Boeing 2005 Annual Report Download - page 70

Notes to Consolidated Financial Statements
)
)
)
)
)
At September 30,
Change in benefit obligation
Beginning balance
Service cost
Interest cost
Impact of Medicare Prescription Drug, Improvement and Modernization Act of 2003
Plan participants’ contributions
Amendments
Actuarial loss/(gain)
Settlement/curtailment/acquisitions/dispositions, net
Benefits paid
Ending balance
Pe
2005
$42,781
910
2,457
12
270
2,778
(1,774)
(2,251)
$45,183
nsions
2004
$39,931
831
2,378
13
190
1,656
(14)
(2,204)
$42,781
2005
$ 8,135
147
454
326
(503)
(502)
$ 8,057
Other Postretirement
Benefits
2004
$ 8,617
162
492
(439
(119
(57
(8
(513
$ 8,135
Change in plan assets
)
Beginning balance at fair value $38,977 $33,209 $ 72 $ 58
Actual return on plan assets 5,460 4,296 7 6
Company contribution 2,604 3,645 16 16
Plan participants’ contributions 12 13 1
Settlement/curtailment/acquisitions/dispositions, net (1,393) (43)
Benefits paid (2,208) (2,163) (13) (9
Exchange rate adjustment 32 20
Ending balance at fair value $43,484 $38,977 $ 82 $ 72
Reconciliation of funded status to net amounts recognized
)
)
)
)
)
)
Funded status-plan assets less than projected benefit obligation $ (1,699) $ (3,804) $ (7,976) $(8,063
Unrecognized net actuarial loss 12,989 13,756 2,333 2,676
Unrecognized prior service costs 1,368 1,365 (557) (762
Adjustment for fourth quarter contributions 10 752 141 135
Net amount recognized $12,668 $12,069 $ (6,059) $(6,014
Amounts recognized in statement of financial position consist of:
Prepaid benefit cost $13,251 $12,588
Intangible asset 66 225
Accumulated other comprehensive loss 2,948 3,169
Accounts payable and other liabilities (649) (744) $ (70) $ (55
Accrued retiree health care (5,989) (5,959
Accrued pension plan liability (2,948) (3,169)
Net amount recognized $12,668 $12,069 $(6,059) $(6,014
The decrease in the minimum pension liability included in Other
comprehensive loss was $221 at December 31, 2005 and
$3,460 at December 31, 2004. The tax effect on accumulated
other comprehensive loss of $2,948 and $3,169 as of
December 31, 2005 and 2004 was $1,098 and $1,148.
The accumulated benefit obligation (ABO) for all pension plans
was $40,999 and $38,590 at September 30, 2005 and 2004.
Only two of nine major tax qualified pension plans have ABOs
that exceed plan assets at September 30, 2005. The following
table shows the key information for plans with ABO in excess
of plan assets.
At September 30, 2005 2004
Projected benefit obligation $10,638 $11,405
Accumulated benefit obligation 10,343 11,162
Fair value of plan assets 9,405 10,293
Components of net periodic benefit cost/(income) were as follows:
Pensions Other Postretirement Benefits
Year ended December 31, 2005 2004 2003 2005 2004 2003
)
)
Components of net periodic benefit cost/(income)
Service cost $ 910 $(3,831 $(3,753 $147 $162 $162
Interest cost 2,457 2,378 2,319 454 492 533
Expected return on plan assets (3,515) (3,378) (3,403) (7) (6) (5
Amortization of net transition asset (1)
Amortization of prior service costs 185 180 169 (110) (102) (61
Recognized net actuarial loss/(gain) 714 379 83 161 188 175
Settlement/curtailment loss/(gain) 552 61 13 (96) 2
Net periodic benefit cost/(income) $1,303 $(3,451 $3,4(67) $549 $734 $806
68 The Boeing Company and Subsidiaries