Estee Lauder 2005 Annual Report Download - page 77

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THE EST{E LAUDER COMPANIES INC. 76
The projected benefit obligation, accumulated benefit obligation, fair value of plan assets and the other comprehensive
(income) loss due to change in minimum liability recognition for the Company’s pension plans at June 30 are as follows:
Pension Plans
2005 2004 2005 2004 2005 2004
(In millions)
Projected benefit obligation $347.9 $307.1 $75.3 $67.3 $255.5 $207.4
Accumulated benefit obligation 291.9 258.5 53.9 52.8 224.1 177.2
Fair value of plan assets 353.3 341.4 ——187.2 154.6
Other comprehensive (income) loss
due to change in minimum
liability recognition:
Increase (decrease) in additional
minimum liability $— $— $ (0.7) $ (8.1) $ 16.4 $ (18.7)
(Increase) decrease in intangible asset ——0.1 0.1 (0.3) 0.1
Other comprehensive (income) loss $— $— $ (0.6) $ (8.0) $ 16.1 $ (18.6)
International pension plans with accumulated benefit obligations in excess of the plans’ assets had aggregate projected ben-
efit obligations of $176.0 million and $139.4 million, aggregate accumulated benefit obligations of $156.8 million and
$120.3 million and aggregate fair value of plan assets of $103.5 million and $85.0 million at June 30, 2005 and 2004,
respectively.
Other than
Pension Plans Pension Plans
($ in millions)
Expected Cash Flows:
Expected employer contributions for year ending
June 30, 2006 $ — $19.9 N/A
Expected benefit payments for year ending June 30,
2006 40.0 9.6 $ 2.1
2007 31.2 7.1 2.2
2008 26.6 10.5 2.4
2009 26.6 11.1 2.8
2010 30.3 9.9 3.1
Years 2011–2015 174.1 70.6 23.2
Plan Assets:
Actual asset allocation at June 30, 2005
Equity 67% 62% N/A
Fixed income 26% 32% N/A
Other 7% 6% N/A
100% 100% N/A
Target asset allocation
Equity 57% 62% N/A
Fixed income 28% 36% N/A
Other 15% 2% N/A
100% 100% N/A
The target asset allocation policy was set to maximize returns with consideration to the long-term nature of the obligations
and maintaining a lower level of overall volatility through the allocation to fixed income. During the year, the asset allocation
is reviewed for adherence to the target policy and is rebalanced periodically towards the target weights.
PostretirementInternationalU.S.
InternationalRestoration
Retirement
Growth Account