National Grid 2008 Annual Report Download - page 322

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 32995
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 116
Description: EXH 2(B).6.1
0/2720.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/720/2*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 32995
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 116 Description: EXH 2(B).6.1
0/2720.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/720/2*
The expected contributions to the Company’s pension and PBOP plans durin
g
fiscal year 2008 are expected to be $371 million
and $54 million, respectively.
Adoption of SFAS No. 158
The Company adopted SFAS No. 158 on March 31, 2007. This standard amends SFAS Nos. 87, 88, 106 and 132(R). SFAS
No. 158 requires an employer with a defined benefit pension plan or other postretirement plan to reco
g
nize an asset or liability
on its balance sheet for the over funded or under funded status of the plan as defined by SFAS No. 158. The pension asset or
liability is the difference between the fair value of the pension plan’s assets and the projected benefit obli
g
ation as of the year
end. For PBOPs, the asset or liability is the difference between the fair value of the plan’s assets and the accumulated
postretirement benefit obli
g
ation as of the year end. The offset of this asset or liability is a char
g
e to AOCI or a re
g
ulatory asset.
The following table illustrates the effect on individual financial statement line items of applying this standard to the Company’s
plans, relating to pension and PBOP:
Pension Benefits
The Company’s net periodic benefit cost for the fiscal years ended March 31, 2007 and 2006 included the followin
g
components:
F-31
PBOP
Benefit obli
g
ation Net
p
eriodic benefit
2007 2006 2007 2006
Post 65* 2013 2012 2012 n/a
Note:
* At March 31, 2006, the healthcare cost trend assumption was updated to include rates for the pre 65 and post 65 groups.
Before After
a
pp
lication of a
pp
lication of
March 31, 2007 SFAS No. 158 Ad
j
ustment SFAS No. 158
(In thousands
)
Intangible asset $ 33,431 $ (33,431) $ —
Regulatory asset 39,430 460,848 500,278
Deferred tax asset 166,126 340,325 506,451
Current liability — (9,047) (9,047)
Non-current liabilit
y
(
407,842
)
(
1,156,840
)
(
1,564,682
)
AOCI, net of tax 12,630 398,145 410,775
AOCI, pre tax 19,627 660,292 679,919
2007 2006
(In thousands)
Service cost $55,351 $ 55,412
Interest cost 163,067 155,779
Ex
p
ected return on
p
lan assets
(
174,537
)
(
161,944
)
Amortization of unrecognized prior service cost 4,913 4,913