Foot Locker 2006 Annual Report Download - page 70

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54
Prior to
AML and
Statement
No. 158
Adju stm ent s
AML
Adjustment
Effect of
Adoption
Statement
No. 158
Post AML and
Statement
No. 158
Adjustments
(in millions)
Accrued and other liabilities ........................ 246 — — 246
Total current liabilities ............................ 516 — — 516
Other liabilities .................................. 300 (308) 226 218
Other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . (150) 187 (133) (96)
Total shareholders’ equity ........................... 2,323 (121) 93 2,295
Total liabilities and shareholders’ equity ............... $3,277 (121) 93 $3,249
The following weighted-average assumptions were used to determine the benefit obligations under the plans:
Pension Benefits Postretirement Benefits
2006 2005 2006 2005
Discount rate ..................................... 5.68% 5.43% 5.80% 5.50%
Rate of compensation increase ........................ 3.76% 3.77%
The components of net benefit expense (income) are:
Pension Benefits Postretirement Benefits
2006 2005 2004 2006 2005 2004
(in millions)
Service cost ................................... $ 10 $ 9 $ 9 $ — $ — $ —
Interest cost ................................... 36 36 39 1 1 1
Expected return on plan assets ..................... (56) (49) (48) — — —
Amortization of prior service cost (benefit) ........... 1 1 1 (1) (1) (1)
Amortization of net (gain) loss ..................... 12 13 11 (10) (12) (13)
Net benefit expense (income) ...................... $ 3 $ 10 $ 12 $(10) $(12) $(13)
The following weighted-average assumptions were used to determine net benefit cost:
Pension Benefits Postretirement Benefits
2006 2005 2004 2006 2005 2004
Discount rate .................................. 5.44% 5.50% 5.90% 5.50% 5.50% 5.90%
Rate of compensation increase ..................... 3.76% 3.77% 3.79%
Expected long-term rate of return on assets ........... 8.87% 8.88% 8.89%
The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net
periodic benefit cost (income) during the next year are as follows:
Pension Postretirement Benefits Total
(in millions)
Amortization of prior service cost (benefit) ...... $ 1 $(1) $—
Amortization of net loss (gain) ................ $11 $(8) $ 3
The expected long-term rate of return on invested plan assets is based on historical long-term performance and
future expected performance of those assets based upon current asset allocations.