Fannie Mae 2007 Annual Report Download - page 253

The following table displays components of our net periodic benefit costs for our qualified and nonqualified
pension plans and our postretirement Health Care Plan for the years ended December 31, 2007, 2006 and
2005.
Qualified
Non-
Qualified
Other Post-
Retirement
Plan Qualified
Non-
Qualified
Other Post-
Retirement
Plan Qualified
Non-
Qualified
Other Post-
Retirement
Plan
Pension Plans Pension Plans Pension Plans
2007 2006 2005
For the Year Ended December 31,
(Dollars in millions)
Service cost ................... $ 58 $11 $14 $ 53 $10 $12 $ 47 $10 $11
Interest cost ................... 48 10 11 44 9 10 37 9 9
Expected return on plan assets....... (57) — — (44) — — (40) — —
Curtailment (gain) loss ............ 5 (3) 9 — — — — — —
Amortization of initial transition
obligation ...................
—— 2 —— 2 —— 2
Amortization of prior service cost
(credit).....................
1 2 (1) — 3 (1) — 2 (1)
Amortization of net loss ........... —2 1 73 2 53 1
Net periodic benefit cost ......... $ 55 $22 $36 $ 60 $25 $25 $ 49 $24 $22
Prior service costs, which are changes in benefit obligations due to plan amendments, are amortized over the
average remaining service period for active employees for our pension plans and prior to the full eligibility
date for the other postretirement Health Care Plan. Amortization of prior service costs and unrecognized gains
or losses are included in the net periodic benefit costs in “Salaries and employee benefits expense” in the
consolidated statements of operations.
The following table displays amounts recorded in AOCI that have not been recognized as components of net
periodic benefit cost for the years ended December 31, 2007 and 2006.
Qualified
Non-
Qualified
Other Post-
Retirement
Plan Qualified
Non-
Qualified
Other Post-
Retirement
Plan
Pension Plans Pension Plans
2007 2006
For the Years Ended December 31,
(Dollars in millions)
Net actuarial (gain) loss . . . . . . . . . . . . . . . . $(38) $ (5) $ 28 $59 $25 $32
Net prior service cost (credit) . . . . . . . . . . . . 7 7 (71) 10 7 (7)
Net transition obligation. . . . . . . . . . . . . . . . — — 9 — — 12
Pre-tax amount recorded in AOCI . . . . . . . . . $(31) $ 2 $(34) $69 $32 $37
After-tax amount recorded in AOCI . . . . . . . $(21) $ 1 $(28) $45 $20 $16
F-65
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)