AmerisourceBergen 2005 Annual Report Download - page 45

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AmerisourceBergen Corporation 2005
-43-
As of September 30, 2005 and 2004, all of the Company-
sponsored defined benefit pension plans had projected and accumu-
lated benefit obligations in excess of plan assets that consist of the
following (in thousands):
2005 2004
Accumulated benefit obligation $115,515 $95,624
Projected benefit obligation 116,992 98,986
Plan assets at fair value 73,210 64,210
Contributions to the pension plans during fiscal 2006 are
expected to be the minimum required of $7.5 million. Expected
benefit payments over the next ten years, which reflect expected
future service, are anticipated to be paid as follows (in thousands):
Pension Benefits
Fiscal Year:
2006 $ 6,592
2007 4,485
2008 4,451
2009 4,682
2010 4,270
2011-2015 29,344
Total $53,824
Expected benefit payments are based on the same assumptions
used to measure the benefit obligations and include estimated future
employee service.
The Company owns life insurance covering substantially all of
the participants in the Bergen supplemental retirement plans. At
September 30, 2005, the policies have an aggregate cash surrender
value of approximately $37.9 million (which is included in other assets
in theaccompanying consolidated balance sheet) and an aggregate
death benefit of approximately $58.2 million.
Postretirement Benefit Plans
The Company provides medical benefits to certain retirees, principally former employees of Bergen. Employees became eligible for such
postretirement benefits after meeting certain age and years of service criteria. During fiscal 2002, the plans were closed to new participants and
benefits that can be earned by active participants were limited. As a result of special termination benefit packages previously offered, the Company
also provides dental and life insurance benefits to a limited number of retirees and their dependents. These benefit plans are unfunded.
The following table sets forth (in thousands) a reconciliation of the changes in the Company-sponsored postretirement benefit plans:
Fiscal year ended September 30,
2005 2004
Change in Accumulated Benefit Obligations:
Benefit obligation at beginning of year $16,055 $20,561
Interest cost 1,142 1,213
Actuarial losses (gains) 4,298 (4,194)
Benefit payments (2,079) (1,525)
Benefit obligation at end of year $ 19,416 $ 16,055
Change in Plan Assets:
Fair value of plan assets at beginning of year $— $ —
Employer contributions 2,079 1,525
Benefit payments (2,079) (1,525)
Fair value of plan assets at end of year $— $—
Funded Status and Amounts Recognized:
Funded status $(19,416) $(16,055)
Unrecognized net actuarial loss (gain) 3,972 (479)
Net amount recognized $(15,444) $(16,534)
Amounts recognized in the balance sheets consist of:
Accrued benefit liability $(15,444) $(16,534)