Mattel 2006 Annual Report Download - page 85

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A summary of the changes in benefit obligation and plans assets is as follows (in thousands):
Defined Benefit
Pension Plans
Postretirement
Benefit Plans
2006 2005 2006 2005
Change in Benefit Obligation
Benefit obligation, beginning of year ...................... $466,453 $ 418,410 $ 59,938 $ 58,564
Service cost .......................................... 12,110 10,016 106 119
Interest cost .......................................... 24,234 23,117 2,690 3,245
Participant contributions ................................ 56 54 — —
Plan amendments ...................................... 423 16,820 — —
Impact of currency exchange rate changes .................. 12,093 (10,551) — —
Actuarial loss (gain) .................................... (28,743) 29,158 (9,625) 1,732
Benefits paid ......................................... (24,240) (20,571) (3,063) (3,722)
Benefit obligation, end of year ........................... $462,386 $ 466,453 $ 50,046 $ 59,938
Change in Plan Assets
Plan assets at fair value, beginning of year .................. $296,564 $ 287,667 $ — $ —
Actual return on plan assets .............................. 31,979 21,176 — —
Employer contributions ................................. 14,212 13,266 3,063 3,722
Participant contributions ................................ 56 54 — —
Impact of currency exchange rate changes .................. 7,192 (5,028) — —
Benefits paid ......................................... (24,240) (20,571) (3,063) (3,722)
Plan assets at fair value, end of year ....................... $325,763 $ 296,564 $ — $ —
Net Amount Recognized in Consolidated Balance Sheets
Funded status, end of year ............................... $(136,623) $(169,889) $(50,046) $(59,938)
Unrecognized actuarial loss .............................. N/A 178,215 N/A 23,970
Unrecognized prior service cost .......................... N/A 17,161 N/A —
Net amount recognized ................................. N/A $ 25,487 N/A $(35,968)
Intangible asset ....................................... N/A $ 17,161 N/A $ —
Accrued benefit liability ................................ N/A (99,403) N/A (35,968)
Accumulated other comprehensive loss (a) .................. N/A 107,729 N/A —
Net amount recognized ................................. N/A $ 25,487 N/A $(35,968)
Current accrued benefit liability .......................... (6,454) N/A (3,631) N/A
Noncurrent accrued benefit liability ....................... (130,169) N/A (46,415) N/A
Total accrued benefit liability ............................ $(136,623) N/A $(50,046) N/A
Amounts recognized in Accumulated Other Comprehensive
Loss (a)
Net loss .............................................. $137,864 $ 107,729 $ 13,427 $ —
Prior service cost ...................................... 10,455 — — —
$ 148,319 $ 107,729 $ 13,427 $ —
(a) Amounts exclude related tax benefits of $60.4 million and $39.0 million for December 31, 2006 and 2005,
respectively, which are also included in accumulated other comprehensive loss.
The accumulated benefit obligation differs from the projected benefit obligation in that it assumes future
compensation levels will remain unchanged. Mattel’s accumulated benefit obligation for its defined benefit
pension plans as of December 31, 2006 and 2005 totaled $435.9 million and $428.4 million, respectively. Mattel
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