Xerox 2007 Annual Report Download - page 114

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per-share data and unless otherwise indicated)
The pre-tax amounts recognized in accumulated other comprehensive loss consist of:
Pension Benefits Retiree Health
2007 2006 2007 2006
Net actuarial loss .......................................................... $1,032 $1,595 $169 $286
Prior service (credit) cost ................................................... (213) (246) 11 (1)
Transition obligation ...................................................... 1 1 – –
Total .................................................................... $ 820 $1,350 $180 $285
The accumulated benefit obligation for all defined benefit pension plans was $9,748 and $9,589 at December 31,
2007 and 2006, respectively.
Information for pension plans with an accumulated benefit obligation in excess of plan assets is presented below (in
millions):
2007 2006
Aggregate projected benefit obligation .................................................... $1,193 $5,316
Aggregate accumulated benefit obligation ................................................ 1,109 4,856
Aggregate fair value of plan assets ........................................................ 399 4,133
Our domestic retirement defined benefit plans provide employees a benefit, depending on eligibility, at the greater of
(i) the benefit calculated under a highest average pay and years of service formula, (ii) the benefit calculated under a
formula that provides for the accumulation of salary and interest credits during an employee’s work life, or (iii) the
individual account balance from the Company’s prior defined contribution plan (Transitional Retirement Account or TRA).
Pension Benefits Retiree Health
(in millions) 2007 2006 2005 2007 2006 2005
Components of Net Periodic Benefit Cost
Defined benefit plans
Service cost ................................................. $237 $244 $234 $ 17 $ 19 $ 20
Interest cost(1) ............................................... 578 732 581 87 92 90
Expected return on plan assets(2) .............................. (668) (802) (622) – – –
Recognized net actuarial loss ................................. 75 104 98 10 19 31
Amortization of prior service credit ............................ (20) (18) (3) (12) (13) (24)
Recognized net transition obligation (asset) .................... – 2 1 – – –
Recognized curtailment/settlement loss ........................ 33 93 54 – – –
Net periodic benefit cost ..................................... 235 355 343 102 117 117
Defined contribution plans ................................... 80 70 71 – – –
Total ....................................................... $ 315 $ 425 $ 414 $ 102 $117 $117
Other Changes in Plan Assets and Benefit Obligations Recognized
in Other Comprehensive Income:
Net actuarial loss (gain) ...................................... (499) (114)
Prior service cost (credit) ...................................... 5 –
Amortization of net actuarial (loss) gain ....................... (108) (10)
Amortization of prior service (cost) credit ....................... 20 12
Total recognized in other comprehensive income(3) .............. (582) (112)
Total Recognized in Net Periodic Benefit Cost and Other
Comprehensive Income ................................... $(267) $ (10)
112