E-Z-GO 2008 Annual Report Download - page 91

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Notes to the Consolidated Financial Statements
78
Obligations and Funded Status
All of our plans are measured as of our fiscal year-end. The changes in the projected benefit obligation and in the fair value of plan assets, along
with our funded status, are as follows:
Postretirement Benefits
Pension Benefits Other than Pensions
(In millions) 2008 2007 2008 2007
Change in benefit obligation:
Benefit obligation at beginning of year $ 5,202 $ 4,924 $ 714 $ 713
Service cost 141 127 8 8
Interest cost 302 271 40 39
Amendments 8 44 (27) (5)
Plan participants’ contributions — — 5 4
Actuarial (gains) losses (205) (114) (31) 6
Benefits paid (295) (270) (73) (67)
Effect of acquisitions — 198 — 16
Foreign exchange rate changes (52) 22 — —
Curtailments (13) — — —
Benefit obligation at end of year $ 5,088 $ 5,202 $ 636 $ 714
Change in fair value of plan assets:
Fair value of plan assets at beginning of year $ 5,026 $ 4,751 $ — $ —
Actual return on plan assets (1,139) 347 — —
Employer contributions 41 26 — —
Benefits paid (295) (270) — —
Effect of acquisitions — 158 — —
Foreign exchange rate changes (59) 14 — —
Fair value of plan assets at end of year $ 3,574 $ 5,026 $ — $ —
Funded status at end of year $ (1,514) $ (176) $ (636) $ (714)
Amounts recognized in our balance sheets for continuing operations are as follows:
Postretirement Benefits
Pension Benefits Other than Pensions
(In millions) 2008 2007 2008 2007
Non-current assets $ 47 $ 288 $ — $ —
Current liabilities (18) (13) (63) (68)
Non-current liabilities (1,543) (469) (573) (646)
Recognized in accumulated other comprehensive income (loss):
Net loss 1,844 534 115 162
Prior service cost (credit) 172 185 (35) (13)
Assumptions
The weighted-average assumptions we use for our pension and postretirement plans are as follows:
Postretirement Benefits
Pension Benefits Other than Pensions
2008 2007 2006 2008 2007 2006
Net periodic benefit cost (income):
Discount rate 5.99% 5.63% 5.61% 6.00% 5.66% 5.65%
Expected long-term rate of return on assets 8.66% 8.63% 8.64% — — —
Rate of compensation increase 4.48% 4.45% 4.48% — — —
Benefit obligations at year-end:
Discount rate 6.28% 5.99% 5.62% 6.25% 6.00% 5.65%
Rate of compensation increases 4.47% 4.44% 4.50% — — —