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Xerox Corporation
73
Note 14 – Employee Benefit Plans
Wesponsor numerous pension and other post-retirement benefit plans, primarily retiree health, in our U.S. and international operations.
September 30 is the measurement date for most of our European plans and December 31 is the measurement date for all of our other
post-retirement benefit plans, including all of our domestic plans. Information regarding our benefit plans is presented below (in millions):
Pension Benefits Other Benefits
2005 2004 2005 2004
Change in Benefit Obligation
Benefit obligation, January 1 $ 10,028 $ 8,971 $ 1,662 $ 1,579
Service cost 234 222 19 22
Interest cost 581 660 90 89
Plan participants’ contributions 11 14 15 18
Plan amendments 30 232 44 –
Actuarial loss (gain) 527 272 (54) 70
Currency exchange rate changes (486) 356 4 6
Curtailments (5) (2) – –
Special termination benefits –2––
Benefits paid/settlements (618) (699) (127) (122)
Benefit obligation, December 31 $ 10,302 $10,028 $ 1,653 $ 1,662
Change in Plan Assets
Fair value of plan assets, January 1 $ 8,110 $ 7,301 $ – $ –
Actual return on plan assets 933 772 – –
Employer contribution 388 409 112 104
Plan participants’ contributions 11 14 15 18
Currency exchange rate changes (418) 311 – –
Transfers/divestitures 38 2 – –
Benefits paid/settlements (618) (699) (127) (122)
Fair value of plan assets, December 31 $ 8,444 $ 8,110 $ – $ –
Funded status (including under-funded and non-funded plans) $ (1,858) $ (1,918) $(1,653) $(1,662)
Unamortized transition (assets) obligations 3 (1) – –
Unrecognized prior service cost (28) (23) (45) (112)
Unrecognized net actuarial loss 1,918 1,993 410 494
Net amount recognized $ 35 $ 51 $(1,288) $(1,280)
Amounts recognized in the Consolidated Balance Sheets consist of:
Prepaid benefit cost $ 833 $ 897 $ – $ –
Accrued benefit liability (1,081) (1,092) (1,288) (1,280)
Intangible asset 94––
Minimum pension liability included in AOCL 274 242 – –
Net amount recognized $ 35 $ 51 $(1,288) $(1,280)
Change in minimum liability included in AOCL $ 32 $ (20)
Information for benefit plans that are under-funded or non-funded on a Projected Benefit Obligation basis is presented below (in millions):
Pension Benefits Other Benefits
2005 2004 2005 2004
Aggregate projected benefit obligation $ 10,240 $ 9,959 $ 1,653 $ 1,662
Aggregate fair value of plan assets 8,364 8,019 – –
Xerox Annual Report 2005