Federal Express 2005 Annual Report Download - page 78

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FEDEX CORPORATION
76
The following table provides a reconciliation of the changes in the pension and postretirement healthcare plans’ benefit obligations and fair
value of assets over the two-year period ended May 31, 2005 and a statement of the funded status as of May 31, 2005 and 2004 (in millions):
Postretirement
Pension Plans Healthcare Plans
2005 2004 2005 2004
Accumulated Benefit Obligation (“ABO”) $ 8,933 $ 7,427
Changes in Projected Benefit Obligation (“PBO”)
Projected benefit obligation at the beginning of year $ 8,683 $ 7,117 $496 $382
Service cost 417 376 37 35
Interest cost 579 490 32 25
Actuarial loss 907 661 –36
Benefits paid (194) (136) (36) (23)
Special termination benefits(1) –158 –38
Amendments, benefit enhancements and other 917 83
Projected benefit obligation at the end of year $10,401 $ 8,683 $537 $496
Change in Plan Assets
Fair value of plan assets at beginning of year $ 7,783 $ 5,825 $– $–
Actual return on plan assets 746 1,751 ––
Company contributions 489 335 28 16
Benefits paid (194) (136) (36) (23)
Other 2887
Fair value of plan assets at end of year $ 8,826 $ 7,783 $– $–
Funded Status of the Plans $ (1,575) $ (900) $(537) $ (496)
Unrecognized actuarial loss (gain) 2,500 1,694 (1) (1)
Unamortized prior service cost 104 118 41
Unrecognized transition amount (4) (5) ––
Prepaid (accrued) benefit cost $ 1,025 $ 907 $(534) $ (496)
Amount Recognized in the Balance Sheet at May 31:
Prepaid benefit cost $ 1,272 $ 1,127 $– $–
Accrued benefit liability (247) (220) (534) (496)
Minimum pension liability (63) (67) ––
Accumulated other comprehensive income(2) 52 54 ––
Intangible asset 11 13 ––
Prepaid (accrued) benefit cost $ 1,025 $ 907 $(534) $ (496)
(1) The special termination benefits reflected in the table above related primarily to early retirement incentives offered to certain groups of our employees at FedEx Express during 2004
(see Note 5 for more information).
(2) The minimum pension liability component of Accumulated Other Comprehensive Income is shown in the Statement of Changes in Stockholders’ Investment and Comprehensive
Income, net of deferred taxes.