Hess 2008 Annual Report Download - page 77

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foreign currency translation were reductions in stockholders’ equity of $123 million at December 31, 2008 and
$3 million at December 31, 2007.
10. Retirement Plans
The Corporation has funded noncontributory defined benefit pension plans for a significant portion of its
employees. In addition, the Corporation has an unfunded supplemental pension plan covering certain employees.
The unfunded supplemental pension plan provides for incremental pension payments from the Corporation so that
total pension payments equal amounts that would have been payable from the Corporation’s principal pension
plans, were it not for limitations imposed by income tax regulations. The plans provide defined benefits based on
years of service and final average salary. Additionally, the Corporation maintains an unfunded postretirement
medical plan that provides health benefits to certain qualified retirees from ages 55 through 65. The measurement
date for all retirement plans is December 31. The following table summarizes the Corporation’s benefit obligations
and the fair value of plan assets and shows the funded status of the pension and postretirement medical plans:
2008 2007 2008 2007 2008 2007
Funded
Pension Plans
Unfunded
Pension Plan
Postretirement
Medical Plan
(Millions of dollars)
Change in benefit obligation
Balance at January 1 . . . ...................... $1,136 $1,098 $ 147 $ 114 $86 $89
Service cost ............................... 36 36 6533
Interest cost ............................... 71 65 9844
Actuarial (gain) loss . . . ...................... 19 (31) 11 30 (13) (5)
Benefit payments............................ (42) (37) (8) (10) (3) (5)
Foreign currency exchange rate changes ........... (95) 5————
Balance at December 31 .................... 1,125 1,136 165 147 77 86
Change in fair value of plan assets
Balance at January 1 . . . ...................... 1,075 961 ————
Actual return on plan assets .................... (280) 70 ————
Employer contributions . ...................... 70 77 810 35
Benefit payments............................ (42) (37) (8) (10) (3) (5)
Foreign currency exchange rate changes ........... (78) 4————
Balance at December 31 .................... 745 1,075 ————
Funded status (plan assets less than benefit obligations)
at December 31 ............................. (380) (61) (165)* (147)* (77) (86)
Unrecognized net actuarial losses................ 513 162 77 75 13 27
Unrecognized prior service cost ................. ——12—(1)
Net amount recognized ..................... $ 133 $ 101 $ (87) $ (70) $(64) $(60)
*The trust established by the Corporation for the supplemental plan held assets valued at $65 million at December 31, 2008 and $88 million at
December 31, 2007.
61
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)