual return on plan assets 475 (102) 50 (42)
Employer contributions 71 63 62 73
Benefits paid (129) (136) (36) (35)
Acquisitions/divestitures, net – – 1 4
Foreign currency translation and other 2 1 58 (71)
Fair value of plan assets, ending $3,204 3,030 690 619
Plan assets in excess of (less than) benefit obligation as of June 30 $ 526 331 (147) (224)
Adjustment for fourth quarter contributions 1 – 4 4
Net amount recognized in the balance sheet $ 527 331 (143) (220)
The amounts recognized in the balance sheet
as of September 30 consisted of:
Noncurrent asset $ 630 431 19 5
Noncurrent liability $ (103) (100) (162) (225)
Accumulated other comprehensive income (loss) $ (365) (551) (185) (253)
Approximately $81 of the $804 of accumulated losses included in accumulated other comprehensive income at
September 30, 2008, will be amortized into earnings in 2009. Retirement plans in total were overfunded by $107 as of
June 30, 2008. Subsequent to the June 30 measurement date, asset values have declined as a result of recent volatility
in the capital markets, while pension liabilities have decreased with higher interest rates. The Company estimates that
retirement plans in total were underfunded by approximately $400 million as of October 31, 2008.