DTE Energy 2008 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2008 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 33

  • 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
  • 31
  • 32
  • 33

In its April 2005 final rate order, the MPSC approved the deferral of the non-capitalized portion of our negative pension expense. In 2008 and
2007, we deferred $39 million and $32 million, respectively, as a regulatory liability.
Net pension credit includes the following components:
Special termination benefits in the above table represent cost associated with our Performance Excellence Process.
The following table reconciles the obligations, assets and funded status of the Company’s portion of the pension plans as well as the amounts
recognized as prepaid pension cost in the Consolidated Statements of Financial Position at December 31:
26
(in Millions) 2008 2007 2006
Service cost $10 $ 11 $12
Interest cost 40 38 39
Expected return on Plan assets (93) (88)(84)
Amortization of:
Net loss — 2 2
Prior service cost 1 11
Special termination benefits — 1 11
Net pension credit $(42)
$(35) $(19)
(in Millions) 2008 2007
Other changes in plan assets and benefit obligations recognized in regulatory assets
Net actuarial loss (gain) $387 $(64)
Amortization of net actuarial gain —(2)
Amortization of prior service cos
t
(1) (1)
Total recognized in regulatory assets (liabilities) $386 $ (67)
Total recognized in net periodic pension cost and regulatory assets (liabilities) $344 $ (102)
Estimated amounts to be amortized from regulatory assets into net periodic benefit cost during next
fiscal
y
ear
Net actuarial loss $1
$ —
Prior service cost $ — $ 1
(in Millions) 2008 2007
Accumulated benefit obligation, end of year $586 $589
Chan
g
e in
p
ro
j
ected benefit obli
g
ation
Projected benefit obligation, beginning of year $644 $701
Service cost
10 11
Interest cost 40 39
Actuarial loss
(25) (49)
Measurement date change 4
—
Benefits paid
(46) (58)
Projected benefit obligation, end of year $627 $ 644
Change in plan assets
Plan assets at fair value, beginning of year $1,106 $1,055
Actual return on Plan assets
(319) 104
Benefits paid (46)(53)
Measurement date change 8
—
Plan assets at fair value, end of year $749 $1,106
Funded status of the Plans, December 31 $122
$462
Amounts recorded as:
Noncurrent assets $136
$432
Current liabilities (1)(1)
Noncurrent liabilities
(13) (7)
$122 $424