Verizon Wireless 2007 Annual Report Download - page 64

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Notes to Consolidated Financial Statements continued
62
Net Periodic Cost
The following table displays the details of net periodic pension and other
postretirement costs:
(dollars in millions)
Pension Health Care and Life
Years Ended December 31, 2007 2006 2005 2007 2006 2005
Service cost $ 442 $ 581 $ 675 $ 354 $ 356 $ 358
Interest cost 1,975 1,995 1,959 1,592 1,499 1,467
Expected return on plan assets (3,175) (3,173) (3,231) (317) (328) (349)
Amortization of prior service cost 43 44 42 392 360 290
Actuarial loss, net 98 182 124 316 290 258
Net periodic benet (income) cost (617) (371) (431) 2,337 2,177 2,024
Termination benets –47 11 –14 1
Settlement loss –56 80 –– –
Curtailment (gain) loss and other, net –– 436 –– (332)
Subtotal –103 527 –14 (331)
Total (income) cost $ (617) $ (268) $ 96 $ 2,337 $ 2,191 $ 1,693
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
3 for additional information).
Termination benefits and settlement and curtailment losses of $94 mil-
lion pertaining to the sale of Hawaii operations in 2005 were recorded in
the consolidated statements of income in Sales of Businesses, Net.
Other changes in plan assets and benefit obligations recognized in other
comprehensive income in 2007 are as follows:
(dollars in millions)
Pension Health Care and Life
At December 31, 2007 2006 2007 2006
Other changes in plan assets and benet obligations recognized in other
comprehensive income (Pre-tax)
Actuarial (gain), net $ (1,317) $ – $ (444) $ –
Reversal of amortization items:
Prior service cost (43) –(392) –
Actuarial loss, net (98) –(316) –
Total recognized in other comprehensive income $ (1,458) $ – $ (1,152) $ –
The estimated net loss and prior service cost for the defined benefit pen-
sion plans that will be amortized from Accumulated Other Comprehensive
Loss into net periodic benefit cost over the next fiscal year are $39 million
and $54 million, respectively. The estimated net loss and prior service cost
for the defined benefit postretirement plans that will be amortized from
Accumulated Other Comprehensive Loss into net periodic benefit cost
over the next fiscal year are $268 million and $397 million, respectively.