Xerox 2007 Annual Report Download - page 113

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per-share data and unless otherwise indicated)
Note 14 – Employee Benefit Plans
We sponsor 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. Refer to Note 1
– “New Accounting Standards and Accounting Changes” for further information regarding recent accounting changes for
our benefit plans. Information regarding our benefit plans is presented below (in millions):
Pension Benefits Retiree Health
2007 2006 2007 2006
Change in Benefit Obligation
Benefit obligation, January 1 ........................................ $10,467 $10,302 $ 1,592 $ 1,653
Service cost ........................................................ 237 244 17 19
Interest cost ....................................................... 578 732 87 92
Plan participants’ contributions ...................................... 12 13 20 19
Plan amendments .................................................. 11 (234) – 31
Actuarial gain ...................................................... (508) (85) (114) (105)
Currency exchange rate changes .................................... 331 564 21 –
Curtailments ....................................................... (1) (2) – –
Benefits paid/settlements ........................................... (669) (1,067) (122) (117)
Benefit obligation, December 31 ................................... $10,458 $10,467 $ 1,501 $ 1,592
Change in Plan Assets
Fair value of plan assets, January 1 .................................. $ 9,217 $ 8,444 $ – $ –
Actual return on plan assets ......................................... 667 959 – –
Employer contribution .............................................. 298 355 102 98
Plan participants’ contributions ...................................... 12 13 20 19
Currency exchange rate changes .................................... 280 513 – –
Benefits paid/settlements ........................................... (669) (1,067) (122) (117)
Fair value of plan assets, December 31 .............................. $ 9,805 $ 9,217 $ – $ –
Net funded status (including under-funded and non-funded plans) at
December 31 .................................................... $ (653) $ (1,250) $(1,501) $(1,592)
Amounts recognized in the Consolidated Balance Sheets:
Other long-term assets .............................................. $ 322 $ 19 $ – $ –
Accrued compensation and benefit costs ............................. (48) (79) (105) (102)
Pension and other benefit liabilities .................................. (927) (1,190) – –
Post-retirement medical benefits .................................... – – (1,396) (1,490)
Net amounts recognized ........................................... $ (653) $ (1,250) $(1,501) $(1,592)
Xerox Annual Report 2007 111