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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Pension Benefits
The Company’s net periodic benefit cost for the fiscal years ended March 31, 2006, 2005, and
2004 included the following components:
The following table provides a reconciliation of the changes in the plans’ fair value of assets for the
fiscal years ended March 31, 2006 and 2005:
The following table provides the changes in the Company’s pension plans’ benefit obligations, rec-
onciliation of the benefit obligation, funded status and the amounts recognized in the balance
sheet at March 31:
55
National Grid USA / Annual Report
(in thousands) 2006 2005 2004
Service cost 55,412$ 51,346$ 47,989$
Interest cost 155,779 150,249 152,851
Expected return on plan assets (161,944) (165,347) (160,892)
Amortization of unrecognized prior service cost 4,913 3,310 2,660
Amortization of unrecognized loss 64,067 54,401 44,371
Net periodic benefit costs before settlements
and curtailments 118,227 93,959 86,979
Settlement and curtailment loss - 185 23,144
Special termination benefits - - 91,855
Net periodic benefit cost 118,227$ 94,144$ 201,978$
(in thousands) 2006 2005
Beginning balance, April 1, 1,960,624$ 1,947,572$
Actual return on plan assets 257,055 134,990
Employer contributions 134,916 140,369
Benefit payments (204,985) (261,249)
Settlements - (1,058)
Ending balance, March 31, 2,147,610$ 1,960,624$
(in thousands) 2006 2005
Accumulated benefit obligation 2,470,161$ 2,520,588$
Beginning balance, April 1, 2,808,396$ 2,723,921$
Service cost 55,412 51,346
Interest cost 155,779 150,249
Actuarial (gains)/losses (66,136) 113,983
Plan amendments - 31,201
Benefit payments (204,985) (261,249)
Settlements - (1,058)
Ending balance, March 31, 2,748,466$ 2,808,393$