Wells Fargo 2007 Annual Report Download - page 118
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115
The net actuarial loss and net prior service credit for
the defined benefit pension plans that will be amortized
from accumulated other comprehensive income into net
periodic benefit cost in 2008 are $14 million and $5 million,
respectively. The net actuarial loss and net prior service
credit for the other postretirement plans that will be
amortized from accumulated other comprehensive income
into net periodic benefit cost in 2008 are $1 million and
$4 million, respectively.
Amounts recognized in accumulated other comprehensive income (pre tax) for the year ended December 31, 2007 and 2006, consist of:
(in millions) December 31,
2007 2006
Pension benefits Pension benefits
Non- Other Non- Other
Qualified qualified benefits Qualified qualified benefits
Change in benefit obligation:
Benefit obligation at beginning of year $4,443 $ 301 $ 739 $4,045 $ 277 $ 709
Service cost 281 15 15 247 16 15
Interest cost 246 18 41 224 16 39
Plan participants’ contributions ——39 ——35
Amendments — (24) — 18 — (11)
Plan mergers (1) —64— ———
Actuarial loss (gain) (105) 16 (105) 225 31 26
Benefits paid (310) (24) (70) (317) (39) (74)
Foreign exchange impact 10 — 4 1 — —
Benefit obligation at end of year 4,565 366 663 4,443 301 739
Change in plan assets:
Fair value of plan assets at beginning of year 5,351 — 412 4,944 — 370
Actual return on plan assets 560 — 56 703 — 37
Employer contribution 72421 20 39 44
Plan participants’ contributions ——39 ——35
Benefits paid (310) (24) (70) (317) (39) (74)
Foreign exchange impact 9 — — 1 — —
Fair value of plan assets at end of year 5,617 — 458 5,351 — 412
Funded status at end of year $1,052 $(366) $(205) $ 908 $(301) $(327)
Amounts recognized in the balance sheet
at end of year:
Assets $1,061 $ — $ — $ 927 $ — $ —
Liabilities (9) (366) (205) (19) (301) (327)
$1,052 $(366) $(205) $ 908 $(301) $(327)
(1) Represents acquisition of Greater Bay Bancorp on October 1, 2007.
The changes in the projected benefit obligation of pension
benefits and the accumulated benefit obligation of other
benefits and the fair value of plan assets during 2007 and
The weighted-average assumptions used to determine the
projected benefit obligation were:
Year ended December 31,
2007 2006
Pension Other Pension Other
benefits(1) benefits benefits(1) benefits
Discount rate 6.25% 6.25% 5.75% 5.75%
Rate of compensation
increase 4.0 — 4.0 —
(1) Includes both qualified and nonqualified pension benefits.
(in millions) December 31,
2007 2006
Pension benefits Pension benefits
Non- Other Non- Other
Qualified qualified benefits Qualified qualified benefits
Net actuarial loss $248 $ 79 $ 13 $494 $ 76 $144
Net prior service credit (7) (42) (42) (7) (21) (46)
Net transition obligation —— 3 —— 3
Translation adjustments 3 — 2 — — —
$244 $ 37 $(24) $487 $ 55 $101
2006, the funded status at December 31, 2007 and 2006,
and the amounts recognized in the balance sheet at
December 31, 2007, were: