Sunoco 2005 Annual Report Download - page 58

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The following tables set forth the components of the changes in benefit obligations and fair value of plan assets during
2005 and 2004 as well as the funded status and amounts both recognized and not recognized in the consolidated bal-
ance sheets at December 31, 2005 and 2004:
Defined Benefit Plans
Postretirement
Benefit Plans
2005 2004
(Millions of Dollars)
Funded
Plans
Unfunded
Plans
Funded
Plans
Unfunded
Plans 2005 2004
Benefit obligations at beginning of year* $1,349 $ 137 $1,313 $ 128 $ 429 $ 409
Service cost 45 4 43 3 98
Interest cost 76 8 78 8 22 24
Actuarial losses (gains) 75 17 60 10 (13) 4
Plan amendments ——(14) — —16
Benefits paid (154) (13) (131) (12) (40) (41)
Premiums paid by participants ————10 9
Benefit obligations at end of year* $1,391 $ 153 $1,349 $ 137 $ 417 $ 429
Fair value of plan assets at beginning of year** $1,158 $1,071
Actual return on plan assets 92 123
Employer contributions 100 95
Benefits paid from plan assets (154) (131)
Fair value of plan assets at end of year** $1,196 $1,158
Unfunded accumulated obligation $ (50) $(138) $ (40) $(122)
Provision for future salary increases (145) (15) (151) (15)
Benefit obligations in excess of plan assets at end of year (195) (153) (191) (137) $(417) $(429)
Unrecognized prior service cost (benefit) 14 (1) 17 (1) (22) (27)
Unrecognized net loss 424 69 374 57 68 84
Net amount recognized in balance sheet at end of year $ 243 $ (85) $ 200 $ (81) $(371) $(372)
* Represents the projected benefit obligations for defined benefit plans and the accumulated postretirement benefit obligations (“APBO”) for postretirement benefit plans. The
accumulated benefit obligations for funded and unfunded defined benefit plans amounted to $1,246 and $138 million, respectively, at December 31, 2005, and $1,198 and $122
million, respectively, at December 31, 2004.
** There are no plan assets invested in Company stock.
The net amount recognized in the consolidated balance sheets at December 31, 2005 and 2004 is classified as follows:
Defined
Benefit Plans
Postretirement
Benefit Plans
(Millions of Dollars) 2005 2004 2005 2004
Prepaid retirement costs $12 $11 $— $—
Retirement benefit liabilities (192) (167) (371) (372)
Deferred charges and other assets* 16 19 ——
Accumulated other comprehensive loss (before related tax benefit)** 322 256 ——
$ 158 $ 119 $(371) $(372)
* Represents an intangible asset for which an equivalent additional minimum liability is included in retirement benefit liabilities.
** Represents a separate component of shareholders’ equity for which an equivalent additional minimum liability is included in retirement benefit liabilities.
The asset allocations attributable to the funded defined benefit plans at December 31, 2005 and 2004 and the target
allocation of plan assets for 2006, by asset category, are as follows:
December 31
(In Percentages) 2006 Target* 2005 2004
Asset category:
Equity securities 60% 65% 64%
Debt securities 35 32 32
Other 534
Total 100% 100% 100%
*These target allocation percentages have been in effect since 1999.
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