Verizon Wireless 2006 Annual Report Download - page 67

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Obligations and Funded Status (dollars in millions)
Pension Health Care and Life
At December 31, 2006 2005 2006 2005
Change in Benefit Obligation
Beginning of year $35,540 $35,479 $26,783 $26,181
Service cost 581 675 356 358
Interest cost 1,995 1,959 1,499 1,467
Plan amendments –149 50 69
Actuarial (gain) loss, net (282) 327 152 403
Benefits paid (2,762) (2,831) (1,564) (1,662)
Termination benefits 47 11 14 1
Acquisitions and divestitures, net 477 (194) 40 (34)
Settlements (1,437) (35) ––
End of year $34,159 $35,540 $27,330 $26,783
Change in Plan Assets
Beginning of year 39,227 37,461 4,275 4,549
Actual return on plan assets 5,536 4,136 493 348
Company contributions 568 698 1,099 1,040
Benefits paid (2,762) (2,831) (1,564) (1,662)
Settlements (1,437) (35) ––
Acquisitions and divestitures, net 377 (202) ––
End of year $41,509 $39,227 $4,303 $4,275
Funded Status
End of year 7,350 3,687 (23,027) (22,508)
Unrecognized
Actuarial loss, net –4,685 –7,056
Prior service cost –1,018 –4,339
Net amount recognized $7,350 $9,390 $(23,027) $(11,113)
Amounts recognized on the balance sheet
Prepaid pension cost (in Other Assets) $12,058 $12,704 $– $–
Other assets –458 ––
Employee benefit obligation (4,708) (4,977) (23,027) (11,113)
Accumulated other comprehensive loss –1,205 ––
Net amount recognized $7,350 $9,390 $(23,027) $(11,113)
Amounts recognized in
Accumulated Other Comprehensive Income
Actuarial loss, net $1,428 $ 6,799
Prior service cost 975 4,029
Total $2,403 $ 10,828
Estimated amounts to be amortized from Accumulated Other
Comprehensive Income during 2007 fiscal year
Actuarial loss, net $98 $316
Prior service cost 43 393
Total $141 $ 709
Notes to Consolidated Financial Statements continued
65
Changes in benefit obligations were caused by factors including
changes in actuarial assumptions, curtailments and settlements.
In 2005, as a result of changes in management retiree benefits, we
recorded pretax expense of $430 million for pension curtailments
and pretax income of $332 million for retiree medical curtailments
(see Note 4 for additional information).
The accumulated benefit obligation for all defined benefit pension
plans was $32,724 million and $34,232 million at December 31,
2006 and 2005, respectively.
Information for pension plans with an accumulated benefit obliga-
tion in excess of plan assets follows:
(dollars in millions)
At December 31, 2006 2005
Projected benefit obligation $11,495 $11,567
Accumulated benefit obligation 11,072 11,165
Fair value of plan assets 8,288 7,500