Wells Fargo 2008 Annual Report Download - page 152

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
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 2009 are $430 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 2009 are $3 million and $4 million, respectively.
Amounts recognized in accumulated other comprehensive income (pre tax) for the year ended December 31, 2008 and 2007, consist of:
(in millions) December 31,
2008 2007
Pension benefits Pension benefits
Non- Other Non- Other
Qualified qualified benefits Qualified qualified benefits
Change in benefit obligation:
Benefit obligation at beginning of year $ 4,565 $ 366 $ 663 $4,443 $ 301 $ 739
Service cost 291 15 13 281 15 15
Interest cost 276 22 40 246 18 41
Plan participants’ contributions ——39 ——39
Amendments ——— — (24) —
Plan mergers (1) ——— —64—
Actuarial loss (gain) (197) (15) (94) (105) 16 (105)
Benefits paid (317) (24) (65) (310) (24) (70)
Foreign exchange impact ——— 10 — 4
Acquisitions (2) 4,359 317 727 ———
Measurement date adjustment (3) — 3 2 — — —
Benefit obligation at end of year $ 8,977 $ 684 $1,325 $4,565 $ 366 $ 663
Change in plan assets:
Fair value of plan assets at beginning of year $ 5,617 $ — $ 458 $5,351 $ — $ 412
Actual return on plan assets (1,750) — (128) 560 — 56
Employer contribution 260 24 22 72421
Plan participants’ contributions ——39 ——39
Benefits paid (317) (24) (65) (310) (24) (70)
Foreign exchange impact ——— 9——
Acquisitions (2) 4,132 — 46 ———
Measurement data adjustment (3) (79) — (4) — — —
Fair value of plan assets at end of year $ 7,863 $ — $ 368 $5,617 $ — $ 458
Funded status at end of year $(1,114) $(684) $ (957) $1,052 $(366) $(205)
Amounts recognized in the balance sheet at end of year:
Assets $ — $ — $ — $1,061 $ — $ —
Liabilities (1,114) (684) (957) (9) (366) (205)
$(1,114) $(684) $ (957) $1,052 $(366) $(205)
(1) Represents acquisition of Greater Bay Bancorp on October 1, 2007.
(2) Excludes foreign benefit plans of Wachovia with a total benefit obligation of $32 million, a fair value of plan assets of $30 million, and an underfunded status of $2 million.
(3) Represents change in benefit obligation and plan assets during December 2007 to reflect an additional month of activity due to the change in measurement date from
November 30 to December 31 as required by FAS 158.
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 2008 and
The weighted-average assumptions used to determine the
projected benefit obligation were:
Year ended December 31,
2008 2007
Pension Other Pension Other
benefits(1) benefits benefits (1) benefits
Discount rate 6.75% 6.75% 6.25% 6.25%
Rate of compensation
increase 4.0 — 4.0 —
(1) Includes both qualified and nonqualified pension benefits.
(in millions) December 31,
2008 2007
Pension benefits Pension benefits
Non- Other Non- Other
Qualified qualified benefits Qualified qualified benefits
Net actuarial loss $2,349 $ 50 $ 91 $248 $ 79 $ 13
Net prior service credit (7) (37) (38) (7) (42) (42)
Net transition obligation —— 3 —— 3
Translation adjustments (2) — (2) 3 — 2
$2,340 $ 13 $ 54 $244 $ 37 $(24)
2007, the funded status at December 31, 2008 and 2007, and
the amounts recognized in the balance sheet at December 31,
2008 and 2007, were: