Boeing 2006 Annual Report Download - page 65

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The Boeing Company and Subsidiaries 63
Notes to Consolidated Financial Statements
The components of net periodic benefit cost/(income) are
as follows:
Pensions Other Postretirement Benefits
Year ended December 31, 2006 2005 2004 2006 2005 2004
Components of net periodic benefit cost/(income)
Service cost $«÷«908 $÷÷910 $««««831 $143 $«147 $«162
Interest cost 2,497 2,457 2,378 436 454 492
Expected return on plan assets (3,455)(3,515)(3,378)(7)(7)(6)
Amortization of prior service costs 188 185 180 (90)(110)(102)
Recognized net actuarial loss/(gain) 912 714 379 131 161 188
Settlement/curtailment loss/(gain) 552 61 (96)
Net periodic benefit cost/(income) $«1,050 $«1,303 $««««451 $613 $«549 $«734
Settlement and curtailment losses/(gains) are primarily due to
divestitures. (See Note 9).
The following shows changes in the benefit obligation, plan
assets and funded status of both pensions and OPB. Benefit
obligation balances presented below reflect the projected bene-
fit obligation (PBO) for our pension plans, and accumulated
postretirement benefit obligations (APBO) for our OPB plans.
Other Postretirement
Pensions Benefits
At September 30, 2006 2005 2006 2005
Change in benefit obligation
Beginning balance $45,183 $42,781 $«8,057 $«8,135
Service cost 908 910 143 147
Interest cost 2,497 2,457 436 454
Plan participants’ contributions 912
Amendments 156 270 (101)
Actuarial (gain)/loss (925)2,778 295 326
Settlement/curtailment/acquisitions/dispositions, net 85 (1,774)1(503)
Benefits paid (2,331)(2,251)(497)(502)
Ending balance $45,582 $45,183 $«8,334 $«8,057
Change in plan assets
Beginning balance at fair value $43,484 $38,977 $««««««82 $««««««72
Actual return on plan assets 4,239 5,460 67
Company contribution 526 2,604 17 16
Plan participants’ contributions 912
Settlement/curtailment/acquisitions/dispositions, net 216 (1,393)
Benefits paid (2,286)(2,208)(16)(13)
Exchange rate adjustment 15 32
Ending balance at fair value $46,203 $43,484 $««««««89 $««««««82
Reconciliation of funded status to net amounts recognized
Funded status-plan assets less than projected benefit obligation $«««««621 $«(1,699)$(8,245)$(7,976)
Unrecognized net actuarial loss 12,989 2,333
Unrecognized prior service costs 1,368 (557)
Adjustment for fourth quarter contributions 11 10 152 141
Net amount recognized $«««««632 $12,668 $(8,093)$(6,059)
Amounts recognized in statement of financial position at December 31, consist of:
Prepaid benefit cost $13,251
Intangible asset 66
Other assets $««1,806
Accumulated other comprehensive loss to offset additional minimum liability 2,948
Accounts payable and other liabilities (39)(649)$«««(422)$«««««(70)
Accrued retiree health care (7,671)(5,989)
Accrued pension plan liability (1,135)(2,948)
Net amount recognized $«««««632 $12,668 $(8,093)$(6,059)