Twenty-First Century Fox 2005 Annual Report Download - page 103

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
> Note 15 Pensions and Other Postretirement Benefits
The Company participates in more than 70 pension and savings plans of various types, in a variety of jurisdictions covering, in aggregate,
substantially all employees. The Company has a legally enforceable obligation to contribute to some plans and is not required to contribute to
others. Non-US plans include both contributory and non-contributory defined benefit plans and non-contributory accumulation plans covering all
eligible employees. The plans in the United States include both defined benefit pension plans and non-contributory and contributory accumulation
plans covering all eligible employees not covered by union administered plans. The Company makes contributions in accordance with applicable
laws or contract terms in each jurisdiction in which the Company operates. The Company’s benefit obligation is calculated using several
assumptions which the Company reviews on a regular basis. In connection with a statutory change in fiscal 2005, the Company settled $200
million of foreign defined benefit obligations which resulted in recognition of a $5 million loss.
From time to time, plan assets are in excess/deficit of the plan’s obligations but plan assets have been sufficient to fund all benefits in each
of the years 2005, 2004 and 2003.
The Company uses a June 30 measurement date for all pension and postretirement benefit plans. The following table sets forth the change
in the benefit obligation for the Company’s benefit plans:
Pension benefits Postretirement benefits
2005 2004 2005 2004
As of June 30, (in millions)
Projected benefit obligation, beginning of the year $1,901 $1,685 $134 $168
Service cost 83 83 4 9
Interest cost 107 97 7 8
Benefits paid (85) (76) (6) (6)
Actuarial loss (gain)(a) 242 3 4 (2)
Settlements (200) ———
Foreign exchange rate changes 495— 2
Amendments, transfers and other 22 14 — (45)
Projected benefit obligation, end of year $2,074 $1,901 $143 $134
(a) The fiscal 2005 actuarial pension loss resulted from the utilization of lower discount rates and recent mortality tables.
The following table sets forth the change in the fair value of plan assets for the Company’s benefit plans:
Pension benefits
2005 2004
As of June 30, (in millions)
Fair value of plan assets, beginning of the year $1,462 $1,094
Actual return on plan assets 160 149
Employer contributions 236 214
Benefits paid (85) (76)
Settlements (200) —
Foreign exchange rate changes 16 66
Amendments, transfers and other 20 15
Fair value of plan assets, end of the year $1,609 $1,462
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