Verizon Wireless 2008 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, 2008 2007 2006 2008 2007 2006
Service cost $ 382 $ 442 $ 581 $ 306 $ 354 $ 356
Interest cost 1,966 1,975 1,995 1,663 1,592 1,499
Expected return on plan assets (3,187) (3,175) (3,173) (321) (317) (328)
Amortization of prior service cost 62 43 44 395 392 360
Actuarial loss, net 40 98 182 222 316 290
Net periodic benet (income) cost (737) (617) (371) 2,265 2,337 2,177
Termination benets 32 – 47 7 – 14
Settlement loss 364 – 56 – – –
Curtailment loss and other, net – – – 24 – –
Subtotal 396 – 103 31 – 14
Total (income) cost $ (341) $ (617) $ (268) $ 2,296 $ 2,337 $ 2,191
Other pretax changes in plan assets and benefit obligations recognized in other comprehensive (income) loss are as follows:
(dollars in millions)
Pension Health Care and Life
At December 31, 2008 2007 2008 2007
Other changes in plan assets and benet obligations recognized
in other comprehensive (income) loss (pretax)
Actuarial (gain) loss, net $ 13,686 $ (1,317) $ 1,030 $ (444)
Prior service cost 293 –(6) –
Reversal of amortization items:
Prior service cost (62) (43) (395) (392)
Actuarial loss, net (404) (98) (222) (316)
Total recognized in other comprehensive (income) loss (pretax) $ 13,513 $ (1,458) $ 407 $ (1,152)
The estimated net loss and prior service cost for the defined benefit
pension plans that will be amortized from Accumulated other com-
prehensive loss into net periodic benefit cost over the next fiscal year
are $114 million and $112 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 $238 million and $401
million, respectively.
Additional Information
As a result of the adoption of SFAS No. 158 in 2006, we no longer record
an additional minimum pension liability. In prior years, as a result of
changes in interest rates and changes in investment returns, an adjust-
ment to the additional minimum pension liability was required for a
number of plans, as indicated below. The adjustment in the liability was
recorded as a charge or (credit) to Accumulated other comprehensive
loss, net of tax, in shareowners’ investment in the consolidated balance
sheets. The Additional Minimum Pension Liability at December 31, 2006,
was reduced by $809 million, ($526 million after-tax) based on the final
measurement just prior to the adoption of SFAS No. 158. The remaining
$396 million, ($262 million after-tax), was reversed as a result of the
adoption of SFAS No. 158.
(dollars in millions)
Years Ended December 31, 2008 2007 2006
Decrease in minimum liability included in other comprehensive income, net of tax $ – $ – $ (526)