Fluor 2008 Annual Report Download - page 107

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Measurement dates for all of the company’s defined benefit pension plans are December 31. The
following table sets forth the change in benefit obligation, plan assets and funded status of all of the plans:
December 31,
2008 2007
(in thousands)
Change in benefit obligation
Benefit obligation at beginning of year $1,076,895 $1,005,962
Service cost 37,921 39,032
Interest cost 60,909 53,068
Employee contributions 7,024 7,389
Currency translation (93,730) 34,206
Actuarial (gain) loss 4,641 (24,202)
Benefits paid (44,792) (38,560)
Benefit obligation at end of year 1,048,868 1,076,895
Change in plan assets
Fair value at beginning of year 1,118,219 986,496
Actual return on plan assets (181,276) 65,762
Company contributions 189,819 62,236
Employee contributions 7,024 7,390
Currency translation (92,407) 34,895
Benefits paid (44,792) (38,560)
Fair value at end of year 996,587 1,118,219
Funded status $ (52,281) $ 41,324
The total accumulated benefit obligation for all of the plans as of December 31, 2008 and 2007 was
$939 million and $970 million, respectively.
Defined benefit pension plan amounts recognized in the Consolidated Balance Sheet as of
December 31, 2008 and 2007 are as follows:
December 31,
2008 2007
(in thousands)
Pension assets included in other assets $ — $ 41,324
Pension liabilities included in noncurrent liabilities (52,281) —
Other comprehensive loss 468,608 253,804
Upon the adoption of SFAS No. 158, ‘‘Employers’ Accounting for Defined Benefit Pension and other
Postretirement Plans’’ (‘‘SFAS 158’’), in 2006, the unrecognized net actuarial loss and an immaterial
amount of unrecognized prior service cost were charged to accumulated other comprehensive loss. During
2009, approximately $36 million of the amount of accumulated other comprehensive loss shown above is
expected to be recognized as components of net periodic pension expense.
As of December 31, 2008, the aggregated projected benefit obligations for all plans were in excess of
plan assets.
In addition to the company’s defined benefit pension plans, the company and certain of its subsidiaries
provide health care and life insurance benefits for certain retired employees. The health care and life
insurance plans are generally contributory, with retiree contributions adjusted annually. The accumulated
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