Chevron 2006 Annual Report Download - page 76

74 CHEVRON CORPORATION 2006 ANNUAL REPORT74 CHEVRON CORPORATION 2006 ANNUAL REPORT
Notes to the Consolidated Financial Statements
Millions of dollars, except per-share amounts
Amounts recognized on a before-tax basis in “Accumu-
lated other comprehensive loss” for the company’s pension
and other postretirement plans (excludes affi liates) at the end
of 2006 after adoption of FAS 158 consisted of:
Pension Benefi ts Other
2006 Benefi ts
U.S. Int’l. 2006
Net actuarial loss $ 1,892 $ 1,288 $ 972
Prior-service cost (credit) 272 126 (485)
Total recognized at December 31 $ 2,164 $ 1,414 $ 487
The accumulated benefi t obligations for all U.S. and
international pension plans were $7,987 and $3,669 respec-
tively, at December 31, 2006, and $7,931 and $3,080,
respectively, at December 31, 2005.
NOTE 21. EMPLOYEE BENEFIT PLANS – Continued
The components of net periodic benefi t cost for 2006, 2005 and 2004 were:
Pension Benefi ts
2006 2005 2004 Other Benefi ts
U.S. Int’l. U.S. Int’l. U.S. Int’l. 2006 2005 2004
Service cost $ 234 $ 98 $ 208 $ 84 $ 170 $ 70 $ 35 $ 30 $ 26
Interest cost 468 214 395 199 326 180 181 164 164
Expected return on plan assets (550) (227) (449) (208) (358) (169) – – –
Amortization of transitional assets – 1 – 2 – 1 – – –
Amortization of prior-service costs 46 14 45 16 42 16 (86) (91) (47)
Recognized actuarial losses 149 69 177 51 114 69 97 93 54
Settlement losses 70 – 86 – 96 4 – – –
Curtailment losses – – – – – 2 – – –
Special termination benefi ts
recognition – – – – – 1 – – –
Net periodic benefi t cost $ 417 $ 169 $ 462 $ 144 $ 390 $ 174 $ 227 $ 196 $ 197
Net actuarial losses recorded in “Accumulated other
comprehensive income” at December 31, 2006, related to
the company’s U.S. pension, international pension and
other postretirement benefi t plans are being amortized on a
straight-line basis over approximately nine, 13 and 10 years,
respectively. These amortization periods represent the esti-
mated average remaining service of employees expected to
receive benefi ts under the plans. These losses are amortized
to the extent they exceed 10 percent of the higher of the
projected benefi t obligation or market-related value of plan
assets. The amount subject to amortization is determined
on a plan-by-plan basis. During 2007, the company esti-
mates actuarial losses of $139 and $81 will be amortized
from accumulated other comprehensive income for U.S. and
international pension plans, and actuarial losses of $81 will
be amortized from accumulated other comprehensive income
for other postretirement benefi t plans.
The weighted average amortization period for recognizing
prior service costs (credits) recorded at December 31, 2006,
was approximately six and 13 years for U.S. and international
pension plans, respectively, and seven years for other postretire-
ment benefi t plans. During 2007, the company estimates prior
service costs of $46 and $17 will be amortized from accumu-
lated other comprehensive income for U.S. and international
pension plans, and prior service credits of $81 will be amor-
tized from accumulated other comprehensive income for other
postretirement benefi t plans.
Information for U.S. and international pension plans
with an accumulated benefi t obligation in excess of plan assets
at December 31, 2006 and 2005, was:
Pension Benefi ts
2006 2005
U.S. Int’l. U.S. Int’l.
Projected benefi t obligations $ 848 $ 849 $ 2,132 $ 818
Accumulated benefi t obligations 806 741 1,993 632
Fair value of plan assets 12 172 1,206 153