Twenty-First Century Fox 2008 Annual Report Download - page 122

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NEWSCORP
Notes to the Consolidated Financial Statements (continued)
The components of net periodic costs were as follows:
Pension benefits Postretirement benefits
2008 2007 2006 2008 2007 2006
For the years ended June 30, (in millions)
Components of net periodic cost:
Service cost benefits earned during the
period $ 87 $ 70 $ 82 $ 7 $ 4 $ 4
Interest costs on projected benefit
obligations 150 122 106 16 8 7
Expected return on plan assets (166) (135) (122) — — —
Amortization of deferred losses 14 19 45 1 2 3
Other 7 (2) (1) (6) (6) (5)
Net periodic costs $ 92 $ 74 $ 110 $ 18 $ 8 $ 9
Pension benefits Postretirement benefits
2008 2007 2006 2008 2007 2006
For the years ended June 30, (in millions)
Additional information:
Decrease (increase) in minimum liability reflected in other comprehensive income N/A N/A $286 N/A N/A N/A
Weighted-average assumptions used to determine benefit obligations
Discount rate 6.7% 6.0% 5.9% 6.9% 6.2% 6.1%
Rate of increase in future compensation 5.1% 5.0% 4.9% N/A N/A N/A
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate 6.0% 5.9% 5.1% 6.2% 6.1% 5.2%
Expected return on plan assets 7.0% 7.0% 7.5% N/A N/A N/A
Rate of increase in future compensation 5.0% 4.9% 4.8% N/A N/A N/A
N/A—not applicable
The following assumed health care cost trend rates at June 30 were also used in accounting for postretirement benefits:
Postretirement benefits
Fiscal 2008 Fiscal 2007
Health care cost trend rate 8.8% 8.2%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.1% 4.9%
Year that the rate reaches the ultimate trend rate 2015 2011
Assumed health care cost trend rates could have a significant effect on the amounts reported for the postretirement health care plan. The
effect of a one percentage point increase and one percentage point decrease in the assumed health care cost trend rate would have the following
effects on the results for fiscal 2008:
Service and
interest costs Benefit
Obligation
(in millions)
One percentage point increase $ 2 $ 35
One percentage point decrease (2) (29)
121