Raytheon 2005 Annual Report Download - page 104

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The tables below provide a reconciliation of benefit obligations, plan assets, funded status, and related actuarial
assumptions of the Company’s domestic and foreign Pension Benefits and Other Benefits plans.
Change in Benefit Obligation Pension Benefits Other Benefits
(In millions) 2005 2004 2005 2004
Benefit obligation at beginning of year $14,910 $13,496 $1,345 $1,657
Service cost 386 341 14 16
Interest cost 830 815 74 93
Plan participants’ contributions 29 28 72 72
Amendments 10 7—(125)
Actuarial loss (gain) 1,146 1,074 (97) (200)
Divestitures (3) (14) —(1)
Foreign exchange (68) 55 ——
Benefits paid (887) (892) (174) (167)
Benefit obligation at end of year $16,353 $14,910 $1,234 $1,345
Change in Plan Assets Pension Benefits Other Benefits
(In millions) 2005 2004 2005 2004
Fair value of plan assets at beginning of year $11,273 $ 9,986 $ 439 $ 400
Actual return on plan assets 1,572 1,716 35 32
Divestitures (3) (16) ——
Company contributions 510 415 97 102
Plan participants’ contributions 29 28 72 72
Foreign exchange (43) 36 ——
Benefits paid (887) (892) (174) (167)
Fair value of plan assets at end of year $12,451 $11,273 $ 469 $ 439
The fair value of plan assets for the Company’s domestic and foreign Pension Benefits plans was $12,017 million and
$434 million, respectively at December 31, 2005 and $10,873 million and $400 million, respectively, at December 31,
2004.
Funded Status - unrecognized components Pension Benefits Other Benefits
(In millions) December 31: 2005 2004 2005 2004
Funded status $(3,902) $(3,637) $(765) $(906)
Unrecognized actuarial loss 5,107 5,126 427 556
Unrecognized transition obligation ——40 48
Unrecognized prior service cost 150 158 (275) (328)
Prepaid (accrued) benefit cost $ 1,355 $ 1,647 $(573) $(630)
The table above reconciles the difference between the benefit obligation and the fair value of plan assets to the amounts
recorded on the Company’s balance sheet due to certain items that are amortized over future periods rather than
recognized in the current period.
82