EMC 2007 Annual Report Download - page 89
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EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The reconciliation of the beginning and ending balances of the fair value of plan assets is as follows (table in thousands):
December 31, 2007 December 31, 2006
Fair value of plan assets, at beginning of year $ 466 $ 408
Actual return on plan assets 33 58
Employer contributions 2,478 694
Settlements (1,544) —
Benefits paid (934) (694)
Fair value of plan assets, at end of year $ 499 $ 466
We expect to contribute $0.7 million to the plan in 2008.
The net funded status of the plan which is recognized in the balance sheet as an accrued benefit liability in connection with the plan at December 31,
2007 and 2006, respectively, were net liabilities of $2.8 million and $5.3 million, respectively. At December 31, 2007 and 2006, we recognized $2.8 million
and $5.3 million, respectively in the balance sheet as an accrued benefit liability in connection with the plan.
Upon adoption of FAS No. 158 in 2006, we reclassified the accumulated actuarial loss and prior service credit associated with the plan to accumulated
other comprehensive loss. The reclassification consisted of the following items (table in thousands):
December 31, 2006
Accumulated actuarial loss $ (438)
Prior service credit 947
Taxes 191
Net amount reclassified $ 318
There was no other activity within accumulated other comprehensive loss during 2006 associated with the plan. In 2007, $0.1 million of the accumulated
actuarial loss due to the settlement of the liability associated with the retiree life insurance plan and $0.1 million of prior services credits associated with the
plan were reclassified from accumulated comprehensive loss to a component of net pension benefit cost. Additionally, the plan had gains of $0.1 million and
created an additional prior service credit of $0.1 million that further improved the accumulated other comprehensive loss. We expect that $0.1 million of the
total balance included in accumulated other comprehensive loss at December 31, 2007 will be recognized as a component of net periodic benefit cost in 2008.
We do not expect to receive any refunds from the plan in 2008.
The components of net periodic benefit cost are as follows (table in thousands):
December 31, 2007 December 31, 2006 December 31, 2005
Interest cost $ 285 $ 339 $ 390
Expected return on plan assets (38) (34) (32)
Amortization of prior service credit (113) (101) (101)
Recognized actuarial loss — 19 177
Settlement loss 110 — —
Net periodic benefit cost $ 244 $ 223 $ 434
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