Boeing 2007 Annual Report Download - page 67

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64
Notes to Consolidated Financial Statements
The components of net periodic benefit cost are as follows:
Pensions Other Postretirement Benefits
Years ended December 31, 2007 2006 2005 2007 2006 2005
Components of net periodic benefit cost
Service cost $÷÷953 $÷««908 $÷««910 $136 $143 $«147
Interest cost 2,681 2,497 2,457 473 436 454
Expected return on plan assets (3,507) (3,455) (3,515) (8) (7) (7)
Amortization of prior service costs 200 188 185 (88) (90) (110)
Recognized net actuarial loss 764 912 714 159 131 161
Settlement/curtailment loss/(gain) 10 552 (96)
Net periodic benefit cost $«1,101 $«1,050 $«1,303 $672 $613 $«549
Settlement and curtailment losses/(gains) are primarily due to
divestitures. See Note 7.
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 PBO for our
pension plans, and accumulated postretirement benefit obliga-
tions (APBO) for our OPB plans.
Pensions Other Postretirement
Benefits
At September 30, 2007 2006 2007 2006
Change in benefit obligation
Beginning balance $45,582 $45,183 $«8,334 $«8,057
Service cost 953 908 136 143
Interest cost 2,681 2,497 473 436
Plan participants’ contributions 11 9
Amendments 95 156 (34) (101)
Actuarial (gain)/loss (1,100) (925) (732) 295
Settlement/curtailment/acquisitions/dispositions, net (57) 85 (8) 1
Benefits paid (2,431) (2,331) (507) (497)
Ending balance $45,734 $45,582 $«7,662 $«8,334
Change in plan assets
Beginning balance at fair value $46,203 $43,484 $÷÷÷89 $÷÷÷82
Actual return on plan assets 6,029 4,239 10 6
Company contribution 580 526 15 17
Plan participants’ contributions 11 9 1
Settlement/curtailment/acquisitions/dispositions, net (65) 216
Benefits paid (2,382) (2,286) (19) (16)
Exchange rate adjustment 63 15
Ending balance at fair value $50,439 $46,203 $÷÷÷96 $÷÷÷89
Reconciliation of funded status to net amounts recognized
Funded status-plan assets less projected benefit obligation $÷4,705 $÷÷«621 $(7,566) $(8,245)
Adjustment for fourth quarter contributions 13 11 129 152
Net amount recognized $÷4,718 $÷÷«632 $(7,437) $(8,093)
Amounts recognized in statement of financial position at December 31, consist of:
Pension plan assets, net $÷5,924 $÷1,806
Accounts payable and other liabilities (51) (39) $(430) $÷«(422)
Accrued retiree health care (7,007) (7,671)
Accrued pension plan liability, net (1,155) (1,135)
Net amount recognized $÷4,718 $÷÷«632 $(7,437) $(8,093)
The Boeing Company and Subsidiaries