Twenty-First Century Fox 2007 Annual Report Download - page 106

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
The components of net periodic costs were as follows:
Pension benefits Postretirement benefits
2007 2006 2005 2007 2006 2005
For the years ended June 30, (in millions)
Components of net periodic cost:
Service cost benefits earned during the period $ 70 $ 82 $ 83 $ 4 $ 4 $ 4
Interest costs on projected benefit obligations 122 106 107 8 7 7
Expected return on plan assets (135) (122) (111) — — —
Amortization of deferred losses 19 45 28 2 3 3
Other (2) (1) 3 (6) (5) (6)
Net periodic costs $ 74 $ 110 $ 110 $ 8 $ 9 $ 8
Pension benefits Postretirement benefits
2007 2006 2005 2007 2006 2005
For the years ended June 30, (in millions)
Additional information:
Decrease (increase) in minimum liability reflected in other
comprehensive income N/A $286 $(106) N/A N/A N/A
Weighted-average assumptions used to determine benefit
obligations
Discount rate 6.0% 5.9% 5.1% 6.2% 6.1% 5.2%
Rate of increase in future compensation 5.0% 4.9% 4.8% N/A N/A N/A
Weighted-average assumptions used to determine net periodic
benefit cost
Discount rate 5.9% 5.1% 5.7% 6.1% 5.2% 5.9%
Expected return on plan assets 7.0% 7.5% 7.5% N/A N/A N/A
Rate of increase in future compensation 4.9% 4.8% 4.7% N/A N/A N/A
N/A—not applicable
The following assumed health care cost trend rates at June 30 were also used in accounting for postretirement benefits:
Postretirement benefits
Fiscal 2007 Fiscal 2006
Health care cost trend rate 8.2% 9.4%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.9% 4.9%
Year that the rate reaches the ultimate trend rate 2011 2011
Assumed health care cost trend rates could have a significant effect on the amounts reported for the postretirement health care
plan. The effect of a one percentage point increase and one percentage point decrease in the assumed health care cost trend rate
would have the following effects on the results for fiscal 2007:
Service and interest
costs
Benefit
Obligation
(in millions)
One percentage point increase $1 $8
One percentage point decrease (1) (7)
NEWS CORPORATION 2007 Annual Report 105