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Notes to the Consolidated
Financial Statements
(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.
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:
Pension Benefits Retiree Health
2008 2007 2008 2007
Change in Benefit Obligation
Benefit obligation, January 1 $10,458 $ 10,467 $ 1,501 $ 1,592
Service cost 209 237 14 17
Interest cost (5) 578 84 87
Plan participants’ contributions 13 12 31 20
Plan amendments 111 (219) —
Actuarial gain (550) (508) (251) (114)
Acquisitions 20 ———
Currency exchange rate changes (1,090) 331 (23) 21
Curtailments 3(1) ——
Benefits paid/settlements (657) (669) (135) (122)
Other * 93 ———
Benefit obligation, December 31 $ 8,495 $10,458 $ 1,002 $ 1,501
Change in Plan Assets
Fair value of plan assets, January 1 $ 9,805 $ 9,217 $— $—
Actual return on plan assets (1,527) 667 ——
Employer contribution 299 298 105 102
Plan participants’ contributions 13 12 30 20
Acquisitions 20 ———
Currency exchange rate changes (1,049) 280 ——
Benefits paid/settlements (657) (669) (135) (122)
Other * 19 ———
Fair value of plan assets, December 31 $ 6,923 $ 9,805 $— $—
Net funded status (including under-funded and
non-funded plans) at December 31 $ (1,572) $ (653) $(1,002) $(1,501)
Amounts recognized in the Consolidated Balance Sheets:
Other long-term assets $ 61 $ 322 $— $—
Accrued compensation and benefit costs (48) (48) (106) (105)
Pension and other benefit liabilities (1,585) (927) ——
Post-retirement medical benefits ——(896) (1,396)
Net amounts recognized $ (1,572) $ (653) $(1,002) $(1,501)
* Other reflects adjustments associated with the change in measurement dates for several European countries as required by FAS 158. See Note 1 – Summary of Significant Accounting Policies
for additional information.
The pre-tax amounts recognized in Accumulated other comprehensive (income) loss consist of:
Pension Benefits Retiree Health
2008 2007 2008 2007
Net actuarial loss (gain) $ 1,818 $ 1,032 $ (85) $ 169
Prior service (credit) cost (192) (212) (186) 11
Total $ 1,626 $ 820 $ (271) $ 180
76 Xerox 2008 Annual Report