PG&E 2007 Annual Report Download - page 123

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121
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME
On December 31, 2006, upon adoption of SFAS No. 158, PG&E Corporation and the Utility recorded unrecognized prior
service costs, unrecognized gains and losses, and unrecognized net transition obligations as components of accumulated other
comprehensive income, net of tax. In subsequent years, PG&E Corporation and the Utility will recognize these amounts
as components of net periodic benefi t cost in accordance with SFAS No. 87, “Employers’ Accounting for Pensions,” and
SFAS No. 106.
Pre-tax amounts recognized in accumulated other comprehensive income consist of:
PG&E Corporation Utility
(in millions) 2007 2006 2007 2006
Pension Benefi ts:
Beginning unrecognized prior service cost $(268) $ — $(275) $ —
Adoption of SFAS No. 158 — (268) — (275)
Current year unrecognized prior service cost (3) — (2) —
Amortization of unrecognized prior service cost 49 — 51 —
Unrecognized prior service cost (222) (268) (226) (275)
Beginning unrecognized net loss (318) — (306) —
Adoption of SFAS No. 158 — (318) — (306)
Current year unrecognized net gain 421 — 423 —
Amortization of unrecognized net gain 2 — — —
Unrecognized net gain (loss) 105 (318) 117 (306)
Beginning unrecognized net transition obligation (1) — (1) —
Adoption of SFAS No. 158 — (1) — (1)
Amortization of unrecognized net transition obligation 1 — 1 —
Unrecognized net transition obligation — (1) — (1)
Less: transfer to regulatory account(1) 109 574 109 574
Total $ (8) $ (13) $ — $ (8)
Other Benefi ts:
Beginning unrecognized prior service cost $(114) $ — $(114) $ —
Adoption of SFAS No. 158 — (114) — (114)
Current year unrecognized prior service cost (18) — (18) —
Amortization of unrecognized prior service cost 16 — 16 —
Unrecognized prior service cost (116) (114) (116) (114)
Beginning unrecognized net gain 250 — 250 —
Adoption of SFAS No. 158 — 250 — 250
Current year unrecognized net gain 71 — 71 —
Amortization of unrecognized net loss (10) — (10) —
Unrecognized net gain 311 250 311 250
Beginning unrecognized net transition obligation (154) — (154) —
Adoption of SFAS No. 158 — (154) — (154)
Amortization of unrecognized net transition obligation 26 — 26 —
Unrecognized net transition obligation (128) (154) (128) (154)
Less: transfer to regulatory account(2) (44) — (44) —
Total $ 23 $ (18) $ 23 $ (18)
(1) The Utility recorded approximately $109 million in 2007 and $574 million in 2006 as a reduction to the existing pension regulatory liability in
accordance with the provisions of SFAS No. 71.
(2) The Utility recorded approximately $44 million in 2007 as an addition to the existing pension regulatory liability in accordance with the provisions
of SFAS No. 71.