Alcoa 2006 Annual Report Download - page 68

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Obligations and Funded Status
Pension benefits Postretirement benefits
December 31, 2006 2005 2006 2005
Change in projected benefit obligation
Benefit obligation at beginning of year $11,332 $10,751 $ 3,654 $ 3,827
Service cost 209 209 32 33
Interest cost 628 619 208 216
Amendments 32 —(89) (26)
Actuarial (gains) losses (3) 487 56 (47)
Acquisitions —20 ——
Divestitures —(5) 1(1)
Benefits paid, net of participants’ contributions (717) (685) (354) (349)
Other transfers, net ————
Exchange rate 133 (64) 11
Projected benefit obligation at end of year $11,614 $11,332 $ 3,509 $ 3,654
Change in plan assets
Fair value of plan assets at beginning of year $ 9,323 $ 8,800 $ 170 $ 157
Actual return on plan assets 1,001 866 19 13
Acquisitions —16 ——
Employer contributions 369 383 ——
Participants’ contributions 30 26 ——
Benefits paid (719) (690) ——
Administrative expenses (20) (24) ——
Other transfers, net ————
Exchange rate 113 (54) ——
Fair value of plan assets at end of year $10,097 $ 9,323 $ 189 $ 170
Funded status $ (1,517) $ (2,009) $(3,320) $(3,484)
Amounts attributed to joint venture partners 12 12 10 36
Net funded status (1,505) (1,997) (3,310) (3,448)
Unrecognized net actuarial loss 1,856 2,187 999 1,028
Unrecognized net prior service cost (benefit) 66 51 (123) (37)
Less: Amounts attributed to joint venture partners 11 24(2)
Net amount recognized $ 406 $ 239 $(2,438) $(2,455)
Amounts recognized in the Consolidated Balance Sheet
consist of:
Before the adoption of SFAS 158
Prepaid benefit $157 $ 144 $—$—
Accrued benefit liability (1,233) (1,654) (2,438) (2,455)
Intangible asset 52 31 ——
Accumulated other comprehensive loss 1,430 1,718 ——
Net amount recognized $ 406 $ 239 $(2,438) $(2,455)
After the adoption of SFAS 158
Noncurrent assets $90$— $—$—
Current liabilities (28) —(354) —
Noncurrent liabilities (1,567) —(2,956) —
Net amount recognized $ (1,505) $— $(3,310) $—
Amounts recognized in Accumulated Other
Comprehensive Income consist of:
Net actuarial loss $ 1,856 $— $ 999 $—
Prior service cost (benefit) 66 —(123) —
Total, before tax effect 1,922 —876 —
Less: Amounts attributed to joint venture partners 11 —4—
Net amount recognized, before tax effect $ 1,911 $— $ 872 $—
The December 31, 2006 and 2005 postretirement benefit obligations and the net amount recognized have each decreased by
$2 due to the reclassification of assets held for sale.
66