Fannie Mae 2008 Annual Report Download - page 363

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, 2008 and 2007.
Qualified
Non-
Qualified
Other Post-
Retirement
Plan Qualified
Non-
Qualified
Other Post-
Retirement
Plan
Pension Plans Pension Plans
2008 2007
As of December 31,
(Dollars in millions)
Net actuarial (gain) loss . . . . . . . . . . . . . . . . $279 $ (3) $ 32 $(38) $ (5) $ 28
Net prior service cost (credit) . . . . . . . . . . . . 6 4 (66) 7 7 (71)
Net transition obligation. . . . . . . . . . . . . . . . — — 7 — — 9
Pre-tax amount recorded in AOCI . . . . . . . . . $285 $ 1 $(27) $(31) $ 2 $(34)
After-tax amount recorded in AOCI
(1)
. . . . . . $285 $ 1 $(27) $(21) $ 1 $(28)
(1)
During 2008, we established a valuation allowance for our deferred tax assets, which has resulted in the reversal of the
tax benefit amounts recorded in AOCI for our pension and other postretirement plans. Refer to “Note 12, Income
Taxes” for additional information.
The following table displays the changes in the pre-tax amounts recognized in AOCI for the years ended
December 31, 2008 and 2007.
Qualified
Non-
Qualified
Other Post-
Retirement
Plan Qualified
Non-
Qualified
Other Post-
Retirement
Plan
Pension Plans Pension Plans
2008 2007
For the Year Ended December 31,
(Dollars in millions)
Actuarial (Gain) Loss
Beginning balance, January 1 . . . . . . . . . . $ (38) $ (5) $ 28 $ 59 $ 25 $ 32
Current year actuarial (gain) loss . . . . . . . . 317 1 5 (53) (21) (3)
Actuarial gain due to curtailments . . . . . . . — — — (44) (7) —
Amortization . . . . . . . . . . . . . . . . . . . . . . — 1 (1) — (2) (1)
Ending balance, December 31 . . . . . . . . . . $279 $ (3) $ 32 $(38) $ (5) $ 28
Prior Service Cost (Credit)
Beginning balance, January 1 . . . . . . . . . . $ 7 $ 7 $(71) $ 10 $ 7 $ (7)
Current year prior service cost (credit) . . . . — — — 2 — (66)
Prior service cost (credit) due to
curtailments . . . . . . . . . . . . . . . . . . . . . — (1) — (4) 2 1
Amortization . . . . . . . . . . . . . . . . . . . . . . (1) (2) 5 (1) (2) 1
Ending balance, December 31 . . . . . . . . . . $ 6 $ 4 $(66) $ 7 $ 7 $(71)
Transition Obligation
Beginning balance, January 1 . . . . . . . . . . . . $ — $— $ 9 $ — $ — $ 12
Adjustment recognized due to curtailments . . — — — — — (1)
Amortization . . . . . . . . . . . . . . . . . . . . . . . — — (2) — — (2)
Ending balance, December 31 . . . . . . . . . . . $ — $— $ 7 $ — $ — $ 9
F-85
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)