Raytheon 2006 Annual Report Download - page 117

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The benefit obligation for our domestic and foreign Pension Benefits plans was $15,467 million and $754 million,
respectively, at December 31, 2006 and $14,856 million and $655 million, respectively, at December 31, 2005.
Change in Plan Assets Pension Benefits Other Benefits
(In millions) 2006 2005 2006 2005
Fair value of plan assets at beginning of year $11,866 $10,764 $ 470 $ 438
Actual return on plan assets 1,870 1,502 54 36
Company contributions 557 470 63 97
Plan participants’ contributions 26 28 51 71
Foreign exchange 57 (43) ——
Benefits paid (953) (852) (125) (172)
Net transfer in (out) 3(3) ——
Fair value of plan assets at end of year $13,426 $11,866 $ 513 $ 470
The fair value of plan assets for our domestic and foreign Pension Benefits plans was $12,901 million and $525 million,
respectively, at December 31, 2006 and $11,432 million and $434 million, respectively, at December 31, 2005.
Funded Status Pension Benefits Other Benefits
(In millions) December 31: 2006 2005 2006 2005
Funded status $(2,795) $(3,645) $(499) $(747)
Unrecognized actuarial loss (gain) —4,883 —426
Unrecognized transition obligation (asset) ———34
Unrecognized prior service cost (credit) —123 —(275)
Net amount recognized $(2,795) $ 1,361 $(499) $(562)
The table above reconciles the difference between the benefit obligation and the fair value of plan assets to the amounts
recorded on our balance sheet at December 31, 2005 due to unamortized items that upon adoption of SFAS No. 158 are
now recognized on our balance sheet at December 31, 2006.
Funded Status – amounts recognized on the balance sheet Pension Benefits Other Benefits
(In millions) December 31: 2006 2005 2006 2005
For years prior to the adoption of the provisions of SFAS No. 158:
Prepaid benefit cost $— $ 648 $— $62
Accrued benefit liability —(2,299) —(624)
Intangible asset —147 ——
Accumulated other comprehensive loss (income) —2,865 ——
For years after the adoption of the provisions of SFAS No. 158:
Noncurrent assets 499 —28 —
Current liabilities (33) —(22) —
Noncurrent liabilities (3,261) —(505) —
Net amount recognized $(2,795) $ 1,361 $(499) $(562)
Amounts recognized after the adoption of the provisions of SFAS No. 158: Pension Benefits Other Benefits
(In millions) December 31: 2006 2005 2006 2005
Accumulated other comprehensive income (loss):
Initial net asset (obligation) $— $— $ (27) $—
Prior service credit (cost) (109) —223 —
Net gain (loss) (3,768) —(179) —
Accumulated other comprehensive income (loss) $(3,877) $— $17 $—
89