EMC 2008 Annual Report Download - page 93

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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 2008, no 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 losses
of $1.0 million that further increased the accumulated other comprehensive loss. We expect that $0.1 million of the total balance included in accumulated
other comprehensive loss at December 31, 2008 will be recognized as a component of net periodic benefit cost in 2009. We do not expect to receive any
refunds from the plan in 2009.
The components of net periodic benefit cost are as follows (table in thousands):
December 31,
2008 December 31,
2007 December 31,
2006
Interest cost $ 203 $ 285 $ 339
Expected return on plan assets (41) (38) (34)
Amortization of prior service credit (113) (113) (101)
Recognized actuarial loss 10 — 19
Settlement loss — 110 —
Net periodic benefit cost $ 59 $ 244 $ 223
The weighted-average assumptions used in the plan to determine benefit obligations at December 31 are as follows:
December 31,
2008 December 31,
2007 December 31,
2006
Discount rate 6.6% 6.6% 5.9%
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,
2008 December 31,
2007 December 31,
2006
Discount rate 6.6% 5.9% 5.7%
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 assumed health care cost trend rate for the plan is as follows:
December 31,
2008 December 31,
2007
Health care cost trend rate assumed for next year 8.8% 9.5%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.0% 5.0%
Year that the rate reaches the ultimate trend rate 2015 2015
87