Estee Lauder 2007 Annual Report Download - page 79

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The projected benefi t obligation, accumulated benefi t obligation, fair value of plan assets and the other comprehensive
(income) loss due to change in minimum liability recognition for the Company’s pension plans at June 30 are as follows:
Pension Plans
Retirement
Growth Account Restoration International
2007 2006 2007 2006 2007 2006
(In millions)
Projected benefi t obligation $351.2 $336.4 $89.3 $81.1 $294.8 $284.3
Accumulated benefi t obligation 299.4 284.7 71.8 61.9 255.1 245.7
Fair value of plan assets 430.5 376.0 — — 281.8 242.1
Other comprehensive (income) loss
due to change in minimum
liability recognition:
Increase (decrease) in additional
minimum liability $ — $ 8.2 $ (50.0)
(Increase) decrease in intangible asset — — 0.4
Other comprehensive (income) loss $ — $ 8.2 $ (49.6)
2
007
$
351.
2
2
99
.
4
430.
5
2
00
7
$
89.3
71
.8
—
200
7
$
294.8
2
55.
1
2
81.8
International pension plans with accumulated benefi t obligations in excess of the plans’ assets had aggregate projected
benefi t obligations of $96.4 million and $86.8 million, aggregate accumulated benefi t obligations of $81.2 million
and $73.2 million and aggregate fair value of plan assets of $35.3 million and $31.7 million at June 30, 2007 and 2006,
respectively.
Other than
Pension Plans Pension Plans
U.S. International Post-retirement
(In millions)
Expected Cash Flows:
Expected employer contributions for year ending
June 30, 2008 $ 20.0 $21.0 N/A
Expected benefi t payments for year ending June 30,
2008 42.3 17.4 $3.6
2009 28.2 14.6 4.0
2010 28.5 13.6 4.5
2011 31.5 17.3 5.2
2012 30.9 17.3 5.9
Years 2013 – 2017 199.1 91.8 39.4
Plan Assets:
Actual asset allocation at June 30, 2007
Equity 49% 55% N/A
Fixed income 31% 29% N/A
Other 20% 16% N/A
100% 100% N/A
Target asset allocation
Equity 44% 56% N/A
Fixed income 34% 28% N/A
Other 22% 16% N/A
100% 100% N/A
The target asset allocation policy was set to maximize returns with consideration to the long-term nature of the obligations
and maintaining a lower level of overall volatility through the allocation to fi xed income. During the year, the asset
allocation is reviewed for adherence to the target policy and is rebalanced periodically towards the target weights.
78 THE EST{E LAUDER COMPANIES INC.