Sprint - Nextel 2006 Annual Report Download - page 122

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The following table summarizes the change in the fair value of plan assets for the pension and postretirement
benefit plans for the years ended December 31, 2006 and 2005:
2006 2005 2006 2005
Year Ended
December 31,
Year Ended
December 31,
Pension Plan
Postretirement
Benefit Plan
(in millions)
Fair value of plan assets at beginning of year ................. $4,133 $3,678 $ 42 $ 42
Investment return ...................................... 305 363 1 —
Employer contributions ................................. — 300 24 62
Benefits paid . . ....................................... (105) (208) (24) (62)
Plan assets transferred to Embarq .......................... (3,089) — (43) —
Fair value of plan assets at end of year ...................... $1,244 $4,133 $ — $ 42
The weighted-average asset allocations for the pension plan as of December 31, 2006 and 2005 by asset
category are as follows:
2006 2005 2006 2005 2006 2005
Actual
Year Ended
December 31,
Target
Year Ended
December 31,
Range
Year Ended
December 31,
Equity securities.................................... 65% 65% 65% 65% +/-10% +/-10%
Debt securities ..................................... 15% 14% 15% 15% +/-5% +/-5%
Real estate ........................................ 10% 11% 10% 10% +/-5% +/-5%
Alternatives ....................................... 10% 10% 10% 10% +/-5% +/-5%
Total ............................................ 100% 100% 100% 100%
The Employee Benefits Committee, comprised of certain of our employees, has established an investment
policy that specifies asset allocation targets and ranges for the trust. The pension trust is invested in a well-
diversified portfolio of securities, but it does not hold any Sprint Nextel securities.
Funded Status
The following table illustrates the funded status of the pension and postretirement benefit plans:
Pension Plan
Postretirement
Benefit Plan Pension Plan
Postretirement
Benefit Plan
December 31, 2006 December 31, 2005
(in millions)
Projected benefit obligation.................. $(1,363) $N/A $(4,683) $ N/A
Accumulated benefit obligation ............... — (75) — (719)
Fair value of plan assets .................... 1,244 — 4,133 42
Underfunded status ........................ $ (119) $ (75) $ (550) $(677)
N/A — Not Applicable
F-45
SPRINT NEXTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)