E-Z-GO 2006 Annual Report Download - page 83

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62
Amounts recognized in the balance sheets are as follows:
Postretirement Benefits
Pension Benefits Other Than Pensions
(In millions)
2006 2005 2006 2005
Non-current assets $ 294 $ 906 $ — $ —
Current liabilities (13) — (79) —
Non-current liabilities (516) (326) (671) (515)
Amounts recognized in accumulated other comprehensive income (loss):
Net loss 748 210 246 —
Prior service cost (credit) 160 — (12) —
Assumptions
The weighted-average assumptions and the healthcare trend assumptions we used for our postretirement plans are as follows:
Postretirement Benefits
Pension Benefits Other Than Pensions
2006 2005 2004 2006 2005 2004
Net periodic benefit cost (income):
Discount rate 5.55% 5.69% 6.17% 5.66% 5.78% 6.31%
Expected long-term rate of return on assets 8.54% 8.57% 8.72% — — —
Rate of compensation increase 4.36% 4.35% 4.33% — — —
Benefit obligations at year-end:
Discount rate 5.57% 5.55% 5.69% 5.67% 5.66% 5.78%
Rate of compensation increases 4.38% 4.36% 4.35% — — —
Healthcare cost trend rates:
Initial medical drug rate* — — — 8.0% 11.0% 10.0%
Initial prescription drug rate* — — — 12.0% 11.0% —
* For 2006, we estimate that the medical cost trend rate will decline to 5% for 2009 and thereafter, and the prescription drug cost trend rate will decline to 5% for
2013 and thereafter.
Assumed healthcare cost trend rates have a significant effect on the amounts reported for the postretirement benefits other than pensions. A one-
percentage-point change in assumed healthcare cost trend rates would have the following effects:
One- One-
Percentage- Percentage-
Point Point
(In millions)
Increase Decrease
Effect on total of service and interest cost components $ 4 $ (4)
Effect on postretirement benefit obligations other than pensions $ 54 $ (47)
Pension Benefits
The accumulated benefit obligation for all defined benefit pension plans was $4.9 billion at December 30, 2006 and $4.7 billion at December 31,
2005. Pension plans with accumulated benefit obligations exceeding the fair value of plan assets were as follows:
(In millions)
2006 2005
Projected benefit obligation $ 862 $ 2,202
Accumulated benefit obligation $ 737 $ 1,949
Fair value of plan assets $ 433 $ 1,643
Notes to the Consolidated Financial Statements