DuPont 2008 Annual Report Download - page 90

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Balances of related after-tax components comprising accumulated other comprehensive loss are summarized below:
December 31, 2008 2007 2006
Cumulative translation adjustment $ 130 $ 250 $ 156
Net revaluation and clearance of cash flow hedges to earnings (158) 41 17
Net unrealized (loss)/gain on securities (3) 83
Pension benefits
Net losses (5,527) (1,395) (2,022)
Net prior service cost (107) (117) (130)
Other benefits
Net losses (511) (307) (720)
Net prior service benefit 658 726 829
$(5,518) $ (794) $(1,867)
21. LONG-TERM EMPLOYEE BENEFITS
The company offers various long-term benefits to its employees. Where permitted by applicable law, the company
reserves the right to change, modify or discontinue the plans.
Defined Benefit Pensions
The company has both funded and unfunded noncontributory defined benefit pension plans covering a majority of the
U.S. employees. The benefits under these plans are based primarily on years of service and employees’ pay near
retirement. The company’s funding policy is consistent with the funding requirements of federal laws and regulations.
Pension coverage for employees of the company’s non-U.S. consolidated subsidiaries is provided, to the extent
deemed appropriate, through separate plans. Obligations under such plans are funded by depositing funds with
trustees, under insurance policies, or remain unfunded.
Other Long-term Employee Benefits
The parent company and certain subsidiaries provide medical, dental and life insurance benefits to pensioners and
survivors, and disability and life insurance protection to employees. The associated plans for retiree benefits are
unfunded and the cost of the approved claims is paid from company funds. Essentially all of the cost and liabilities for
these retiree benefit plans are attributable to the U.S. parent company plans. The retiree medical plan is contributory
with pensioners and survivors’ contributions adjusted annually to achieve a 50/50 target sharing of cost increases
between the company and pensioners and survivors. In addition, limits are applied to the company’s portion of the
retiree medical cost coverage.
Employee life insurance and disability benefit plans are insured in many countries. However, primarily in the U.S.,
such plans are generally self-insured or are fully experience-rated. Obligations and expenses for self-insured and
fully experience-rated plans are reflected in the figures below.
F-34
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)