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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The components of the change in benefit obligation are as follows (table in thousands):
December 31,
2005
December 31,
2004
Benefit obligation, beginning of year $ 4,496 $ 4,822
Interest cost 390 272
Benefits paid (504) (660)
Actuarial loss 3,055 62
Benefit obligation, end of year $ 7,437 $ 4,496
The reconciliation of the beginning and ending balances of the fair value of plan assets is as follows (table in thousands):
December 31,
2005
December 31,
2004
Fair value of plan assets, beginning of year $ 391 $ 357
Actual return on plan assets 17 34
Employer contributions 504 660
Benefits paid (504) (660)
Fair value of plan assets, end of year $ 408 $ 391
We expect to contribute $1.1 million to the plan in 2006.
The funded status of the plan and presentation in the balance sheet are as follows (table in thousands):
December 31,
2005
December 31,
2004
Funded status $ (7,029) $ (4,105)
Unrecognized actuarial loss (gain) 1,830 (1,063)
Unrecognized prior service credit (1,048) (1,149)
Accrued benefit liability $ (6,247) $ (6,317)
The components of net periodic benefit cost are as follows (table in thousands):
December 31,
2005
December 31,
2004
December 31,
2003
Interest cost $ 390 $ 272 $ 303
Expected return on plan assets (32) (30) (24)
Amortization of prior service credit (101) (100) (101)
Recognized actuarial (loss) gain 177 (51) (55)
Net periodic benefit cost $ 434 $ 91 $ 123
The weighted-average assumptions used in the plan to determine benefit obligations at December 31 are as follows:
December 31,
2005
December 31,
2004
December 31,
2003
Discount rate 5.7% 5.7% 6.1%
Expected long-term rate of return on plan assets 8.25% 8.25% 8.25%
Rate of compensation increase N/A N/A N/A
The weighted-average assumptions used in the plan to determine net benefit cost for the years ended December 31 are as follows:
December 31,
2005
December 31,
2004
December 31,
2003