US Bank 2008 Annual Report Download - page 97

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In accordance with Statement of Financial Accounting
Standards No. 158 (“SFAS 158”), “Employers’ Accounting
for Defined Benefit Pension and Other Postretirement
Plans — an amendment of FASB Statements No. 87, 88,
106, and 132(R)”, the Company eliminated its early
measurement date for its retirement plans during 2008,
resulting in the Company recording a cumulative effect
accounting adjustment to decrease beginning retained
earnings by $4 million (net of tax) and increase accumulated
other comprehensive income (loss) by $3 million (net of
tax).
The following table summarizes benefit obligation and plan asset activity for the retirement plans:
(Dollars in Millions) 2008 2007 2008 2007
Pension Plans Postretirement Welfare Plan
Projected Benefit Obligation
Benefit obligation at beginning of measurement period . . . . . . . . . . . . . . . $ 2,225 $2,127 $206 $238
Effect of eliminating early measurement date . . . . . . . . . . . . . . . . . . . . . 26 – (1) –
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 70 6 6
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 126 12 14
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – 14 15
Actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 12 (29) (34)
Benefit payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (122) (122) (36) (35)
Acquisitions and other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 12 4 2
Benefit obligation at end of measurement period (a). . . . . . . . . . . . . . . . . $ 2,368 $2,225 $176 $206
Fair Value Of Plan Assets
Fair value at beginning of measurement period . . . . . . . . . . . . . . . . . . . . $ 2,943 $2,578 $177 $183
Effect of eliminating early measurement date . . . . . . . . . . . . . . . . . . . . . 32 – (3) –
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,173) 468 5 9
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 19 1 5
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – 14 15
Benefit payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (122) (122) (36) (35)
Fair value at end of measurement period . . . . . . . . . . . . . . . . . . . . . . . . $ 1,699 $2,943 $158 $177
Funded Status
Funded status at end of measurement period . . . . . . . . . . . . . . . . . . . . . $ (669) $ 718 $ (18) $ (29)
Fourth quarter contribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 5 – –
Recognized amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (669) $ 723 $ (18) $ (29)
Components Of The Consolidated Balance Sheet
Noncurrent benefit asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ – $ 992 $ – $ –
Current benefit liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (22) (21) – –
Noncurrent benefit liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (647) (248) (18) (29)
Recognized amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (669) $ 723 $ (18) $ (29)
Accumulated Other Comprehensive Income (Loss)
Net actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,538 $ 159 $ (79) $ (50)
Prior service (credit) cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18) (26) (3) (4)
Transition (asset) obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – 2 4
Recognized amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,520 133 (80) (50)
Deferred tax asset (liability) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581 50 (31) (19)
Net recognized amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 939 $ 83 $ (49) $ (31)
(a) At December 31, 2008 and 2007, the accumulated benefit obligation for all pension plans was $2.2 billion and $2.1 billion, respectively.
The following table provides information for pension plans with benefit obligations in excess of plan assets:
(Dollars in Millions) 2008 2007
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,368 $274
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,699 –
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,207 265
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,669 –
U.S. BANCORP 95