DTE Energy 2007 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2007 DTE Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 30

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30

(in Millions) 2007 2006
Other changes in plan assets and APBO recognized in regulatory assets
Net actuarial (gain) $ (80) $ N/A
Amortization of net actuarial (gain) (10) N/A
Prior service cost (16) N/A
Amortization of prior service cost (2) N/A
Amortization of transition (asset) (5) N/A
Total recognized in regulatory assets $ (113)$ N/A
Total recognized in net periodic benefit cost and regulatory assets $ (68)$ N/A
Estimated amounts to be amortized from regulatory assets into net periodic benefit cost during
next fiscal year
Net actuarial loss $ 5 $ 9
Prior service cost $ 1 $ 2
Net transition obligation $ 3 $ 5
The above table represents disclosure required of SFAS No. 158 beginning in 2007.
The following table reconciles the obligations, assets and funded status of the plans including amounts recorded as accrued
postretirement cost in the Consolidated Statements of Financial Position at December 31:
(in Millions) 2007 2006
Change in accumulated postretirement benefit obligation
Accumulated postretirement benefit obligation, beginning of year $ 510 $ 453
Service cost 15 14
Interest cost 28 26
Actuarial loss (81) 38
Special termination benefits — 2
Benefits paid and Medicare Part D (25) (23)
Plan amendments (16) —
Accumulated postretirement benefit obligation, end of year $ 431 $ 510
Change in plan assets
Plan assets at fair value, beginning of year $ 156 $ 129
Company contribution 20 20
Actual return on plan assets 14 16
Benefits paid (15) (9)
Plan assets at fair value, end of year $ 175 $ 156
Funded status of the plans, November 30 $ (256) $ (354)
December adjustment (12) 7
Funded status at fair value, December 31 $ (268)$ (347)
Noncurrent liabilities $ (268) $ (347)
Amounts recognized in regulatory assets
Net loss $ 67 $ 157
Prior service cost $ 6 $ 12
Net transition obligation $ 18 $ 35
Assumptions used in determining the projected benefit obligation and net benefit cost are listed below:
2007 2006 2005
Projected benefit obligation
Discount rate 6.50% 5.70% 5.90%
Net benefit costs
Discount rate 5.70% 5.90% 6.00%
Expected long-term rate of return on plan assets 8.75% 8.75% 9.00%
Health care trend rate pre-65 8.00% 9.00% 9.00%
Health care trend rate post-65 7.00% 8.00% 8.00%
Ultimate health care trend rate 5.00% 5.00% 5.00%
Year in which ultimate reached 2011 2011 2011
26