Hess 2008 Annual Report Download - page 78

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Amounts recognized in the consolidated balance sheet at December 31 consist of the following:
2008 2007 2008 2007 2008 2007
Funded
Pension Plans
Unfunded
Pension Plan
Postretirement
Medical Plan
(Millions of dollars)
Accrued benefit liability .......................... $(380) $ (61) $(165) $(147) $(77) $(86)
Accumulated other comprehensive loss* . . ............ 513 162 78 77 13 26
Net amount recognized ........................... $ 133 $101 $ (87) $ (70) $(64) $(60)
*The after-tax reduction to stockholders’ equity recorded in Accumulated other comprehensive income (loss) was $407 million at December 31,
2008 and $166 million at December 31, 2007.
The accumulated benefit obligation for the funded defined benefit pension plans was $1,032 million at
December 31, 2008 and $1,019 million at December 31, 2007. The accumulated benefit obligation for the unfunded
defined benefit pension plan was $149 million at December 31, 2008 and $120 million at December 31, 2007.
Components of net periodic benefit cost for funded and unfunded pension plans and the postretirement medical
plan consisted of the following:
2008 2007 2006 2008 2007 2006
Pension Plans Postretirement Medical Plan
(Millions of dollars)
Service cost ........................ $42 $41 $34 $3 $3 $3
Interest cost ........................ 80 73 63 445
Expected return on plan assets........... (80) (74) (63) ———
Amortization of prior service cost . ....... 111(1) (1) (1)
Amortization of unrecognized net actuarial
loss............................. 18 22 30 1——
Settlement loss ...................... ————23
Net periodic benefit cost ............... $61 $63 $65 $7 $ 8 $10
Prior service costs and actuarial gains and losses in excess of 10% of the greater of the benefit obligation or the
market value of assets are amortized over the average remaining service period of active employees.
The Corporation’s 2009 pension and postretirement medical expense is estimated to be approximately
$125 million, of which approximately $57 million relates to the amortization of unrecognized net actuarial losses.
62
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)