Sprint - Nextel 2006 Annual Report Download - page 124

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Year Ended December 31, 2005
The funded status and amounts recognized on the accompanying consolidated balance sheet for the plans were
as follows:
Pension Plan
Postretirement
Benefit Plan
(in millions)
Projected benefit obligation in excess of plan assets ...................... $ (550) $ N/A
Accumulated postretirement benefit obligation in excess of plan assets ........ N/A (677)
Unrecognized net loss ............................................ 1,424 243
Unrecognized prior service cost (benefit) .............................. 80 (397)
Unamortized transition asset ........................................ (1) (7)
Net amount recognized ............................................ $ 953 $(838)
N/A — Not Applicable
Amounts recognized on the accompanying consolidated balance sheet consist of:
Pension Plan
Postretirement
Benefit Plan
(in millions)
Pension and other postretirement benefit obligations ...................... $ (435) $(838)
Intangible asset ................................................. 80 —
Accumulated other comprehensive loss ................................ 1,308 —
Net amount recognized ............................................ $ 953 $(838)
In accordance with SFAS No. 87, we had recorded an additional minimum pension liability as of December 31,
2005 and 2004 representing the excess of the unfunded accumulated benefit obligation over plan assets and
accrued pension costs. Recognition of the additional minimum pension liability also resulted in an intangible
asset equal to the unrecognized prior service costs, and a charge to equity through accumulated other
comprehensive loss.
The related charge to other comprehensive loss was $96 million in 2005 and $18 million in 2004. The related
tax effect was $38 million in 2005 and $10 million in 2004, resulting in a net charge to other comprehensive
loss of $58 million in 2005 and $8 million in 2004.
The charge to other comprehensive loss for the non-qualified benefit plan was $2 million in 2005 and
$20 million in 2004. The related tax effect was $1 million in 2005 and $7 million in 2004, resulting in a net
charge to other comprehensive loss of $1 million in 2005 and $13 million in 2004.
As of December 31, 2005, accumulated other comprehensive loss included net charges of $818 million related
to the additional minimum pension liability for the pension plan and the non-qualified benefit plan.
F-47
SPRINT NEXTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)